Friday, July 18, 2025

Govt to mobilise alternative finance to infrastructure

 Kathmandu, July 15

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that the government will mobilise alternative development finance for the construction of major infrastructure projects such as airports and railways.

Responding to questions raised by Members of Parliament in the House of Representatives regarding the mobilisation of alternative development finance on Tuesday, Minister Paudel said that the Alternative Development Fund would be utilised for energy development, electricity generation, transmission, and distribution.

He also informed that the fund would be used for road construction, tunnel construction and expansion, and the development of industrial infrastructure.

DPM Paudel also mentioned that the fund would also be channelled into urban development infrastructure, the establishment and operation of data centres, as well as the construction and operation of cable cars and podways.

He expressed confidence that investment from both domestic and foreign sources in large-scale, high-return projects would help resolve the resource constraints facing infrastructure development.

The government has presented a bill on the mobilisation of alternative development finance in the Parliament with the aim of securing resources for projects of national priority, bridging the investment gap in public infrastructure, and covering the financing shortfall in projects that traditional financial sources cannot support.

Amid rising public debt, the objectives of the new policy include attracting private capital into the infrastructure sector, reducing pressure on public borrowing, promoting employment, ensuring long-term investment in infrastructure, and supporting sustainable development.

Published in The Rising Nepal daily on 16 July 2025.   

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