On 27 August 2025, Hriti Foundation organized a review meeting of the Public Private Partnership (PPP) Act, 2077 of Karnali Province. The program brought together key stakeholders, including private sector leaders, investors, and civil society representatives. From the provincial parliament, the Chairperson of the Finance and Natural Resources Committee Hon. Dakshina Shahi, and members Hon. Kal Bahadur Hamal and Hon. Balimaya Budha were in attendance.
With the Karnali Province Government preparing for an upcoming Investment Summit, the review meeting provided a timely platform to discuss the prospects of public-private partnerships (PPPs) in the province. Participants emphasized that the current PPP Act poses challenges in attracting private sector engagement and requires immediate amendment.
Padam Bahadur Shahi, Chairperson of FNCCI Karnali, pointed out that the Act is not being effectively implemented. He particularly highlighted a provision concerning the composition of the Board of Directors of PPP projects. “If the private sector contributes 70% of the investment, they still remain in the minority within the board as per the current Act. This provision must be amended,” he stressed.
Similarly, Chintamani Sharma, Chairperson of Surkhet Chamber of Commerce, remarked that the Act disproportionately places responsibility on the private sector while minimizing the government’s accountability in PPP projects. He called for amendments to ensure shared responsibility between both parties.
Responding to these concerns, Committee Chairperson Hon. Dakshina Shahi assured stakeholders that the parliamentary committee would soon deliberate on the matter and take necessary steps toward amending the Act.
Stakeholders collectively agreed that immediate amendment of the PPP Act is essential to make PPP practices more effective in Karnali Province and to create a conducive environment for investment.
Hriti Foundation is currently conducting a comprehensive review of the Act in close coordination with the Finance and Natural Resources Committee of the Karnali Provincial Assembly, with support from UNDP–PSP.
📖 You can read the PPP Act by clicking here.
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