The government in the fiscal year 2012/13 declared 17 projects as national pride projects and the number of such projects has increased to 21 now. Of these 21 projects, the physical progress of very few is satisfactory.
As of now, the government has identified four irrigation projects, three hydropower projects, three international airports, six road projects, an electric railway project, a drinking water project, two projects aimed at promoting the holy sites of Pashupati and Lumbini, and an environmental conservation project as national pride projects. But the start of the construction of many of these projects is yet to see the light of day. While projects such as Upper Tamakoshi Hydroelectric Project, Gautam Buddha International Airport, and Pokhara Regional International Airport have been completed, the much talked about Kathmandu-Tarai Expressway, Second International Airport, Mid-Hill Highway are still under construction. The OAG report is critical of the projects that have been completed. In particular, the OAG has questioned the operation of Gautam Buddha International Airport, and Pokhara Regional International Airport. These two airports, in which billions of rupees have been spent, have still not come into operation at full capacity. Both airports have struggled to get foreign airlines to start international flight operations. The airport in Pokhara is yet to see any international airlines agreeing to start flights to connect Nepal's tourism hub to the rest of the world. Infrastructure experts said lawsuits against the projects, and delay in court decisions have also affected the implementation of projects. The second international airport project in Nijgadh is one such example. While the project was initiated in 1995, the project has been mired in controversy with lawsuits and environmental concerns. While Rs 3 billion has already been spent on the project for land acquisition but there is no sign of the project taking off. The Supreme Court in 2022 directed the government to proceed with the construction of the airport at a suitable location so that environmental damage is minimized. But, the construction of this project has been in limbo. The development of the 900 MW Upper Karnali Hydroelectric Project is also tangled in legal hurdles. Former government officials who had worked at the highest level at various ministries said unnecessary lawsuits filed at the court have also hindered the national pride projects. A former secretary said that some of the project's construction has been delayed due to court cases and the delay in its decision. "I am not saying that cases should not be filed in court if there are financial and other misdeeds. However, in some cases, cases are filed in the court to fulfill personal interests," he said, adding, "If the verdict was given early, the project could have progressed accordingly." According to him, structural problems, lack of capacity, and poor inter-agency coordination has hit projects such as Budhigandaki Hydroelectric Project, and Kathmandu-Tarai Expressway, among others. The lack of clarity and policy flipflop on the part of the government has delayed the development of the Budhi Gandaki Project. While the past governments had planned to award the project to a Chinese contractor, now the government is planning to hand over the project to Nepal Electricity Authority. Experts are of the opinion the hearing and judgment of the cases related to national pride projects should be expedited in the court. "Huge money is being spent on these projects. Hence, court cases should be decided quickly. Since time itself is a cost, the longer the case is prolonged in the court, the more time the construction of the project will be affected and the cost will automatically increase," said a former secretary of the Ministry of Physical Infrastructure and Transport. The latest report of the Ministry of Finance (MoF) shows only 15.16 percent of the budget allocated for these projects in the federal budget has been spent so far in the first six months of the current fiscal year. Among the 21 national pride projects, Sunkoshi Marine Diversion Project has an edge over others when it comes to budget utilization. The project has spent 88 percent of the allocated amount in the first half of this fiscal. Of the total allocation of Rs 2.71 billion, the project has used Rs 2.39 billion till mid-January. On the other hand, the much-hyped power transmission project of the Millennium Challenge Account (MCA) Nepal has the least progress. Only 3.66 percent of physical progress has been made till mid-January in this project. The MoF, in the mid-term review of the budget, has said 18 percent of the allocated budget has been spent on Pushpalal Highway, 42.60 percent on Postal Highway, 39 percent on Kosi Corridor, and 22.71 percent on Kali Gandaki Corridor in the first half of this fiscal year. The expenditure in Karnali Corridor is 9 percent, while Metro Rail and Monorail Development Project have utilized 22 percent. The much talked about Kathmandu-Terai Expressway is yet to expedite its works as only 9.11 percent has been spent in this fiscal. Meanwhile, the Budhi Gandaki Reservoir Project has spent only 15.86 percent of the allocated budget. The MoF report shows none of the four irrigation projects, namely Babai, Mahakali, Sikta, and Ranijamara, have budget utilization above 50 percent in the first half of this fiscal.
