Govt to amend Public Procurement Act within 30 days, Fast-track tree cutting and project approvals

KATHMANDU: The government has announced a sweeping reform agenda targeting public procurement, infrastructure execution, and investment efficiency, including a commitment to amend the Public Procurement Act within 30 days and streamline processes such as tree cutting and environmental approvals.

The reform measures are part of the “100 governance reform initiatives” approved by the Cabinet, aimed at reducing delays, curbing corruption, and accelerating national priority projects.

Procurement Law Overhaul to Ensure Efficiency and Transparency

Under the new plan, the Public Procurement Act will be revised within a month to address chronic issues such as delays, cost overruns, poor-quality work, and corruption in government contracting.

The revised framework will introduce advanced procurement principles including:

Value for Money
Life Cycle Costing
e-Government Marketplace (e-GP Marketplace)
Performance-Based Contracting

The government aims to make procurement processes fully digital, transparent, and trackable while promoting fair competition among bidders.

Fast-Track Mechanism for Major Projects

To accelerate implementation of national pride and strategic projects, the government will introduce a fast-track mechanism covering:

Land acquisition
Compensation determination
Tree cutting approvals
Environmental Impact Assessment (EIA) clearance

An integrated and automated approval system will be implemented through coordination among all relevant agencies, with strict timelines to eliminate procedural redundancies.

The Office of the Prime Minister and Council of Ministers will directly monitor and facilitate project execution to resolve bottlenecks.

National Project Pipeline and Investment Modality

The National Planning Commission Nepal has been tasked with preparing a national-level project pipeline within two months, categorizing projects based on economic, social, and environmental priorities.

Each project will also be assigned an appropriate investment model, including:

Government funding
Public-Private Partnerships (PPP)
Foreign investment
Review and Reform of Stalled Projects

The government will review long-delayed, underperforming, and abandoned projects to simplify processes such as:

Budget allocation
Land acquisition
EIA approvals
Contract termination

A dedicated study team will be formed within 30 days to evaluate project viability and recommend whether to continue or discontinue specific projects.

Government Infrastructure Company Planned

To address repeated failures in contractor selection and execution, the government plans to establish a state-owned infrastructure construction company.

Projects that fail to secure contracts after two attempts or face repeated procurement failures will be directly executed through this company. Necessary legal frameworks, along with resource and manpower arrangements, will be prepared within 30 days.

End-to-End Digital Procurement Monitoring

To tackle irregularities such as misuse of variation orders and lack of oversight, the government will implement a data-driven, end-to-end e-procurement monitoring system within 90 days.

This system will track all stages—from project selection to payment—ensuring accountability and minimizing delays.

Umbrella Law and Road Infrastructure Focus

A draft umbrella law on project facilitation will be prepared within 60 days to address legal and procedural complexities that delay infrastructure development.

Additionally, the government will immediately enforce project monitoring schedules for key road and transport infrastructure projects that have long caused public inconvenience.

Strategic sections of highways will also see the installation of weighbridges within 45 days, following necessary studies.

Reform Momentum and Economic Impact

These measures signal a strong push toward improving governance, enhancing ease of doing business, and restoring confidence among investors and the private sector.

By digitizing procurement, fast-tracking approvals, and tightening oversight, the government aims to create a more predictable, transparent, and investment-friendly environment in Nepal’s infrastructure and development landscape.