Nepal infrastructure projects face significant delays despite heavy investment

Nepal’s national pride projects are experiencing slow progress and significant delays despite billions of rupees in public spending. According to a report from the National Planning Commission, these initiatives have recorded an average annual physical progress of only 2.96 percent.

Of more than two dozen projects designated with this status, only three have been completed: the Upper Tamakoshi Hydropower Project, Pokhara International Airport, and Gautam Buddha International Airport. Among the 24 ongoing projects, construction has not yet begun on the Gautam Buddha International Cricket Stadium and the West Seti Hydropower Project.

Several long-term initiatives continue to struggle. The Babai Irrigation Project, which began in fiscal year 1988/89, has reached 82 percent progress after spending Rs 18.21 billion. The Sikta Irrigation Project stands at 51 percent completion with Rs 24.33 billion spent. Other major projects, including the East West Electric Railway, the Budhigandaki Hydropower Project, and various highway corridors, also face delays and rising costs.