When the PPPUE project started in 2002, the legal context governing PPP activities was unclear. There were no acts or government directives to guide municipalities and similar agencies. In 2004, as a result of project efforts, the PPP Policy (for local bodies) 2060 ¹ was passed followed in 2005 by PPP Guidelines (for local bodies) 2061. The Policy and corresponding Guidelines documents have helped in clarifying the PPP legal regime.

An amendment to the Local Self-Governance Regulations 2000 (pursuant to the Local Self Governance Act 1999) has also made provision for Public-Private Sector Partnership Promotion Committees in local bodies (corresponding very closely to PPP Committees established by PPPUE). Regulation No. 157 in the latest revision to the Local Self-Governance Regulations 2064 (2007) has taken PPP as a procurement and fund collection modality for the local bodies of Nepal.

The current Three-Year Interim Plan (2008-2010) has given priority to increase the level of investment in infrastructure like roads, communications, health, education, drinking water, sanitation, etc. In an effort to create an enabling environment for initiating national level infrastructure PPP projects in Nepal, PPPUE together with the Nepal Bankers’ Association has prepared a PPP financing policy document proposing incentives for financing infrastructure projects.

Other planned interventions of PPPUE with upstream impacts on the overall PPP environment are support to the National Planning Commission to prepare a PPP White Paper. Ministries with PPP potential or already pursuing PPP activities will also be supported in preparing sector-wide strategy studies and/ or in setting up or strengthening PPP units to spearhead PPP activities there.

 ¹2060 refers to the Nepalese calendar year in which the policy was passed.