Nepal Infrastructure Development Plan 2081-86: Investment Board Strategy
2nd May 2025, Kathmandu
The Investment Board of Nepal has approved its new strategic and business plan, covering the period from 2081 to 2086. This plan focuses on the ambitious goal of developing infrastructure through public-private partnerships (PPP).
Nepal Infrastructure Development Plan
The board aims to complete 11 major projects over the next four years, with a total value of USD 895 million.
Key Objectives and Project Timelines
During a meeting held on Sunday, the board approved the strategy. Spokesperson Pradyumna Prasad Upadhyay explained that the plan includes clear guidelines and strategies for completing various projects in the next four years.
The plan emphasizes attracting large investments, creating a favorable environment for these projects, and ensuring effective workforce management. Upadhyay mentioned that with the right legal framework and workforce, the board believes they can meet their investment targets.
By the end of fiscal year 2085/86, the board plans to complete projects worth USD 895 million. However, if all 11 projects cannot be completed on time, the board has set a backup plan. At least five projects worth USD 407 million will be operational by that time.
The board also expects to see seven projects, valued at USD 283 million, enter the construction phase by 2085/86. Additionally, they aim to bring 14 more projects, worth USD 555 million, to the final stages of construction.
Pipeline Projects and Private Sector Participation
The board has outlined future plans as well. A total of 57 projects, valued at USD 2.43 billion, will undergo feasibility studies. Furthermore, 52 projects, worth USD 2.35 billion, will reach the procurement stage. Alongside this, 42 projects, totaling USD 1.95 billion, will move into the project development and implementation phases.
Looking ahead, the board has included private sector participation in 67 projects, with investments totaling USD 745 million. It has also allowed for the involvement of other entities in 25 projects, valued at USD 315 million. For the successful execution of these projects, the board has prepared an organizational structure with various directorates, ensuring the necessary staffing and management.
Challenges and Institutional Reforms
In addition to its ambitious goals, the strategic plan calls for institutional reforms. These include restructuring and strengthening the board’s organizational setup. The plan requires at least deputy-secretary-level staff in key positions across various directorates.
Despite these advancements, the board faces criticism for its past performance. Since its establishment, the board has approved investments for just 38 projects, amounting to NPR 1.2 trillion. However, a significant gap exists between approved investments and actual project completion.
Moreover, the board’s one-window service center, which was intended to streamline processes, has not been effective due to inadequate staffing. The center’s delays have hindered the implementation of decisions, and the board’s long-awaited separate fund for investments has still not been established, even after 12 years. Similarly, other essential funds, like those for land acquisition and compensatory measures, have not been created yet, leaving the board to rely on donor agencies for support.
Moving Forward
The new strategic plan sets high expectations for the Investment Board of Nepal. It aims to overcome past challenges while completing crucial infrastructure projects.
However, success will depend on the board’s ability to address its internal issues and ensure that both public and private investments are mobilized. If implemented effectively, this plan could significantly boost the country’s infrastructure development and economic growth.
For more: Nepal Infrastructure Development Plan
