Bussiness Plan of DUDBC

Business Plan-2014
Government of Nepal
Ministry of Urban Development
Department of Urban Development
and Building Construction
Babarmahal, Kathmandu
| 153 |
Executive Summary
The present business plan is a consolidated form of the business plan
separately prepared by Department of Urban Development and Building
Construction (DUDBC) for three sectors: housing, building and urban
development recently with an objective for the planned development. In
the first chapter the subjects such as present organzational structure, need
for business plan etc. have been included.
The second chapter is related to housing sector.The quantitative

requirement of housing units required for the next 20 years planning
period along with the existing situation of the housing sector has been
anayzed here.It has been projected that during this period, there will be a
total need of 15 lakhs housing units.Of this, 9 lakhs housing units will be
required for the urban sector and 6 lakks for the rural sector. Besides this,
there will be a need of 3 lakhs and 90 thousands housing units for the
deprived group. To meet above demands housing programme, deprived
group targeted housing programme inluding institutional improvement
programme etc. to be implemented under the government and private
sectors have been proposed. There is a need of total investment of Rs.46
Kharba 60 Arba 9 Crores 61 Lakhs for this purpose during the next 20
years. This amount includes the housing to be constructed by the private
sector on individual basis also.
The third chapter deals with the building sector. The quantitative analysis
of the required number of buildings in the next 20 years planning period
has been done together with analysis of the existing situation of the
building sector. Accordingly, 1,453 new government building will have
to be constructed annually and 44,816 government buildings will have to
be repaired and maintained within the first ten years of the planning
period. For this, building sector regulation, disaster minimization,
conservation of local architecture and technology, use of innnovative and
new construction materials, building repair and improvement, new
building construction, quality assurance of the buildings, financial
attraction in building sector, government building special programme,
institutional improvement programme etc. have been proposed.For this
purpose there is a need of Rs.1Kharba 61 arba 4 crores and 58 laks in the
coming 20 years.
The fourth chapter deals with the urban development sector. The existing
situation of the urban development sector along with the quantitative
requirements during the next 20 years planning period has been
explained. Accordingly, the major programmes which will be
strategically important from the point of view of urban development and
the programmes for the provision of minimum infrastructure facilities in
the classified urban areas including the existing 58 municipalities into
metro city, sub metro city, city, sub city and market centres based on the
proposed new evaluation criteria within the next 20 years have been
proposed. The establishment of new towns in the mid hill high way,
establishment of the satellite towns in the influence areas of Pokhara and
Nijgad airport, development of towns along Chinese and Indian border
towns, infrastructure development as per cities identity, infrastructure
development in strategic corridors, construction of bus parks in the major
highways etc. have been proposed under this. For this purpose there is a
need of Rs.1Kharba 84 arba 5 crores and 12 laks in the coming 20 years.
The activities such as expected improvement in the organization of the

department, human resource development,necessary improvement in the
legal stucture etc has been recommended in the last chapter of this
report. It is expected that the result oriented and planned development of
housing, building and urban development sector of the department will
be achieved and the investment also will also be ensured with the
implementation of this business plan.
Business Plan of Urban Development and
Building Construction
Contents
BUSNIESS PLAN OF THE DEPARTMENT OF URBAN DEVELOPMENT AND

BULDING CONSTRUCTION.............................................. 1
1) Background...................................................................... 1
A) vision, mission, aim and objectives of Department of Urban Development and
Building Construction..................................... 1
B) Need of Business Plan........................ 2
2) Business plan of the Housing Sector...................... 4

A)Study of existing policies and acts........................... 4
B) Status of availability and demand for housing.................. 5
C) Business plan and programme ....................................... 13
D) Financial instruments for the implementation of plans and programmes... 37
3) Business plan of the Urban Development Sector.................... 47

A) Analysis of existing legal structure/instruments and policy relating to Urban
Development Sector............................ 47
B)Existing situation of Urban development sector................ 48
c) Business plan and Programme ........................ 52
D) Financial instruments for the implementation of plan s and programmes.. 74
4) Business Plan of the Building sector................ 79

A) Analysis of existing legal instruments and policy relating to building… 79
B) status of availability and demand for government and non government
buildings…………. 83
C) Business Plan and programme…………… 87
D) Financial instruments for the implementation of plan and
programmes………. 126
5) Institutional Arrangement 134
A) Institutional Development…… 134
B) Human Resources Development……….. 144
C) Budget Requirement for the Institutional and Human Resources 147
D) Legal and Policy Arrangement………… 147
0
Contents
Table 1 House and household number............................................................................... 6

Table 2 Ownership of the housing unit.............................................................................. 6
Table 3 Population projection .......................................................................................... 7
Table 4 Quantitative requirement of housing production ................................................ 10

Table 5 Quantity of housing targeted for the deprived groups......................................... 10
Table 6 Quantity of housing units requirement apart from/other than deprived group .... 10
Table 7 Quantitative requirement of the housing production........................................... 21
Table 8 Quantity of housing targeted to the poor ............................................................ 22
Table 9 Quantity of housing units requirement other than deprived group...................... 23
Table 10 Annual proposed quantitative target of the housing sector ............................... 24
Table 11 Annual estimated cost...................................................................................... 27
Table 12 Framework of the departmental programmes for the coming five years as per the
proposed business plan of housing .................................................................................. 29
Table 13 Description of programme wise annual investment requirement from the government
level 33
Table 14 Description of programme wise annual investment requirement from the corporation
sector 34
Table 15 Description of programme wise annual investment requirement from the organized
sector 35
Table 16 Description of programme wise annual investment requirement from the private
sector 36
Table 17 Investment requirement for the business plan period of 20 years ..................... 37
Table 18 Deficit budget and proposed sources to meet the deficit................................... 46
Table 19 Urban Growth Patterns in Nepal....................................................................... 49
Table 20 Distributions of urban areas by eco regions...................................................... 50
Table 21Minimum Physical Infrastructure for Various level of Urban Sector ................ 58
Table 22 Minimum Social Infrastructure for Various level of Urban Sector................... 60
Table 23 Minimum Economical Infrastructure for Various level of Urban Sector.......... 61

Table 24 Proposed programs to develop within 20 years ................................................ 64
| 151 |
Table 25 Strategic mega projects for next 0-5 years........................................................ 67
Table 26 Strategic mega projects for next 5-10 years...................................................... 70
Table 27 Strategic mega projects for next 10-20 years .................................................... 72
Table 28 Trend in Budget allocation in Urban Development Sector .............................. 75
Table 29 Comparative Table for Required Investment and Allocated Budget ............... 76
Table 30 Program wise Description of Required Yearly Investment............................... 77
Table 31 Categories of the Building Code....................................................................... 81
Table 32 Analysis of the quantitative situation of the building sector ............................. 84
Table 33 Annual quantity of requirement of maintenence and construction of buildings96

Table 34 Cost estimate of new building construction works ........................................... 98
Table 35 Cost of building maintenence works............................................................... 101
Table 36 Annual quantitative targets ............................................................................. 104
Table 37 The framework of the departmental programmes for the coming five years as per the
proposd business plan of the building sector ................................................................. 108
Table 38 Description of the Programme wise Annual Investment Requirement from the
Government Sector........................................................................................................ 116
Corporation Sector......................................................................................................... 119
Organized Sector ........................................................................................................... 119
Department of Urban Development and Building Construction.................................... 120
Table 42 Trend analysis as per programme booklet for the Fiscal Year 2068/69 BS .... 128
Table 43 Potential sources to fulfill the deficit .............................................................. 133
Table 44 Description of the existing manpower only for the housing sector................. 135
Table 45 Description of additional technical manpower necessary only for the housing sector
136
Table 46 Comparative studybetween the proposed plan and present trends .................. 138
Table 47 Description of existing manpower only for the building sector ...................... 139
Table 48 Additional technical manpower required only for the building sector............ 140
| 152 |
THE DEPARTMENT OF URBAN DEVELOPMENT
AND BUILDING CONSTRUCTION
1. BACKGROUND
A) Vision, mission, aim and objectives of the Department of Urban

Development and Building Construction
Department of Urban Development and Building Construction (DUDBC) under

Ministry of Urban Development (MUD), GoN has its origins from Department of
Building. In 1962, Government of Nepal decided to do away with the then Public
Works Department and established two separate departments such as Department of
Road and Department of Building. This newly established Department of Building
was primarily assigned the responsibility to carry out design, cost estimates, and
supervision works of the government buildings. In 1971 Department of Building
was reconstituted as Department of Housing, Building and Physical Planning. In
the context of Nepal this department can be regarded as the pioneer institution in
the field of physical planning. Again in 1987 in order to specialize the works of
building and physical planning two separate departments – Department of
Housing and Urban Development and Department of Building were created. This
process continued even in 2000, these two departments were amalgamated to
form the present Department of Urban Development and Building Construction to
work as the main government agency responsible to work in building
construction, housing and urban development sector in Nepal.
Roles and Responsibility of DUDBC and its Institutional Set-up
The long term vision of the department is:
i. Safe, economical and environmentally friendly building construction

ii. Affordable housing
iii. Sustainable urban development
The objectives of the three divisions are as follows:
i. Housing Division
Promote safe and affordable housing through development of planned
settlements
1
Building Construction Division
Promote construction and development of safer, economical, and

environmentally friendly buildings which also foster local architecture
ii. Urban Development Division
Promote sustainable urban development and urban rural linkages through

development of modern physical facilities and conservation of cultural,
religious, and historical heritage sites
The function and responsibilities of DUDBC are:
i. Formulation, planning and implementation of urban policies

ii. Formulation, planning and implementation of housing plans and
policies
iii. Design construction, repair and maintenance of the government
buildings
DUDBC has 16 sections in 3 divisions. The Housing Division and the Building
Construction Division covers all the districts including urban and rural areas.
However, Urban Development Division, primarily concentrates its activities in 58
municipalities and some emerging VDCs of Nepal.
At the divisional level, DUDBC has 25 divisional offices (Class A=4, Class B=
15, Class C=5). In addition to this, there is a Building Technology Research and
Training Centre and a Special Building Construction and Maintenance Divisional
Office for construction and maintenance of central government offices and
official residences of President, Prime ministers, ministers and other high level
central government dignitaries including Chief Justice, Judges, Speaker of
Legislative body etc.
B) Need of Business Plan

A business plan is a formal document which lists a set of activities to be
accomplished within a given time frame. Business plan should be based on a
long-term plan. Preparing a business plan is an essential step for a public agency
– the business goals being pursued by a public agency need not be for profit as
such for a business enterprise to ensure that it knows:
 what its objectives are

 how the business options will be managed
 how the goals will be attained
2
A typical business plan should cover the following aspects:
 Vision and mission
 Goal and objectives
 Benchmarks and targets
 Expected results (outcomes and outputs)
 stakeholders’ analysis
 Problems and challenges
 Strengths and opportunities
 Strategic interventions and options
 Core activities
 Inputs and resources required to execute the activities
A business plan is more than a strategic plan in the sense that it has to draw
resources from the outside. It should generally cover a span of three years with a
focus on the current year. The plan should have a candid evaluation of the
performance gap of the preceding year and a ground work for the following year
to make it more realistic and more results-based. It is generally a three-year
rolling plan; every year, it will be revised adding one more year. This means, a
new business plan will emerge again for three years with the second year
becoming the first year and with one more year. The quality of the business plan
will gradually improve over time through the continuous monitoring and
evaluation (M&E) of the business activities.
3
2. BUSINESS PLAN OF THE HOUSING SECTOR
A) Study of existing policies and acts
National Shelter Policy 2012:

National Shelter Policy came into existence with required timely changes in
the previous shelter policy to address the following things as well as to
incorporate those issues which were not included in the Shelter Policy of 1996
keeping in mind the current political and social situation in the country and
the development and changes that occurred in the shelter sector between
2053BS and 2063BS.
- To assign implementation responsibilities and authorities of shelter policy

at central level.
- To make provision of housing for deprived homeless and families
displaced due to the implementation of major projects and natural
disaster.
- To manage for alternative shelter for the unplanned settlements existing in
different cities by assigning priority to families living in the unsafe
places.
- To minimize the likely risks and damages resulting from natural and
manmade disaster in residential areas.
- To identify possible measures with regard to rental housing taking into
consideration its different aspects including the security of tenure of the
renters and formulate act and regulations as per necessity.
Vision, mission and objectives of National Shelter Policy, 2012 are:
Long term vision
- To provide housing, which is safe, adequate and affordability to all.
Mission
- To develop the concept of housing by including the families
remaining below the poverty line and residing in unplanned and
unsafe settlements.
4
Objectives
1. To increase appropriate, safe and environment-friendly production of

housing suitable to all income groups and to upgrade the existing housing.
2. To mobilize effectively the financial resources necessary for the
development of housing.
3. To carry out institutional reforms by clarifying the roles of governmental,
non-governmental, private sector and communities in housing sector.
B) Status of availability and demand for housing
According to the result of national population census of 2068, the total
population of Nepal has reached 2,64,94,504 which is more by 34 lakhs
compared to last census of 2058.The total population of Nepal in 2058 was
2,31,51,423.In this way the population has increased by 15 per cent within ten
years. The exponential population growth during the last decade on average
was 1.35 per cent. The average annual population growth has remained 2.25
per cent from 2048 to 2058.
House and household
The number of household which was 42,53,220 in 2058 increased by 22 per
cent and has reached to 54,27,302 which means an addition of 11,74,082
household within ten years. Of the total 54, 27,302 households, 4005 are the
institutional households (Barrack, hostel, Gumba etc) and the rest are the
domestic households. The average household size is 4.88 members. Rauthat
has the highest household size accounting for 6.44 and Kaski has the lowest
accounting for 3.92 members.
5
Table 1 House and household number
Household size
Census year Population Household number
Total Urban area Rural area
2058 2,31,51,423 42,53,200 5.44 4.85 5.55
2,64,94,504 54,27,302
2068 Urban 45,23,820 Urban 10,47,297 4.88 4.32 5.02
Rural 2,19,70,684 Rural 43,80,005
Household number and ownership of housing unit

