Bill Tabled in Parliament to Establish Rs 100 Billion Alternative Development Finance Fund

A new bill proposing the establishment of the Alternative Development Finance Mobilization Fund-2025 has been registered in Parliament, aiming to boost infrastructure investment through diversified financial sources. The proposed fund will have an authorized capital of Rs 100 billion and a paid-up capital of Rs 25 billion, with a primary focus on channeling resources into high-impact development projects across the country.

Registered last Friday, the bill outlines a comprehensive legal framework to mobilize domestic and international financing for infrastructure development. It aims to strengthen fiscal tools and create institutional mechanisms to identify, prioritize, and invest in projects that offer high economic returns and contribute to national development.

The Ministry of Finance stated that the fund would facilitate alternative financing approaches such as bonds, equity funds, and other financial instruments to support Nepal’s economic growth. According to the bill, the fund will operate as an autonomous entity, with the Government of Nepal holding a 51 percent stake. The government is expected to invest Rs 12.75 billion of the initial Rs 25 billion in paid-up capital.

However, the bill also suggests gradually reducing the government’s share as the fund matures and becomes self-sustaining. The legislation highlights that investment will be directed toward infrastructure projects that stimulate job creation and contribute significantly to the national economy.

Potential investment areas include information technology parks, tourism infrastructure, urban and digital development, as well as transportation projects like cable cars, ropeways, and podways. Provisions for monitoring and evaluation are also embedded in the bill to ensure transparency and accountability.

Once enacted, the fund is expected to serve as a crucial financial engine for accelerating Nepal’s development goals through innovative and diversified financing channels.