Kathmandu – Nepal’s Infrastructure Development Minister Sunil Lamsal announced that the government is actively pursuing legal reforms to foster an environment conducive to development and investment. He stated that the government is committed to creating citizen-friendly laws and will not draft legislation designed to benefit middlemen.
Minister Lamsal made these remarks on Friday, October 2, 2026, at a workshop titled ‘Legal Reforms for Investment and Development related to Nepal Infrastructure Conference 2026’. The event was organised by the Ministry of Infrastructure Development. He emphasised that the state system operates according to its laws, and the outcomes reflect the quality of legislation.
“Our society mirrors the laws we have,” Minister Lamsal said, explaining that existing urban and education laws reflect the current state of cities and schools. He stressed the need to thoroughly review the prepared legal drafts to make them even more effective, aiming for a “public-centric policy departure” in legal reforms.
Focus on Public Procurement Act
The government’s push for legal reform includes amendments to the Public Procurement Act, 2063. The Nepal Federation of Contractors, an organisation representing construction businesses, welcomed the second amendment to the Act on July 14, 2026, calling it a significant step for infrastructure development. This amendment introduced provisions such as awarding contracts based on average evaluation instead of minimum price, incentives for timely project completion, a 5% performance bond, counting qualifications of both entities in company mergers, and reducing the tender process time.
Furthermore, the revised Act stipulates that procurement processes cannot proceed without budget allocation or assured funding. It also mandates that tenders can only be invited after land acquisition, compensation distribution, site availability, and environmental approvals are complete.
However, Minister Lamsal noted that while the government studied suggestions from stakeholders, including the Nepal Federation of Contractors, during the amendment process, some recommendations were not incorporated because they did not align with the government’s desired policy departure.
Separately, a writ petition was filed at the Supreme Court on July 28, 2026, challenging amendments to sections 14(1), 30(2), and 40(3) of the Public Procurement Act. These amendments restrict the publication of tender advertisements in newspapers, requiring them to be published solely on websites.
Broader Legal Reform Efforts
The Ministry of Infrastructure Development is also working on other legislative changes. On September 22, 2026, the Ministry issued a concept paper for a bill to amend and consolidate laws related to the Infrastructure Development Fund.
Prime Minister Balen Shah also discussed legal and practical challenges in development with members of parliament with technical backgrounds. During this meeting on September 30, 2026, Minister Lamsal informed them that necessary legal amendments are underway to address these issues.
The Minister expressed confidence that the recent workshop would play a crucial role in identifying necessary reforms to make infrastructure development more dynamic and effective. The government’s focus remains on drafting excellent laws through careful study of proposed drafts.
Unanswered Questions
Details regarding the specific dates, other participants, and precise outcomes or proposals of the ‘Nepal Infrastructure Conference 2026’ remain unclear. Further information is also awaited on other specific laws the Ministry of Infrastructure Development is drafting beyond the Public Procurement Act. The current status and ruling on the Supreme Court petition against the Public Procurement Act amendments are not yet known. Additionally, specific details beyond general development and investment hurdles regarding the “problems to be solved legally” mentioned by Minister Lamsal are not fully clear.
