Current Status, Problems, and Prospects of Infrastructure in Nepal

GP Chudal
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Current Status of Infrastructure in Nepal

Infrastructure in Nepal has long been a source of concern for the government and development partners. Inadequate infrastructure in the country has hampered economic growth and social development. The followings are some statistics and facts about Nepal’s current infrastructure status:

current-status-problems-and-prospects-of-infrastructure-in-nepal
  1. Transportation: Nepal has a limited transportation network, with road transportation being the most common mode. According to the Nepal Transportation Management Department, the country has approximately 18,000 kilometers of roads, only 15% of which are paved.
  2. Roadways: Nepal’s current infrastructure is inadequate, and most roads are in poor condition. The lack of good road infrastructure hurts the country’s rural areas the most, and during the monsoon season, many roads are closed. The World Economic Forum’s Global Competitiveness Index 2019 ranked Nepal 111th regarding road quality.
  3. Railway, Ropeways, Airways: Nepal’s railway network is limited, with only one line connecting the country to India. Ropeways are used for transportation in some hilly areas of Nepal. Nepal has only one international airport, Kathmandu’s Tribhuvan International Airport, and a few domestic airports.
  4. Communication: Nepal has made significant progress in the communication sector in recent years. As of mid-2021, the Nepal Telecommunications Authority reported that the country had over 36 million mobile phone subscribers. Internet penetration has also increased in the country, with over 27% of the population now having access to the internet.
  5. Health: In recent years, Nepal has improved its healthcare infrastructure. The country has over 1,300 government-run health facilities, including hospitals, health posts, and primary healthcare centers. However, the country’s healthcare quality remains a concern, particularly in rural areas.
  6. Education: Over the years, Nepal has made significant strides in improving access to education. There are over 36,000 schools in the country, including primary, secondary, and higher secondary schools. However, the country’s educational quality remains a concern, particularly in rural areas.
  7. Sanitation: Nepal’s access to sanitation facilities has improved in recent years. In 2019, more than 45% of the population had access to improved sanitation facilities, according to the World Health Organization and UNICEF Joint Monitoring Programme. However, providing adequate sanitation facilities remains challenging, particularly in rural areas.

Current Status of Transportation in Nepal:

Nepal has a limited transportation network compared to other countries in the region. Road transportation is Nepal’s most common mode of transportation, which has approximately 18,000 kilometers of road. However, only about 15% of the road network is paved, making travel difficult, especially during monsoon season, when many roads become impassable due to landslides and floods.


Nepal’s road network is also poorly maintained, with most roads in poor condition, affecting travel safety and speed. Nepal has only one railway line that connects it to India. The railway line is primarily used for freight rather than passenger transport, and there are no plans to expand Nepal’s railway network soon.


Nepal has air transportation, with Tribhuvan International Airport in Kathmandu serving as the country’s only international airport. Domestic airports in Nepal connect the country’s major cities and tourist destinations. However, air travel in Nepal is expensive, and the safety record of Nepali airlines has previously been a source of concern.


Here is a table showing the current status of transportation in Nepal:

Mode of TransportationLength/NumberPaved/UnpavedConditionSafety Record
Road18,000 km15% pavedPoorHigh accident rate due to poor road conditions and reckless driving.
RailwayOne line (Raxaul, India to Sirsiya, Nepal)N/AN/AN/A
Air47 airports (including 1 international airport)N/ASome airports are in poor condition.The safety record of Nepali airlines has been a concern in the past.

Source: “Transportation and Infrastructure Development in Nepal.” Asian Development Bank, 2018

Current Status of Road Infrastructure in Nepal

Nepal has a road network of approximately 18,000 kilometers, only about 15% of which is paved. According to the World Bank, Nepal has one of the lowest road densities in South Asia, with only about 17 kilometers of road per 100 square kilometers of land area. Most of the road network, particularly in rural areas, is in poor condition, and many roads are inaccessible during the monsoon season.


Furthermore, Nepal was ranked 111th in the World Economic Forum’s Global Competitiveness Index 2019, indicating that significant improvements in the quality and quantity of infrastructure, including road infrastructure, are required.


