Outer Ring Road project stalled for 24 years despite Rs 150 million spent

KATHMANDU, June 22: The government has been handing out hollow promises in the name of the Outer Ring Road to valley residents for the past 24 years, but the project has yet to see any physical progress. More than Rs 160 million has already been spent on the project which was first conceptualized in 2058 BS.

Since the Fiscal Year (FY) 2003/04, the government has been mentioning the Outer Ring Road in every budget speech and has been allocating some amount to it each year. This year too, the government allocated Rs 2 million for the Outer Ring Road.

Since 2060 BS (2003/04), the government has been paying monthly salaries and allowances to 17 employees under the name of this project. Among the 17 employees, three are permanent and 12 are working on a contract basis. A separate unit has been established under the Kathmandu Valley Development Authority (KVDA) to oversee this project. Currently, Subas Basnet, Kathmandu District Commissioner of the KVDA, is serving as the chief of this project.

In the FY 2023/24, Rs 5.781 million was spent on salaries, allowances, and office operations for the employees assigned to this project.

The 62nd annual report of the Auditor General has drawn the government’s attention to the fact that while the objectives of the project are not being met, annual administrative expenditures such as salaries and allowances continue. The public report for FY 2024/25 has raised serious questions about zero work being done in the 24 years since the Outer Ring Road concept was introduced.

“It has been 23 years since the concept was brought and 10 years since the detailed project report (DPR) was prepared, yet the project has not started,” the report stated. “Since administrative expenses are being incurred annually under the project’s name, the ministry must bring policy clarity regarding its implementation.”

Ten years ago, the Detailed Project Report (DPR) for the project was prepared. In the DPR, the Outer Ring Road was designed to be 50 meters wide. According to the KVDA, the Outer Ring Road will cover 35.8 kilometers in Kathmandu, 15 kilometers in Lalitpur, and 21 kilometers in Bhaktapur.

When the concept of this project was presented, the goal was to complete all the work within ten years. However, not only has the project failed to meet the 10-year target, even after 20 years, no work has been initiated. It was initially estimated that Rs 72 billion would be required for the project.

The Outer Ring Road was conceptualized to encircle most urban areas of the Kathmandu Valley with a total length of 72 kilometers. It will be constructed to connect the three districts of Kathmandu, Lalitpur, and Bhaktapur.

According to the report of the Auditor General, Rs 154.346 million has been spent on the project until the fiscal year 2023/24. In the FY 2003/04, the cost of acquiring land for the Outer Ring Road was estimated at Rs 56 billion at the rate of Rs 500,000 per anna. So far, no progress has been made in this area. In the budget speech of FY 2004/05, the government announced that the Outer Ring Road would be constructed through land pooling in the valley.

According to the design prepared for the project, the Outer Ring Road will feature a six-lane road including a cycling track, green belt, and footpath, with a total width of 50 meters. Additionally, land on both sides of the road up to 250 meters each will be pooled for planned settlements.

So far, the only work done for the project is the proposal submitted by the KVDA to the Government of Nepal for land acquisition along the 6.6 km Satungal section of the Outer Ring Road. Even this proposal has seen no progress.

Subas Basnet, chief of the Outer Ring Road Project, stated that in the upcoming fiscal year 2025/26, a decision has been made to open a track in the first phase from Satungal to Chobhar. “We have made plans to do some work for the Outer Ring Road in the upcoming fiscal year,” he said, “Now some progress will definitely take place in this project.”

The Outer Ring Road was conceptualized to gradually move the population clustered within the Inner Ring Road outward and to make the chaotic development of the valley organized, simple, and sustainable. In 2073 BS, the KVDA had made the design map of the Outer Ring Road public. Even now, the only tangible outcome of the Development Authority remains that same map.