Unmet Funding Pledge

Nepal's fifteen-year exploration of Viability Gap Funding (VGF) for infrastructure projects has not yielded substantial progress. The persistent delays in implementation are deterring private sector participation and jeopardising the efficacy of public-private partnerships (PPPs). The 2015 PPP policy assured the establishment of a VGF mechanism within a year, but it was not until four years later, in 2019, that the PPP and Investment Act was passed, with the regulations following a year after that. In fact, even today, we are more than a decade from the policy announcement, and there is no indication that the VGF system is forthcoming. It is worrisome for a nation like ours where there is a dire need for infrastructure development.