Govt allocates Rs. 286B for road, infrastructure

By A Staff Reporter,Kathmandu, May 31: The government has announced ambitious road and urban infrastructure plans for the upcoming fiscal year, allocating Rs. 286.48 billion to improve transport connectivity, urban management, and living conditions across the country. 

Finance Minister Dr. Swarnim Wagle presented the annual budget for the fiscal year 2026/27 on Friday, emphasizing the completion of ongoing projects within specific timeframes and the advancement of new infrastructure projects.

According to the budget provisions, around 1,000 kilometres of roads will be blacktopped and 275 bridges constructed within the next fiscal year.

A key priority remains the upgrade of the 1,028-kilometre East-West Highway into a four-lane corridor within five years. 

Major sections such as Kamala–Kanchanpur and Narayangadh–Butwal are expected to be completed this year, while 80 kilometres of upgrading works will be carried out in multiple sections including Kakarbhitta–Laukahi and Butwal–Gorusinghe. 

The government has allocated Rs. 37.46 billion for the project.

Under the Kathmandu–Tarai Fast Track project, 40 bridges and 5.4 kilometres of tunnels are expected to be completed next year, with Rs. 17.64 billion allocated. 

The Postal Highway is targeted for completion within three years, including widening works in densely populated areas and the construction of eight bridges. An allocation of Rs. 4.65 billion has been made for the project.

The government also plans to complete major bridge construction on national highways within three years, including 40 large bridges, with a total allocation of Rs. 9.87 billion.

The Nagdhunga–Mugling section will see 40 kilometres upgraded, and the Nagdhunga tunnel is set to operate from mid-July. A total of Rs. 6.55 billion has been allocated.

Corridor development includes 31 kilometres of blacktopping on the Karnali Corridor, 21 kilometres on the Kaligandaki Corridor, and 15 kilometres on the northern section of the Koshi Corridor, with Rs. 6.25 billion allocated.

In the Kathmandu Valley, expansion of the ring road will begin from Kalanki to Basundhara, while design works will be completed for the Basundhara–Chabahil–Koteshwor section.

Feasibility studies will be conducted for several tunnel projects, including Tokha–Chhahare and Jajarkot–Jumla routes, along with other proposed tunnels across the country.

Railway expansion will move ahead with the Bardibas–Kathmandu link and completion of ongoing works on the Bhatnaha–Biratnagar and Janakpur–Jaynagar–Bardibas lines.

Urban roads will be maintained under a nationwide “dust-free, pothole-free” campaign with Rs 28.52 billion allocated.

Climate-resilient infrastructure will be introduced in high-risk areas to reduce landslide disruptions, with Rs. 3.17 billion earmarked.The government announced plans to introduce modern “Blue Bus” services equipped with CCTV cameras to ensure safer public transport, especially for women.

Likewise, the government has announced a wide-ranging urban and infrastructure development plan, focusing on cities, housing, sanitation, rural connectivity and reconstruction works.

Under the Mid-Hill Highway corridor, development of 12 identified cities will continue through land pooling and infrastructure construction, with Rs. 1.83 billion allocated.

The government has also set aside Rs. 4.19 billion for integrated waste management systems in major cities, river-cleaning campaigns, and greenery promotion along riverbanks.

To improve national connectivity, the government will expand a programme linking unconnected local levels to national highways or provincial capitals through all-weather roads. 

In addition, Rs. 5.14 billion has been allocated for the construction of suspension bridges to ensure that no citizen needs to walk more than 30 minutes to reach basic transport access.

In the housing sector, the National Housing Company Limited will begin its first phase project in Mechinagar of Jhapa, constructing 100 residential buildings for sale to the public.

The government has allocated Rs. 286.48 billion for overall road and urban infrastructure development, aiming to improve transport access, urban management and living conditions across the country.