Himal Press 
Kathmandu-Tara Fast Track Road Project, a national pride project, being implemented by the Nepali Army.
KATHMANDU: National pride projects have made dismal progress in the first six months of the current fiscal year 2025/26, according to a recent report of the finance ministry.
The mid-term review report of the budget for fiscal year 2025/26 paints a discouraging picture of the country’s flagship infrastructure projects. Several mega projects have stalled, and many others are moving at a slow pace due to unresolved construction modalities and financial management issues, according to the report.
Four out of 27 national pride projects are in limbo. The proposed Second International Airport in Nijgadh (Bara), Mulpani Cricket Academy and Stadium, the 750MW West Seti Hydropower Project, and the 1,200MW Budhigandaki Hydropower Project have failed to move forward due to uncertainty over investment modality and funding arrangements.
So far, only three national projects—Upper Tamakoshi Hydropower Project (456MW), Pokhara International Airport, and Gautam Buddha International Airport—have been completed and brought into operation. The remaining 20 are in different stages of construction. These projects, however, made minimal progress.
The North-South Karnali Corridor Project has achieved just 5.13% physical progress, while the progress of the Rail, Metro Rail, and Monorail Development Project stands at 5%. The President Chure Conservation Program has recorded only 6.39% physical progress, while the Millennium Challenge Account (MCA) Nepal project has reported 11.27% progress. The Mahakali Irrigation Project has achieved 26% phsysical progress.
Similarly, the Kathmandu Valley Water Supply Project (Phase II) and the Madhesh-Tarai Fast Track, being implemented by the Nepali Army, have also shown unsatisfactory momentum. The fast-track project has achieved only 42% physical progress.
However, some projects have made relatively better progress. The Pushpalal Mid-Hill Highway has achieved around 82% progress, Hulaki Highway 74.35%, North-South Koshi Corridor 45%, Sikta Irrigation 44%, Sunkoshi Marin Diversion 34%, Rani Jamara Kulariya Irrigation 75%, Bheri Babai Diversion 69%, Pashupati Area Development Trust 82%, Lumbini Development Trust 88%, and the Kali Gandaki Corridor (Beni-Jomsom-Korala section) 80%.
The chronic underperformance of national pride projects highlights systemic issues that continue to hamper development initiatives in Nepal. Policy instability, political interference, unclear investment modality, weak financial management, land acquisition and environmental clearances, and lack of institutional capacity are some reasons behind the slow progress of infrastructure projects in Nepal.
