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Government of Sudurpashchim Province

Sudurpashchim Investment and Development Summit

Dhangadhi, Kailali
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Infrastructure and Transport

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Overview

Sudurpaschim Investment and Development Summit 2025

Infrastructure & Transportation Sector: Forging the Lifelines of Prosperity in Nepal’s Far West

Why Invest in Sudurpaschim's Infrastructure & Transportation?

Sudurpaschim Province is poised for transformation through infrastructure development. Nepal's infrastructure deficit, ranking 108 out of 140 countries globally [1], presents a high-growth opportunity. With its strategic location bordering India, rich natural resources, and burgeoning economy, Sudurpaschim urgently needs robust transportation and urban infrastructure to unlock its full socio-economic potential. Investing here means building a new economy, ensuring long-term value, enhanced connectivity, and significant societal impact. This is an invitation to engineer the future of Nepal’s Far West.

Key Infrastructure Needs & Untapped Potential:

  • Road Network Development:
    • Existing roads are poor quality and lack all-weather access, hindering trade and services.
    • Opportunities exist in constructing, upgrading, and maintaining provincial/local roads, including national projects like the Mid-Hills Pushpalal Highway and Terai Hulaki Marg.
    • New link roads and all-weather bridges are crucial for year-round connectivity.
    • Efficient private sector involvement is needed to accelerate project delivery.
  • Aviation Sector Upgrades:
    • Sudurpaschim has 10 airports [3], including Dhangadhi, many requiring significant upgrades. Some are non-operational or under construction [4].
    • Investments can transform smaller airports into regional hubs.
    • Solutions for land acquisition challenges are needed for airport expansion.
  • Logistics & Dry Port Development:
    • Dodhara Chandani Dry Port is a key cross-border trade project with India.
    • Investment potential includes warehousing, cold chain, cargo handling, customs processing, and intermodal connectivity.
    • Advanced logistics parks will support industrial and agricultural growth.
  • Urban & Community Infrastructure:
    • Investment is vital for planned urban growth and basic services.
    • Development of modern water supply, sanitation, and sustainable waste management systems.
    • Opportunities in smart city components: public lighting, urban mobility, smart parking, and integrated urban planning.
    • Development of efficient, low-carbon public transport.

Market & Demand: A Growing Imperative for Connectivity

  • Surging Demand: Increasing economic activity, cross-border trade, and internal migration drive demand for faster, safer, and more reliable transportation.
  • Vehicle Growth: Vehicle tax alone contributed 62.95% to the province's directly collected internal revenue [14], indicating significant vehicle growth.
  • Trade Facilitation: Businesses seek improved logistics to reduce costs and enhance efficiency.
  • Tourism Accessibility: Improved infrastructure is critical for unlocking Sudurpaschim's tourism potential. Nepal welcomed over 1 million tourists in 2023, a 165% growth over 2022 [5].
  • Regional Connectivity: Sudurpaschim's border with India makes it a crucial trade gateway. Nepal's exports to India surged by 82.5% in the first eight months of FY 2024/25 [8].

Strategic Investment Opportunities:

  • Road & Bridge Infrastructure: Construction/upgrading highways, new bridge development, road maintenance, and integrated fuel/EV charging (e.g., Sudurpaschim Public Transport Charging Station, major highway bypass construction in Kailali).
  • Aviation Infrastructure: Airport expansion (e.g., Dhangadhi Airport runway extension and new terminal construction), aviation services (ground handling, MRO, training), and helicopter safari/charter services (e.g., Khaptad National Park helicopter tours).
  • Logistics & Trade Facilitation: Dry port operations and expansion, integrated logistics parks (e.g., Kailali Industrial Corridor Logistics Park), and robust cold chain infrastructure (e.g., modern agricultural cold storage facilities near Dodhara Chandani Dry Port).
  • Urban & Community Infrastructure: Modern public transit, urban road networks/traffic management, municipal services, business/multipurpose complexes, planned housing, scenic view towers, recreational hubs (e.g., Badimalika Cable Car, Thulakedar Cable Car Project, Chisapani-Rajkada Cable Car, Godawari-Buditola Cable Car), and social/accessibility centers.

Provincial Government Support & Incentives:

Sudurpaschim Province is committed to fostering a dynamic investment environment:

  • Policy Reform: Active review and reform of policies to streamline investment processes.
  • One-Door Investment Processing: A dedicated "Investment Board/Corporation of Sudurpaschim" is envisioned.
  • Streamlined Business Registration: Commitment to expediting registration. Current company registration takes 5-7 working days [9, 10].
  • Long-Term Land Allocation: Provisions for long-term land leases.
  • Complementary Tax Incentives: Proposed provincial tax exemptions (5-15 years) complement federal incentives like rent exemptions for SEZs (first three years) and reduced customs duty for EV assembling industries [11, 12].
  • Public-Private Partnership (PPP) Promotion: Strong national and provincial support for PPP models.
  • Strategic Alignment: Provincial plans align with national projects and federal initiatives, ensuring synergy and broader governmental support, including conditional grants for infrastructure projects [12, 13].

