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22 November 2025 — Kathmandu
Nepal’s construction landscape saw notable activity today across highways, hydropower, urban development, and building-materials industries. Government agencies, developers, and contractors reported progress in several priority projects while also facing familiar hurdles in regulatory approvals and financing.
1. Road & Highway Development
Government Allocates Rs 105 Billion for National Infrastructure
The Ministry of Physical Infrastructure renewed its push toward major roadway expansion, confirming Rs 105 billion for national-priority construction.
- Kathmandu–Tarai Fast Track: Rs 24.49 billion confirmed for ongoing construction, with contractors reporting steady earthwork and tunnel progress.
- Pushpalal Highway: Alignment revision completed to speed up remaining sections.
- Hulaki Highway: Rs 356 million allocated to accelerate delayed segments in Province 2 and Lumbini.
Officials emphasized shifting to cement-based and RCC road designs to improve durability, aiming to reduce frequent repair cycles.
2. Hydropower & Energy Construction
Nepal Pushes ADB to Finalize Dudhkoshi Financing
The government requested the Asian Development Bank to expedite approval of funding for the 670 MW Dudhkoshi Reservoir Project, a national-priority hydropower initiative.
Two Dolakha Projects Stalled
Construction on two mid-sized hydropower plants in Dolakha remains on hold due to the absence of finalized environmental guidelines for protected areas. Developers warn that prolonged delays could impact regional power supply forecasts.
3. Urban Development & Water Infrastructure
Sundarijal Water-Treatment Upgrade Moves Forward
The Kathmandu Valley Water Supply Management Office advanced procurement for a new high-capacity treatment plant in Sundarijal. The project aims to stabilize supply fluctuations during peak demand and is expected to begin early-phase construction next month.
Biratnagar Airport Terminal Nears Completion
The new domestic terminal in Biratnagar reached nearly 75% progress, marking a major milestone in the eastern region’s airport modernization plan. Installation of MEP systems and interior finishing has begun.
4. Building Materials & Cement Industry
Demand Rises as Contractors Shift to Cement-Based Roads
Local cement manufacturers report a moderate increase in demand as highway contractors adopt RCC and concrete pavements in line with new government standards.
Steel producers also expect a surge once the Pushpalal and Hulaki Highways enter full construction phase.
5. Real Estate & Urban Housing
Kathmandu Housing Projects Update
Real-estate developers in Kathmandu Valley report stable activity, with mid-range housing projects receiving higher inquiries due to improved financing options. However, rising cement and steel prices continue to pressure margins.
Overall Sector Outlook
Today’s developments indicate a positive trajectory driven by new government allocations and ongoing mega-project momentum. However, regulatory delays and environmental-clearance bottlenecks remain challenges, especially for hydropower developers.
Nepal Construction Times will continue tracking progress across sectors as November’s project activity intensifies ahead of winter.