Economy and Business

Government stalls outer ring road project despite 2 decades of planning


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KATHMANDU: The construction of the outer ring road project, aimed at connecting the three districts of Kathmandu Valley with a comprehensive road network, faces uncertainty after more than two decades since its inception. Despite numerous changes in government leadership, ministerial reshuffles, and administrative shifts, the project has remained stagnant.

Government funds allocated for the project have primarily been spent on administrative expenses and employee salaries, totaling approximately Rs 500 million to date, including the preparation of the Detailed Project Report (DPR). However, the project has failed to secure a place in the government's priority list in recent years, with little progress made on its advancement.

Challenges have emerged, including difficulties in acquiring necessary land for the project, exacerbated by the construction of over 300 concrete houses within the designated area earmarked for the outer ring road. Local opposition has further hindered land acquisition efforts, particularly in the initial phase stretching from Chobhar to Satungal.

The concept of the 72 km outer ring road encircling Kathmandu, Lalitpur, and Bhaktapur was introduced in 2058 BS, under the Kathmandu Valley Development Authority. Despite attempts to attract investment through donor agencies and international summits, the government has struggled to secure the necessary funding, estimated at Rs 300 billion for land acquisition alone. Consequently, the project remains stalled, with no physical infrastructure work initiated despite years of planning and studies.