Join the Movement! Build the Future. Invest in Sudurpaschim’s Infrastructure & Transportation. Seize this unparalleled opportunity to invest in Sudurpaschim’s dynamic Infrastructure & Transportation sector and become a pivotal architect of Nepal’s transformative connectivity and economic growth.

📍 For more details, contact: Secretariat of Sudurpaschim Investment and Development Summit 📞 +977-091-523232 📧inv.devsumitsupa@gmail.com / invest@sudurppashchim.gov.np 🌐https://invest.sudurpashchim.gov.np/

 

References: [1] WEF Global Competitiveness Report. (2019). Wikipedia. Retrieved from https://en.wikipedia.org/wiki/WEF_Global_Competitiveness_Report [3] OurAirports. Airports in Sudurpashchim Province, Nepal. Retrieved from https://ourairports.com/countries/NP/P7/airports.html [4] Ekantipur. (2025, April 10). Billions swaha at closed airport. Retrieved from https://ekantipur.com/en/News-Folder/2025/04/10/billions-swaha-at-closed-airport-57-27.html [5] Investment Board Nepal. (2023). TOURISM. Retrieved from https://ibn.gov.np/uploads/documents/tourism-sector-full-versionpdf-1746-132-1730779901.pdf [6] Government of Sudurpashchim Province. (2021/22-2031/32 AD). SUDURPASHCHIM PROVINCE TOURISM MASTER PLAN. Retrieved from https://giwmscdntwo.gov.np/media/pdf_upload/SP%20Tourism%20Master%20Plan%20Report%20-final%20revised-web%20version%202023_5lvnqot.pdf [7] NEPJOL. PROFESSIONALISM OF TOURISM IN SUDURPASCHIM PROVINCE OF NEPAL. Retrieved from https://www.nepjol.info/index.php/TTP/article/view/52562/39371 [8] NEPSE Trading. (2025, April 10). Nepal's Foreign Trade Soars in FY 2081/82: Exports to India Surge by 82.5%, Trade Deficit Widens. Retrieved from https://www.nepsetrading.com/blog/nepals-foreign-trade-soars-in-fy-208182-exports-to-india-surge-by-825-trade-deficit-widens [9] Nepal Invests. (2025, March 4). Company Registration in Nepal (2025): Step-by-Step Guide & Legal Requirements. Retrieved from https://nepalinvests.com/?post=company-registration-in-nepal-2025-stepbystep-guide-legal-requirements [10] World Bank Group. Doing Business in Nepal. Retrieved from https://archive.doingbusiness.org/en/data/exploreeconomies/nepal#:~:text=The%20business%20registration%20time%20depends,NPR%201%2C000%20%2D%203%2C000%20in%20Kathmandu. [11] Nepalnews. (2025, May 30). Nepal's Fiscal Year 2025-26 Budget Explained: Key Highlights and Priorities. Retrieved from https://nepalnews.com/s/explainers/nepals-fiscal-year-2025-26-budget-explained-key-highlights-and-priorities/ [12] Fiscal Nepal. (2025, May 29). Special Grants of NPR 3.27 Billion for Provinces, NPR 9.78 Billion for Local Levels. Retrieved from https://www.fiscalnepal.com/2025/05/29/20538/special-grants-of-npr-3-27-billion-for-provinces-npr-9-78-billion-for-local-levels/ [13] The Annapurna Express. (2025, May 29). Government brings Rs 1.964trn budget. Retrieved from https://theannapurnaexpress.com/story/54779/ [14] Government of Sudurpashchim Province. (2081/82). आर्थिक वर्ष २०८१-८२ को बजेट वक्तव्य. Retrieved from https://giwmscdntwo.gov.np/media/pdf_upload/%E0%A4%86%E0%A4%B0%E0%A5%8D%E0%A4%A5%E0%A4%BF%E0%A4%95%20%E0%A4%B5%E0%A4%B0%E0%A5%8D%E0%A4%B7%20%E0%A5%A8%E0%A5%A6%E0%A5%AE%E0%A5%A7-%E0%A5%AE%E0%A5%A8%20%E0%A4%95%E0%A5%8B%20%E0%A4%AC%E0%A4%9C%E0%A5%87%E0%A4%9F%20%E0%A4%B5%E0%A4%95%E0%A5%8D%E0%A4%A4%E0%A4%B5%E0%A5%8D%E0%A4%AF_tlvgzme.pdf

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