Of the country’s total 54,23,297 households, 85.26 per cent households are living in their owned houses
while 12.81 per cent in the rented houses.In the urban areas, about 40 per cent of the households are living in
6
the rented houses.
Table 2 Ownership of the housing unit
Household Ownership
Place
number Self owned Rent Institutional Others
Nepal 54,23,297 46,23,653 6,94,701 34,313 70,630
Ü 100 85.26 12.81 0.63 1.30
Urban 10,45,575 5,93,842 4,20,483 17,392 13,858
% 100 56.80 40.22 1.66 1.33
Rural 43,77,722 40,29,811 2,74,218 16,921 56,772
Ü 100 92.05 6.26 0.39 1.30
6
Balance between demand for and supply of housing
The main basis of the formulation of the national housing plan is the housing needs projection.There has been
less growth in the population according to the result of the national population census of 2068.The population
projection using exponential growth rate based on the population census results of the past, indicates that the
total population of Nepal is expected to reach 3.40 crores by 2078 and it may exceed 3.54 crores by 2080.
Table 3 Population projection

Census year National Urban Rural Urban Rural Urban Rural
population population population populat populat household household
ion % ion % number number
2028 1,15,55,983 4,61,938 1,10,94,045 4.0 96.0
7
2038 1,50,22,839 9,56,716 1,40,66,123 6.4 93.6
2048 1,84,91,097 16,82,274 1,68,08,823 9.1 90.9
2058 2,31,51,423 32,27,879 1,99,23,544 13.9 86.1
2068 2,64,94,504 45,23,820 2,19,70,684 17.1 82.9 10,45,575 43,77,722
49,74,321*
2078 a 3,39,94,453 91,22,848 2,48,71,605 26.8 73.2 21,46,552*
*
50,41,243*
2080 a 3,54,46,922 1,02,40,708 2,52,06,213 28.9 71.1 24,09,578*
*
Note: "a" means estimated * - Household size of 4.25 members and ** - household size of 5 members
7
Based on the above fact, it can be estimated that the urban population in the
next census year (2078BS) will increase from 45 lakhs to 91 lakhs and
similarly rural populationf rom 220 lakhs to 249 lakhs. Similarly, within the
plannning period in the coming ten years (BS2080), the total urban and rural
population is expected to reach 102 and 252 lakhs respectively. Accordingly,
the urabn population will increase by 57 lakhs and rural population by 33
lakhs compared to 2068 censu
For the projection of housing needs, the urban and rural household size has
been taken as 4.25 and 5 members respectively based on the need of one
housing unit per one family though the existing household size is 4.32 and
5.02 members respectively. According to this, by the end of 2080BS, the
number of household (need of the housing unit) in urban and rural area
would be about 24,09,578 and 50,41,243 respectively.
Population Projection
350.00
y = 101.3e0.156x
300.00
R² = 0.977
Population. Lakh
250.00
200.00
150.00
y = 3.247e0.528x
100.00 R² = 0.980
50.00
0.00
2028 2038 2048 2058 2068 2078 2080
Figure 1Population Projection
There will be a total need of 20 lakhs and 23 thousands additional housing units
during the first 10 years of plan period. Based on the estimate, there will be an
additional need of 13.62 lakhs households in urban areas and 6.61 lakhs households in
the rural areas. In the year 2068 B.S., taken as a base year, existing household number
was 10.46 and 43.78 lakhs in urban and rural areas respectively. Of the total housing
needs of 13.62 lakhs units in the urban areas, 4.08 lakhs units or 30 percent of the
demand is expectd to be fulfilled by the addition of extra rooms or floors in the
existing houses while the remaining 70 per cent or 9.54 lakhs housing units will be
fulfilled by the construction of the new housing units. Similarly in the rural areas, of
the total housing need of 6.61 lakhs units, 0.99 lakhs units or only 15 per cent of the
8
demand is expected to be fulfilled by addition of extra rooms or floors in the existing
houses and therefore there is a need to construct 5.62 lakhs new housing units in the
rural areas. Accordingly, there is a need to constuct a total of 15 lakhs 16 thousands
new housing units during next 10 year period.
9
Table 4 Quantitative requirement of housing production
Description Total Urban rural
Requirement of housing units in 2080 BS (coming ten years) 20,00,000 13,00,000 7,00,000
Addition of just rooms and floors (urban 30% and rural 15%) 5,00,000 4,00,000 1,00,000
New construction 15,00,000 9,00,000 6,00,000
Of the total housing needs there will be a need of 3 lakhs housing units only for the deprived groups in the coming ten years based
on the available data from the national population census, economic survey and Poverty Alleviation Fund.
10
Table 5 Quantity of housing targeted for the deprived groups
Description Total Urban Rural
Total poverty in percentage (As per Economic Survey Report, 2068) (25) 15 27
Housing units which will be addressed by adding rooms and floors 90000 60000 30000
Housing units to be newly constructed 300000 150000 150000
Total required housing units 390000 210000 180000
Table 6 Quantity of housing units requirement apart from/other than deprived group
Housing units to be addressed by adding rooms and floors 410000 340000 70000
New housing units to be constructed 1200000 750000 450000
Total required housing units 1610000 1090000 520000
10
Medium and high income group targeted
housing
a) Land Development Programme
The expected results from Kuleshwor and Galfutar site and services project
have not been achieved from the planned land development programme
implemented under the government initiatives but these project made
available about 1200 developed plots.Compared to site and services
programme, land poolng programme is becoming more popular at present
and they are implementing effectively in the country. Land pooling
programme, which is so far, mostly confined within the Kathmandu Valley,
has been gradually extending outside the valley.Uptill now 11000 developed
plots have been produced from the completed land pooling projects in the
Kathmandu Valley which were implemented in 4500 ropanis of land. From
the on going land pooling projects under implementation in 8000 ropanis of
land will produce about 15000 developed plots. Similarly, the Kirtipur second
phase project and Nakhudole land pooling project planned for implementation
in 1200 ropanis of land in near future is expectd to produce about 3000
developed plots. Generally, though it is claimed that the developed plots are
targeted for the medium and high income groups, but in reality only high
medium income groups and upper income groups seems to have the capacity
or affordability to purchase these developed plots.
b) Group and apartmet housing

There has been fast growth in group and apartment housing since last decade
with the implementation of Apartment Act and Regulation. These housing
have been implemented under the monitoring of DUDBC to regulate planned
housing in an institutional and legal manner.
c) Housing constructed bythe private sector

Apart from the group and apartment housing being constructed by the
organized sector, almost 90 per cent of the residential houses are still being
built by the private sector uptill now. In fact, the houses which are built in an
individual and familiy level is the characteristic of housing in rural and urban
areas of Nepal. In this process, the entire works requird to be done for the
construction of the houses are done by the house owner itself.Generally, the
role of professional technician is confined to the preparation of design and
plan of the house for to get building permit from the municipality. On the
11
whole, there is still a prevalence of social value system which says ’son will
not be a son until he builds a house.
d) Other plans
In the context of unplanned development of settlements even outside the
existing present Ring Road of Kathmandu Valley, the Outer Ring Road
project in Kathmandu Valley and similarly Biratnagar Ring Road project are
currently under implementation to address this issue. These projects are also
to achieve planned development of the cities with the provision of necessary
physical infrastructures facilities and services.Although these projects may be
claimed as the road project, however the necessary land required for the
construction of the roads will be mobilized by adopting land pooling method
therefore these projects are also directly related to housing. If the project is
successfully implemented, Biratnager Ring Road project alone will make
available around 40,000 developed plots.
Status of housing targeted to deprived group
a) Janata Awas Karyakram (People’s Housing Programme)
The article 33 part (Ja) and (Jha) of the Interim Constitution of Nepal, 2063
guarantees the establishment of the right to education, health, housing,
employment and food security to all citizens. It has been stated that it shall be
the responsibility of the state to guarantee the provision of social and
economic security including the land for those groups who are socially and
economically backward. In order to fulfil this objective, the government of
Nepal has implemented Janata Awas Karyakram (People’s Housing
Programme) from the Fiscal Year 2066/67 in three districts such as Siraha,
Saptari and Kapilvastu to provide housing by constructing low cost modern
housing for Dalit and deprived Muslim families. Altogether a total of 2274
houses in the settlements of 17 villages of Siraha, Saptari and Kapilvasu
districts is in the process of completion which was started with the budget of
Rs 30 crores being allocated to Department of Urban Development and
Building Construction under its annual programme of FY 2066/67. Taking
into consideration the popularity and usefulness of the programme, the budget
of FY 2067/68 also continued this programme by including the settlements of
Chepang, Raute and Kusunda under this programme and the policy has been
established to include other ethnic groups and communities in future. As per
the decision of the government of Nepal, this programme has been
implementing through DUDBC to provide housing to Dalits, adibashi,
Janajati, minority, backward and marginalized other groups. Presently, this
programme has been extended to 23 districts. Up to now altogether a total of
3653 housing units have been constructed.
12
b) Rehabilitation of free bonded labour (kamaiya)
The governmnet has banned or prohibited to use any individual as a bonded
labbour directly and indirectly for works by declaring free the bonded lablour
of Dang, Bardia,Kailali and Kanchanpur who had been forced to work and
stay in others houses for a long period of time on Srawan 2, 2057BS after
clearing the loan being borrowed by bonded labour. As per Bonded Labour
Rehabilitation Implementation Committee of Bonded Labour Rehabilitation
Problems Solving Commission under Land Reform and Management
Ministry, there are 27,570 bonded families. Of them, uptill now 23,857
families have been rehabilitated and still 3713 families are remaining to be
rehabilitatd. Government has been rehabilitating bonded labourers families by
purchasing the land equivalent to Rs.150,000 and also providing cost for the
construction of the house and timber besides implementing different skills
oriented and income generating programmes.
C) Business Plan and Programme

The following are the proposed long term vision, mission and goals of the
business plan for twenty year’s period in the context of the housing sector:
Long term vision

To provide safe, adequate and affordable housing by developing planned
settlements.
Mission
To create a situation which ensures housing to all including the families living
in the unplanned settlements, deprived and land less families with minimum
services and facilities for human beings.
Goals
To fulfil the housing needs for all within the next twenty years.
To develop institutional capacity for fulfilling housing needs continuously
even after twenty years period.
Working policies and actions plans
The following working policy has been adopted to achieve the targets as per
long term vision, mission and goals of this business plan:
13
Working policies
- To implement land development programmes in an institutional

manner in order to remove the existing difficulties in the acquisition
and availability of the land for the purpose of housing.
- To encourage the general public through the demonstration effect by
constructing and developing settlements with the use of green
building technology to save energy and cost in effective manner.
- To increase in the production of housing by encouraging the private
sector in the production of housing plots through planned land
management and production of rental housing , individually owned
housing ,cooperative housing, group and apartment housing.
- To fulfill as an alternative of safe housing needs by adding floors and
improvements in the existing houses.
- To implement different programes by addressing the housing needs of
the deprived groups as a fundamental right.
To develop and enhance the capacity of the housing sector through the
activities like increasing the financial self reliance in the housing sector,
formulation and implementation of different acts and institutional
improvements etc.
Action Plans
The programes have been formulated by dividing housing services basically

into four categories to provide safe,adequate and affordable housing to all as
conceived by the broader goals and long term vision of the National Shelter
Policy,2012 and to achieve the objectives based on the strategies and working
policies as directed by such policy.
a) Involvement of the institutional sector in the housing service
It is not desirable to involve the institutional sector in the production and

distribution of the general type of housing when there is already adoption of
liberal economic policy or competitive economic system. But the role of the
institutional sector may be indispensible in the production and distribution of
the housing for few targeted groups who are economically deprived or lack
the capability in the production of the housing for various reasons. For this the
targeted programme has been proposed in a separate heading in this business
plan.
14
The programmes to be implemented with the involvement of the institional
sector in housing service is targeted to the activities like development of plots
through land development. The objectives of the land development
programme will be achieved through the implementation of the various
programmes such as development of the Outer Ring Road in the Kathmandu
Valley and Biratnagar Ring Road programme etc.
Though land development programee, like land pooling project is claimed to

