Nepal | November 30, 2020

Cost overrun of NPPs surges by Rs 283 billion: NPC report

Himalayan News Service
Share Now:

Kathmandu, February 12

The cost overrun of national pride projects (NPPs) has surged by Rs 283 billion due to perennial delays.

According to a recent study of National Planning Commission (NPC), the government would have been able to save Rs 283 billion if the 22 projects that have been classified as NPPs were completed on time.

As the completion deadline of the projects has been extended time and time again citing various reasons, the country has lost more than Rs 300 billion in terms of expected output, as per the report.

Moreover, the progress of NPPs was only lukewarm in the first half (mid-July to mid-January) of this fiscal year.

Project cost

Name Initial estimate Revised
Babai Irrigation 2.87 1.89
Bheri-Babai Diversion 16.43 33.19
Budhigandaki Hydro 260 260
Kathmandu-Tarai Fast Track 111 213.95
Gautam Buddha Intl Airport 29.21 49.29
Hydro Transmission Line 70 70
Kaligandaki Corridor 28.8 28.8
Karnali Corridor 4.1 11.1
Koshi Corridor 5.79 16.2
Lumbini Area Development 5.55 6.1
Melamchi Drinking Water 24 35.54
Mid Hill Highway 33.36 84.33
Nijgadh Intl Airport 700 700
Pashupati Area Development 2.1 2.1
Pokhara Intl Airport 22.1 22.1
Postal Highway 47.24 65.2
President Chure Conservation 1.25 8.55
Rail and Metro Rail Development 70.61 70.61
Rani Jamara Irrigation 12.37 27.7
Sikta Irrigation 12.8 25.2
Upper Tamakoshi Hydro 35.29 49.29
West Seti Hydro 148.7 148.7
Amount in Rs bn; Source: NPC

According to the NPC, the total cost of the 22 NPPs has now reached Rs 1,927 billion against the initial projected cost of Rs 1,644 billion.

The commission has calculated the total cost of the projects based on their master plans. However, as the master plans of some of projects have not been approved yet, the planning body said that the cost calculation was based on the detailed feasibility study report of such projects.

As per NPC, the average cost per project has surged by Rs 12.90 billion. While the average cost of the 22 pride projects was Rs 74.7 billion, the cost has now risen to Rs 87.6 billion.

Among the NPPs, the cost overrun of Kathmandu-Tarai Fast Track is highest at Rs 102.9 billion. The government has assigned Nepali Army (NA) to complete the project. However, NA is yet to provide a justified reason for raising the construction cost of the project.

Meanwhile, Prime Minister KP Sharma Oli, on Monday, expressed concerns over the failure of different layers of governments in expediting development works as expected. Addressing the 47th meeting of the National Development Action Committee at the NPC, PM Oli expressed his frustration over unsatisfactory progress in project implementation, capital expenditure and delays facing various foreign-aid development projects.

At the programme, Oli also directed all the concerned stakeholders to expedite the development works by increasing expenditure. “We must carry out effective coordination between all layers of the government and its agencies to accelerate the pace of development projects,” he had said.


A version of this article appears in print on February 13, 2020 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Mahrez hat-trick as Man City thrash Burnley 5-0 yet again

MANCHESTER: Riyad Mahrez scored a hat-trick as Manchester City hammered Burnley 5-0 at the Etihad Stadium in the Premier League on Saturday -- the fourth straight time Pep Guardiola's side have beaten the Clarets at home by that scoreline. City had netted just 10 goals in their open Read More...

Oli counters Dahal with 38-page salvo

Oli raises a host of issues and questions Dahal’s role in relation to them KATHMANDU, NOVEMBER 28 Prime Minister KP Sharma Oli today presented a 38-page long rebuttal to party Co-chair Pushpa Kamal Dahal’s 19- page proposal saying Dahal’s proposal had led to a serious crisis in the party a Read More...

Record-setting week at Nepse

KATHMANDU, NOVEMBER 28 The country’s sole secondary market witnessed a number of records broken in the trading week between November 22 and 26, with the Nepal Stock Exchange (Nepse) index surging by 6.47 per cent or 115.13 points week-on-week to scale to a new peak. Opening at 1,778.12 p Read More...

Raphinha's late strike gives Leeds victory at Everton

LIVERPOOL: Brazilian winger Raphinha scored his first goal for Leeds United to give his side a 1-0 win in an eventful Premier League game full of disallowed goals and superb saves at Goodison Park on Saturday. With England manager Gareth Southgate watching from the stands, Everton keeper Read More...

MoFAGA

MoFAGA formulates procedure to enhance public accountability

KATHMANDU, NOVEMBER 28 The Ministry of Federal Affairs and General Administration has formulated procedure related to public accountability promotion for its implementation at the local levels. The procedure aims to enhance the public accountability of local governments by making elected repre Read More...

‘Chandragadi airport to be upgraded as per new DPR’

JHAPA, NOVEMBER 28 Minister of Tourism and Civil Aviation Yogesh Kumar Bhattarai today said upgradation of Chandragadi airport would be carried out as per the latest detailed project report. Upon receiving a memo submitted by Save Chandragadi Airport Committee, Minister Bhattarai clarified tha Read More...

Jagadamba steel

Industrial blast injures four

BARA, NOVEMBER 28 At least four labourers were injured in an explosion at a furnace of Jagadamba Steel in Jitpursimara sub-metropolis of Bara today. The four persons, including two Indians, were injured in the incident that took place early this morning. The injured have been identified as Read More...

Cold store being built

DHARAN, NOVEMBER 28 Construction of a cold store in Sunsari’s Barahachhetra Municipality has reached the final stage, signalling an end to the plight of having to take local products elsewhere for storage. Sunsari’s Barahachhetra has developed wards in the plains and prioritised livestock Read More...