Kathmandu, September 11

In a bid to fill the infrastructure gap in the country, Nepal should focus on developing proper regulatory framework that is investor-friendly, opined Akhil Bansal, deputy chief executive officer of KPMG India.

Bansal, who is currently in Kathmandu to participate the Nepal Infrastructure Summit 2019, said that the infrastructure gap of Nepal is the result of decades-long political transition. However, time has come for the country to formulate effective regulatory framework to attract investors towards big infrastructure projects, as per him.

“Infrastructure is fundamental for the growth of any economy. Nepal is exactly where development of infrastructure has to take centrestage to meet its aspirations of graduating from the LDC (least developed country) status,” said Bansal, adding that the infrastructure sector should also get special focus from the government, as infrastructure development is far more difficult than development of industries.

As infrastructure projects are social in nature and there may not be any returns in such projects, effective regulations and project monitoring mechanisms have to be put in place to ensure that projects being developed in the country are competitive and the deadlines are not missed, he said.

Along with seeking financing sources, Nepal also needs to welcome and encourage the private sector towards development of infrastructure projects, believes Bansal. “As the government cannot build all the necessary infrastructure due to its own limitations, it should promote private sector for development of infrastructure,” he said.

Likewise, countries like Nepal should also raise its project development capacity. “Along with money and intent, a country should also develop ample capacity on ground to handle large infrastructure projects,” said Bansal.

Lastly, Bansal also pointed that prompt decision-making capacity and implementation of policies are crucial for infrastructure development.