Government to Establish Infrastructure Development Fund by Replacing Old Law
Summary
The government is preparing to replace the Urban Development Fund Act, 2053 with a new Infrastructure Development Fund law backed by an authorized capital of 1 kharba rupees. The fund is designed to expand ownership to federal, provincial and local levels, attract domestic and foreign investment, and support urban infrastructure financing.
Key Points
- The Ministry of Physical Infrastructure and Transport has drafted a bill to establish an Infrastructure Development Fund by repealing the old Urban Development Fund Act, 2053.
- The proposed fund will have authorized capital of 1 kharba rupees and its ownership will expand beyond the Government of Nepal to federal, provincial and local levels, as well as international financial institutions.
- The government says the new legal structure is needed to meet urban infrastructure demand and to align with Nepal’s federal system and Sustainable Development Goals.
- The fund would be able to issue bonds and debentures, invest in infrastructure company shares, and make mixed investments at concessional rates.