Challenges of Road Infrastructure Development in Nepal

The difficult terrain is one of the major challenges to road infrastructure development in Nepal. The country’s mountainous terrain makes road construction and maintenance difficult. Road development projects have also been slowed due to insufficient infrastructure planning and management. Another major issue is a lack of budget allocation for road infrastructure development. Despite the government’s efforts to increase infrastructure development funding, the allocation remains insufficient.


According to the World Bank, Nepal’s infrastructure investment needs between 2015 and 2024 are estimated to be around $10 billion, with only about $5 billion available. A significant challenge in the road infrastructure sector is a lack of technical expertise and skilled human resources. Nepal suffers from a scarcity of skilled engineers and technicians, resulting in subpar road construction, maintenance, and management.


Prospects of Road Infrastructure Development in Nepal

Despite the challenges, Nepal has several opportunities for road infrastructure development. The Nepalese government has prioritized road infrastructure and is committed to expanding the country’s road network. The government has begun many road development projects, including the Postal, Mid-Hill, and East-West Highway. The private sector has also expressed interest in developing Nepal’s road infrastructure. Public-private partnerships (PPPs) can be an effective way to attract private investment and expertise in road infrastructure development.


Furthermore, international development partners such as the World Bank and the Asian Development Bank are assisting Nepal in developing its road infrastructure. The World Bank has assisted the country’s road development projects, including the Strategic Road Connectivity and Trade Improvement Project (SRC-TIP) and the Nepal Rural Access Program, with financial and technical assistance (RAP).


Road Infrastructure in Nepal Table

IndicatorValue
Total road network18,000 km
Paved road network15%
Road density (per 100 sq. km)17 km
Quality of roads (1-7 scale)3.4 (2019)
The efficiency of customs procedures (1-7 scale)2.5 (2019)
Quality of overall infrastructure (1-7 scale)3.7 (2019)
Logistics performance index (LPI)2.62 (2018)
Road connectivity index (RCI)27.7 (2019)

Source: World Bank, Logistics Performance Index Database (2018), Global Competitiveness Index (2019)


The table shows Nepal’s road network is largely unpaved, with only 15% paved roads. The road density is also low compared to other countries in the region, making access to remote areas difficult. The road quality is rated as poor, with a score of 3.4 on a scale of 1 to 7. Furthermore, customs procedures are inefficient, which can cause delays in the transportation of goods. Despite these obstacles, Nepal has promising prospects for road infrastructure development. The government has identified road infrastructure as a priority area and has begun several road development projects, including the Postal Highway, the Mid-Hill Highway, and the East-West Highway. Private sector investment and assistance from international development partners can also aid in attracting resources and expertise in this sector.


Current Status of Railway, Ropeways, and Airways in Nepal

Nepal has limited railway infrastructure, with only one operational railway line. The Janakpur-Jayanagar Railway connects Janakpur in Nepal to Jayanagar in India and is Nepal’s only operational railway line. The 29-kilometer-long railway line is primarily used for transporting goods and raw materials.

Nepal has several ropeway systems, including the Manakamana Cable Car and the Chandragiri Cable Car, primarily used for tourism in Nepal. Tourists love these cable cars because they provide scenic views of the mountains and valleys.

The air transport infrastructure in Nepal is more developed than the railway infrastructure. The country has over 47 airports and airstrips, with the main international airport being Tribhuvan International Airport in Kathmandu. Most airports in Nepal are domestic, serving as a vital link to the country’s remote areas.

The domestic air transport sector in the country has expanded significantly in recent years, with several airlines operating scheduled flights to various parts of the country. However, Nepal’s aviation industry faces several challenges, including inadequate infrastructure and proper safety measures. Air travel is also dangerous due to the country’s hilly terrain and inclement weather, and several accidents have occurred.

The Nepalese government has launched several projects to improve the country’s aviation infrastructure. Some of the major projects underway include the expansion of Tribhuvan International Airport, the construction of Pokhara International Airport, and the development of several regional airports. The government is also considering the construction of a new international airport in Nijgadh, Bara, which would significantly improve the country’s air transportation infrastructure.

Current Status of Communication in Nepal

Nepal’s communication infrastructure has improved significantly recently, particularly in the telecommunications sector. According to the Nepal Telecommunications Authority, the country has made significant progress in expanding its telecom network and services, with mobile penetration expected to reach 127% by 2021. (NTA).


