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The government has taken a major step toward accelerating the long-delayed Kathmandu-Terai Madhesh Fast Track, approving large-scale forest clearance and land use permissions alongside external financing decisions aimed at boosting national infrastructure development.

A Cabinet meeting held on Tuesday authorized the use of 46.39 hectares of forest land across Kathmandu, Lalitpur, and Makwanpur for the construction of the strategic expressway.

The decision also permits the felling of 18,898 trees, removing one of the most significant regulatory and environmental bottlenecks that had slowed progress on the project for years.

Long-Stalled National Priority Project Moves Forward

The Kathmandu–Terai Fast Track is considered one of Nepal’s most important national infrastructure projects, designed to directly connect the capital with the southern plains, significantly reducing travel time and improving freight and passenger movement.

Officials say the latest decision is intended to remove long-standing procedural delays that had hindered construction momentum. The forest clearance issue had remained unresolved for an extended period due to environmental, administrative, and coordination challenges among agencies.

With the new approval, project implementation is expected to enter a more active construction phase, particularly in sections passing through forested and environmentally sensitive zones.

Financing Backed by World Bank Support

In parallel, the government has also approved a $85 million concessional loan from the World Bank for the broader development of the Greater Lumbini Area Development Trust.

While not directly part of the fast track corridor, officials say improved infrastructure financing and external support strengthen overall national development capacity, including connectivity-linked economic zones.

Institutional Realignment for Energy and Water Governance

The Cabinet has also endorsed an administrative restructuring plan involving the Water and Energy Research Center, which will be relocated from Pulchowk, Lalitpur, to Godawari Municipality–3.

The existing building in Pulchowk will now house the secretariat of the Water and Energy Commission Secretariat, a move aimed at improving institutional coordination in the water and energy sector.

Strategic Push Amid Infrastructure Acceleration Drive

The latest decisions reflect a broader government push to accelerate stalled infrastructure projects and improve execution efficiency in nationally prioritized developments.

The fast track project, in particular, has remained a symbol of Nepal’s infrastructure ambitions but has faced repeated delays due to land acquisition, environmental clearance, and contract execution challenges.

With forest clearance now approved and land use finalized, authorities are expected to focus on construction acceleration, contractor mobilization, and phased implementation across key segments of the corridor.

Officials say the goal is to transition the project from prolonged preparatory phases into full-scale construction execution, marking a critical turning point in one of Nepal’s most strategically significant transport projects.