be an effective instrument towards the planned housing production as well as
for the management of the housing facilities in the present context, its use is
feasible only in the open urban areas.It has become necessary to introduce
house pooling programme like land pooling programme for the conservation
of the ancient cities having historical and archaelogical significance and for
the management of the unplanned housing as well as to control house
fragmentation being taking place currently in those places. The plan
recommends to implement this programme in a few places of dense city core
area of Kathmandu as a model for the time being. As these type of
programees manage and mobilize the required financial resources by selling
plots and housing therefore only the operational fund is proposed for this type
of plan in this business plan.
The model housing programme is also proposed for the production and
demonstration of different types of houses to encourage and to increase public
awareness to make cost effective construction by using traditional technology
and skils as per local needs and to make housing units environment
friendly,energy efficient as well. The buildings produced in this way is
recommedned to be used as government employees quarters.
The small settlement development programme with necessary infrastructures

and facilities is also proposed by relocating the present scattered housing
units into a compact settlement in the rural areas as the provision of services
in such a scatter settlement is very costly. This programme is totally different
from the present compact settlement programme in the form and objectives as
this is going to be resettled in a new places.The concept of compact settlement
programme is to attract the migration of people with the provision of
necessary services and facilities in an attractive and convenient location
however the proposed small settlement development programme attempts to
relocate the settlements itself in and around the same place without changing
present employment and services.This programme reduce the cost in the
provision of infrastructure sercvices and facilities by developing the existing
settlement by swapping the land presently occupied by the portion of
housing.
15
It would be appropriate to implement the proposed programmes by
Department of Urban Development and Building Construction and its
concerned offices , Kathmandu Valley Development Authority, different town
development committiees,local authorities and the corporation with full or
partilal ownership of the Government of Nepal etc. as the implementation of
the proposed programmes may require to exercise certain legal rights which
can be used only by such entities.
The financial resources required for the proposed programme under this
heading will come from the budgetary allocation system of the Government of
Nepal and from the annual programme budget approved by the management
committee of the concerned corporation and the human resources is expected
to be met by the existing professional staff presently working in those
institutions.
16
b) Involvement of the private sector in the housing service
The involvement of the private sector in the housing production has remained
remarkable in Nepal.The major role particularly in the production of housing
lies in the individual itself and it has not been very long that private sector
has started contributing in the housing production. Generally 90 per cent of
the total residential houses are being built on individual basis and the
involvement of the technicians has been negligible in these buildings. From
this point of view, most of the residential buildings are not safe in the context
of disaster management. Therefore, different activities like, increase in the
production and upgrading of different types of the housing units to make the
existing buildings safe and cost effective have been proposed under this
heading.
The apartment housing production is given prominence under this heading.

The apartment housing plan is proposed where the ownership of the housing
could be individual and communal or institutional for the rental purposes
under this. It has become indispensible to create an environment to internalize
the culture of apartment housing due to lack of land and ever increasing prices
of the land in the urban areas. Currently some of the apartment housing units
have remained unused in the major cities while the others have rented out
without using by the owners which may create the confusion that there has
been more production of the apartments than required. But the reality is that
the cost of the apartments is beyond the affordability of the majority of the
common people which will be clear from the analysis in the different sections.
Therefore, it is necessary to maintain different level of services and facilities
targeting to different income groups in the production of apartment housing
units too.
The other type of housing produced by the private sector in an organized

manner is group housing. This type of group housing is in priority option for
those who can afford it for the reason that it has its own private compound
with 24 hours electricity and water supply as well as community security.
This is also an easy option to avail the housing service for those who are very
busy and living abroad as it does not require getting involved in the
construction works and purchasing of land for the construction of the house.
The programme to facilitate cooperative housing has also been proposed

under this heading in order to manage the practice of constructing the
housing in a cooperative manner by different communities with similar view
and economic condition.
17
The programme to address the housing needs by addition of floors and rooms
as well as by repair and maintenence of the existing structures has also been
proposed here as an alternative measure to fulfill the housing needs under this
heading.
The role of individual house owners has remained the great in the fulfillment
of housing demand. The practice of constructing houses by the individuals
using their own resources as per their needs is very much popular
everywhere. The housing units being built by the general people is going to
address the major portion of the housing needs therefore it must be
mentioned as the major acitvitiy in the housing sector. The individual
housing units constructed in this manner is not only used for their own use or
for the rental purposes but in many cases it is also mixed used. Therefore,
the buildings which have taken building permit for specific use should not be
allowed to make change in its use. There is a need to regulate approval
process for the mix use during the process of getting approval.
There is a need of serviced plots to address the housing needs not only in the
coming 20 years time period but beyond this also. For the fulfillment of the
housing demand, the first requiremnt is the land as the overall development of
the housing may take long time. From this point of view, the land
management programme has been proposed under this heading to encourage
the involvement of the private sector in the productionof the housing
including the housing plots within the approved bye laws and guidelines.
The financial and human resources required for the proposed programmes
under this heading will have to be managed by the private sector and
individuals concerned with private housing sector. However to ensure the
progress as per the targeted indicators the facilitation and enabling activities
will have to be done from the government level. For this the provision like the
financial grants may be necessary in the annual programmes.
c) Housing service targeted to the deprived group
The concept of housing for all has been propounded by the National Shelter
Policy,2012 by recognizing housing as the basic needs of all. In this context,
it is necessary to address the housing demand of the deprived groups,
marginalized communities,dalits, landless families and single womann
discarded by the families, senior citizens, physically disable individuals, and
orphans. Several activities have been proposed in this regard under this
heading.It is also recommended to implement some additional programmes
besides continuing the Janata Awas Karyakram(People’s Housing
18
Programme) and people oriented community housing programme presently
under implementation.The programme of developing the concept of land bank
has also been proposed targeting to the landless farmers,bonded free labour
Kamaiys including different families. The land area necessary for the
community farming under community ownership for livelihood. The
construction of intensive settlement with communal facilities and services as
an alternative for housing has been proposed in this area. Under the
Environmental Sustainability of MDGs Goal 7 Target 11, it is mentioned to
improve significantly the lives of the 100 million people living in the
unplanned settlements by 2020. The programme for the provision of planned
housing is also recommended in this business plan. The programme to
provide planned housing by relocating the squatter families living along the
river banks is also recommended, as an effort towards the improvement of the
unplanned settlements as one of the indicators to bring improvements in the
lives of the people. It is made compulsary to make payments in 25 years time
period on installments basis to recover actual construction cost and to
deliver massage that government will not provide housing free of cost.
Further to control the encroach of the government land as well as to
discourage the expansion of the unplanned settlements in this programme.
Generally the private sector is not involved in profitless activities except in

the fulfillment of corporate social responsibilities motivated by social service
spontaneously. Therefore, it will not be wise idea to expect the involvement
of the private sector in the construction of the housing for physically and
economically weak individuals who build their own houses by
themselves.The responsibility to address the housing needs of the deprived
and economically weak groups lies in the state’s instrument unless the act
creates an environment of responsibilities whereby the housing developers
requires to make available certain percentage of housing units to such
deprived or economically weak groups.However, the necessary resources can
be mobilized for the implementation of this programme by partnership/joint
venture with non-profit national and international non governental
organizations committed to social works.
d) Capacity enhancement for the management and regulation of the

housing service
There is no comparable role of the management and regulation aspect towards

maintaining the identity of housing service as an industry. For this there is the
need to establish appropriate agencies and to enhance the capacity of the
existing organizations together with proper understanding and coordination
among the concerned stakeholders. Therefore, the programmes relating to
19
institutional improvement and capacity enhancement are proposed under this
heading.
The first requirement is the adequate financial support in order to produce
housing as per needs. Therefore, there is a need to establish an appropriate
financial instrument to encourage and increase investment in housing sector.
In this regard, it is realized that there is a need to establish housing investment
board at national level to provide housing loan at concessional rate to
deprived groups as well as to increase investment in the housing sector.
In order to manage housing business as a service and as an industry, it is
necessary to develop different legal system including the implementation of
the proposed ‘land and housing business’ bill by making it as an act to be used
as the facilitation instrument therefore the programme relating to this has been
proposed.
Housing is not only land or a house but it is a composite form of

infrastructure of living and non living things including
physical,social,cultural.Therefore,there is a need to carry out study, reasearch
and aplication continuously and massively to make housing technology as per
time,pragmatic and usable. For this also a programme has been proposed.
The different institutional improvement programes like capacity enhancement

of the mnapower involved in this sector, to develop appropriate instrument to
ensure the progress as per this business plan, to play the role of leadership by
Department of Urban Development and Building Construction for the
regulation and management of the housing sector etc.have been proposed.
For the programmes proposed under this heading, it would be appropriate to

implement on the basis of coordination and joint venture among entire
agencies for the mobilization of the resources as it is related to the capacity
develpment of all the concerned stakeholders.
Phase wise plans and programmes
In order to determine the quantitative needs of the works mentioned above

firstly, there is a need to analyze the number of the housing needs. The
quantities mentioned in the chapter of present housing condition and projected
needs is listed in the following table.
20
Table 7 Quantitative requirement of the housing production
Housing requirement in 2089 BS (in 3800000 1026000 2774000
the coming 20 years )
Adequate with addition of floors or 1418000 308000 1110000
rooms (Urban 30% and rural 40% )
New construction 2382000 718000 1664000
Of the total housing needs as shown in the Table 7 above, there will be a
deficit of 5 Lakh and 67 thousands housing units only for the deprived
families in the coming 20 years time based on the reports of population
census, economic survey and the poverty alleviation fund. According to this,
even after implementing different types of the programmes to provide housing
to the deprived families there will again be the deficit of 4 Lakh and 18
thousands housing units therefore the following programmes have been
proposed to achieve the objectives of providing housing to all deprived
families with the provision of simple housing loan for those families who
could not be catered by the these programmes.
21
Table 8 Quantity of housing targeted to the poor
Total poverty in percentage(As per Economic Survey Report ) 25 15 27
Housing units to be newly constructed 567000 111000 456000
Housing programme targeted to the poor
Poor oriented community housing programme (5000 units per year) 100000 0 100000
Squatter housing provision as per MDGs (100families per year) 2000 2000 0
Apartment housing for the urban poor (25 families per year in 10cities) 5000 5000 0
Cooperative farming and land bank programme(500 families per year 10000 0 10000
Housing improvement programme as Ashram and Correction centre 2000 1000 1000
22
Low cost rental housing programme (500 families per year) 10000 5000 5000
Some percentage of low cost plots in private housing programme 20000 10000 10000
Concessional /subsidized housing loan programme 418000 88000 330000
Total 567000 111000 456000
Once the deprived group targeted quantities is addressed by different programmes, the following
programmes as per the table below is required for other gropus.
22
Table 9 Quantity of housing units requirement other than deprived group
Quantity of housing units requirement other than targeted to the poor 1815000 607000 1208000
Housing production programme
Apartment housing (3000 units per year 60000 60000 0
Group housing (Colony, 1500 units per year) _ 30000 30000 0
Land pooling and demonstration house pooling (1000 plots per year) 200000 50000 150000
Housing plots facilities (Private plotting 20000 per year) 400000 100000 300000
Demonstration/model settlement development (100 families per year
in 5 places) 10000 10000
Model housing programme (50 units per year) 1000 200 800
Rental housing (5500 per year)] 110000 60000 50000
23
Use controlled individual housing with necessary loan 1004000 306800 697200
Total 1815000 607000 1208000
Despite the contribution of the government sector, corporation and other institution in the fulfilment of the total
housing needs in the coming twenty years period there will still be a deficit of 10 lakhs housing units and the
construction of such housing units will have to be done by the house owners themselves. Therefore the role of
general public in the construction of the private houses on individual basis in housing sector will be remarkable
in this period.
The annual quantitative targets of the programmes which needs to be implemented in the coming 20 years period
has been determined taking into consideration the realistic approach regarding the fulfilment of housing by
23
government, corporation, other organized sector and private or individual sector during the process of housing
production as per the quantities of different programmes in the following way.
Table 10 Annual proposed quantitative target of the housing sector
Annual quantitative target
S.
Indicator Individu
No Major programme Unit
or quantity Government Corporation Institutional Total
1 Housing development from the institutional sector

a) Land and model house pooling 200000 Plots 8000 2000 10000
b)Model housing plan(Employees) 1000 Plots 25 25 50
c)Small settlement development with 10000 Plots
100 400 500
working policy
2 Housing development from the private sector
a)Apartment housing 60000 Family
3000 3000
24
b)Group housing 30000 Family
1500 1500
c)Private/individual housing 1004000 Family
50200 50200
d)Housing maintenance, improvement 1418000 Family
and extension 70900 70900
e)Rental housing 110000 Family