The NTA, Nepal’s telecommunications regulatory body, has been actively working to improve the quality and reach of telecommunication services nationwide. Several telecom operators, including Nepal Telecom, Ncell, Smart Telecom, and UTL, have received licenses from the authority to provide various telecom services, including mobile and fixed-line services, internet services, and international connectivity. Internet service availability has also improved in recent years, with increased access to broadband and 4G services.


According to the NTA, the country has over 22 million internet users as of 2021, with a more than 74% penetration rate. Despite these advancements, Nepal’s communication infrastructure continues to face significant challenges. The quality and reach of services vary across the country, and many rural areas continue to lack adequate access to telecom services. Furthermore, there is a lack of proper infrastructure and investment in the sector, which has limited the sector’s ability to expand further.


The Nepalese government recognizes the importance of communication infrastructure in promoting economic development and aims to provide nationwide access to communication services. The government has been implementing various policies and initiatives to achieve this goal, including the Nepal Telecommunication Act, which has paved the way for private sector participation in the telecom sector, and the National Broadband Policy, which aims to provide high-speed internet services to all parts of the country.

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Current Status of Health in Nepal

Nepal faces significant challenges in providing adequate health care to its people, particularly those in rural areas. The World Health Organization (WHO) reports that Nepal’s healthcare system is still in transition, with the government attempting to transition from a centralized, government-run system to a more decentralized and community-oriented one.


One of the major challenges confronting Nepal’s healthcare sector is a shortage of healthcare workers, particularly in rural areas. Nepal has a low density of healthcare workers, with only 0.7 physicians and 2.1 nurses per 1,000 people, according to the WHO. This shortage of healthcare workers is exacerbated in many parts of the country by a lack of adequate infrastructure and medical supplies. Nepal has made progress in lowering child mortality rates and improving maternal health, but challenges remain.


Nepal still has a high maternal mortality rate of 239 deaths per 100,000 live births, compared to the global average of 211. Malnutrition is also prevalent in Nepal, with 36% of children under five experiencing stunted growth. Despite these obstacles, Nepal has made significant strides in certain areas of health care. Nepal, for example, has made significant progress in lowering the prevalence of communicable diseases such as tuberculosis, malaria, and HIV/AIDS.


The country has also increased access to immunization services, with over 90% of children receiving basic vaccines. In recent years, the Nepalese government has prioritized improving the quality and accessibility of healthcare services, particularly in rural areas. The government has launched several programs to improve maternal and child health and expand access to basic healthcare services.


Furthermore, international development partners such as the WHO and UNICEF collaborate with the government to improve the country’s healthcare infrastructure and services.


Current Status of Education in Nepal

Education is a critical component of human development, and Nepal has made significant strides in this area in recent years. The government has implemented many policies and programs to increase access to education and improve educational quality.


Primary Education: Primary education has seen a significant increase in net enrollment in recent years, with 96.4% of children enrolled in primary school in 2019. The government provides free education up to the secondary level, which has increased primary school enrollment. However, the quality of primary education continues to be an issue, with many students failing to achieve basic literacy and numeracy skills.


Secondary Education: In 2019, 70.2% of children were enrolled in lower-secondary school, and 57.5% were enrolled in upper-secondary school, representing an increase from previous years. However, there is a significant difference in enrollment rates between urban and rural areas, with urban areas having higher enrollment rates.


Tertiary Education: Nepal has made significant progress in increasing access to tertiary education in recent years. The number of universities has increased, and the number of students enrolled in higher education has increased significantly. However, the quality of tertiary education remains challenging, with many universities lacking adequate infrastructure and qualified teachers.


University Education: According to Nepal’s University Grants Commission (UGC), there are currently 13 universities in operation. These universities provide undergraduate and graduate programs in various disciplines, including the arts, sciences, engineering, medicine, management, and law. Tribhuvan University (TU), founded in 1959 and has its main campus in Kirtipur, Kathmandu, is Nepal’s oldest and largest university. TU is Nepal’s only national university, offering humanities, social sciences, natural sciences, and technology programs.


