Investment Board Nepal Approves Ambitious PPP Strategy Targeting $24.3 Billion Pipeline by FY 2085/86

Kathmandu: Nepal’s Investment Board (IBN) has endorsed a highly ambitious roadmap under its new Strategic and Business Plan (2081–86) aimed at accelerating infrastructure development through the public-private partnership (PPP) model.

The plan was approved in the board meeting held on Sunday and sets forth detailed timelines and targets for implementation, feasibility studies, and financing of large-scale projects over the next four years.

According to IBN Spokesperson Pradyumna Prasad Upadhyay, the strategy outlines minimum and maximum investment goals and anticipates favorable regulatory and operational environments to attract these levels of capital.

“The targets are highly ambitious. We’ve projected both conservative and optimistic investment inflows based on expected improvements in legal frameworks, manpower management, and policy clarity,” Upadhyay said, adding that the document is equally critical for institutional restructuring, organizational strengthening, and human resource mobilization.

Key Targets by FY 2085/86:

• Construction Completion: 11 projects worth up to $8.95 billion

  • Minimum guaranteed: 5 projects worth $4.07 billion

• Under Construction Stage: 7 projects worth $2.83 billion

• Nearing Completion Stage: Up to 14 projects worth $5.55 billion

• Pipeline Projects: Up to 57 projects proposed for feasibility studies totaling $24.3 billion

• Procurement Stage: 52 projects worth $23.5 billion

• Under PDA/PIA Negotiation: 42 projects worth $17.95 billion

• Pre-financing & Pre-development Activities: 32 projects worth $15.7 billion

In terms of private sector involvement, the board expects to approve investment for:

• 67 privately-executed projects worth $7.45 billion

• 25 externally-executed projects worth $3.15 billion

To support this aggressive implementation plan, the board has proposed a refined institutional structure with four core directorates:

1. Planning, Administration & Financial Management

2. Public-Private Partnership Management

3. Investment Promotion & Facilitation

4. Project Development & Oversight

Each directorate is expected to be staffed with at least joint-secretary-level officials. The board also plans to undertake a full organizational and management survey to assess internal capacity gaps.

Reality Check: A Mixed Record So Far

Despite its new strategic push, the board’s past performance remains underwhelming. Since its inception, IBN has approved just NRs. 1.2 trillion (~$9 billion) across 38 projects. The gap between approved and actualized investments remains significantly wide, raising questions about execution capabilities.

While a One-Stop Service Centre has been established, its operations remain ineffective due to manpower shortages and bureaucratic delays. Similarly, crucial mechanisms like the Land Acquisition Fund and the Viability Gap Fund are still non-operational, even after more than a decade.

The board continues to depend heavily on donor agencies for expert personnel, a challenge that could hinder the realization of its newly set goals.