Most pride projects behind targets

Kathmandu, Feb. 13: Of the 27 national pride projects, only five have crossed the 50 per cent benchmark by the first half of the current Fiscal Year 2024/25 in financial progress from the budget earmarked. 

Among them, Budhigandaki Hydroelectricity Project and Nijgadh International Airport could not spend a penny in the first six months (mid-July 2024 to mid-January 2025), revealed the half-yearly progress report of the budget of FY 2024/25 published recently by the Ministry of Finance (MoF). 

These projects received Rs. 257 million and Rs. 500 million budget allocation this fiscal, respectively. 

The Rail, Metrorail and Monorail Development Project has performed the worst with just 4.70 per cent financial progress in the first six months while the 'pride project' has achieved a pathetic 5 per cent progress since its launch in 2008/09. 

Initially, the Rs. 70.6 billion project was projected to conclude in 21 years but the government has marked it as a project 'without any fixed conclusion date'. 

The MCC Nepal, a project being implemented with the US grant support of 567 million with a fixed completion date of 2028/29, has achieved just 8.08 per cent progress so far. From the Rs. 13.36 billion budget allocated to the project for this year, only 8.32 per cent has been utilised, according to the report.

Likewise, Sunkoshi Marin Diversion Multipurpose Project has achieved only 19.37 per cent financial progress from about Rs. 3 billion budget. The project is scheduled to be completed in FY 2028/29 but in the past about one decade, its progress has reached just 34.40 per cent. 

Another sick 'pride' project is Ranijamara Kulariya Irrigation Project which has achieved just 74.36 per cent overall progress. The project has a deadline of the next year but in the first half of this year, it achieved only 19.35 per cent progress. The cost of Ranijamara-Kulariya has jumped to Rs. 27.70 billion from the initial estimates of Rs. 12.37 billion. 

Likewise, Melamchi Water Supply Project and Rastrapati Chure Conservation Project have achieved 21.85 per cent and 12.61 per cent financial progress in the first six months of this year. 

The MoF stated that the Sikta Irrigation Project has utilised only 26 per cent of the allocated budget. The project's cost has more than quadrupled to reach Rs. 52.89 billion from the initial estimates of Rs. 12.8 billion 20 years ago in 2004/05. 

Similarly, Bheri-Babai Diversion Multipurpose Project's cost has jumped to Rs. 36.8 billion from Rs. 16.43 billion in 2011/12. It has achieved overall progress of 65.8 per cent while this year's financial achievement has remained just 26.36 per cent. 

Army-led roads witness progress

According to the MoF report, good performing projects include the Lumbini Development Trust, Pashupati Area Development Trust, Postal Highway, and two north-south corridors – Koshi and Kaligandaki. The north-south corridors are being developed by the Nepali Army.

However, the Kathmandu-Tarai Expressway could not achieve the same results. It achieved only 23.59 per cent progress from the annual allocation of Rs. 22.54 billion for this year.

The overall physical progress of the Expressway is just 35.38 per cent while the project should be completed within the next four years. 

Of the 27 pride projects only 19 have received budget allocation this year while a few of them have been completed including Pokhara International Airport, Gautam Buddha International Airport and Upper Tamakoshi Hydroelectricity Project. No budget was earmarked for three cricket infrastructure – Mulpani Cricket Academy and Stadium, Girija Prasad Koirala Cricket Stadium and Gautam Buddha International Cricket Stadium. 

Likewise, construction modality of the West Seti Hydropower Project is in the process of preparation. 

Rs. 17 billion spent 

Out of the 27 national pride projects, a total of Rs. 66.75 billion has been allocated for 19 projects in the current fiscal year, including Rs. 2.68 billion under recurrent expenditure, Rs. 63.25 billion under capital expenditure, and Rs. 755 million under financial management. 

"During the review period, Rs. 1.21 billion has been spent under recurrent expenditure and Rs. 15.93 billion under capital expenditure, totalling Rs. 17.15 billion," read the report. 

Accordingly, 25.70 per cent of the budget has been spent on national pride projects during the first six months of this year. 

However, the report informed that in the last fiscal 2023/24, the national pride projects' overall financial progress was an impressive 89.82 per cent and physical progress stood at 57.50 per cent. 

Last year, the government had allocated Rs. 60.38 billion for the pride projects, of which, Rs. 54.24 billion was utilised.