Corridors For Connectivity

Nepal’s difficult and inaccessible geography is a reason that has hindered its overall economic development. Its mountains cover 15 per cent of the area, hills 68 per cent and the plains 17 per cent. This geographical shape and size are linked to the people’s settlement, lifestyle, mobility and economic development. Rugged and rocky 

terrains are difficult to pass through. Building roads, railways and basic infrastructure across such uneven landmass poses significant challenges. Without a smooth transportation system, it isn't easy to achieve social and economic connectivity. Limited movements of people, goods, technology and capital have held back the industrialisation of the country. 

To overcome the problems created by the geographical remoteness, economic corridors play a critical role through enhanced road networks and transportation systems.  They promote trade, investment, tourism and employment opportunities, thereby spurring regional integration. With the mobility of people, economic activity increases and new markets are created. Economic corridors link new financial hubs that are normally concentrated in urban areas. In the long run, they contribute to the structural changes of society. The traditional economy is replaced by the modern one and technological innovation gives rise to new productive forces. 

Given Nepal's complex geography and geopolitical location, investing in economic corridors is a must to integrate the economies of the mountains, hills and plains. Bearing this in mind, Nepal started to build three north-south corridors - Koshi Corridor, Kaligandaki Corridor and Karnali Corridor – to integrate the national economy and benefit from the two economic powerhouses – India and China - more than a decade ago.  They are also expected to promote international trade and investment.  Despite their rosy goals, construction of these corridors is not satisfactory.  According to a news report of this daily published on Sunday, the progress of these pride projects are moving at a snail's pace, with cost overruns and repeated deadlines missed. They were supposed to be completed in the fiscal year 2013/14. Inadequate budget is the main reason behind their slow progress.

The combined (revised) cost of these projects is Rs. 60.63 billion but the disbursement of a paltry amount of the budget has been spent in six months and the project works are left in limbo for the remaining period. For example, the government allocated Rs. 740 million for the Koshi Corridor and 99.20 per cent of the amount was used up before May of this fiscal year. Similarly, Rs. 933 million was spent on building the Kaligandaki Corridor's Beni-Jomsom-Korola section of the road. What is more worrying is that these projects have to rely on funds transferred from other projects.  If the concerned agencies fail to allocate sufficient budget, the construction of these crucial corridors is unlikely to be completed in time. 

The revised deadline for the completion of the Gaindakot-Ramdi-Maldhunga section of the Kaligandaki Corridor is mid-July 2027. But it has made only 78.50 per cent physical and 68.80 financial progress so far. The contracting process of building 17 bridges has not begun yet.   Koshi Corridor has achieved only 41 per cent physical progress, with the 4-km track opening still pending. Its completion deadline is mid-July 2029. The Karnali Corridor has made only 36 per cent progress at the 146-km stretch of Hilsa-Simikot and only 18 per cent progress at the 123-km stretch of Khulalu-Salisalla.  It is estimated to be completed by mid-July 2027. With the construction of these corridors, the local economic activities have received a boost and locals have enjoyed transportation facilities. The government should pay greater attention to the timely construction of these corridors.