5500 5500
f)Land management ( plotting) 400000 Plots
20000 20000
3 Deprived group targeted housing
a)Poor oriented community housing 100000 Family 3000 2000 5000
24
Annual quantitative target
S.
Indicator Individu
No Major programme Unit
or quantity Government Corporation Institutional Total
b)Land bank cooperative farming plan 10000 Family 500 500

c)Urban poor apartment housing 5000 Family 250 250
d)Squatters housing plan MDG 2000 Family 75 25 100
2000 Individua
e)Housing for women, weak, old, street
l 100 100
children,
f)Low cost rental housing 10000 Family 500 500
g)Percentage provision in private housing 20000 Family 1000 1000
h)Concessional loan management plan 418000 Family 20900 20900
25
4 Institutional capacity extension
a)Establishment of National Housing Program
Bank and operation
b)Legal structure development 1 Program 1 1
c)Study of local and modern technology 2 Program 1 1 2
d)Institutional improvement plan 1 Program 1 1
4 2 2 4
Note: Corporation here refers Kathmandu Valley Development Authority, National Housing Company and
proposed National Housing Bank.
25
Annual estimated cost
Annual
Based estimated cost the average rate for the whole
on the experience,
country has been used to determine the investment to be
Based on the experience, the average rate for the whole
made by different sectors to achieve the annual
country has been
quantitative targetsused to determine
proposed in Table.10.the
Theinvestment
cost of the to be
made
housingby in different sectors
different parts of the to achieve
country the toannual
differs due
quantitative targets type
shape, structure, proposed in Table.10.construction
of architecture, The cost of the
materials used etc. Though the actual
housing in different parts of the country differsrate may differ todue to
some extent however it is believed that the estimate has
shape, structure, type of architecture, construction
been done based on experience therefore there will be no
materials used
substantial etc. Though
difference in the the actual Similarly,
estimates. rate may the differ to
some extent
financial however
investment hasitbeen
is believed
determinedthat the estimate
by assuming the has
been
costdone based on will
of construction experience
increase bytherefore
10 per centthere will be no
annually
in twenty years
substantial time period
difference in andthegovernment
estimates.alsoSimilarly,
increase the
the allocation of budget every year by 10 per cent.
financial investment has been determined by assuming the
cost of construction will increase by 10 per cent annually
in twenty years time period and government also increase
the allocation of budget every year by 10 per cent.
26
Table 11 Annual estimated cost
S. Major programme Annual Rate per Investment requirement in the base year Rs.in’000
No. quantity unit Rs. Government Corporation Institutional Individual Total
1. Housing development from the institutional sector
a) Land and model house pooling 10000 1000 8000 2000 0 0 10000
b)Model housing plan(Employees) 50 100000 2500 2500 0 0 5000
c)Small settlement development with working
500 50000 5000 20000 0 0 25000
policy
2. Housing development from the private sector
a)Apartment housing 3000 2000000 0 0 6000000 0 6000000
b)Group housing 1500 2500000 0 0 3750000 0 3750000
5020000
27
c)Private/individual housing 50200 1000000 0 0 0 50200000
0
d)Housing maintenance, improvement and
70900 100000 0 0 0 7090000 7090000
extension
e)Rental housing 5500 1000000 0 0 5500000 0 5500000
f)Land management
20000 300000 0 0 6000000 0 6000000
( plotting)
3. Deprived group targeted housing
a)Poor oriented community housing 5000 180000 540000 360000 0 0 900000
b)Land bank cooperative farming plan 500 200000 0 100000 0 0 100000
c)Urban poor apartment housing 250 500000 125000 0 0 0 125000
d)Squatters housing plan MDG 100 500000 37500 12500 0 0 50000
e) Housing for women, disabled, old, street 100 50000 5000 0 0 0 5000
27
S. Major programme Annual Rate per Investment requirement in the base year Rs.in’000
No. quantity unit Rs. Government Corporation Institutional Individual Total
children,
f) Low cost rental housing 500 500000 0 250000 0 0 250000
g)Percentage provision in private housing 1000 500000 0 0 500000 0 500000
h)Concessional loan management plan 20900 40000 0 836000 0 0 836000
4. Institutional capacity extension
a)Establishment of National Housing Bank and 1000000
1 0 10000 0 0 10000
operation 0
b)Legal structure development 2 500000 500 500 0 0 1000
c)Study of local and modern technology 1 1500000 1500 0 0 0 1500
d)Institutional improvement plan 4 1000000 2000 2000 0 0 4000
Total 727000 1595500 21750000 57290000 81362500
28
The analysis of the estimated investment required for the coming 20 years based on this estimates and financial structure
together with the possible financial sources is presented in the following chapter.
28
Five Year Plans and Programmes
Business plan is prepared for three to five years as mentioned in the beginning of this report. The framework of the
departmental programmes for the coming five years under the housing as per the business plan is presented in the
following way.
Table 12 Framework of the departmental programmes for the coming five years as per the proposed business plan of housing
(Proposed budget in Rs. Lakh)
SN Major Year 1 Year 2 Year 3 Year 4 Year 5
o. programme Programme Budg Programme Budg Programme Budg Programme Budg Programme Bud
et et et et get
1 Housing development from
the institutional sector
29
a_ Land 10000 plots 70 10000 plots 78 10000 plots 72 10000 plots 82 10000 plots 93
development through land through land through land through land through land
plan and pooling in pooling in pooling in pooling in pooling in
model house different different different different different
pooling districts districts districts districts districts
Feasibility study 10 Preliminary 10 Model house 25 Model house 25 Model house 25
of house pooling works of model pooling in pooling in pooling in
in Kathmandu house pooling in Kathmandu Kathmandu Kathmandu
Kathmandu
b_ Model house Model house of 25 Energy 28 Model house 31 Model house 34 Energy 37
to be used by traditional efficient ad of traditional of traditional efficient ad
29
et et et et get
the technology (50 environment technology technology environment
employees targeted friendly (50 targeted (50 targeted friendly
families) housing (50 families) families) housing (50
targeted targeted
families) families)
c_ Working Formulation of 50 Development 55 Developmen 61 Development 67 Developmen 74
policy for working policy of small t of small of small t of small
Compact for compact settlement as settlement as settlement as settlement as
settlement of settlement of per working per working per working per working
scatter scatter houses policy policy policy policy
houses and and
development implementation
30
of small
settlement
2 Housing development targeted for deprived group
a_ Poor oriented Formulation of 5400 Production and 5940 Production 6534 Production 7187 Production 790
community working policy distribution of and and and 6
housing and production 5000 housing distribution distribution distribution
and distribution units of 5000 of 5000 of 5000
of 5000 houses housing units housing units housing units
b_ Urban poor Construction of 1250 Construction of 1375 Construction 1513 Construction 1664 Construction 183
apartment 250 apartment 250 apartment of 250 of 250 of 250 0
housing housing for the housing for the apartment apartment apartment
30
et et et et get
urban poor urban poor housing for housing for housing for
the urban the urban the urban
poor poor poor
c_ Squatters Construction/ 375 Construction/ 413 Construction 454 Construction/ 499 Construction 549
housing upgradation of upgradation of / upgradation upgradation / upgradation
provision as houses for houses for of houses of houses for of houses
erMDG plan 100squatters 100squatters for 100squatters for
families families 100squatters families 100squatters
families families
d_ Housing for Distribution of 50 Distribution of 55 Distribution 61 Distribution 67 Distribution 74
31
women,weak, housing housing of housing of housing of housing
old,street facilities for 100 facilities for facilities for facilities for facilities for
children single women 100 physically 100 100 street 100
weak discarded children discarded
individuals olds olds
3 Institutional improvement
a_ Establishmen Formulation of (100) Completion of (110) Establishme (121) There is no need of government budget
t of National legal instrument initial works nt and as it will operate as a corporation after
Housing for the for the operation of this.
Bank and establishment of establishment of National
operation National of National Housing
Housing Bank Housing Bank Bank
b_ Improvement Updating 3 Formulation of 3 Housing 3 Review of 5
in legal housing related regulations, related housing
31
et et et et get
structure acts amendments guidelines policy
Rental housing 2 Rental housing 3 Guidelines 4 Guidelines 8 Legal 4
policy and rules guidelines related to related to instrument
housing housing as per policy
c_ Study of local 3 Studies and 15 3 Studies and 17 3 Studies 19 3 Studies and 21 3 Studies 23
and modern research about research about and research research and research
technology technology technology about about about
technology technology technology
32
d_ Institutional Training, 17 Training, 18 Training, 19 Training, 20 Training, 22
capacity seminar, study seminar, study seminar, seminar, seminar,
enhancement tours tours study tours study tours study tours
Study of 3 Improvement 4 Improvemen 5 Improvement 6 Improvemen 7
institutional in the t in the in the t in the
capacity institutional institutional institutional institutional
capacity capacity capacity capacity
Total 7270 7999 8801 9680 106
49
Note: The amount shown for the establishment and initial operation of National Housing Bank has been in the corporation part of the
programme of business plan, but the preliminary works have to be done by the government level so it is kept in the list of government
programme however this has not been included in the total amount.
The separate investment plans of the government, corporation and individual basis necessary during this planning period have been
presented in the following tables.
32
Table 13 Description of programme wise annual investment requirement from the government level
S. Major programme Annual investment requirement Rs.in Lakh
No Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 Institutional sector
housing development
a Land development plan 80 88 97 107 118 130 143 157 173 190 209 230 253 278 306 337 371 408 449 494
b Model housing plan 25 28 31 34 37 41 45 50 55 61 67 74 81 89 98 108 119 131 144 158
c Development of small 50 55 61 67 74 81 89 98 108 119 131 144 158 174 191 210 231 254 279 307
settlement with working
policy
2 Deprived group targeted
housing
33
a Poor oriented community 5400 5940 6534 7187 7906 8697 9567 10524 11576 12734 14007 15408 16949 18644 20508 22559 24815 27297 30027 33030
housing
b Urban poor apartment 1250 1375 1513 1664 1830 2013 2214 2435 2679 2947 3242 3566 3923 4315 4747 5222 5744 6318 6950 7645
c Squatter housing plan 375 413 454 499 549 604 664 730 803 883 971 1068 1175 1293 1422 1564 1720 1892 2081 2289
d) Housing for women, 50 55 61 67 74 81 89 98 108 119 131 144 158 174 191 210 231 254 279 307
weak, old, street children
housing
3 Institutional capacity
enhancement
a Legal structure 5 6 7 8 9 10 11 12 13 14 15 17 19 21 23 25 28 31 34 37
development
33
year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
b Housing technology 15 17 19 21 23 25 28 31 34 37 41 45 50 55 61 67 74 81 89 98
development
c Institutional development 20 22 24 26 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122
plan
Total 7270 7999 8801 9680 10649 11714 12885 14174 15592 17151 18866 20753 22829 25112 27623 30386 33425 36767 40443 44487
Table 14 Description of programme wise annual investment requirement from the corporation sector
year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 Institutional sector
34
housing development
a) Land development plan 20 22 24 26 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122
b) Model housing plan 25 28 31 34 37 41 45 50 55 61 67 74 81 89 98 108 119 131 144 158
c) Development of small 200 220 242 266 293 322 354 389 428 471 518 570 627 690 759 835 919 1011 1112 1223
settlement
2 Deprived group targeted
housing
a) Poor oriented 3600 3960 4356 4792 5271 5798 6378 7016 7718 8490 9339 10273 11300 12430 13673 15040 16544 18198 20018 22020
community housing
b) Land bank cooperative 1000 1100 1210 1331 1464 1610 1771 1948 2143 2357 2593 2852 3137 3451 3796 4176 4594 5053 5558 6114
34
year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
farming plan
c) Squatter housing plan 125 138 152 167 184 202 222 244 268 295 325 358 394 433 476 524 576 634 697 767
d) Low rental housing 2500 2750 3025 3328 3661 4027 4430 4873 5360 5896 6486 7135 7849 8634 9497 10447 11492 12641 13905 15296
e) Concessional loan 8360 9196 10116 11128 12241 13465 14812 16293 17922 19714 21685 23854 26239 28863 31749 34924 38416 42258 46484 51132
management plan
35
3 Institutional capacity
development
a)National Housing 100 110 121 133 146 161 177 195 215 237 261 287 316 348 383 421 463 509 560 616
Bank establishment and
operation
b) Development of legal 5 6 7 8 9 10 11 12 13 14 15 17 19 21 23 25 28 31 34 37
structure
c) Institutional 20 22 24 26 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122
improvement plan
Total 15955 17552 19308 21239 23364 25700 28270 31098 34208 37629 41393 45534 50088 55097 60606 66668 73335 80668 88734 97607
35
Table 15 Description of programme wise annual investment requirement from the organized sector
No. Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 Institutional sector housing development
a) Apartment housing 60000 66000 72600 79860 87846 96631 106294116923 128615141477 155625 171188 188307 207138 227852 250637 275701 303271 333598 366958
b) Community housing 37500 41250 45375 49913 54904 60394 66433 73076 80384 88422 97264 106990 117689 129458 142404 156644 172308 189539 208493 229342
c) Rental housing 55000 60500 66550 73205 80526 88579 97437 107181 117899129689 142658 156924 172616 189878 208866 229753 252728 278001 305801 336381
d) Land management 60000 66000 72600 79860 87846 96631 106294116923 128615141477 155625 171188 188307 207138 227852 250637 275701 303271 333598 366958
(Plotting)
2 Deprived group targeted housing
a) Percentage system in 5000 5500 6050 6655 7321 8053 8858 9744 10718 11790 12969 14266 15693 17262 18988 20887 22976 25274 27801 30581
private housing
Total 217500 239250 263175 289493 318443 350288 385316423847 466231512855 564141 620556 682612 750874 825962 908558 999414 1099356 1209291 1330220
36
Table 16 Description of programme wise annual investment requirement from the private sector
N Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
o. year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
1 Private sector
housing development
a) Private/individual housing 502000 552200607420 668162734978 808476889324 978256 10760821183690 1302059 1432265 1575492 1733041 1906345 2096980 2306678 2537346 2791081 3070189
b) Housingmaintenance, 70900 77990 85789 94368 103805 114186125605 138166151983 167181183899 202289 222518 244770 269247 296172 325789 358368 394205 433626
improvement, extension
Total 572900 630190 693209 762530 838783 922662 1014929 11164221228065 13508711485958 1634554 1798010 1977811 2175592 2393152 2632467 2895714 3185286 3503815
36
D) Financial Instruments for the Implementation of
Plans and Programmes
Analysis of investment requirement
The desired level of progress may not be achieved if there is a lack of
adequate resources for the effective implementation of plans and programmes
regardless of the fact that the plans and programmes are well formulated.
Financial resources play an important role in any plans and programmes and it
cannot be an exception in the case of the business plan of the housing sector.
Undoubtedly, it can be easily assumed that there is a need of huge resources
for the implementation of the plans and programmes included in the business
plan. For the successful implementation of all the plans and programmes to
achieve the goals and objectives, there is a need of total investment of Rs.46
Kharba 60 Arba 9 Crores 61 Lakhs as per the present estimates under the
government, corporation, institutional and individual sector in the coming 20
years time period.
Table 17 Investment requirement for the business plan period of 20 years
S.No. Investors Investment Total investment Share
requirement in the requirement %
base year (Rs.in (Rs.in Lakh)
Lakh)
1 Government 7170 416606 0.89
2 Corporation 15955 914053 1.96
3 Institutional 217500 12457382 26.73
4 Individual 572900 32812920 70.41
Total 813625 46600961 100.00
Of the total investment requiremnt, the share of the government is the lowest
accounting for only 0.89 per cent while the highest is in the case of individual
investment accounting for 70.41 per cent.Similarly, it can be seen from the
table above that in the case of corporation and institutional it is 1.96 per cent
and 26.73 per cent rspectively.
The investment required for different programmes canot be met only by the
efforts of the Governmentof Nepal alone. It is a well known fact that in the
development of the housing sector there is more investment of the other
stakeholders and actors than the government. Therefore, for the fulfillment of
the investment requirement the active role of different stakeholders,
organizations, agencies, individuals and families involved in the development
| 37 |
of the housing sector becomes crucial or very important.As explained in
different chapters above, there is a direct or indirect involvement of the
corporation,organized sector,individuas and families along with government
in the developmentt of the housing in Nepal.Therefore, it is necessary to
mobilize effectively the potential sources of investment from different
agencies and sector for the successful implementation of the plans and
programmes mentioned in the business plan by formulating appropriate policy
and instrument.
Sectoral Share
Corporati
on
Govt.
2%
1%
Corporate
27%
Individual
70%
Figure 2 Share of sectoral invesment requird in 20 years business plan period
For the implementation of the proposed plans and programmes, the

