Logo

Jul 25 2026 |

Can Balen Shah break Nepal’s cycle of delayed projects?

Can Balen Shah break Nepal’s cycle of delayed projects?

Kathmandu-Nepal’s long-standing issue is that major development projects, announced enthusiastically, often remain incomplete for years. Roads, railways, irrigation systems, drinking water, and other infrastructure projects appear ambitious in political statements but face administrative hurdles, legal disputes, budget shortages, and institutional weaknesses, leading to unfinished projects even decades after foundation stones are laid.

The recently concluded House of Representatives election brought a new turn in Nepal’s political landscape. The Rastriya Swatantra Party secured a near two-thirds mandate, and former Kathmandu Metropolitan City mayor Balen Shah is preparing to become prime minister. During his campaign, he made delays in development projects a central issue, stating, “Projects will be completed on time, even if people have to be tied to trees.”

As he prepares to lead the government, questions arise about how he will translate this commitment into action. Many large projects in Nepal have been trapped in cycles of delay for decades.

A World Bank study highlights serious weaknesses in Nepal’s development management system. It notes that Nepal tends to approve too many projects without adequate preparation, spreading limited resources across multiple projects and preventing any single project from progressing at the expected pace. Based on current investment and implementation capacity, it may take a long time to complete the 17 ongoing national pride projects, with some taking up to 41 years without completion.

The Butwal–Narayanghat road upgrade project in Nawalparasi is an example of such delays. Initially planned for completion in 44 months, the project remains unfinished even after seven years, with deadlines repeatedly extended.

The Nagdhunga–Naubise–Muglin road, connecting Kathmandu to the Terai and India, faces delays due to the lengthy land acquisition process. The Kathmandu–Terai/Madhesh Fast Track, a major project linking Kathmandu to Nijgadh, has also failed to progress as expected, with repeated delays in deadlines. The Pushpalal Mid-Hill Highway and the Hulaki Highway, both crucial for geographical balance, remain incomplete. Nepal’s proposed Mechi–Mahakali electric railway project, an ambitious plan, faces significant delays due to its enormous cost and current investment levels.

Delays in infrastructure projects directly impact economic growth. In the 1990s, Nepal’s public capital was about three-fourths of its GDP, but this ratio has declined significantly in recent years, indicating weakening effectiveness of public investment. Capital expenditure has also declined, with a large portion of the allocated budget remaining unspent throughout the year and only rushed out in the final month of the fiscal year.

Research identifies the causes of delays in Nepal. On average, it takes two to three years to obtain permission for tree cutting, two to three years for land acquisition, and long periods for procurement processes. Frequent transfers of officials and the practice of awarding contracts at very low bids weaken project management.

To address these issues, the World Bank recommends strengthening project preparation, speeding up land acquisition and environmental approvals, using digital systems, and making public procurement more transparent and efficient.

Ensuring timely project completion will be a real test of governance for Balen Shah as he prepares to become prime minister. Improving project management systems and moving long-stalled projects forward could mark a new chapter in Nepal’s development administration.

However, strong statements alone won’t suffice. Deep reforms are needed in legal structures, administrative processes, budget discipline, and institutional coordination. The key question is whether Balen Shah can break the cycle of delays or if Nepal will continue to face unfinished projects.


Published : March 17, 2026, 11:31 AM

Comment Us
Releted News

© 2026 All right reserved to biznessnews.com | Site By : Sobij

© 2026 All right reserved to biznessnews.com | Site By : Sobij