Major projects have adequate funding: Minister Lamsal
Minister Lamsal stated that concerns over insufficient budget provisions for large-scale projects were based on a misunderstanding of how multi-year projects are financed.
KATHMANDU: Minister for Physical Infrastructure and Transport Sunil Lamsal has said the government has ensured adequate funding for major infrastructure projects, including national highways, and assured lawmakers that multi-year projects will not face budget shortages.
Responding to questions raised by lawmakers during discussions on his ministry’s budget allocation in the House of Representatives on Thursday, Minister Lamsal stated that concerns over insufficient budget provisions for large-scale projects were based on a misunderstanding of how multi-year projects are financed.
He explained that although the annual budget document may show only a portion of the total funding required, infrastructure projects are implemented through multi-year contracts that cover the full cost of construction.
“Just because a highway has been allocated Rs 1 billion in the budget book does not mean only a Rs 1 billion tender will be issued,” he said. “Large projects are awarded through multi-year tenders, and the total amount required to complete the project is taken into account. The lower figure seen in the annual budget should not be interpreted as a lack of funding.”
The minister emphasized that most highway projects are multi-year in nature and that the government has secured the necessary resources to ensure their completion.
He also noted that additional funds are available under contingency allocations at the Ministry of Finance, further guaranteeing uninterrupted implementation of priority projects.
Lamsal assured lawmakers that there would be no shortage of funds for ongoing infrastructure projects and said the government remains ready to advance any project deemed urgent and nationally important.
