United Nations
Information Centre | Nepal
White Paper on Public Private Partnership (PPP)
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Poor infrastructure has been one of the hindrances in Nepal’s competitiveness as the Global Competitiveness Report 2009/10 produced by the World Economic Forum put Nepal’s position in infrastructure at 131 out of 133 countries surveyed throughout the world. There is clearly a need for increased investment in infrastructure and other basic services. However, only the government’s investment and involvement in infrastructure and public services is not enough implying the need for a greater role of the private sector. The Government of Nepal (GoN) has already accepted public-private partnerships (PPP) as an alternative source of procuring assets and services, including the private sector’s financial participation for meeting the increasing demand for infrastructure and services in the country. Notwithstanding a decade of experience in the area of PPP, Nepal’s approach to it has had limited success. At the local authority level, the Kathmandu Metropolitan City (KMC) pioneered private sector involvement in the municipal sector with the Private Sector Participation (PSP) programme as far back as 1999/2000 for institutional strengthening of KMC. Several projects or ventures were identified for implementation such as the Gongabu bus park, construction of foot-bridges at surroundings. KMC entered into several PPP arrangements but not without controversy. made public calls to the private sector to invest in four large projects. Of these the only project to reach Expression of Interest (EOI) & Request for Proposal (RFP) stage was the “fast track” road project from Kathmandu to the terai. As the latest development in major PPP arrangements in service delivery, the call and subsequent selection of a private sector partner in Kathmandu’s waste management is a significant step. Realizing the importance of PPP, the GoN intervened in this area by introducing the Public-Private Partnerships for Urban Environment (PPPUE) project in 2002 with the support of UNDP. Since the project’s launch, PPPUE together with its partners have worked towards raising awareness of the potential of PPPs at both local and national levels and creating an enabling environment for PPPs in local urban service delivery with continued capacity building and policy/legislative interventions. Up till now, PPPUE has initiated local level projects.
GoN, PPPUE/UNDP ,   (2011 )
Type / Script:
Progress Report in English
Thematic Group:
 FAO : Food and Agriculture Organization
02.04.00  -  Development
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