KATHMANDU, June 19: The government has unveiled a new infrastructure development strategy, preparing to launch projects worth nearly Rs 1.15 trillion over the next three years in an effort to accelerate construction and overcome long-standing delays in project implementation.
Although the government has allocated Rs 286.48 billion for road and urban infrastructure in the upcoming fiscal year 2026/27, it plans to implement projects worth around Rs 500 billion in physical infrastructure and Rs 650 billion in urban infrastructure through a multi-year approach.
Speaking in Parliament on Thursday, Minister for Infrastructure Development Sunil Lamsal said the government has moved away from the traditional annual budgeting model and adopted a three-year implementation framework.
"While the annual allocations shown in the budget book may appear modest, the overall size of the projects is much larger," Lamsal said. "We plan to implement projects worth Rs 1.15 trillion within the next three years."
The minister said criticism over lower allocations for roads and bridges stems from a misunderstanding of the government's new budgeting approach.
"Many have complained that insufficient funds have been allocated for roads and bridges," he said. "But we have not prepared a single-year budget. The projects have been planned under a three-year framework."
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According to the ministry, the new strategy aims to address one of the biggest obstacles to infrastructure development: lengthy procurement procedures. In the past, project design, procurement and contract management often took between 18 and 21 months, leaving little time for actual construction.
"We aim to complete these processes within six to seven months," Lamsal said.
The government has faced criticism for slow capital spending and delays in major infrastructure projects. In response, it has announced large-scale investments in roads, bridges, urban infrastructure, drinking water systems and sports facilities over the next three years.
Under the new plan, the government will prioritize multi-year projects and accelerate implementation across the country.
To improve connectivity, Rs 11 billion has been allocated to upgrade single-lane roads linking district headquarters into two-lane roads within three years. Another Rs 23 billion has been earmarked for landslide mitigation and slope protection works.
The ministry has also announced that all upgraded highways will be required to include modern infrastructure such as underpasses, overpasses and flyovers.
Road safety has been identified as a key priority. The government has allocated Rs 81.22 billion for the construction of 3,000 local bridges aimed at reducing accidents in high-risk areas and along rivers.
Alongside new construction, road maintenance and upgrading have also received significant attention. The government has allocated Rs 44 billion through the Department of Roads, Rs 12.19 billion through the Department of Local Infrastructure, and Rs 174 billion under a three-year plan through the Department of Urban Development and Building Construction for road maintenance and improvement works.
To strengthen local connectivity, the government has earmarked Rs 63 billion to construct and upgrade 2,800 kilometers of roads connecting all municipal and rural municipality centers within the next three years. An additional Rs 28.5 billion has been allocated for roads linking ward centers.
In the urban sector, the government plans to modernize markets in nearly 300 cities under an Intensive Urban Development Program, allocating Rs 88.33 billion for the initiative. Another Rs 57.71 billion has been set aside for settlement development programs.
A separate allocation of Rs 19.48 billion has been earmarked for a campaign to make the Kathmandu Valley dust-free.
To boost tourism and trade, the government has prioritized several strategic highway corridors, including the Rani–Biratnagar–Kimathanka, Birgunj–Rasuwagadhi, Bhairahawa–Korala, Koilabas–Dolpa, Jamunaha–Simkot, Gauriphanta–Badimalika and East-West Tourism Highway projects.
The government plans to invest around Rs 600 billion to construct nearly 3,000 kilometers of roads under these strategic corridors.
Lamsal also said feasibility studies for the proposed Kathmandu–Pokhara and Butwal–Pokhara expressways will be completed during the current fiscal year, paving the way for a modern road network that could reduce travel time between major cities to less than two hours.
The government has also announced major investments in sports infrastructure. Over the next three years, it plans to allocate Rs 5 billion for the construction of 10 football stadiums with a capacity of 8,000 spectators each, Rs 4 billion for eight cricket stadiums, and Rs 3.5 billion for seven indoor stadiums with a capacity of 2,000 spectators.
In the drinking water sector, the government aims to expand access to safe drinking water to 65 percent of the population within three years and 90 percent within five years. It also plans to bring completed overhead water tanks into operation by extending pipeline networks to surrounding communities.
