Nepal's Ministry of Finance (MOF) has recently announced that it has prepared the first draft of the public-private partnership (PPP) Act to engage more actively the private sector in development of new infrastructure projects (roads, bridges, airports, water projects, energy projects...).

This Act will replace the current build, own, operate and transfer (BOOT) Act, for private financing to build and operation of infrastructure. The new document has been prepared by Deloitte India after stakeholders held discussions held in the last two years.

The PPP Act will incorporate mechanisms to provide viability gap funding to the private party or potential developers. Besides, the bill also envisions the creation of a fund for the financing of projects.

According to local sources, a Senior Official of the Ministry of Finance, commented:

“We recently invited concerned officials of the National Planning Commission, the Ministry of Physical Infrastructure and Transport, the Ministry of Energy, the Ministry of Education, Office of Kathmandu Metropolitan City and Town Development Fund, among others, for a discussion on PPP Act. Deloitte has now prepared the draft of the Act by encompassing their suggestions.”