Nepal plans sunset law to fast-track stalled infrastructure projects

Nepal's government is poised to introduce a special sunset law designed to dismantle bureaucratic red tape that has long plagued major infrastructure projects. The legislation aims to fast-track development by addressing persistent delays stemming from land acquisition, compensation disputes, tree-felling permits, and the sourcing of construction materials.

The draft bill is nearing completion, with a team led by National Planning Commission member Arjun Jung Thapa finalizing the details. Finance Minister Swarnim Wagle had previously announced the government's intention to table the development-focused law in parliament within the current fiscal year. Thapa indicated the draft would be submitted to the Prime Minister's Office within a week.

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Problems such as delays in land acquisition, delays in EIA approvals and the obstruction to fell trees even after an approved EIA still exist. The sunset law is being introduced to streamline these processes.

Projects of national significance, including roads, irrigation, and hydropower, have frequently been hampered by these administrative hurdles. A stark example cited was the Kathmandu-Tarai Expressway project, where then Army Chief Prabhuram Sharma reported a nine-month delay in obtaining permission to fell just four trees, despite all other procedures being complete. This highlights a critical lack of coordination among government agencies.

Under the proposed law, which is planned to remain in effect for ten years, a high-level steering committee chaired by the prime minister will gain the authority to intervene in cases of agency inaction. This committee will be empowered to issue direct instructions if any institution fails to fulfill its responsibilities within the stipulated timeframe. The legislation also seeks to streamline disputes over the extraction of essential construction materials like stone, gravel, and sand, requiring project developers to specify sourcing plans and conduct public hearings.

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The high-level committee will be able to issue direct instructions if any institution refuses to act promptly as required by law.