government sector needs to invest total Rs.41 Arba 66 Crores for the
development of housing in the coming 20 years period and according to
present trend of the allocation of budget for this sector in the base year is
somewhere around Rs.44 Crores. With 10 percent increment every year in
the allocation of budgetary resources from the Ministry of Finance, there will
be a total of Rs. 25 Arba during the planning period thereby indicating a
deficit of Rs.16 Arba 36 Crores 13 Lakhs (about 39% of the required amount).
The possible sources to meet the deficit are explained in detail in the relevant
sections below.
The following are the existing sources making investment for the
development of housing sector at present:
38
Government of Nepal
Housing, Urban development and Buiding setor sector is still in low level
both in terms of priority for development and investment of the government
and there is almost no possibility of any dramatic increase or change in the
level of investment except general improvement in the coming years. In other
words, there are many urgent priority areas for investment from the point of
view of poverty alleviation and develpment and on the contrary the available
financial resources are extremely limited therefore the government is not in a
position to make substantial investment in this sector even if it desires. The
share or the proportion of amount allocated for investment from the
government of Nepal in housing ,urban development and building sector in
different periodic plans are some where around 1 per cent of the total
investment indicating thereby that this sector is still in low level both in
terms of priority for development and investment of the government.
The Site and Services Programme, Guided Land Development Programme

and Land Pooling programme which was started slightly later on initiated by
the government during the 2030s decade were the major programmes relating
to this sector in the urban areas, particularly in the Kathamnadu Valley, for
the planned housing development where the role and the investment of the
government had remained remarkable. Besides this, the improvement of the
existing rural housing programme etc.were the important programmes
implemented under Basic Housing Needs Programme. The recently started
Janata Awas Karyakram (People’s Housing programme) implemented for the
provision of housing to the poor families in the rural areas is very important in
this regard and this programmes has not only been continuing for the last
three years but the target groups and geographical coverage or areas(districts)
is also increasing. The system of providing seed capital in the form of loan
through land development revolving fund for land pooling projects can be
considred as an another important investment by the government in the
housing sector. The land pooling programme basically is a type of project
which generates the required resources for investment by itself. The
governmenr needs to play the role of housing provider for the poor and
deprived families as the programmes presetly under implementation for the
urban poor is not going to address the housing problems particularly of the
urban poor of the Kathmandu Valley and other major cities of Nepal.In this
context, it is commendable to observe that the shelter policy clearly
mentioned the role of governemnt in housing not only as an enabler and
facilitator but also housing provider for the low income and homeless
class.There is neither provision of subsidy for the construction of housing to
| 39 |
the poor like in Indonesia nor there is provision of loan for the poor to pay the
rent in Nepal. In fact, the implementation of the programmes like this can be
expected to solve the problems of squatters in a sustainable manner which has
remained a big headache to the government.Therefore, it is desirable to think
seriously by the government.
The alleviation of poverty has remained a major objective of government in
the periodic plans of Nepal including the the Tenth plan and the fact must not
be forgotten that the provision of housing can contribute significantly in the
direction towards the alleviation of poverty. It can be expectd that there will
be more allocation of budget in the coming years compared to present level
of allocation of budget for the programmes mentioned in the business plan for
the housing sector for the alleviation of poverty and to show the presence and
role of governemnt as a housing provider in the coming years from the
governemnt side.
Individual and families
There is a practice of constructing the houses by the house owners itself
(owner self build) by managing the entire manpower and materials in the
housing development process of Nepal.In the rural areas the entire houses are
built by the individuals/ families and in the urban areas more than 80 per cent
of the houses are produced and fulfilled by the efforts of the individuals and
families and there is a great possibilities that this process will remain intact
even in the coming few years. It is estimated that there has been Rs.10 Arba
invenstment in housing sector by the individuals and families. Besides this,
the amount would be still high if the investment for the individuals through
banks and financial instituttions is considered and it is clear that the role of
this sector in the development of housing in future will not only be important
but will be the greatest.
Organized private sector
Under the organized private sector the construction of group and apartment
housing in the Kathmandu Valley in the last 10 to 12 years were done by the
land and housing development companies. There are more than 60 housing
companies and developers in the Kathmandu Valley constructing apartments
and group housing in various parts of the cities of Kathmandu and Patan and
some companies and developers have already completed and distributed their
production in the past.In recent years this type of housing construction is
becoming very much profitable therefore their number is increasing day by
day. But as per the monetary policy of the Nepal Rashtra Bank the ceiling or
restriction has been placed whereby banks and financial institutions are not
allowed to invest more than 25 per cent of their total investment in housing
40
and real estate and the experience indicates that this has slowed down the
business to some extent. The main target groups or the customers for the
housing constructed by this sector so far has been almost high income group
residing in Nepal and Non Resident Nepalis.Though there is huge demand of
housing from medium and low income groups and poor families but the
houses produced by these companies are very far from their access due to
excessive prices of these houses. This type of housing development is not
possible to address and fulfill the demand of these people. As of 2068 Asoj,
123 companies have received approval to implement such housing plans and
as per the news published in a local paper and it is estimated that there has
been about Rs.1 Kharba rupees being invested only from the banks and
financial institutions in this sector.
Banks and financial institutions
There is information that commercial banks have invested Rs.95 Arab and
similarly development banks, financial institutions including the cooperatives
have also invested Rs.95 Arab totalling Rs.190 Arba in land and housing
development. Of this amount, a large share has been invested to housing
companies for group and apartment housing construction .In addition to this,
the Nepal Housing Development Finance Company has invested Rs.43 crores
for the construction of new houses, repair and maintenance of the old houses
etc. Similarly, the Provident Fund of Nepal has also invested Rs 70 crores for
the construction of houses and other building construction works to the
employee associated with the fund.
National and international non governmental organizations
Lumanti is remembered as an NGO involved in the provision of housing
facilities to the poor and deprived families in Nepal.Although Lumanti is
mostly involved in the issues of squatters rights however it is also active in
the provision of housing to the urban poor families by constructing low cost
housing.
Similarly, Habitat for Humanity International is involved in more than 88
countries including Nepal. This organization particularly in 2009 has brought
the plan to construct 5000 units of houses in Kabhre district as an effort to
improve the unplanned settlements.
Shelter and Local Technology Development (SLTD) centre is involved in the
important works of research, development and dissemination of low cost
technology though in a small scale. It is also involved in the production and
sale of low cost housing in limited number. The low cost houses constructed
in Birauta, Pokhara by Employees Provident Fund under its technical
supervision is the largest in terms of number so far. The centre has also built
| 41 |
some low cost houses in Sitapaila, Satungal in Kathmandu and they have
already been sold.
The UN-HABITAT in Nepal is playing important role in the development
housing in Nepal. The responsibility to mobilize US Dollar 50 million under
Experimental Reimbursable Seeding Capital (ERSO) established to provide
concessional housing loan to poor families for the construction of the houses
also lies with the UN-HABITAT Nepal. This agency was involved in the
relief works through the provision of housing to the victims of Koshi floods in
2009.
Identification and mobilization of possible sources of investment
As mentioned above, it is not possible to meet the required investment for the
housing development by the single effort and investment of the government
alone to achieve the proposed plans and programmes as mentioned in the
business plan. Therefore it is necessary to adopt the strategy to acquire the
necessary investment for the coming 20 years from all the sectors by
identifying and effectively mobilizing the possible sources from the entire
stakeholders. The description of deficit in the investment in the government
sector is shown in the figure below based on the trends in the present
allocation of budgetary resources and need for the investment.
Investment requirement and allocation
Required, 44487
50000
40443
45000
36767
33425
40000
30386
Amount in Rs. Lakh
35000
27623
25112
22829
30000
20753
18866
25000
17151
15592
Allocated, 27015
14174
24559
12885
20000
11714
22326
10649
20297
9680
15000
8801
18452
7999
7270
16774
15249
10000
13863
12603
11457
10415
9469
5000
8608
7825
7114
6467
5879
5345
4859
4417
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Figure 3 Investment requirement and allocation for 20 years business plan period
42
For the proposed plans and programmes as per this business plan there will be
a deficit of Rs 16 Arba in the governemnt sector and there is the possibility
for the mobilization of the investment and financial resources necessary for
other sectors from the following measures in the future .
Employees Provident Fund

