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Infrastructure Investment Nepal 2026

Nepal ramps up hydropower and investment projects

What happened

Nepal approved significant foreign direct investment and launched major hydropower and infrastructure initiatives in July 2026. These efforts aim to boost energy generation, job creation, and long-term economic growth despite sector challenges.

Timeline

64 MW Hydropower Investment Announced
Jul 22, 04:27

Buddha Bhumi Nepal Hydro Power Company Limited announced investment in two hydropower projects totaling 64 MW, holding 51% ownership in the 43 MW Upper Nyasem and 21 MW Upper Nyasem Khola-A projects associated with Sindhujwala Hydropower Ltd.

FDI Projects Approved
Jul 19, 06:11

Nepal's Department of Industry approved foreign direct investment commitments totaling 58.01 billion rupees for fiscal year 2082/83 across 1,116 projects including agriculture, tourism, and IT sectors.

FDI Commitment Decreases
Jul 18, 21:56

Foreign direct investment commitments to Nepal decreased to 58.01 billion rupees in fiscal year 2025/26, with 1,116 projects approved expected to create 28,423 jobs; agriculture and forestry sectors led with 23.188 billion rupees.

Alternative Finance Bill Passed
Jul 17, 08:29

Nepal passed the Alternative Finance Bill to mobilize new financial instruments such as thematic, offshore, and project bonds to support infrastructure development aiming at 30,000 MW electricity generation and 30,000 km road construction within ten years.

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