The Ministry of Finance (MoF) is all set to conduct onsite inspection of the projects being developed under foreign assistance, citing the slow progress of a number of these projects.

Few days ago, the ministry called on the chiefs of such projects to express its dissatisfaction over the work of the projects taking place at a snail’s pace. According to the MoF, the projects being constructed under the foreign assistance have hardly been spending 50 percent of the allocated amount every year.

The MoF has blamed the slow work of these projects as a key problem behind the slow capital expenditure of the government. Dhani Ram Sharma, joint-secretary of the MoF, said the foreign support projects maintain a larger section of the total capital expenditure. “However the performance of these projects appears so pathetic,” he said.

Sharma said the MoF has started developing mechanisms for the field inspection of the projects supported by donor agencies. According to him, a joint mechanism of the MoF and the line agencies of the government will carry out onsite assessment of the projects that are under construction.

Many of the donor-supported projects have been showing various pretexts for the delay in completion of construction works. In the first phase, the MoF has targeted to cross check the actual status of the big projects.

As per the government rule, the projects being developed under foreign assistance should go into global tender to shortlist the contractors. However, the foreign contractors create many hassles to work smoothly, according to the MoF officials.

At present, the projects including upgradation of the Tribhuvan International Airport and road segments along Nagdhunga-Mugling, Butwal-Narayangadh and Mugling-Pokhara, among others, have been going pretty slow. For instance, expansion of the Butwal-Narayangadh road segment has shown only 40 percent work progress even after one year of its preset deadline. The Asian Development Bank has supported loans of Rs 17 billion for the expansion of the road segment.

According to the MoF, foreign assistance maintains around half of the budget of the development works allocated for the current fiscal year. For this purpose, the government has targeted to receive external loans of Rs 212 billion and foreign grants of Rs 49.94 billion.

The government normally spends around 60 percent of the capital expenditure every year. In the first five months of the current fiscal year, spending under the heading is just around 12 percent.