Kathmandu, May 31: The government has unveiled an ambitious road and urban infrastructure agenda for the upcoming fiscal year, allocating Rs 286.48 billion to enhance transport connectivity, urban management and living standards across the country. Presenting the budget for fiscal year 2026/27, Finance Minister Dr Swarnim Wagle emphasized the completion of ongoing projects within fixed timelines while advancing new infrastructure initiatives.
Under the budget, around 1,000 kilometres of roads will be blacktopped and 275 bridges constructed during the next fiscal year. A major priority is the upgrade of the 1,028-kilometre East-West Highway into a four-lane corridor within five years. Key sections, including Kamala–Kanchanpur and Narayangadh–Butwal, are expected to be completed this year, while 80 kilometres of upgrading work will be carried out on stretches such as Kakarbhitta–Laukahi and Butwal–Gorusinghe. The project has been allocated Rs 37.46 billion.
Under the Kathmandu-Tarai Fast Track project, 40 bridges and 5.4 kilometres of tunnels are expected to be completed next year, backed by an allocation of Rs 17.64 billion.
The Postal Highway is targeted for completion within three years, including road widening in densely populated areas and construction of eight bridges. The government has allocated Rs 4.65 billion for the project. The government also plans to complete major bridge projects on national highways within three years, including 40 large bridges, with a budget of Rs 9.87 billion.
The Nagdhunga–Mugling section will see 40 kilometres upgraded, while the Nagdhunga Tunnel is scheduled to come into operation from mid-July. A total of Rs 6.55 billion has been allocated for the project. Corridor development projects include 31 kilometres of blacktopping on the Karnali Corridor, 21 kilometres on the Kaligandaki Corridor and 15 kilometres on the northern section of the Koshi Corridor, supported by Rs 6.25 billion.
In the Kathmandu Valley, ring road expansion will begin from Kalanki to Basundhara, while design work will be completed for the Basundhara–Chabahil–Koteshwor section. The government will also conduct feasibility studies for several tunnel projects, including the Tokha–Chhahare and Jajarkot–Jumla routes, along with other proposed tunnels nationwide.
Railway expansion plans include advancing the Bardibas–Kathmandu railway link and completing ongoing work on the Bhatnaha–Biratnagar and Janakpur–Jaynagar–Bardibas railway lines. Urban roads will be maintained under a nationwide “dust-free, pothole-free” campaign, for which Rs 28.52 billion has been allocated. To reduce disruptions caused by landslides, climate-resilient infrastructure will be introduced in high-risk areas, with Rs 3.17 billion earmarked for the initiative.
The government has also announced plans to introduce modern “Blue Bus” services equipped with CCTV cameras to improve public transport safety, particularly for women. On urban development, the budget outlines a broad programme covering city development, housing, sanitation, rural connectivity and reconstruction.
Under the Mid-Hill Highway corridor project, development of 12 identified cities will continue through land pooling and infrastructure construction, supported by Rs 1.83 billion. A further Rs 4.19 billion has been allocated for integrated waste management systems in major cities, river-cleaning campaigns and riverbank greening initiatives.
To strengthen national connectivity, the government will expand programmes linking currently unconnected local levels to national highways or provincial capitals through all-weather roads. In addition, Rs 5.14 billion has been earmarked for suspension bridge construction, with the goal of ensuring that no citizen has to walk more than 30 minutes to access basic transportation services.
In the housing sector, National Housing Company Limited will launch the first phase of a housing project in Mechinagar, constructing 100 residential buildings for public sale.
Overall, the government has allocated Rs 286.48 billion for road and urban infrastructure development, aiming to improve transport access, urban services and living conditions nationwide. #Nepal