Employees Provident Fund has invested about 1 percent of it s total
investment only in building and housing sector and there is immense idle
capital with the fund which could be invested in this sector. Therefore the
Employees Provident Fund could be one of the imortant and dependable
financial sources for mobilization of investment required for the development
of the housing sector. But for this the governemnt of Nepal needs to take the
initiative.
The fund is presently investing in housing though in a negligible manner and
in this context the fund can make significant contribution towards the
provision of housing particulaly to its own depositor employees. The fund
can provide soft loan of Rs.4.59 Arab for the implementation of housing
programme to the government out of a total investment of Rs.16 Arba to be
invested by the Governmnt of Nepal in twenty years, (about Rs.8 crores only
in the base year and then after with 10 % increment every year).
Bank and financial institutions
As per the Deprived Sector Lending Policy of the Nepal Rastra Bank, the
commercial banks, development banks and financial institutions are made
compulsorily to make 3 per cent, 2.5 per cent and 2 per cent of their total
investment respectively for the economic upliftment of the poor and deprived
families. Thus the Nepal Rastra Bank can direct all these financial institutions
to make available simple and cheap housing loan to these groups. According
to the present system the commercial banks, develoment banks and financial
institutions belongs to category A, B and C class respectively. Nepal Rastra
Bank and the concerned agencies of the government of Nepal can also direct
the banks and financial institution to provide certain percentage of the profit
they make from investment in housing and real estate for the provision of
simple and cheap housing loan to poor and deprived groups. There will be the
availability of Rs.4.75 Arab ( about Rs.8.3 crores only in the base year with
10 % annual increment) for housing in the 20 years time even if the banks and
financial institutions allocate just minimum of 2.5 per cent of their present
total investment of Rs.190 Arba. For other organized and individuals housing
construction the banks and financial institutions can provide housing loans
under the regular banking system to the organized private sector and
| 43 |
individulas as per present provision. The banks and financial institutions can
facilitate the housing sector by reviewing the present high interest rate
charged on housing loanas per the National Shleter Policy by recognizing
housing as an industry.
Remittance
The country is receiving substantial amount of money through remittance
from the Nepali people working abroad and there is great possibility of
mobilizing adequate resources if the governemnt develops an appropriate
instrument to channelize certain portion of this money for the develoment of
the housing sector. In fact, the substantial part of the money received from
remittance is invested in the purchase of land and houses therefore in a way it
is invested in housing sector itself. In the Fiscal Year 2068/69BS, the contry
received more than Rs 3 Kharba and its annual growth rate is also high. In this
context, if the nominal 0.3 per cent of the total money received by the country
is used among the welfare activities like the poor oriented housing
programme by levying " housing development fee" at the source, it will alone
make available or generate Rs 90 crores annually. In 20 years time it will
generate Rs.51.55 Arba of the total contribution based on 10 per cent annual
increment.
Development Partners
There is also the possibility of significant role which can be played by
different international development partners towards making housing facility
accessible to the poor and low income families. There is also the possibility to
mobilize adequate resources from other international donor countries,
agencies and organizations apart from UN-HABITAT for the programmes to
increase access of housing to the poor families. In addition to this, there may
be a need of dependable technology and improvement in the locally available
materials in order to make housing construction safe and economical. To
address this issue, adequate studies and continuous research need to be done
which can be supported by these agencies. Similarly, the development
partners of Nepal can also assist in the institutional capacity development and
human resources development activities involved in the housing sector.
Minimum assistance of 65.8 crore per year will make available Rs.37.69 Arba
for the business plan period of 20 years.
It will be clear from the projected allocation of budget booklet in the coming
years about the present investment pattern of the government sector and
commitment of the Government of Nepal in the context of investment in
housing sector. But the present condition of the corporation is not like this and
except the proposed National Housing Bank, among other corporations,
44
Kathmandu Valley Authority is a recently established organization and
National Housing Bank is yet to be established as this has been just proposed
in this business plan therefore the present investment capacity of the
corporation sector is only 10 per cent of the required quantity, based on the
estimated Rs14.4 crores in the base year the quantity of the deficit budget is
assessed. The quantity of the deficit budget and the proposed sources to meet
the deficit budget mentioned above is shown in the following table:
| 45 |
Table 18 Deficit budget and proposed sources to meet the deficit
Description Deficit budget in 20years Proposed Possible
Rs. in crore sources Fund, Rs.
Gover Corpo Total in crore
nment ration
sector sector
Require 4165 9137 13302 Employees 459
Budget: Provident
Fund
Investment 2530 914 3444 Banks and 475
projection at financial
present rate institutions
Remittance 5155
Development 3769
partners
Deficit 1635 8223 9858 Total 9858
amount:
In the figure of required investment, a total amount of Rs. 48 Billion

calculated based on the annual requirement of Rs. 83.6 Crore for the provision
of Rs.40 thousands simple loan per family under deprived sector housing
through National Housing Bank in the base year is also included with
estimated annual increment of 10%. The mobilization of external sources for
Rs.48 Billion for all of the 20 years plan period may not be required since the
bank will manage some fraction of it by revolving the fund through
investment and recovery of loans. However, as the bank will be a newly
established corporation, to enable it to provide loan in the initial stage, there
will be a need of resources. Therefore, for the initial five years there is a need
to make available Rs.1Arba and 22 Crores just for the provision of loan as a
revolving fund and then after it will manage the required remaining amount
by mobilizing investment of its own fund. So, of the proposed total amount of
Rs.98.58 Arab, the investment amount of Rs.46.78 Arab under the corporation
part may not be fully required. This amount is not deducted from the total
required investment though considering the worst case that the proposed
resources may not be available.
46
3 Business Plan of Urban Development Sector
A) Analysis of existing legal structure/ instruments and policy relating to
Urban Development Sector
National Urban Policy 2007
The National Urban Policy of 2007 provides a broad policy framework of the
urban development of Nepal. The NUP has set forth 3 main objectives:
1) A balanced national urban structure;
2) Healthy and economically vibrant urban environment; and
3) Effective urban management.
The departmental efforts and investment in urban infrastructure projects have
been limited and isolated in many instances, requiring review in its approach.
Although the later departmental efforts are systematically being aligned with
National Urban Policy of 2007 implementation is still lagging primarily in
terms of slow pace of geographical coverage and inadequacy of investment
for strategic projects. Most of the resources are scattered in small projects
spread across the country and much of which easily falls in the work ambit of
the respective local bodies. Therefore the departmental efforts are often being
questioned in terms of their validity. Most supporters of devolution put this
even as interference on the work area of the local bodies, NGOs and
development partners as well as inadequate intuitional capabilities of urban
authorities, urban areas are failing to provide desired environment and
improve quality of life of people.
Most of the urban areas are growing haphazardly into overcrowded settlement
with serious environmental problems and reduced economic efficiency.
Despite more than sixty percent of GDP is accrued from the non-agriculture
sector (mostly from urban and urbanizing areas), the urban sector still getting
only marginal importance lacked government priority and conscious
investment for critical urban infrastructures. The government investment for
urban development sector indeed lagged throughout the five long decades of
the central planned development efforts in the country beginning from the
1950s. This had a major ramification for urban infrastructure development.
Until today, the private sector involvement in the development of urban
infrastructures is insignificant.
Department of Urban Development and Building Construction has made
efforts to refine strategic clarity. Some of the key strategies are;
| 47 |
• Ensuring sufficient and reliable funds for urban infrastructure
extension and maintenance.
• Establishment of systematic capacity development process of Urban
authorities including municipalities and revitalization of municipality
and local self-governance
• Establishment of Ministry Urban Affairs and effective coordination
mechanism among the relevant ministries.
Policies and regulations related with Urban Development Sector are:

Town Development Act 1988
Due to the growing population and urbanization, it was essential to provide
necessary services and facilities to the residents of the town, construct new
towns and maintain health, convenience and economic interest of general
public. This was the reason for the formulation of Town Development Act in
1998. This act provides the legal basis for implementing town development
plans. This act deals with the formulation and approval of town planning,
formulation and approval of local plan, formulation of town development
committee and the function, duties and powers of the committee.
Local Self Governance Act 1999
The local self governance act 1999 basically deals with the definition of local
governments which included DDC, municipality and VDC. This act has given
ample authority to the municipalities for planning, executing and monitoring
development projects within their jurisdiction. It elaborated roles and
responsibilities of local government along with their authority in various
sectors. It also defined the local government especially metropolitan city, sub
metropolitan city and municipality. It has empowered the local authority to
embark on local development using local as well as regional and natural
resources. It has made local governments autonomous bodies.
B) Existing Situation of Urban development sector
The urbanization process in Nepal has recorded an outstanding growth rate in
recent decades but it is the least urbanized country in South Asia. As per 2068
census, the urban population accounts for 17% of total population. Urban
population is taken to be the population residing in only 58 municipalities. The
urbanization rate at 3.37% per year is three times higher than the population
growth rate of 1.35%. Municipalities have growth rate higher than the national
growth rate. One third of the total urban population is concentrated in the 42
smaller municipalities while the remaining 16 large municipalities accounts for
two third urban population. Kathmandu Metropolitan City records for highest
48
population with 975453 and Dhulikhel with 14283 accounts for lowest
population. The total area of the 58 municipalities is 3276.28 sq. km.
The urban growth pattern in Nepal in last 50 years can be seen below:
Table 19 Urban Growth Patterns in Nepal

Parameters 1961 1971 1981 1991 2001 2011
No of Urban Areas 16 16 23 33 58 58
Urban Population ('000) 336 462 975 1696 3228 4524
Average Population of
Municipalities (000) 21 29 42 51 56 78
Urban Population (%) 3.6 4 6.4 9.2 13.9 17
Urban Growth Rate (%) 4.4. 3.23 7.55 5.89 6.65 3.37
National Pop GR (%) 1.65 2.07 2.66 2.1 2.27 1.35
Nepal, urban population accounts for only those populations residing in the 58
municipalities. The population census reports those populations living in
designated urban areas as urban and those living in rural area as rural
population. Populations of small towns and market centers are not included.
For instance, the area covered by the 197 Town Development Committees
currently functioning all over the country, as shown in the Annexure 1 of this
report, should also be considered as urban areas. Since the national urban
hierarchy includes market centers and small towns, the populations of these
urban areas also need to be included in the urban population. For example,
when initially formed a Town Development Committee, Lamki alone had
more than 40000 population.
According to the National Urban Policy, 2007 key issues related to
urbanization are unbalanced urban structure, weak rural urban linkages,
environmental deterioration, and lack of clarity in the National Policy, Urban
Poverty and Weak Municipal Institutions.
| 49 |
Figure 4Population & Annual Population Growth of Urban Centre
Table 20 Distributions of urban areas by eco regions

Urban Size Classes by Number of Municipalities Total
Population
Terai Hill Mountain
>= 100,000 7 3 0 10
50,000 – 99,999 6 10 0 16
< 50,000 17 15 0 32
50
Source: Urban Growth and Spatial Transition in Nepal
Figure 5 Development Regions, Corridors& Urban Centres
| 51 |
c) Business plan and programme
The Local Self Governance Act 2055 recognizes 58 municipalities as urban
areas. Besides these areas there are many administrative areas which have
more population density and on the other side, there are some small towns and
market centres with urban characters which should be considered as urban
areas. The Municipal Area Determination Recommendation Committee
Report, MLD, 2059 identified 44 additional areas as urban centres and
proposed them to be considered as municipalities. Similarly, Government
Budget 2067/068 stated 41 new municipalities but yet not formalised. At
present, also government has constituted a committee to declare area as new
municipality. Likewise, with the new major roads construction, the new
urban centers evolve around the vicinity. Mid hill highway construction has
been one of the national priority projects. The department of road has
identified about 48 settlements which will see growth due to the construction
of road. DUDBC has identified 23 settlements with high potential growth rate
along the Mid Hill Highway and has identified ten major areas to be
developed as New Towns with population rising to one hundred thousand.
According to the current provision of Local Self Governance Act, 2055
(B.S.), clause 72 in relation to declaration of a municipality is a minimum
population of 20000 and minimum services like electricity, road, water supply
and communication; the urban areas shown in following figure have already
qualified and recommended to declare as municipalities:
Figure 6Municipal Area Determination Recommendation Committee 2059 Bs
52
Figure 7 Mid Hill Highway
Figure 8Town Development Committees of Nepal
| 53 |
There are many municipal areas which are very rural in nature so the
provision of urban infrastructures and facilities is not possible. Take for an
example 205 Sq. Km Kamalamai Municipality has two small areas 25 km
apart and rest is rural., while Birtamod VDC and many VDCs of Kathmandu
Valley are much more urban than most of the municipalities. On top of these,
many new areas are urbanizing which demands the redefining of urban areas
and classify their hierarchies which would ultimately help in picturising the
present urban structure vis-a-vis visualize future areas with high urban growth
potential and possible urban structure. The criteria need to be developed for
identifying urban centres and classifying them to classes/ hierarchies
accordingly. So, an analysis has been done taking 58 municipalities, 14 small
towns and 4 market centers (samples) and marking them accordingly to the
criteria's on basis of population, population density, growth rate, location
advantage, balancing preference, number of shops and road junction
(provision of motorable roads).
Classification Criteria
1. Population: 25 marks
2. Population Density: 25 marks
3. Growth Rate: 15 marks
4. Location Advantage: 15 marks
5. Balancing Preference: 10 marks
6. No of shops: 5 marks
7. Road Junction (Provision of motorable roads): 5 marks
Total: 100 marks
Marking Criteria
Population (25 marks)
• Upto 5000, 1 mark per 1000
• Additional 15000, 1mark per 3000
• Additional 50,000, 1mark per 10,000
Population Density in person per hectare (25 marks)
• Upto 5, 1 marks per 1
54
Population Growth Rate (15 marks)
1 mark per half percentage of growth.
Location Advantage (15 marks)
If the area touches the following roads:
• East West Highway : 8
• Mid Hill Highway: 5
• Hulaki Road: 2
• Major North South Corridor (connecting to both India and China): 3
• NS Corridor(connecting to either of India or China or more than two
district Headquarters): 2
• Any Motorable Road Corridor: 1, If the area boundary in is within 2
km from the above roads, half of above marks be given.
• District HQ: 2
Balancing Preference (10 marks)
Development Region (6)
• Far Western Region: 6

• Mid Western Region: 4
• Western Region: 2
• Eastern Region: 2
• Central Region: 1
Eco Zone (4)
• Himal : 4
• Mountain ( Except Kathmandu Valley) : 2
• Terai/ Kathmandu Valley : 1
Number of shops – 100m from the center (5 marks)
• 1- 5: 1
• 6-10 : 2
• 11 – 20: 3
• 21-40: 4
• ≥ 40: 5
Number roads radiating from the area Road Junction/ Provision of
motorable road
(5 marks) (5 marks)
• 3 roads / trials : 3 • 2 thorough motorable

