Large-Scale Projects to Advance with Alternative Development Financing for Public Infrastructure

The government has passed a bill in the House of Representatives to mobilize private and alternative financing for infrastructure development. In the upcoming budget, infrastructure projects with 70 to 75 percent physical progress will be prioritized and allocated the necessary funds. The government has also decided to move forward with plans to construct over 3,000 bridges in the next three years. May 24, Kathmandu.

Through the budget for the fiscal year 2079/80 (2022/23), the government intends to adopt a policy to engage the private sector and alternative financial sources in public infrastructure development. To this end, a bill concerning the mobilization of alternative development finance has already been passed by parliament. According to Finance Minister Dr. Swarnim Wagle, the government aims to create an environment that encourages private sector investment in infrastructure development this time.

Last week in the House of Representatives Finance Committee, Minister Wagle stated, ‘Large-scale infrastructure development is not possible solely with small contributions from revenue or donor agencies.’ He emphasized that it was necessary to pass the bill before the budget to enable investments worth billions of rupees beyond limited public financial resources.

Sources from the Ministry of Infrastructure Development reveal that this year, efforts will focus on completing and accelerating projects initiated by previous governments. Although announcing new projects is not a priority in the budget, preparations are underway to publicly declare a policy that opens infrastructure investment to private and alternative financing through the budget.