24th April 2025, Kathmandu
The Government of Nepal has trimmed over 10,000 projects from the National Project Bank. This move aims to focus the upcoming fiscal year 2082/83 budget on implementable and result-oriented programs only.
Nepal Government Project Bank Reform
Old System Found Inefficient
The National Planning Commission (NPC) identified serious flaws in the existing Project Bank. Many projects lacked essential details. Some entries even included just the project name. Dr. Prakash Kumar Shrestha, a member of the NPC, shared this information during a recent meeting of the House of Representatives’ Finance Committee.
Last year alone, around 11,000 projects were entered into the system at the last minute. This caused concern about transparency and planning standards. As a result, the NPC decided to deactivate the old Project Bank. However, it is still kept as a backup to reference quality projects.
New Project Bank Introduced
The NPC has launched a new Project Bank. As of now, over 6,200 projects have been recorded. Among these, 3,180 are newly submitted projects. The goal is to ensure only well-prepared and impactful projects get budgeted.
This new system comes with strict entry guidelines. Agencies must submit detailed engineering designs, environmental reports, implementation plans, procurement plans, and budget estimates. Projects lacking this documentation are no longer accepted.
Urban Development Tops the List
Most projects in the new Project Bank fall under infrastructure. The Ministry of Urban Development leads with more than 2,425 projects. It is followed by the Ministry of Water Supply with 2,118 projects and the Ministry of Physical Infrastructure and Transport with over 1,100 projects.
Clear Standards Set
The “National Project Bank (Operation and Management) Guidelines, 2081” define the requirements. According to the guidelines, only projects costing over NPR 30 million or receiving allocations above this amount qualify for entry.
Projects must also meet specific conditions. They should have a clear objective, a defined timeline, and identified funding sources. These sources may include the Government of Nepal, internal and external loans, or grants.
Projects operated through public-private partnerships and those of national priority from provincial or local governments also fall within the scope.
Deadline and Compliance Issues
For new projects in the next fiscal year, entries were to be completed by the end of Falgun. However, for FY 2082/83, the deadline was extended to the end of Chaitra. Despite these deadlines, some ministries continued to submit entries beyond the set dates, which violates the guidelines.
A Step Toward Budget Discipline
The Government introduced the Project Bank concept to discourage random and unprepared project proposals. Previously, many low-return or unviable projects made it into the budget, often without proper groundwork or funding assurance.
The new system aims to bring accountability. It also seeks to integrate project management with key government information systems like the budget management system, the electronic procurement system, and the Prime Minister’s integrated online monitoring platform.
Conclusion
Nepal’s shift to a refined Project Bank marks a turning point in public investment planning. With tighter screening and better documentation, the government hopes to fund only meaningful and productive projects.
For more: Nepal Government Project Bank Reform