E-Kantipur

KATHMANDU, FEB 04 -

Often criticised for low capital expenditure, the government nevertheless managed to spend the development budget on major infrastructure projects the last fiscal year.

The annual evaluation report of the Ministry of Finance (MoF) shows that significant expenditure was made on eight big projects out of 11. And, most of these projects are of national importance.

Among these projects, according to the MoF report, are Mid-Hill Highway, Sikta Irrigation, Upper Tamakoshi Hydropower and People’s Housing Programme. Mid-Hill Highway and Sikta Irrigation were among the projects that were given high priority by the Finance Ministry also. “Good expenditure on major projects has shown that progress can be achieved if there is will and determination,” said Keshav Acharya, chief economic advisor to the Finance Ministry.

Among other projects that spent well were Food Supply Programme, Rural Community Infrastructure Programme, Decentralised Rural Infrastructure & Livelihood Programme and Professional and Vocational Training Centre. The MoF report shows that except Industrial Infrastructure Development Programme, most other projects were able to spend almost all the allocated budget.

The progress made in the Mid-Hill Highway shows that even without donor support large-scale infrastructure projects can be taken forward. This project was carried out through the government’s own resources. Rs 936.7 million of the Rs 1.2 billion was spent on the project during the year. A 120-km track was opened while and an 80-kilometre stretch was widened with the budget, says the report.

There was work going on on 226 km of road after the contract was awarded. Work on the 1,765 kilometre road project is underway with domestic resources and manpower. MoF senior officials spoke highly of the the Mid-Hill Highway. “This is the project we should be proud of as work is going on on a war footing,” said Acharya.

Sikta Irrigation Project witnessed cent percent expenditure of the allocated budget of Rs 1.36 billion last year. With the budget, a 317-meter long bridge over the headwork barrage was built. Digging out clay from the 14 km main canal has also begun. In the last one year, Upper Tamakoshi Hydropower Project made significant progress by managing loans from domestic financial institutions to signing a Power Development Agreement (PDA) with the Department of Electricity and Power Purchase Agreement with Nepal Electricity Authority (NEA).

A total of Rs 2.11 billion was spent on Upper Tamakoshi out of the Rs 2.25 billion allocated last fiscal year. With the spent budget, a 32.7-km stretch of the 35-km Dolakha-Sigati road was upgraded while a track of 26.6-km of Sigati-Lamabagar the road was opened. A 760-km tunnel leading to an underground powerhouse was constructed and one bridge among the planned six over the entry road was also built last fiscal year.

According to the report, of the Rs 974.4 million allocated for Postal Road, Rs 742.5 million has been spent. However, there has been little progress in terms of construction.

Though Parliament’s Public Account Committee (PAC) has raised questions over People’s Housing Programme, the MoF officials say this is one project where budget has been spent well. There has been considerable expenditure of Rs 276.8 million from the Rs 300 million budget allocated for programme. A total of 972 houses in Saptari, 843 in Siraha and 426 in Kapilvastu were built last fiscal year. Almost all the budget of Rs 136.7 million allocated for Rural Community Infrastructure Project under the Ministry of Local Development was also spent last fiscal year. The programme meant to expand rural roads witnessed construction of 42 km of roads among a planned 52.5 km length. A budget of 1.56 billion from the allocated Rs 1.7 billion for Decentralised Rural Infrastructure and Livelihood Programme was also spent.

With the expenditure, 103 km of road among a planned 156 km length was constructed. A total of 45 suspension bridges along with 133 km of road were upgraded.

Under the Industrial Infrastructure Development Programme, 6,000 running meter roads were constructed leading to proposed cement industries in Udayapur, Makawanpur, Dang, Dhading, Surkhet and Rolpa. The project initiated last year aims to link the hydropower and cement projects with road. “As it is a new project, there has been relatively low expenditure,” said Acharya.

 

Posted on: 2011-02-04 09:10

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