KATHMANDU, Aug 23: The House of Representatives (HoR) on Friday approved the Alternative Development Finance Mobilization Bill 2025, allowing the government to develop a fund of Rs 100 billion aimed for targeted development projects.
The HoR unanimously endorsed the bill that witnessed 66 amendments in the old draft. The legislation was presented at the Lower House in April 2025 after deliberations in the Parliamentary Finance Committee.
The new law has sought to mobilize alternative sources of finance to fund large-scale, high-return infrastructure projects. For this purpose, the government will be setting up a dedicated fund with an authorized capital of Rs 100 billion and paid-up capital of Rs 25 billion.
The financing source is deemed necessary to address the appropriate use of domestic and foreign investments, financial instruments, institutional structure, monitoring, and evaluation. The endorsed bill talks about utilizing the funds for electricity production and distribution projects along with the construction and operation of road network, railways, airports, tunnel highways, cable cars, podways and industrial infrastructure including special economic zones, industrial parks, dry ports and information technology parks.