Lumbini and Gandaki Provinces Agree to Implement Gandaki Economic Triangle Project

The governments of Lumbini and Gandaki Provinces have reached a historic agreement to implement the Gandaki Economic Triangle Project, aimed at fostering economic integration and regional development. The joint meeting, held at the historic Rani Mahal in Palpa, concluded with Chief Ministers Chet Narayan Acharya of Lumbini and Surendra Raj Pandey of Gandaki signing a 21-point agreement to strengthen inter-provincial cooperation.

The project, introduced in the federal budget for the current fiscal year, seeks to establish economic hubs by connecting Bharatpur, Butwal, and Pokhara. With a budget allocation of Rs 2 billion, it will focus on industrial, agricultural, and tourism development. The Narayangadh-Butwal section will be a center for construction and heavy industries, while the Muglin-Pokhara section will focus on agriculture and food processing. The Pokhara-Butwal corridor will be developed for manufacturing industries, including electronics, footwear, garments, and household goods. Bharatpur will be established as a hub for tourism and specialized services, while Pokhara will be promoted as a destination for adventure tourism and research-oriented higher education. The Butwal-Bhairahawa section will focus on religious tourism, IT infrastructure, and data centers.

The agreement also includes key infrastructure projects such as the expansion of air connectivity with Nepalgunj-Jomsom and Bhairahawa-Jomsom aviation services. Major roads, including the Lumbini-Lomanthan Silk Road, Lumbini-Tribeni-Dumkibas road, Gaindakot-Kaligandaki corridor, and Bhimgithe-Burtibang-Gaumukhi-Jhmuk road, will be upgraded. The provinces have also decided to urge the federal government to expand the Butwal-Pokhara Siddhartha Highway to a double-lane structure.

The two governments have committed to prioritizing the establishment of a provincial industrial corridor, promoting local production, and creating employment opportunities in their upcoming budget plans. They have also agreed to strengthen the marketization of agricultural and livestock products by setting up food quality control labs in Pokhara and Lumbini, establishing supply outlets with chilling centers, and conducting feasibility studies for improved market infrastructure.

In the tourism sector, both provinces have pledged to develop the Lumbini-Pokhara-Muktinath route as a major tourist attraction and establish a religious and cultural circuit connecting Tribeni, Devghat, Ridi Ruru, and Muktinath. A new environmental and adventure tourism circuit will be created, integrating Banke and Bardiya national parks, Chitwan National Park, Manaslu Conservation Area, Annapurna Conservation Area, and Dhorpatan Hunting Reserve. Infrastructure development and conservation efforts will also be prioritized for Rani Mahal in Palpa.

The agreement includes facilitating private sector investment in the Motipur Industrial Area in Butwal and Lokaha Khola Industrial Zone by expanding their jurisdictions. Efforts will be made to standardize service charges and tariffs for mining and mineral-based industries while ensuring the systematic sale and distribution of natural resource-based products. Measures will be taken to enhance industrial security, streamline marketization and transportation, and facilitate the construction of multi-purpose mega water resource projects for the shared benefit of both provinces.

To ensure adequate water flow from the Kaligandaki Hydropower Project to downstream areas, a recommendation will be made to the federal government. The two provinces have also committed to working jointly on the implementation of the Rampur-Chapakot Integrated Urban Development Project.

The meeting concluded with an agreement to continue future coordination meetings for sustained collaboration and partnership between Lumbini and Gandaki Provinces. The next coordination meeting will be hosted by Gandaki Province.

Chief Minister Acharya emphasized that inter-provincial cooperation can lead to more effective and efficient development. Chief Minister Pandey underscored the need for joint efforts to address common challenges and ensure sustainable progress. The agreement marks a significant milestone in strengthening regional economic development and fostering long-term collaboration between the two provinces.