KATHMANDU: The Ministry of Infrastructure Development is preparing to issue tenders worth nearly Rs 1 trillion during the current fiscal year through a multi-year contracting system.
Responding to lawmakers during discussions on the Appropriation Bill in the House of Representatives on Thursday, Infrastructure Development Minister Sunil Lamsal said the government plans to advance large-scale procurement processes covering projects spanning up to three years.
According to the minister, although the ministry’s annual budget stands at Rs 286 billion, contracts will be awarded for projects extending over multiple fiscal years. He added that a cost-adjustment mechanism based on inflation and price escalation will also be implemented.
Lamsal noted that the first six months of the fiscal year are often consumed by the tendering process, making initial budget spending appear low. However, he said the new approach is expected to accelerate project implementation and reduce procedural delays.
“By awarding three-year contracts at once, the overall process will be shortened,” he said. “Projects that currently take 20 to 22 months to move through procurement stages could be completed within six to seven months.”
The government expects the measure to speed up infrastructure development and improve the timely execution of major projects across the country.
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