Government Announces New Infrastructure Financing Model

Kathmandu. The government has announced the implementation of a new model for infrastructure financing to address the lack of investment in infrastructure construction and accelerate the pace of development. President Ram Chandra Paudel made this announcement while presenting the policy and program for the upcoming fiscal year 2083/84.

The government plans to implement a new financial model by integrating alternative development finance, diaspora capital (capital of non-resident Nepalis), and private sector investment. The policy and program mention that debt markets, bond markets, infrastructure bonds, and risk management instruments will be developed for long-term capital formation. The government has adopted a policy of focusing foreign aid, loans, and private investment only on projects that offer high returns.

Transformational projects will be advanced with clear objectives, definite budgets, and strict deadlines, President Paudel stated. To solve the problem of projects not being completed on time, the government will now arrange for direct performance agreements with project chiefs. The government is preparing to monitor work through a digital progress tracking system and will not change the responsibility of key personnel until the project is completed.

In addition, the government has expressed its commitment to prioritize resolving the legal and practical obstacles related to land acquisition and forests, which have always been seen as obstacles in project construction.