Nepal’s government is preparing to introduce a special sunset law aimed at removing bureaucratic hurdles that have long delayed major infrastructure projects, including disputes over compensation, tree-felling permits and the extraction of construction materials.

The draft legislation is in its final stages, with a team led by National Planning Commission member Arjun Jung Thapa working to complete the bill.

Finance Minister Swarnim Wagle had announced through the annual budget that the government would table the development-focused sunset law in parliament within the current fiscal year. Thapa said the draft is expected to be submitted to the Office of the Prime Minister and Council of Ministers within a week.

Major national pride and strategically important projects, particularly roads, irrigation schemes and hydropower developments, have frequently been delayed because of difficulties in acquiring land, obtaining compensation settlements, securing approval to fell trees and gaining access to construction materials.

One widely cited example emerged on December 20, 2023, when then Army Chief Prabhuram Sharma told a parliamentary committee that it had taken nine months to obtain permission to fell just four trees for the Kathmandu-Tarai Expressway project, despite all required procedures having been completed. Although the project’s Environmental Impact Assessment (EIA) had already been approved, delays by local forest offices in issuing tree-felling permits slowed construction, Sharma told lawmakers at the time.

A lack of coordination among government agencies has also contributed to persistent project delays. Thapa said the proposed law is designed to address such obstacles.

“Problems such as delays in land acquisition, delays in EIA approvals and the obstruction to fell trees even after an approved EIA still exist,” Thapa said. “The sunset law is being introduced to streamline these processes.”

The government plans to keep the law in force for ten years.

Under the proposal, a high-level steering committee chaired by the prime minister would be empowered to intervene if any agency fails to carry out its responsibilities within the prescribed timeframe.

“The high-level committee will be able to issue direct instructions if any institution refuses to act promptly as required by law,” Thapa said.

The legislation also seeks to address recurring disputes over the extraction of stone, gravel and sand, materials essential for infrastructure construction. Project developers would be required to specify in their EIA reports how much material is needed and where it will be sourced from.

Although local governments have jurisdiction over such resources, project authorities would be required to conduct public hearings and clearly disclose extraction plans, including locations and quantities.

Local administrative and security authorities have often focused heavily on regulating riverbed resources. In some cases, this has resulted in delays rather than facilitating development work.

The proposed law would require agencies to coordinate with project authorities and support implementation rather than obstruct it, he said.

Thapa described a sunset law as a time-bound legal mechanism designed to ensure infrastructure projects are completed within clearly defined deadlines.

Nicholas Pandey, president of the Federation of Contractors’ Associations of Nepal, said the legislation is urgently needed and could significantly speed up project delivery.

“This law will help complete contracts that have remained stalled for years,” Pandey said. “The law appears to be targeted at delayed projects and those identified as national priorities.”

He said major investment projects continue to face obstacles ranging from land acquisition problems to delays in obtaining permission to cut trees.

Senior advocate Baburam Dahal said a sunset law would be an effective way to accelerate projects that have remained stuck for prolonged periods.

“Such laws are introduced for a fixed duration and clearly specify what must be accomplished within that timeframe,” Dahal said. “The law remains in force only during that period.”

Because sunset laws are temporary by nature, they cannot remain in place indefinitely, he added. However, if implemented effectively, they could substantially accelerate project execution and generate significant national benefits.

Former secretary Tulsi Sitaula said discussions on introducing a similar law had taken place more than a decade ago, but never progressed.

“There were discussions around 2012–13 about introducing a temporary law to address obstacles in development and construction projects, but the proposal was never implemented,” Sitaula said. “Nepal now needs such a one-time legal measure. It would make it easier to manage stalled contracts and speed up development works.”