Other notable universities in Nepal include:

  • Kathmandu University (KU): A private university founded in 1991 in Dhulikhel, Kavrepalanchok, with its main campus in Dhulikhel. Engineering, management, medicine, and natural sciences are among KU’s undergraduate and graduate programs.
  • Pokhara University (PU): A private university founded in 1997, with its main campus in Pokhara, Kaski. Undergraduate and graduate programs in management, engineering, health sciences, and social sciences are available at PU.
  • Nepal Sanskrit University (NSU): A public university founded in 1986, with its main campus in Beljhundi, Dang. NSU is dedicated to promoting and preserving the Sanskrit language and literature, and it offers undergraduate and graduate programs in these fields.
  • Purbanchal University (PU): Purbanchal University is a public university founded in 1993 in Biratnagar, Morang. Undergraduate and graduate programs in science, management, humanities, and social sciences are available at PU.

Gender Disparity: Gender disparities in education continue to be a significant issue. While the gender parity index (GPI) in primary and secondary education has improved recently, there is still a significant gender gap in enrollment rates in some areas. Girls in rural areas, in particular, are less likely to enroll in school and more likely to drop out early.

Problems of Infrastructure in Nepal

  1. Difficult Terrain: Nepal’s mountainous terrain presents significant infrastructure construction and maintenance challenges, particularly in the road sector. The challenging terrain also limits the possibility of railways and waterways.
  2. Inadequate Funding: Despite the government’s efforts to increase infrastructure development funding, the allocation remains insufficient. The estimated infrastructure investment needs and available resources are vastly different.
  3. Poor Quality of Infrastructure: The quality of infrastructure development, particularly in the road sector, has been poor due to a lack of skilled human resources and technical expertise. Inadequate infrastructure has also resulted in low utilization and high maintenance costs.
  4. Inefficient Planning and Management: Inefficient planning and management of infrastructure projects have led to delays, cost overruns, and poor quality of infrastructure. The bureaucratic process and lack of coordination among various government agencies also add to the inefficiencies.
  5. Lack of Maintenance: Poor infrastructure maintenance, especially in the road sector, has caused infrastructure quality to decline and maintenance costs to rise.
  6. Natural Disasters: Nepal has a lot of floods, landslides, and earthquakes, which often do a lot of damage to the infrastructure. The inadequate infrastructure and poor planning and management exacerbate the effects of natural disasters.
  7. Political Instability: Political instability and frequent changes in government have led to policy uncertainty and delays in infrastructure development projects. The unstable political situation has also affected foreign investment and international aid.

Prospects of Infrastructure in Nepal

Despite the challenges faced by Nepal’s infrastructure sector, there are several prospects for infrastructure development in the country. Some of the prospects are:

  1. Government Initiatives: The Government of Nepal has identified infrastructure development as a priority area and has been taking initiatives to address the challenges in the sector. The government has been increasing the infrastructure development budget and implementing various development projects in the transportation, energy, and communication sectors.
  2. Private Sector Participation: Private sector participation can play a crucial role in infrastructure development in Nepal. The government has been promoting public-private partnerships (PPPs) in infrastructure development, which can attract private investment and expertise.
  3. International Support: International development partners such as the World Bank, Asian Development Bank, and Japan International Cooperation Agency (JICA) have provided financial and technical assistance to Nepal’s infrastructure development projects. For example, the World Bank has supported Nepal’s road infrastructure development through various projects such as the Strategic Road Connectivity and Trade Improvement Project (SRC-TIP) and the Nepal Rural Access Program (RAP).
  4. Strategic Location: Nepal’s strategic location between two giant economies, India and China, provides opportunities for infrastructure development in the transportation and trade sectors. The country can develop its transportation and logistics infrastructure to facilitate trade and transit between the two countries.
  5. Renewable Energy Potential: Nepal has significant potential for developing renewable energy sources such as hydropower, solar, and wind energy. The country can leverage its renewable energy potential to enhance its energy infrastructure and reduce its dependence on fossil fuels.
  6. Tourism Potential: Nepal’s natural and cultural attractions make it a popular tourist destination. The country can develop its tourism infrastructure, including transportation, accommodations, and recreational facilities, to further promote its tourism industry.
  7. Human Resource Potential: Nepal has a young and growing population, with a significant proportion of the population in the working-age group. The country can leverage its human resource potential by investing in education and skill development to enhance its workforce’s productivity and competitiveness in various sectors.

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