The new government led by Balendra Shah appears to be uncertain about its development modality. While the government has demonstrated a strong willingness to work, it remains unclear whether it has a coherent strategy for implementing major development projects.
Regarding the Budhigandaki Multipurpose Project, the previous government had planned to execute the project under a company model. However, the present government has decided to implement it under an authority model. This change in modality has created uncertainty and confusion surrounding the project’s future.
Nepal urgently needs reservoir-based hydropower projects to address electricity shortages during the dry season. Run-of-the-river hydropower projects alone cannot eliminate seasonal power deficits because electricity generation declines significantly when river flows decrease. Therefore, greater emphasis should be placed on the construction of reservoir-based hydropower projects.
There is also a need to develop several other key and transformative infrastructure projects. Such projects require substantial investment, which the private sector alone may not be able to mobilize. Therefore, the government should actively promote the Public-Private Partnership (PPP) model and encourage investment from ordinary citizens as well as institutional investors.
The government has also expressed its intention to operate Nepal Airlines under a company model. However, it remains unclear when the necessary framework and modality will be developed. Meanwhile, the national flag carrier continues to suffer from an acute shortage of aircraft. The government’s responsibility is to establish an appropriate operational framework as soon as possible and provide the necessary guarantees and support mechanisms to facilitate financing for the acquisition of additional aircraft.
Nepal Airlines possesses valuable fixed assets, including land that could be commercially developed. For example, a modern business complex incorporating a luxury hotel could be constructed at its headquarters site in New Road. Similarly, an airport hotel could be developed within the premises of Tribhuvan International Airport and operated by the airline, generating additional revenue streams.
Likewise, the proposed Nijgadh International Airport could also be developed under the Public-Private Partnership (PPP) model. Such an approach would help mobilize domestic and foreign investment while reducing the financial burden on the government and accelerating the implementation of strategically important infrastructure projects.
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