The government has tightened regulations on the selection and budget management of multi-year projects. The Ministry of Finance has enforced this stricter approach by issuing the Standards on Resource Agreement for Multi-Year Projects, 2082.
The ministry stated that the standards were formulated, using the authority granted by the Economic Procedures and Financial Accountability Act, 2076, to ensure discipline and effectiveness in project implementation. The standards have been issued for implementation following a decision at the finance ministerial level.
Under the new standards, projects must have completed all preparatory work to obtain resource approval as multi-year projects. For general projects, the estimated total cost must exceed Rs 500 million, while for government building construction or service procurement projects, the minimum cost threshold has been set at Rs 200 million.
The standards state that national pride projects will be considered multi-year projects for their entire duration, while other projects extending beyond one fiscal year will also qualify as multi-year projects.
Regarding the proposal submission process and timeline, concerned ministries or agencies must submit proposals for resource approval of multi-year projects to the National Planning Commission by the end of Kartik. Mandatory documents include the Detailed Project Report (DPR), Environmental Impact Assessment (EIA), annual procurement plan, and proof of entry in the National Project Bank.
However, special provisions have been made for the fiscal year 2082/83. Under this arrangement, ministries may submit proposals to the commission by the end of Poush, and the commission must complete its recommendations by Magh 15.
The standards further specify that at least 25 percent of the project’s total estimated cost must be allocated at the time of submitting a proposal for resource approval. The National Planning Commission may recommend funding up to a maximum of four times the initial allocated amount. This limit, however, will not apply to motorable bridges, suspension bridges, disaster management, and pandemic-related projects.
The validity of a resource agreement will be up to three fiscal years. However, for national pride projects or large contracts, the duration may exceed three years depending on their nature. If the procurement process does not commence within the fiscal year in which the resource agreement is granted, the agreement will automatically become inactive.
According to the standards, the commission must evaluate the received proposals and submit recommendations to the Ministry of Finance by Mangsir 15. The ministry is required to make a final decision by Poush 15 and inform the concerned agencies. In the case of projects receiving foreign assistance, a separate resource agreement will not be required if the government’s contribution is already included in the Medium-Term Expenditure Framework.
The primary responsibility for project implementation will lie with the concerned ministry or agency, which must manage future fiscal liabilities within its allocated budget ceiling. Monitoring and evaluation of projects receiving resource approval will be jointly carried out by the National Planning Commission and the respective ministries or agencies.
