Energy Minister Stresses Project Delays Increase Costs

Kathmandu. Energy, Water Resources and Irrigation Minister Viraj Shrestha has said that delays in development construction projects have increased costs and raised questions about the relevance of investment.

Speaking at a meeting of the Infrastructure Development Committee under the House of Representatives, Minister Shrestha mentioned that the practice of not completing projects on time makes them more expensive and affects the country's economy.  

Giving the example of the hydropower sector in particular, Minister Shrestha said, 'When the private sector invests in hydropower, the cost at which it should be built is becoming very expensive due to delays. At some point, we will reach a major debate on whether hydropower investment is relevant or irrelevant.' He emphasized the need to create an investment-friendly environment by looking at international practices.  

Minister Shrestha said that it is difficult to work due to the existing public procurement act and procedural complexities. 'We have not yet been able to proceed in a practical and scientific manner. There are resources, and there are public expectations, but the mechanism for mobilization is not clear,' he said. He argued that practical amendments to laws, including the public procurement act, are necessary for the upcoming fiscal year.  

Minister Shrestha pointed out that legal weaknesses in development construction have also reduced foreign direct investment and private sector enthusiasm. He informed that the ministry is coordinating with the Ministry of Finance and the Prime Minister's Office to solve such problems.  

Minister Shrestha said that the parliamentary committee should play an active role in maintaining the quality of projects and preventing delays. He said, 'Let the committee create a system for monitoring projects. This will also motivate us to work and help bring responsible individuals within the scope.'