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The Ministry of Energy, Water Resources and Irrigation (MoEWRI) spent Rs 52.28 billion out of its Rs 84.33 billion budget in the fiscal year 2025/26, achieving 62 percent financial progress and 71.35 percent physical progress.

The ministry unveiled the progress report during its Fourth Quarter and Annual Progress Review and the meeting of the Ministerial Development Problem-Solving Committee held on Saturday.

According to the ministry, the energy sector recorded 63.27 percent physical progress, while the water resources and irrigation sector achieved 79.27 percent physical progress.

The review highlighted several major achievements during the fiscal year, including:

- Approval of the investment modalities for the Budhi Gandaki Hydropower Project and the Upper Arun Hydropower Project;

- Advancement of transmission line construction through tariff-based competitive bidding;

- Designation of key energy, hydropower, and irrigation projects as National Priority Projects;

- Completion of the 13th Nepal–India Energy Secretary-Level Joint Steering Committee meeting;

- Progress on new legislation related to energy and water resources;

- Government approval for the Nepal Electricity Authority (NEA) to issue Rs 20 billion worth of energy bonds.

The ministry also reported satisfactory performance by the Alternative Energy Promotion Centre (AEPC), the Department of Water Resources and Irrigation (DWRI), and the Nepal Electricity Authority (NEA). However, the review concluded that the Department of Electricity Development (DoED) and the Water and Energy Commission Secretariat (WECS) fell short of expectations.

According to the ministry, delays in obtaining resource commitments, local-level obstructions, shortages of skilled manpower, and slow environmental approval processes were the primary factors behind weaker progress.

Among Nepal’s National Pride Projects, the Rani Jamara Kulariya Irrigation Project, Babai Irrigation Project, and Sikta Irrigation Project recorded notable progress. However, challenges related to land acquisition, contract management, and resource mobilization continue to affect the Bheri-Babai Diversion Project, Sunkoshi-Marin Diversion Project, and the Budhi Gandaki Hydropower Project.

Policy Bottlenecks Bigger Challenge Than Construction: Energy Minister Shrestha

Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that policy and procedural bottlenecks, rather than project construction itself, remain the biggest challenge to the development of Nepal’s energy sector.

He stressed that expected progress would not be possible without improving land acquisition, compensation management, resource assurance, inter-agency coordination, and contract management.

“Our priority is not merely to increase budget spending but to ensure results-oriented performance,” Minister Shrestha said. “The ministry is fully committed to completing National Pride Projects on time, expanding electricity generation and transmission capacity, extending year-round irrigation services, and removing structural obstacles to project implementation.”

He said the current fiscal year 2026/27, has been designated as a year of opportunity and results, adding that the foundation has been laid for transformative progress through expanding electricity generation, transmission, distribution and energy trade, promoting green energy, increasing private-sector participation, and effectively implementing multipurpose projects.

“The energy, water resources, and irrigation sector is the cornerstone of Nepal’s economic transformation,” he said. “The ministry will move forward with good governance, transparency, accountability, timely implementation, and stronger coordination to deliver tangible results that citizens can directly experience.”

Nepalpurbadhar