# Nepal infrastructure development and procurement

> Developing situation record from CLSTR: https://clstr.news/situations/nepal-infrastructure-development-and-procurement
> Updated: 2026-10-27T05:22:39.000Z. Sources: 2. Developments: 2.

The Nepalese government has introduced new guidelines to prioritize the use of domestic materials in public procurement. The ‘Guidelines on the Promotion and Use of Domestic Products in Public Procurement, 2083’ aims to reduce import reliance and support local industries by mandating the use of suitable local alternatives for road surfacing, construction materials, and electrical installations, provided they meet technical standards.

Despite these policy efforts to bolster domestic industry, major national infrastructure projects continue to face significant delays. A report from the National Planning Commission indicates that ‘national pride projects’ have averaged an annual physical progress of only 2.96 percent. While projects such as the Upper Tamakoshi Hydropower Project and various international airports have been completed, many others—including major irrigation, hydropower, and railway initiatives—remain incomplete despite substantial public spending.

## Timeline

### 2026-10-27: Nepal infrastructure projects face significant delays despite heavy investment

Nepal's national pride infrastructure projects are seeing minimal annual progress of 2.96 percent despite billions in spending, leaving many major works unfinished or yet to begin.

2 sources. https://clstr.news/cluster/nepal-infrastructure-projects-face-significant-delays-despite-heavy-investment

### 2026-10-17: Nepal government prioritizes domestic materials for public infrastructure

Nepal has approved new guidelines to prioritize domestic materials and technologies in public procurement and infrastructure to reduce imports and boost local industry.

3 sources. https://clstr.news/cluster/nepal-government-prioritizes-domestic-materials-for-public-infrastructure

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Cite as: Nepal infrastructure development and procurement. CLSTR, https://clstr.news/situations/nepal-infrastructure-development-and-procurement