• If at least one of above is motorable: 4 OR, road: 5
• 4 or more roads: 4 • 1 thorough motorable
• If at least one of above 1 road is motorable: 5 road and 1 motorable
road: 4
• 1 thorough motorable
road
| 55 |
Basic Principles Adopted in Proposed
Programs for the Business Plan Period
a) Meeting minimum infrastructure requirements of urban centres
on incremental basis:
New hierarchy of the urban areas like metro city, sub-metro city, city, Sub-
city and Market centres will be set in accordance to the recommended criteria
and minimum level of physical, social and economic infrastructure as
designated to each hierarchy will be met by the end of this plan period. This
will guide and streamline the investment in the urban development sector
rationally.
b) Implementation of Important Strategic Programs for development of
urban areas and facilities
Rapid and unplanned growth in most of the urban areas with inadequate
minimum infrastructure and services due to migration in search of facilities to
urban centres is the major characteristics of urbanization in Nepal.
Therefore, formulation of comprehensive strategic mega programs is
inevitable to make urban system more effective, to guide such haphazard
growth and to provide basic infrastructure so that more than one urban area
will be benefited. This is a major challenge for the GON though its efforts are
in place towards planned urbanization in the country by guiding and
promoting future expansion of urban areas through identification and
implementation of strategic programs.
To meet this objective, Infrastructure development program which can cover
more than one urban area, especially urban road projects should be guided
strategically. Similarly, demand for mega projects like integrated drainage
system, stadium, amusement park are increasing which require massive
investment on the part of the government. Undoubtedly, demand of such
mega and multi-year infrastructure development projects will continue in
future as well.
The urban development sector of the Department of Urban Development and
Building Construction should concentrate in following strategic activities:
• Small town, market centre and compact settlement programs in
proximity of major High ways – 10 modern cities having at least a
population of 100,000 is proposed to develop along the mid-hill
56
highway. The identification of potential site for urban development
will be based on 9 different indicators like Availability of land,
Source of drinking water, potential of economic development, current
location of the settlement, population, condition of migration, non-
agricultural activities, literacy and availability of electricity etc.
Efforts will be made to achieve balanced national urban structure
based on the concept of regional development as envisaged by the
National Urban Policy
• Technical support to formulation and implementation of urban plans –
Programs related to achieve minimum level of infrastructure as
discussed earlier in this chapter will be implemented
• Strategic plans, programs and policy based guidelines will be
formulated, implemented and reviewed.
• Policy related guideline on environment will be formulated.
Minimum Standard of infrastructure and Services

The following minimum infrastructure service standard has been proposed by
incorporating ideas and suggestions given by the participants during the
workshop, infrastructure service level indicators of National Planning
Commission study, existing realities of the urban areas in Nepal, investment
capacity of government of Nepal and pace of development for the provision of
such services etc. in Nepal. The minimum basic facilities such as drinking water,
sanitation facility, and access to basic education, basic health facilities and
electricity for all levels of urban areas have been proposed though in varying
degrees, quantities, coverage etc. This minimum quantities, coverage etc.
proposed could be scaled up incrementally or gradually to achieve optimum or
desired service standard in future. In addition to this, under the heading of
minimum infrastructure service standard, the minimum facilities of
communication, security etc. has also been proposed.
| 57 |
Table 21Minimum Physical Infrastructure for Various level of Urban Sector
Sub Metro Market
S.N. Physical Description Metro City City Sub City
City Centers
More than More
90% of than 90%
More than 90% of
Percentage of household More than 95 % household are of houses
household are
1. Road within a distance of houses are with within 0.5 km are within -
within 1km from
motorable road motorable road from 2km from
motorable road
motorable motorable
road road
Piped water fed to the
Water supply 100 100 80 60 45
58
system in ltrs/c/d
More
2. More than 85 than 80 %
Distance from home to 95 % Household More than 80% Piped
% Household have pipe
Water Accessibility the piped water tap in have pipe Household pipe water
have pipe water
minutes connection W/S within 20 M system
Connection within 50
M
≥90% 85% 60 % 40 % -
Percentage of households
3. Sanitation facilities covered by waste
treatment system
58
Sub Metro Market
S.N. Physical Description Metro City City Sub City
City Centers
90 % 80 % 70 % 60% -
Solid waste Percentage of households
management covered by SWM service
SWM
4. Land Area with
Implementation of Land identified/
Land identified/ identified/ collection On Site
Sanitary land fill acquired /
acquired/developed acquired/ and Collection
site(SLS) developed
developed recycling
facility
5. Electricity Supply System
59
Electricity
99% 95% 95% 95% 95%
6. Tele-communication
| 59 |
Table 22 Minimum Social Infrastructure for Various level of Urban Sector
Market
S.No. Social Description Metro City Sub Metro City City Sub City
Centers
Health: District Hospital District Hospital Primary Health Care
Hospital/Health
Access to Zonal Hospital (25-50 beds) Center Health Care
1. centre/health post Health Post
basic health Regional Hospital Zonal Hospital (5-15 beds) Center
etc.
care facility (Above 500 beds) (50-100 beds) District Hospital
Primary/ basic Primary/ basic Primary/ basic level Primary/ basic level Primary/ basic Primary/
level: level level basic level
90 sq ft per 1 per market
student, school at centre
a distance of 0.4 –
60
0.8 km
Higher Secondary
Higher Higher Secondary Higher Secondary Higher
Secondary: Secondary
2. Education
80 sq per student,
at a distance of
30min in public Graduate/ Post
transportation Graduate/ Post Graduate
Graduate Graduate Graduate
Graduate/ Post
Graduate:
70 sq ft per
person at a
60
Market
S.No. Social Description Metro City Sub Metro City City Sub City
Centers
distance of 45min
in public
transportation
3. Security Police Post Police Police Post Police Post Police Post Police Post
Police Station Headquarter Police Station Police Station
Police
61
Headquarter
4. Fire Stations Fire Engine Fire Station Fire Station Fire Station 1 fire engine 1 fire engine
Fire Station
Open Space Neighborhood
Neighborhood Neighborhood Park,
(Public) , Park, Local Park, Neighborhood Park, Neighborhood
Park, Local Park, Local Park, Neighborhood
5. also usable Community Park, Local Park, Park, Local
Community Park, Community Park, Park
during District / Community Park Park
Parade Ground Parade Ground
disaster Regional Park
| 61 |
Table 23 Minimum Economical Infrastructure for Various level of Urban Sector
S.N Sub Metro
Economic Description Metro City City Sub City Market Centers
o. City
Wholesale, retail Wholesale, Wholesale,
Vegetable/
Vegetable and slaughter retail and retail and Haatbazaar
meat market
Meat house slaughter house slaughter house (vegetable/ meat
1. Market with cold
Wholesale Number depends Number Number market with cold
storage
Retail on the population depends on the depends on the storage facility)
facility
population population
2 Convention Hall,
City Hall, Convention City Hall Multipurpose
Hall Convention Hall Community Hall
Multipurpose Hall, Hall (Multipurpose) Hall
62
Community Hall
National level, National level City level,

Sports
3 Regional level, specialized Regional level District Sports - -
Complex
City level complexes Centre
Transport Intra City and Intra City and Intra City and
Intra City and Inter Inter City Bus
4 ation Inter City Bus Inter City Bus Inter City Bus -
City Bus Terminal Terminal
System Terminal Terminal Terminal
62
S.N Sub Metro
Economic Description Metro City City Sub City Market Centers
o. City
Public Parking
Public Parking (2/3/4
Bus Park /
Public (2/3/4 Wheeler) Wheeler) Parking (2/3/4 Bus Park / Truck
Public Parking Truck Park (
5 Parking including including Wheeler) Park ( 2/3/4
(2/3/4 Wheeler) 2/3/4
space provision of provision of Taxi Park Wheeler)
Wheeler)
vertical parking vertical
parking
Proposed Strategic Plans
63
The following plans and programmes is expected to achieve comparative advantage and competitive benefits
among different sectors of Nepal, strengthen existing rural urban linkages, development of potential North-
South corridors, environment friendly infrastructure and services including enhancement of inter-dependency
between the proposed new towns along mid-hill high way, realization of the objectives of National Urban
Policy such as balanced national urban structure, development of potential new economic centres and
upgrading of existing economic centres; enhancement of the trade, commerce and industrialization and tourism
development in the potential areas.
| 63 |
Table 24 Proposed programs to develop within 20 years
SN Proposed Program Description Remarks
1 Preparation for establishment of  Patan, Sanphebagar, Rakam Karnali, Chaurjahari,
Cities along the mid-hill highway Burtibang, Dumre, Baireni Galchhi, Khurkot,
Basantapur, Phidim
 Dipayal, Binayak, Dullu, Rukumkot, Kushma,
Kurintar, Nepalthok, Ghurmi, Diktel, Jarayotar
2 Establishment of satellite cities  Satellite cities each of 1,00,000 population
around proposed Nijhgadh and  Nirmal Pokharai, Bharat Pokhari, Hemja, Rupakot
Pokhara airport influencing area
3 Developing infrastructures related to  Touristic City : Lamki, Budar, Martadi, Guleria,
the identity of the cities Salyan Khalanga, Pyuthan, Jiri, Gaidakot,
64
Panchathar, Bhimeshwor, Jaleshwor, Urlabari,
Pokhara, Tumlingtar, Chisapani, Dunai, Panchkhal
 Cultural and Historical City: Tilaurakot,
Ramgram, Kapilbastu, Gorkha, Janakpur, Dhanusa.
Panauti
 Eco City : Ilam, Dharan, Lekhnath
 Commercial City: Krishnagar, Kanchanpur,
Hanumannagar, Rangeli, Chainpur, Musikot,
Bhajani, Baitadi, Jogbura, Tamghas, Manthali,
Barabise, Chautara
| 64 |
 Commercial and Industrial City: Chandrauta,
Rajapur
Khajura (agriculture), Sandhikharka
4 Towns to be developed adjoining  Dharchula/Hilsa
China and India border  Khasha/Tatopani
 Rasuwagadhi (kyerung) Taklakot
 Lomanthang
 Kimanthanka
 Tinkar Bhanjyang
 Dhap
 Gaddachowki
65
5 Proposed Strategic Corridors  Panchkhal-Dhulikhel- Banepa- Panauti
 Duhawi-Inaruwa-Itahari-Dharan
 Birgunj-Jitpur-Simara-Pathalaiya
 Pokhara-Lekhnath-Dulagauda
 Kapilbastu-Lumbini-Siddharthanagar-Butwal
 Surkhet-Dashrathpur-Chinchu
 Nepalgunj-Kohlapur
 Attariya-Dhangadhi
 Patan-Khodpe-Dadeldhura
 Taulihawa- Gorusinge- Arghakhachi - Sandhi
| 65 |
Kharka
 Hetauda - Phaparbari
6 Proposed regional bus park along  Dadeldhura
MHH Highway  Sanfebagar
 Chaurjhari
 Baglung
 Pokhara
 Dumrebhansar
 Baireni Galchhi
66
 Khurkot
7 Proposed sub regional bus parks  Mahendranagar
along E-W Highway  Attariya
 Kohalpur
 Gorusinge/Bhalubang
 Naranghat/Butwal
 Hetauda
 Chandranigahpur
 Bardibas
 Lahan
 Itahari
 Charal /Birtamod
| 66 |
The strategic plans have been proposed altogether for twenty years in three phases, five years in the first
phase, another five years in the second and ten years in the third phase.The estimated required
investment has been presented in the following tables.
Table 25 Strategic mega projects for next 0-5 years

