KATHMANDU, Aug 18: The Ministry of Foreign Affairs will begin construction of embassy buildings in Canberra, Riyadh and Bangkok during the current fiscal year 2026/27.
Foreign Minister Shisir Khanal announced the plan while responding to a question raised by Nepali Congress lawmaker Nishkal Rai in the House of Representatives on Tuesday.
The government has allocated Rs 499.99 million for the embassy building in Canberra, Rs 192.3 million for the embassy in Riyadh and Rs 83.8 million for the embassy building in Bangkok.
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The ministry said the construction is intended to reduce the substantial amount spent annually on renting buildings for Nepali diplomatic missions abroad. Nepal spent around Rs 1.39 billion on rent for its missions during fiscal year 2025/26, accounting for nearly 17 percent of the ministry’s Rs 7.84 billion budget.
According to Minister Khanal, the ministry has already appointed a consultant for the Canberra project. In Riyadh, a consultant has been selected and an initial design prepared, while the cost estimate for the Bangkok embassy and residential building is being prepared.
The ministry previously faced procedural difficulties in constructing public buildings abroad due to the lack of clear provisions in the Public Procurement Act and Regulations. A recent amendment to the Public Procurement Act, however, has established a legal basis for Nepali missions to construct buildings overseas.
The ministry plans to gradually construct embassy and residential buildings on land already owned by Nepal in other countries as well, with the aim of reducing rental expenses and strengthening Nepal’s institutional presence abroad.
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