Amid increasing pressure from political leadership to include fragmented, low-priority projects in the Project Bank, the National Planning Commission (NPC) has taken stringent measures. Projects lacking adequate preparation and priority have been removed, reducing the number of entries in the Project Bank to about 7,500.
According to the NPC, over 10,000 of the 18,000 previously listed projects have been eliminated. Currently, only 7,337 projects remain registered in the National Project Bank system, as stated by Arjun Bhandari, Joint Secretary of the Commission.
Following the standards outlined in the “National Project Bank Guidelines 2081,” only those projects that meet the required criteria are being re-entered into the Project Bank. The purpose of this initiative is to discourage the haphazard inclusion of poorly prepared projects in the national budget.
This approach emerged due to the growing inclusion of projects with inadequate preparation, uncertain funding, and low cost-effectiveness. To address this, the NPC has emptied the Project Bank and started fresh entries.
NPC Vice Chairperson Dr. Shivraj Adhikari stated that only projects that can be completed promptly are given top priority. He shared this during discussions related to the formulation of the Annual Development Program and the Medium-Term Expenditure Framework for the upcoming fiscal year, as well as matters related to the National Project Bank.
Dr. Adhikari explained that projects will now be classified into two categories: those meant for study and those for implementation. Implementation-ready projects must have a minimum budget of NPR 30 million. “Projects below NPR 30 million are not eligible for entry into the National Project Bank,” he said.
He also criticized the misuse of political influence in project selection, which led to many projects becoming inactive. Under new provisions, any project to be included in the national budget must be part of the Project Bank. According to the guidelines, a project is defined as one that enhances or transforms public assets upon completion and is related to infrastructure, economy, society, culture, environment, and other development sectors.
Furthermore, all sources of project funding must be disclosed. Whether financed by the government, internal or external loans, or grants, all such projects must be registered in the Project Bank.
This requirement also extends to projects implemented through public-private partnerships and those executed by provincial or local governments that hold national priority. For any new project to be implemented in the upcoming fiscal year, it must have been entered into the Project Bank by the end of Falgun (mid-March) of the current fiscal year.
Dr. Adhikari emphasized that the prioritization of projects should align with the government’s policy and programs. Projects that can be completed quickly should be the top priority. He also pointed out that projects not listed in the Project Bank or lacking Detailed Project Reports (DPRs) are rightfully subject to scrutiny and will be categorized as “under study.”
He urged that projects should be entered into the system in accordance with the stages they have completed.
To register a project in the Project Bank, several mandatory documents must be submitted, including the Detailed Engineering Design or DPR, environmental assessment reports such as Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA), land acquisition plans (if applicable), procurement plans, implementation strategies, and expected outcome frameworks.