Government to Introduce Laws and Management System to End Delays and Inefficiencies in Infrastructure Projects
Authorities have announced preparations for the introduction of a ‘Facilitation Act’ and the establishment of an ‘Infrastructure Tribunal’ aimed at promptly resolving delays and disputes in major projects and preventing their recurrence. These issues, particularly prevalent in nationally significant projects, have been causing hardships for the general public. Excessive costs and their impact on revenue represent another serious concern. Ashish Gajurel, Chairman of the Parliamentary Infrastructure Development Committee, stated that plans are underway to implement such a “sunset law” within the next 10 years. “The Rashtriya Swatantra Party (RSP) has set a target of 7 percent economic growth over five years, which cannot be achieved without rapid infrastructure development or significant capital expenditure,” Gajurel noted. “Once this law is enacted, other obstructive legislations will be rendered ineffective, allowing infrastructure work to progress swiftly.”
The draft of the ‘Development Project Management and Implementation Facilitation Act,’ currently under discussion, was prepared by a committee led by Arjun Jung Thapa at the National Planning Commission of Nepal. Finalized in 2080 BS, the draft received inputs from representatives of the Prime Minister and Council of Ministers’ Office, relevant ministries, and the Public Procurement Monitoring Office. “Existing laws related to forests, environment, procurement, and trusts are adequate. Only certain provisions complicate development and construction. The government has already made improvements in these areas,” explained Planning Commission member Thapa.
“This legislation will address practical issues such as delays in decision-making, slow approvals, unavailability of stone and gravel, tree felling procedures, and delays in environmental impact assessments.” Director committees led by the Prime Minister have been formed. If any agency fails to complete work within the stipulated timeframe, these committees will have the authority to grant approvals accompanied by penalties and sanctions. According to Thapa, once enacted, such matters will rarely need escalation to the Prime Minister. Currently, three projects approved by the Ministry of Forests in Langtang National Park have been halted without clear reasons.
Spokesperson Ramhari Pokharel emphasized the necessity of establishing an Infrastructure Tribunal, citing that cases related to development and construction suffer from slow resolution due to the convoluted process in regular courts. “The involvement of expert judges will ensure faster and more accurate dispute resolution,” he stated. Timely resolution of contract disputes will prevent project delays, he added. Gajurel highlighted, “When major infrastructure issues are handled through regular courts, processes become cumbersome and obstructive.”
“The tribunal will comprehensively address problems related to river-related matters, cost escalation, deadline extensions, and forest-related issues,” he concluded.