{"id":290887,"date":"2026-03-15T21:05:54","date_gmt":"2026-03-15T15:20:54","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=290887"},"modified":"2026-03-15T21:10:06","modified_gmt":"2026-03-15T15:25:06","slug":"systemic-obstacles-in-infrastructure-construction-national-pride-projects-may-take-41-years-to-complete-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/systemic-obstacles-in-infrastructure-construction-national-pride-projects-may-take-41-years-to-complete-2\/","title":{"rendered":"‘Systemic’ obstacles in infrastructure construction, national pride projects may take 41 years to complete"},"content":{"rendered":"

Kathmandu.\u00a0 KATHMANDU: The World Bank has exposed the fact that although the projects of Nepal’s pride and strategic importance appear excellent on paper, there are serious ‘systemic’ obstacles at the level of implementation. The World Bank’s recent report ‘<\/b>Nepal Capital Expenditure Bottlenecks Analysis (October 2025) has pointed out serious weaknesses in Nepal’s public investment management. <\/p>\n

The World Bank has concluded that 17 projects of national pride should wait 41 years for the TAG_OPEN_span_81 completion of 17 projects of national pride on the basis of the current financial allocation, due to the continuous decline in the share of capital expenditure. If this situation continues, it will prove to be very costly for Nepal to benefit from infrastructure construction. <\/span><\/p>\n<\/p>\n

According to the data published by the Ministry of Finance, the share of capital expenditure in Nepal’s gross domestic product (GDP) has been continuously decreasing.TAG_OPEN_p_101 In the fiscal year 2077\/78, the government spent 11.4 percent of the GDP, which has come down to 7.8 percent in the fiscal year 2080\/81. <\/p>\n<\/p>\n

Currently, only 62 percent of the budget allocated at the federal level is being spent on an average.TAG_OPEN_p_100 <\/p>\n<\/p>\n

3 months spent on land acquisition<\/span><\/h4>\n<\/p>\n

}<\/p>\n

The upgradation of the Nagdhunga-Naubise-Muglin road section, which is considered to be the life route linking Kathmandu to the Tarai and India, has brought to the fore a bitter reality of Nepal’s infrastructure mechanism.TAG_OPEN_p_99 It took 35 months to complete the land acquisition process for this 94.7-km section. This time is one and a half times more than the stipulated time for the construction of road infrastructure. The report states that the delay in the project will not only increase the cost of the project but also have a direct impact on service delivery and economic growth. <\/p>\n<\/p>\n

The report attributes the slowdown in infrastructure construction to the following reasons: <\/p>\n<\/p>\n

    \n
  • \n

    Forest and land disputes: On an average, it takes 2 years to get permission for tree felling and 2 to 3 years to resolve land acquisition disputes. <\/p>\n<\/p>\n<\/li>\n

  • \n

    More than 40 per cent of the total capital expenditure is spent only in the last month of the financial year, raising questions about the quality of work.TAG_OPEN_p_96 <\/p>\n<\/p>\n<\/li>\n

  • \n

    Delay in procurement process: The procurement process of the World Bank-assisted projects in Nepal is the longest in South Asia (an average of 231 days). <\/p>\n<\/p>\n<\/li>\n

  • \n

    Poor budget management: Including under-prepared projects in the budget has led to the problem of scattering resources and not starting the work. <\/p>\n<\/p>\n<\/li>\n<\/ul>\n

    Five areas of improvement<\/span><\/h4>\n<\/p>\n

    }<\/p>\n

    The World Bank has presented a five-point reform blueprint to bridge the infrastructure gap in Nepal and accelerate its implementation: <\/p>\n<\/p>\n

    }TAG_OPEN_p_93<\/p>\n\n\n\n

    \n\n

    \n

    \n

    \n

    \n

    Correction Area<\/strong><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		Recommended change{<\/strong><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		Expected Achievement<\/strong><\/span><\/td>\n<\/p>\n

    }<\/p>\n<\/tr>\n<\/thead>\n

    Planning Priorities<\/b><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		 Budget will be given only to the projects that are fully prepared. <\/span><\/td>\n<\/p>\n

    		 The number of stalled projects will decrease. <\/span><\/td>\n<\/p>\n<\/tr>\n
    Project Readiness<\/b><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		 to ensure clearance of land and forest before budget. <\/span><\/td>\n<\/p>\n

    		 Minimize delays in starting work. <\/span><\/td>\n<\/p>\n<\/tr>\n
    Cash Management<\/b><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		 Implement a reliable cash projection and spending system. <\/span><\/td>\n<\/p>\n

    		 End of the year-end rush will be stopped. <\/span><\/td>\n<\/p>\n<\/tr>\n
    budget amount<\/b><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		 To make the money transfer process simple and responsible. <\/span><\/td>\n<\/p>\n

    		 The budget can be transferred immediately to the projects that do not run the money. <\/span><\/td>\n<\/p>\n<\/tr>\n
    Purchase Corrections<\/b><\/span><\/td>\n<\/p>\n

    }<\/p>\n

    		 Strengthening the e-procurement and risk sharing system. <\/span><\/td>\n<\/p>\n

    		 The tender process will be quick and hassle-free. <\/span><\/td>\n<\/p>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

    Kathmandu.\u00a0 KATHMANDU: The World Bank has exposed the fact that although the projects of Nepal’s pride and strategic importance appear excellent on paper, there are serious ‘systemic’ obstacles at the level of implementation. The World Bank’s recent report ‘Nepal Capital Expenditure Bottlenecks Analysis (October 2025) has pointed out serious weaknesses in Nepal’s public investment management. […]<\/p>\n","protected":false},"author":5,"featured_media":258613,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45077,45159],"tags":[],"class_list":["post-290887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-corporate-2-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/290887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=290887"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/290887\/revisions"}],"predecessor-version":[{"id":290888,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/290887\/revisions\/290888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/258613"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=290887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=290887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=290887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}