Deloitte recommends four potential PPP projects in Nepal

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Deloitte recommends four potential PPP projects in Nepal

Deloitte, one of the "Big Four" professional services firms, has recommended the development of four projects in Nepal through the public private partnership (PPP) model.

The potential PPP projects are the following:

  • a paid parking station in Lainchaur (Kathmandu),
  • a vehicle service centre in Butwal,
  • a cable car project in Sworgadwari (Pyuthan), and
  • a polytechnic institute in Pokhara.

According to Sishir Dhungana, joint secretary at the Finance Ministry, only one of the proposed PPP projects will be executed. The project will be implemented after the new PPP policy framework is endorsed.

Deloitte was appointed under the Capital Markets and Infrastructure Capacity Support Project with financing from the Asian Development Bank.

The firm is responsible for the development of studies to create an enabling environment for PPP in Nepal, and for the preparation of a PPP framework. The firm is also responsible for recommending how to develop an effective bond market.

Deloitte has suggested setting up an office dealing with PPP issues at National Planning Commission (NPC). The firm has also submitted a new draft of the PPP Act to the government.

The Build-Own-Operate-Transfer (BOOT) Act guides the PPP model in infrastructure projects, but the PPP model has not been so far very successful in Nepal.

According to Tulasi Prasad Sitaula, secretary at the Ministry of Physical Infrastructure and Transport, the slow process of the existing Act and the excessive control to investors are two of the reasons for the poor progress of PPP projects.

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