Investment Board Sets Bold Four-Year Infrastructure Plan Amid Concerns Over Past Performance

The Investment Board Nepal (IBN) has approved an ambitious four-year strategy aimed at boosting infrastructure development through public-private partnerships. Endorsed at the Board’s meeting last Sunday, the “Strategy and Business Plan 2081–86 BS” outlines a roadmap to accelerate investment in large-scale projects and strengthen institutional capabilities.

According to IBN spokesperson Pradyumna Prasad Upadhyay, the strategy has been designed to guide the Board’s work over the next four years, with a focus on unlocking both minimum and maximum levels of potential investment. He emphasized that with an improved investment climate, stronger legal frameworks, and adequate human resource management, the outlined targets could be achieved.

The strategy envisions the completion of 11 major infrastructure projects, collectively worth 8.95 billion US dollars, by the fiscal year 2085–86 BS. Even if all 11 projects are not completed within the timeframe, the Board has set a minimum target of operationalizing five projects with a total value of at least 4.7 billion US dollars. In the same period, seven projects worth no less than 2.83 billion US dollars are expected to reach the construction stage, while 14 projects totaling up to 5.55 billion dollars are planned to progress to the final phase of construction.

Over the course of four years, the Board also aims to advance a wide pipeline of projects. It has proposed feasibility studies for 57 projects worth as much as 24.3 billion dollars and expects to move 52 projects worth 23.5 billion dollars to the procurement phase. A further 42 projects, totaling 17.95 billion dollars in value, are expected to reach the negotiation stage for project development and implementation agreements. In addition, 32 projects estimated at 15.7 billion dollars will be taken forward to the stages of financial structuring and pre-development activities.

Based on the current status of initiatives led by the private sector and other institutions, the Board estimates that it could grant investment approvals worth up to 7.45 billion dollars for as many as 67 private sector-led projects. A further 3.15 billion dollars in investment could be approved for 25 projects implemented by other agencies.

To support the effective execution of this strategic vision, the Board has drafted a new organizational structure that includes several directorates. These will oversee planning, public-private partnerships, investment promotion, and project management. Each directorate will be led by personnel at least at the joint-secretary level. A formal Organization and Management Survey is also being initiated to evaluate and strengthen the internal structure of the Board.

However, despite the bold projections and plans, the Board’s track record raises questions about its capacity to deliver on such an ambitious agenda. Since its establishment more than 15 years ago, the Board has approved investments amounting to Rs 1,200 billion across just 38 projects. Observers note a considerable gap between past performance and the scale of the new strategic goals.

The implementation of the One-Stop Service Centre within the Board’s office, intended to streamline investor services, has so far proven ineffective. The facility faces persistent staffing shortages and delays in executing Board decisions. Furthermore, long-standing provisions such as the creation of a dedicated Investment Board Fund, a Land Acquisition Fund, and a Viability Gap Funding mechanism have yet to materialize, even after more than a decade. The Board continues to depend heavily on donor agencies to provide technical experts and administrative personnel.

Despite these challenges, the newly approved strategy signals a clear intent to reposition the Investment Board as a central actor in Nepal’s infrastructure and investment landscape. Its success, however, will depend on overcoming internal inefficiencies, ensuring institutional reforms, and demonstrating tangible progress in turning plans into action.