Himal Press 
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KATHMANDU: The House of Representatives on Thursday passed the Alternative Development Finance Mobilization Bill, 2026, amid continued obstruction by opposition parties.
Although opposition lawmakers surrounded the well and attempted to disrupt proceedings, Speaker Dol Prasad Aryal allowed the session to continue. Amid the obstruction, the Speaker concluded the clause-wise deliberations on the Bill. Following this, Finance Minister Dr. Swarnim Wagle tabled a proposal to pass the Bill. The proposal was then put to a vote by the Speaker and endorsed by a majority of lawmakers.
The Bill lays the legal foundation for the establishment of an Alternative Development Finance Fund with an authorised capital of Rs 100 billion. The Fund will comprise one billion ordinary shares with a face value of Rs 100 each. The government will hold a 51% stake in the Fund, while the Employees Provident Fund, Citizens Investment Trust, and Social Security Fund will jointly hold 25%. Likewise, the remaining 24% will be owned by life insurance, non-life insurance, and reinsurance companies.
According to the Bill, the Fund will invest in infrastructure projects with high returns that promote employment generation and contribute to national economic development.
It will be able to raise capital through the issuance of debentures and bonds, and may establish subsidiary companies for consortium financing or joint investments with banks and financial institutions. The Fund is also authorized to act as a fund manager for itself or other funds and provide project development advisory services to public entities on demand. It can also issue instruments for listing in foreign capital markets and obtain loans from international financial institutions, including provisions for hedging such loans as required, after taking approval from the entral bank.
Similarly, the fund can function as a financial intermediary when organized institutions or project developers seek financing support for infrastructure development. It is also permitted to acquire or merge with existing financial or other institutions in accordance with prevailing laws and to monitor projects for which it has provided loans or guarantees.
The Fund can establish separate companies, subsidiaries, or agencies for the implementation of specific projects after getting the cabinet go-ahead. These entities will be able to raise capital through equity, bonds, or loans from domestic and foreign investors.
The Fund is permitted to invest in sectors including energy development and hydropower generation, transmission and distribution lines, road and railway construction or expansion, airport construction and upgrading, tunnel roads, special economic zones, industrial parks, dry ports, IT parks, tourism infrastructure, sports infrastructure, urban infrastructure, public digital infrastructure expansion, cable car and ropeway projects, irrigation systems, and fertilizer plants, among others.
