Nepal plans Rs 1 trillion infrastructure tenders next year under three-year development strategy

KATHMANDU: Minister for Physical Infrastructure and Transport Development Sunil Lamsal has unveiled an ambitious three-year infrastructure strategy, announcing plans to issue contracts worth Rs 1 trillion in the upcoming fiscal year despite a ministry budget of only Rs 286 billion.

Responding to lawmakers during discussions on the national budget in Parliament on Thursday, the engineer-turned minister said the government has adopted a multi-year budgeting approach aimed at accelerating project implementation and reducing delays in public infrastructure development.

Lamsal argued that the traditional annual budgeting system wastes significant time in procurement and project preparation. According to him, it typically takes six to seven months to complete tendering, site clearance, DPR preparation and cost estimation, leaving limited time for actual construction.

“We have not prepared a single-year budget. We have designed a three-year plan. By bundling similar projects and opening tenders together, we can save up to 14 months and significantly increase construction time,” he said.

Under the new approach, the government plans to invite tenders worth Rs 1 trillion during the next fiscal year while implementing projects through multi-year contracts with price escalation provisions.

Rs 600 Billion Tourism Highway Initiative

A key component of the strategy is the development of eight major tourism highways, which are expected to attract Rs 600 billion in investment over the next three years.

The selected corridors include:

• Rani–Biratnagar–Kimathanka
• Birgunj–Rasuwagadhi
• Bhairahawa–Korala
• Koilabas–Dolpa
• Jamunaha–Simkot
• Gauriphanta–Badimalika
• Two additional east-west tourism corridors

Lamsal said tourism-led infrastructure development is crucial for reviving Nepal’s economy and that the selected highways will be developed to expressway standards.

“If Nepal wants to attract more tourists, modern road infrastructure is essential. These 3,000 kilometers of tourism highways will become a major economic catalyst,” he said.

New Expressways Planned

The minister announced that the government will call tenders within the current fiscal year for an expressway linking Butwal and Pokhara, reducing travel time between the two cities to approximately two hours.

The ministry will also begin studies for a Kathmandu–Pokhara Expressway, aiming to cut travel time between the capital and the tourism hub to just two hours.

Major Road Safety and Bridge Program

Lamsal said the government has prioritized road safety more aggressively than any previous administration.

A three-year road safety plan includes:

• Rs 4.74 billion for road furniture and safety installations.
• Rs 23 billion for landslide mitigation and slope stabilization projects.
• Mandatory inclusion of underpasses, overpasses and flyovers in all future road projects.
• Safety upgrades through variation orders even on roads currently under construction.

The minister noted that bridges remain among the most accident-prone sections of Nepal’s road network and announced plans to construct 3,000 bridges within three years at an estimated cost of Rs 81.22 billion.

Massive Road Maintenance and Local Connectivity Drive

The government also plans to rehabilitate 15,000 kilometers of roads over the next three years.

The estimated spending includes:

• Rs 44 billion through the Department of Roads.
• Rs 12.19 billion through the Department of Local Infrastructure Development.
• Total road maintenance and urban road investment of approximately Rs 157 billion.

“No road should remain full of potholes. We have allocated maintenance funding at a level not seen in the past decade,” Lamsal said.

In addition, the government plans to blacktop around 2,800 kilometers of roads connecting local government centers, with an estimated investment of Rs 63 billion.

Market and Settlement Development

Beyond transport infrastructure, the minister announced plans to establish at least two markets in every district, with larger districts receiving up to ten markets. The government expects to spend Rs 88.33 billion on market development over three years.

A further Rs 57 billion has been earmarked under a settlement development program aimed at creating more organized and planned rural communities.

The announcement marks one of Nepal’s most ambitious infrastructure blueprints in recent years, with the government seeking to leverage multi-year contracting and large-scale project bundling to accelerate construction, boost tourism, improve road safety and stimulate economic growth.