World Bank Study Links Slow Infrastructure Development to Nepal's Economic Stagnation
Summary
A World Bank study finds Nepal's slow infrastructure development due to land acquisition and tree felling issues is hindering economic growth and prolonging project completion times.
Key Points
- Nepal's slow infrastructure development is significantly hampering overall economic growth and job creation according to a World Bank study.
- Land acquisition and tree felling are major obstacles causing delays and increased project costs in key projects like roads, hydropower, and irrigation.
- Capital expenditure in Nepal's federal budget has declined from 27.1% in 2078 to 20.9% by 2081, with over 40% of spending concentrated in the last month of the fiscal year, reducing project quality.
- The World Bank recommends prioritizing well-prepared projects, streamlining land and forestry processes digitally, and reforming budget allocation to improve infrastructure development.
