2. BRIEF COUNTRY PROFILE
• A land-linked, not a landlocked country
• Unitary to Federal Structure (Stable
Governments at Federal, Provincial and
Local levels)
• Economic Growth Rate: 6.3% (2017)
• Total Budget: USD 12.15 billion (2018‐2019)
• Aims to graduate to middle income country
by 2030
3. INFRASTRUCTURE SCENARIO
ROAD DENSITY
Nepal:
(139 km/1000 km2)
South Asia:
(1123 km/1000 km2)
URBANIZATION
Urban Area Population:
~20%
Growth Rate:
5%
INFRASTRUCTURE
Investment need:
US$ 17.70 billion/year for SDG
target
4. OVERVIEW OF TRANSPORT SECTOR
• Major Modes of Transportation: Road and Aviation
• Developing Modes: Railways and ropeways (Cable cars)
• Sectoral growth of transport, communication and storage: 5.4% (FY 017/18)
• Contribution to the GDP: 8.0%
• Investment Plan for next 5-year: US$ 8.2 billion
• Road Network: 70,000 km (SRN and LRN)
• Road Connectivity: 76 out of 77 district headquarters
5. CURRENT STATUS OF AVIATION SECTOR:
• Tribhuwan International Airport (TIA): Upgradation underway
• Regional Airports: 3 under expansion plan (Nepalgunj, Biratnagar,
Dhangadhi)
• New International Airports: Gautam Buddha and Pokhara International
Airport coming into operation within 2019 and 2020 respectively
• Domestic Airports: 32 out of 50 are in operation
• Nijgadh International Airport: Land Acquisition and EIA completed,
private sector called for development
OVERVIEW OF TRANSPORT SECTOR
6. • Railway Plans: East-West, South-North connecting India and China
• Waterways Plans: In the Koshi, Gandaki and Karnali Rivers. Policies, Laws
and Institutional arrangements are under development
OVERVIEW OF TRANSPORT SECTOR
7. 1992 1992 1996 2000 2004 2008 2012 2016
Hydropower
Policy, Electricity
Act,
BOT Policy
on Road
Sector
Hydropower Policy,
Public Infrastructure
BOT Policy Private Financing
in Public
Infrastructure
(BOT) Act and
Regulation
PPP Policy,
Foreign
Investment
and One-
Window
Policy
Electricity
Regulatory
Commission
Act PPP and
Investment
Act, FITTA
EVOLUTION OF POLICY AND LEGAL FRAMEWORK
8. Institutional arrangements (Policy Level)
• Ministries (Physical Infrastructure and Transport; Federal Affairs
and General Administration; Culture, Tourism and Civil Aviation)
• National Planning Commission and Investment Board Nepal
Regulatory and implementation level
• Departments (Road, Local Infrastructure, Railways, Transport
Management)
• Civil Aviation Authority, Roads Board Nepal, Waterways office
INSTITUTIONAL ARRANGEMENTS
9. POLICY PROVISIONS, REFORMS AND INCENTIVES
• Provision of Viability Gap Funding (VGF): PPP and Investment Act, 2019
• Concession Period: Not limited
• Subsidy Policy: Determined on case to case basis by the Government
• Unsolicited Proposal: PPP and Investment Act, 2019
• Land Acquisition: Facilitated by the Government
• Risk Sharing: Provision of risk sharing between Private and Public Sectors
• Environment: Clear legal provision on environmental standards
• Repatriation: Allowed in FDI projects
10. EXPERIENCE OF PRIVATE INVESTMENT IN
PUBLIC INFRASTRUCTURE
• In Hydropower Projects: Widely and Successfully practiced under BOOT
Model (Bhotekoshi, Khimti, Arun-3 etc.)
• In Ropeways/Cable Cars: Several projects in operation (Manakamana,
Chandragiri, Kalinchowk, etc.)
• In Road & Airport: In Planning (Nijgadh International Airport)
• In Urban Development: In development phase (Solid Waste Management
Project – Kathmandu)
13. 8. Maintenance, Repair and Overhaul (MRO) in Aviation Sector
9. Pokhara Regional International Airport (PPP Operations)
10. Gautam Buddha International Airport (PPP Operations)
11. Nijgadh International Airport (PPP Construction and Operations)
12. Management and Operations of Tribhuvan International Airport
13. Biratnagar Regional International Airport
14. Dhangadi Regional International Airport
POTENTIAL/READY-TO-GO PROJECTS
(AVIATION)
14. 15. Waterways: Koshi, Gandaki and Karnali rivers connecting India
16. Cable Cars: Jomsom, Muktinath, Swargadwari, Pathibhara, Maulakalika,
Jalpadevi, Annapurna-Sikles, Khaptad, etc.
POTENTIAL/READY-TO-GO PROJECTS
(WATERWAYS AND CABLE CARS)
15. 17. Bus Rapid Transit (BRT): Ring road in Kathmandu, Buddhist and
Ramayan Circuit
18. Metrorail: Kathmandu Valley
19. Urban Transport: In major Cities (Pokhara, Biratnagar, Nepalgunj, etc.)
20. Inter-state & Intra-state Public Transportation: All 7 Provinces
POTENTIAL/READY-TO-GO PROJECTS
(MASS TRANSPORTATION)
17. OPPORTUNITIES
• Huge infrastructure gap
• Government's priority for infrastructure development.
• Political Stability and consensus on FDI
• Enabling Business Environment
• Conducive Institutional and Legal environment
• Sound Law and Order
