Nepal | September 27, 2020

Infrastructure development procedures enacted

Himalayan News Service
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Kathmandu, November 8

The government has enacted the Municipal Areas Infrastructure Development Progamme Operation Procedures, 2016 to operate and manage infrastructure development activities based on cost participation of municipalities.

The main objective of the procedures is to make implementation of infrastructure development programmes in municipal areas simple, clear and transparent.

This programme will focus on infrastructure development in municipal areas and will be operated in all municipalities, including Kathmandu Metropolitan City and 12 sub-metropolitan cities.

Construction of road, sewer system and bus park, city hall, water reservoir, utility lines, rainwater harvesting pond and municipal-level hospital are the major infrastructures to be constructed under the procedures.

Renovation of historical and archeological heritages, and construction and development of shopping mall, stadium, yoga hall, covered hall, municipal-level information centre, land pooing, landfill site, waste treatment and recycling centre, slaughterhouse, public toilet, park, resting place, micro hydro and wind energy system have also been incorporated into the municipal infrastructure development programmes.

As per the procedures the government will provide to the municipalities at least 50-70 per cent grant for the construction and development of any infrastructure in such a way that the remaining cost would be borne by the concerned municipality.

The total cost of the infrastructures referred to in the procedures shall be five million rupees or above. The government may provide to the municipalities the grants as supplementary fund for even the programmes operated with the support and participation of donor agencies.

The portion of cost to be borne by the municipalities should be managed from the internal income and conditional grants. “The government will encourage the municipalities to opt for infrastructure programmes of different nature.

Municipalities are given approval for operation of such multi-year projects which can be completed within two fiscals.

No municipalities will be permitted to operate more than two multi-year projects simultaneously under the provisions stipulated in the procedures,” read the new law approved by the government on October 27.

The procedures provide for a provision of a nine-member central steering committee headed by secretary at the Ministry of Federal Affairs and Local Development for coordination, facilitation, monitoring and evaluation of infrastructure development programmes.

The committee is also responsible for determining the criteria of budget allocation by maintaining inter-agency coordination.

Accounting, auditing, reporting and financial transaction of the programmes shall be carried out under the existing Local Bodies and Financial Administration Regulations, 2007.


A version of this article appears in print on November 09, 2016 of The Himalayan Times.


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