NPC seeks to clear hurdles for P1 projects

KATHMANDU:

The National Planning Commission (NPC) will soon instruct all the ministries to immediately forward proposals on Priority One (P1) projects for approval to expedite execution of crucial development works and ensure the government does not fall short of meeting its capital expenditure target.

The instruction is being issued as many ministries failed to meet the deadline for submission of proposals.

The government categorises different projects into three groups: P1, Priority Two (P2) and Priority Three (P3). Ministries do not have to get NPC’s clearance to implement P2 and P3 projects, but need the commission’s approval for P1 projects.

This fiscal, the Ministry of Finance had asked all the ministries to get clearance to implement P1 projects from NPC within August 10. But since August 10 and 11 were public holidays, NPC was hoping to get the requests after offices reopened on August 12. But till today, only 53 proposals have been tabled at NPC, which is only 16 per cent of total P1 projects identified this fiscal.

“So far, we have been issuing verbal instructions to accelerate the pace of sending project proposals for approval, which have not been heeded. Next week, we will write to every ministry and ask them to forward the requests as soon as possible so that project implementation does not get delayed,” NPC Joint Secretary Gopi Nath Mainali said.

The government is implementing 491 projects this fiscal, of which 339 have been categorised as P1. Of the P1 projects being implemented this fiscal, around 30 per cent, or around 102 projects, are not new and are being executed under multi-year contract. This means, these projects are exempt from getting NPC’s approval.

But even after deducting the number of projects executed under multi-year contract, around 184 P1 projects still need to get NPC’s nod for implementation.

“This year, some of the crucial ministries which utilise large chunk of capital budget have failed to submit proposals,” Mainali said.

For instance, the highest number of P1 projects identified this fiscal is related to road infrastructure development. But of the 52 P1 road projects selected this fiscal, only one has submitted proposal for approval.

The tendency of dragging feet has once again raised fears of underutilisation of the capital budget as in the previous years.

The government has allotted Rs 116.75 billion for capital expenditure for this fiscal. Most of this money goes towards building road networks, power transmission lines, and irrigation and hydropower project, among others, considered crucial for the country’s development.

So, slow pace of capital spending, on one hand, delays construction or completion of various infrastructure projects, while on the other hand it hurts scores of daily wage earners who rely on these projects to earn a living.

Present scenario

• Ministries need NPC’s approval to implement P1 projects

• Govt implementing 339 projects categorised as P1 this year, of which 184 still need to get NPC’s nod for implementation

• Only 53 proposals tabled at NPC till date

• Highest number of P1 projects related to road infrastructure development, but only one out of 52 P1 road projects for this fiscal has submitted proposal

• Fears of underutilisation of Rs 116.75bn capital budget loom large

Source: THT