The Public–Private Partnership (PPP) Act, 2077 of Karnali Province has undergone a comprehensive review process, marking an important milestone toward strengthening the legislative foundation for effective collaboration between the public and private sectors. Although enacted five years ago to encourage private investment in public infrastructure and services, its implementation remained weak, prompting the need for a structured review.
To address this, Hriti Foundation, in collaboration with the UNDP/PSP and the Finance and Natural Resources Committee of the Karnali Province Assembly, initiated a review process.
Thematic CSO and Stakekholders Engagement
The review process began with a Civil Society Organization (CSO) engagement session, where representatives from the private sector, civil society, and government institutions discussed the challenges and opportunities in implementing PPP projects. The Chairperson and members of the Finance and Natural Resources Committee were also present and actively contributed to the discussions.
Expert Review and Technical Assessment
Following the CSO engagement, a thematic expert, carried out a comprehensive technical review of the PPP Act. Expert assessment consolidated stakeholder feedback and identified critical gaps — including complex approval processes, rigid administrative procedures, and unclear risk-sharing mechanisms — that limited the Act’s effectiveness.
Initital Report Sharing and Discussion with Parliamentory Committee
A focused meeting with all members of the Finance and Natural Resources Committee was organized, during which expert presented the review findings and stakeholder feedback. Committee members unanimously recognized that the existing provisions were insufficient to attract private investors and agreed on the need to revise the Act to make it more practical, transparent, and investment-friendly.
Discussion on Final Draft of Review
On 18 October 2025, building upon the review, Hriti Foundation organized a provincial-level discussion event in Surkhet. The discussion emphasized that as the province prepares for an upcoming investment summit, updating the PPP Act has become strategic.
Formal Handover of Review Report for Study and Further Action
The process culminated in the official handover of the final review report to the Finance and Natural Resources Committee of the Karnali Province Assembly. The review included detailed findings and a set of actionable recommendations to amend the PPP Act.
Stakeholder’s Concerns
At the Surkhet event, Mr. Padam Bahadur Shahi, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) – Karnali Province, noted that the private sector was not adequately consulted during the drafting of the Act. He stated, “The current provisions are too rigid and fail to motivate private investors.” Shahi emphasized that even as the province plans its investment summit, the existing PPP framework remains unattractive for businesses.
Similarly, Mr. Hikmat Bahadur Bista, Member of the Finance and Natural Resources Committee, appreciated the review process and acknowledged that the committee now clearly understands the areas requiring reform. He assured that the committee would soon convene a meeting to discuss the amendment process within the Assembly.
Mr. Dinesh Gautam, Executive Director of Hriti Foundation, remarked that the review process demonstrates a commitment to evidence-based policymaking and the creation of a more enabling environment for private sector participation. He noted that to make public–private collaboration effective, the Act must be revised to clarify institutional responsibilities, simplify procedural hurdles, and establish fair risk-sharing provisions.
Review Report
