New procurement processes for ongoing projects have come to a standstill due to the government’s failure to grant multi-year resource consent, with projects of national pride and strategic importance particularly affected.

Under the Department of Roads, the Mid-Hill, Hulaki and Madan Bhandari highways have been unable to move ahead with new contracts. Likewise, the Koshi, Kaligandaki and Karnali corridor roads are facing similar hurdles.

The proposal seeking resource consent for the Kathmandu–Tarai/Madhesh Fast Track has also been forwarded for approval. Shyam Bahadur Khadka, deputy director general and spokesperson for the Department of Roads, said that except for one project, none have received resource consent in the current fiscal year.

“Apart from the Nagma–Gamgadhi road, no other projects have secured resource consent this fiscal year,” he said. “Failure to obtain timely consent makes it difficult to prepare plans and move forward with procurement.”

Khadka told the Post that requests have been sent to the National Planning Commission, but the process has not progressed further.

Prem Hari Parajuli, senior divisional engineer at the Department of Water Resources and Irrigation, said that although requests for resource consent for national pride projects have been submitted to the commission, approvals are still pending.

“We have sought resource consent for consultancy services for the Bheri Babai Diversion Multipurpose Project, while for other projects we have requested consent for construction,” he said. “These projects have neither been entered into the Project Bank nor received resource consent.”

He added that procurement master plans are prepared and submitted for approval, and delays in obtaining consent directly affect new tenders.

“If consent is not granted now, the process will shift to the next fiscal year,” he said. “Further delays next year will have a ripple effect, impacting projects for several years.”

Projects under the department include the Sunkoshi Marin Diversion Multipurpose Project, Babai Irrigation, Sikta Irrigation, Mahakali Irrigation, Rani Jamara Kulariya Irrigation, and the Bheri Babai Diversion Multipurpose Project. Files for all these projects remain pending at the National Planning Commission (NPC).

Prakash Kumar Shrestha, vice-chairman of the commission, said that decisions on granting multi-year resource consent will likely be taken only after the formation of a new government.

“Requests for resource consent have come from almost all ministries, and we are currently entering them into the Project Bank,” he said. “A decision will be taken once the new government is formed.”

He added that more than 1,000 projects worth over Rs30 million have already been entered into the Project Bank.

“We will filter these projects and publish them on the commission’s website soon,” Shrestha said. “Projects listed in this way will be considered appropriate for budget allocation.”

According to him, this will also make it easier for the Ministry of Finance to allocate resources. “Filtering projects for the Project Bank will support multi-year planning and simplify budget allocation for the coming year,” he said. “Once published, projects proposed by ministries will also be subject to public debate regarding their relevance.”

Shrestha said that making the list public would allow scrutiny of projects that may have been proposed under political pressure.

“Being listed in the Project Bank does not guarantee budget allocation,” he said. “There must be public debate on the necessity of such projects.”

He acknowledged that delays in granting multi-year resource consent for large and national pride projects have slowed new contract processes.

“However, it is not that no work is taking place,” he said. “Contracts worth around Rs1 trillion are currently active across various agencies. Some projects may have slowed down, or payments may have been delayed. If all contracts progressed at full pace, the allocated capital budget for the current fiscal year would not be sufficient.”

At present, most national pride projects have been left without new contracts, as the absence of resource consent has prevented the initiation of new procurement processes.

Shrestha said that if the new government extends the deadline for granting consent, decisions could still be taken within the current fiscal year.

“The deadline has lapsed only for projects under the federal government,” he said. “There are no such issues at the provincial and local levels, where work is ongoing.”

Although the Ministry of Finance introduced the Criteria for Resource Consent for Multi-Year Projects, 2025, it has yet to be implemented effectively, which is likely to delay construction of national pride and strategic projects by at least a year.

Under the criteria, which came into effect on December 28, 2025, concerned agencies were required to submit proposals for resource consent to the NPC by mid-January.

The NPC was expected to complete the process by January 29 and forward the proposals to the Ministry of Finance, which was to decide on them by mid-February. However, no decision has been made so far.

Project offices say this has created a situation where new contracts for national pride projects cannot be awarded in the current fiscal year. Tanka Prasad Pandey, joint secretary and spokesperson for the Ministry of Finance, said that no proposals have yet been forwarded from the commission for resource consent.

The process was further halted following the implementation of the election code of conduct on January 18.