Cost in
SN Major Programs Location Crore
NRs.
1 Preparation for establishment of Patan, Sanphebagar, Rakam Karnali, Chaurjahari, Burtibang, 73
cities along the mid-hill Dumre, Baireni Galchhi, Khurkot, Basantapur, Phidim
highway
2 Establishment of satellite cities Nirmal Pokharai, Bharat Pokhari, Hemja, Rupakot 80
around Nijhgadh & Pokhara
67
airport influencing area
3 Developing infrastructures  Touristic City Jiri, Gaidakot, Jaleshwor, Pokhara, 40
related to the identity of the  Cultural and Historical City: Tilaurakot,
cities Ramgram, Kapilbastu,. Panauti
 Eco City : Ilam, 40
 Commercial City: Krishnagar, Rangeli, Barabise,
 Commercial and Industrial City: Chandrauta, 10
| 67 |
Cost in
NRs.
30
10
4 Towns to be developed adjoining Taklakot 30
China and India border Rasuwagadhi
Kimanthanka
5 Proposed strategic corridors • Panchkhal-Dhulikhel- Banepa- Panauti
68
• Duhawi-Inaruwa-Itahari-Dharan
• Birgunj-Jitpur-Simara-Pathalaiya
• Pokhara-Lekhnath-Dulagauda
• Kapilbastu-Lumbini-Siddharthanagar-Butwal
• Surkhet-Dashrathpur-Chinchu 250
• Nepalgunj-Kohlapur
• Attariya-Dhangadhi
• Patan-Khodpe-Dadeldhura
• Jajarkot – Chaurjahari – Devsthal
• Phikel-Illam-Phidim
6 Proposed regional bus parks 1. Chaurjhari
along Mid Hill Highway 2. Khurkot 3
| 68 |
Cost in
NRs.
7 Proposed sub regional bus parks 1. Kohalpur
along E-W Highway 2. Bardibas
3
Total Estimate 539
69
| 69 |
Table 26Strategic mega projects for next 5-10 years
Cost in
Major Programs Location
Crore NRs.
1 Preparation for establishment Patan, Sanphebagar, Rakam Karnali, Chaurjahari, Burtibang,
of cities along the mid-hill Dumre, Baireni Galchhi, Khurkot, Basantapur, Phidim 1667
highway
2 Establishment of satellite cities Nirmal Pokharai, Bharat Pokhari
around Pokhara & Nijgadh l Hemja and Rupakot 140
airport influencing area 2 satellite cities of 1,00,000 population
3 Towns to be developed Taklakot 270
adjoining China & India Rasuwagadhi
Kimanthanka
70
border
Darchula/Hilsa, Khasa/ Tatopani, Lomanthang, Tinkar Bhanjyang 40
4 Developing infrastructures  Touristic City Jiri, Gaidakot, , Jaleshwor, Pokhara, 110
related to the identity of the Jaleshwor, Lamki, Panchkhal, Tumlingtar
cities  Cultural and Historical City: Tilaurakot, Ramgram, 80
Kapilbastu, Gorkha, Janakpur
 Eco City : Ilam, Lekhnath
30
 Commercial City: Krishnagar, Rangeli, Barabise,
Chainpur, Kanchanpur, Musikot
 Commercial and Industrial City: Chandrauta, Rajapur 90
30
| 70 |
Cost in
Crore NRs.
5 proposed Strategic Corridors • Patan-Khodpe-Dadeldhura
• Hilsa- Simikot 152
• Manthali – Dhulikhel
• Kalesti-Damauli-Dumre-Besissahar
• Mahendranagar – Attariya
• Jaleshwor-Janakpur-Bardibas
71
6 Proposed regional bus parks 1. Dadeldhura
along Mid Hill Highway 2. Baireni Galchhi 3
7 Proposed sub regional bus 1. Attariya
parks along E-W Highway 2. Narayanghat/ Butwal 3
| 71 |
Table 27 Strategic mega projects for next 10-20 years
Cost in
Crore NRs.
1 Preparation for establishment Patan, Sanphebagar, Rakam Karnali, Chaurjahari, Burtibang, 1668
of cities along the mid-hill Dumre, Baireni Galchhi, Khurkot, Basantapur, Phidim
highway Dipayal, Binayak, Dullu, Rukumkot, Kushma, Kurintar, 2370
Nepalthok, Ghurmi, Diktel, Jarayotar
2 Establishment of satellite cities satellite cities of 1,00,000 population 660
around Nijgadh and Pokhara Hemja and Rupakot 120
airport influencing area
72
3 Towns to be developed Darchula/Hilsa, Khasa/ Tatopani, Lomanthang, Tinkar 540
adjoining China and India Bhanjyang
border of Nepal Dhap, Gaddachowki
4 Developing infrastructures Touristic City Lamki, Panchkhal, Tumlingtar 170
related to the identity of the Martadi, Budar, Guleria, Salyan Khalanga, Pyuthan, Panchthar,
cities Bhimeshwor, Urlabari, Chisapani, Dunai
Cultural and Historical City: Gorkha, Janakpur 60
Dhanusa, Panauti
Eco City : Lekhnath Dharan
30
| 72 |
Cost in
Crore NRs.
Commercial City: Chainpur, Kanchanpur, Musikot
Hanumannagar, Bhajani, Baitadi, Jogbura, Tamghas, Manthali, 100
Chautara
Commercial and Industrial City: Rajapur, Khajura, 40
Sandhikharka
5 Proposed strategic corridors1. Baglung – Kushma - Mirmi
2. Galchi – Trishuli - Betrawoti 127
3. Taulihawa – Gorusinge – Arghakhachi - Sanshikharka
4. Hetauda - Phaparbari
73
5. Urlabari – Damak - Birtamod
6 Proposed regional bus parks 1. Sanfebagar
along Mid Hill Highway 2. Baglung 6
3. Pokhara
4. Dumre Bhansar
7 Proposed sub regional bus 1. Mahendranagar
parks along E-W Highway 2. Gorusinge/ Bhalubang 11
3. Hetauda
4. Chandranigahpur
5. Lahan, 6. Itahari, 7. Charal/ Birtamod
| 73 |
d) Financial instrument for the implementation of the plans
and programmes:
The study of the trends in the budgetary allocation shows that there is
no uniformity in the existing allocation of budget in the urban
development sector.As per the following table in the last five years,
there was the highest allocation of budget in the fiscal year 2068/69 and
lowest in the fiscal year 2066/67 therefore the average budget figure of
the five fiscal years has been taken with annual 10 per cent increment
for the projection purpose for the coming 20 years to make the
projection as realistic as possible.Similarly, the investent amount has
also been estimated with annual 10 per cent increment to offset the
devaluation. Based on this estimates, there is no need of signifiant
additional amount in the next 20 years however, there is a need of Rs.3
arba 40 crores additional amount in the second phase of five year. For
the rest of the years the existing allocation of the budget is expected to
be adequate.
| 74 |
Table 28 Trend in Budget allocation in Urban Development Sector
2066/67 2067/68 2068/69 2069/70 2070/71
Study of Urban sector
Development and Market centre 137786 142590 853610 0 0
Small Town Development 54330 63597 382280 229230 61114
Integrated Action Plan 18500 18418 35953 37416 36363
Special Physical and
Infrastructure
Development 48084 59467 480187 14682 140163
Intensive Urban
Development 365074 331962 2482748 2231640 450934
Urban and Environment
Development/Secondary
Town Urban and
Environment development 807475 748971 2016314
Outer Ring Road 67152 19508 0 0

Biratnagar Ringroad 24517 25334 220200 159229 72551
Model Integrated
Settlement Development 493000 607158 1656457 2037682 140005
Urban Governance
Improvement 380632
Integrated Urban
Development Project 229266
2015918 2017005 6111435 4709879 3527342
| 75 |
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
2066/67 2067/68 2068/69 2069/70 2070/71
Figure 9 Comparison of Yearly Budget
Table 29 Comparative Table for Required Investment and Allocated Budget
Base Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea Tot
Year r 2 r 3 r 4 r 5 r 6 r 7 r 8 r 9 r 10 r 11 r 12 r 13 r 14 r 15 r 16 r 17 r 18 r 19 r 20 al
2105601
Allocatio
104889
115378
126916
139607
153568
168925
185817
204399
224839
36763
40439
44483
48932
53825
59207
65128
71641
78805
86685
95354
Required
1840512
103610
113971
125368
137905
151696
166865
183552
33480
36828
40511
44562
49018
64780
71258
78383
86222
94844
77842
85627
94191
Investme
nt
-265089
Differen
-17511
-19262
-21187
-23306
-25636
-28200
-31020
-34122
-37535
-41287
8158.5
-3283
-3611
-3972
-4370
-4807
5573
6130
6743
7417
ce
| 76 |
Table 30 Program wise Description of Required Yearly Investment
Required Yearly Investment in Lakh
S.No
Main Program Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
.
Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Minimum Infrastructure Development
Physical
19200 21120 23232 25555 28111 5154 5669 6236 6859 7545 8300 9130 10043 11047 12152 13367 14704 16174 17792 19571
Infrastructure
Social 2446
400 440 484 532 586 644 709 779 857 943 1037 1141 1255 1381 1519 1671 1838 2022 2224
Infrastructure
Economic
2400 2640 2904 3194 3514 3865 4252 4677 5145 5659 6225 6847 7532 8285 9114 10025 11028 12131 13344 14678
Infrastructure
2 Strategic Programe
Establishment of
77
New Town in
1460 1606 1767 1943 2138 33340 36674 40341 44375 48813 40380 44418 48860 53746 59121 65033 71536 78690 86559 95215
Mid Hill
Highway
Establishment of
satellite cities
around Nijgadh
1600 1760 1936 2130 2343 5400 5940 6534 7187 7906 7800 8580 9438 10382 11420 12562 13818 15200 16720 18392
and Pokhara
airport
influencing area
Towns to be
developed
adjoining China 600 660 726 799 878 6200 6820 7502 8252 9077 5400 5940 6534 7187 7906 8697 9567 10524 11576 12734
and India border
of Nepal
Required Yearly Investment in Lakh
S.No
Main Program Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
.
Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Developing
infrastructures
related to the 2600 2860 3146 3461 3807 6800 7480 8228 9051 9956 7000 7700 8470 9317 10249 11274 12401 13641 15005 16506
identity of the
cities
Proposed
strategic 5000 5500 6050 6655 7321 3040 3344 3678 4046 4451 1270 1397 1537 1691 1860 2046 2251 2476 2724 2996
corridors
Proposed
78
regional bus
120 132 145 160 176 176 194 213 234 257 170 187 206 227 250 275 303 333 366 403
parks along Mid
Hill Highway
3 Institutional Development
Human Resource
Development; 50 55 61 67 73 81 89 98 108 119 131 144 158 174 191 210 231 254 279 307
Institutional
Development 20 22 24 27 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122
Monitoring 30 33 36 40 44 48 53 58 64 70 77 85 94 103 113 124 136 150 165 182

Total 33480 36828 40511 44562 49018 64780 71258 78383 86222 94844 77842 85627 94191 103610 113971 125368 137905 151696 166865 183552
| 78 |
4. Business Plan of the Building Sector
A) Analysis of existing legal instruments and policy relating to
building
There are different legal and policy documents which are either already in
implementation or in the formulation process of draft stage for
implementation in near future with an objective to manage and regulate the
construction and maintenance works of the buildings.Of those, some major
legal documents relating to building sector already under implementation is
explained in the following sections below.
National Building Policy,2069(Draft):
The National Building Policy,(Draft) prepared in 2069 BS for building sector

is in the process of approval. This draft document is primarily prepared with
an objective to construct safe,durable,comfortable and cost effective public
and private buildings using local construction materials and technology as far
as possible. This draft policy has divided the entire buildings into 16
categories based on the use. The objective of this draft policy is to make safe
and quality buildings according to National Building Code . Attemps have
been to made to identity and effectively mobilize the financial instruments in
order to make necessary investment in the building sector by this policy. It
emphasizes the need to formulate the policy for the maintenance of the
building standard and bye laws for different buildings.
Building Act, 2055:

The pervasiveness of building act implemented in 2055BS covers all
municipalities and village development committees of the country.It has
categorized all the building into four types from the structural point of view as
per the building code.Major thrust in this act is given to construct safe
building by wider application of the building code therefore implementation
instrument relating to that and provisions for punishment for not complying to
building code are mentioned in the act .
Apartment Act, 2054:

The Apartment Act implemented in 2054BS paved the way for the private
sector to involve in the development of housing in an organized way. The
broad subjects like the right of ownership of the apartment, operation and
| 79 |
management of such buildings, users rights of the housing units,
responsibilities of the buyers, responsibilities of the developers etc. are
included in the act. The act has made mandatory provision to form users
committee for the smooth operation and maintenence of the apartment and the
complex.
Building Regulation, 2066:

It is necessary to pay certian amount of money by every individual including
government, semi government offices for getting building permit from
concerned office.There is also provision in the regulation to issue the
building permit within 30 days by the concerned municipalities provided that
application fulfils all the requiremnts mentioned in it.There is a provision
various process for approving different categorized buildings as per national
building code. Along with application form there are four types of technical
firms to be filled and signed by the engineer or an architect along with
affidavit paper attached in the annex.
National Building Code:

The building code has really taken the strong footing and dynamism only
after the destruction resulted from the earthquake of 2045BS though the
efforts had been made in the past towards the formulation of the building
code to make building construction works safe and organized in Nepal. The
plan for the preparation of the National Building Code was started by the then
Building Department under the financial assistance of the UNDP/UNCHS
following the request made by then Ministry of Physical Planning and Works
to UNDP .Building code was prepard within two years period from 1992-94.
The building code could not be implemented immediately during that period
due to the various reasons such as lack of institutional base to test the strength
of the building, predominance of local materials and technology, ignorance
about the measures to minimize the risks from the potential earthquakes
among the policy makers as well as common people, low economic level,
inadequate legal provision for the improvement of the earthquake safety
etc.Basically this code is divided into the following four categories:
| 80 |
Table 31 Categories of the Building Code
Level Type of code Context and use
1 State of art - Encouragement to ultra modern
Design technology and equipments in design and
construction
- Free use of ultra modern technology and
principle
2 Professionally - Professional designers
engineered - Design according to designated standard
buildings
3 Mandatory - Medium level technical subject matter
rule of - Readymade designs and detail plans to be
thumbs used by engineers, technicians, builders
and house owners
- Appropriate for all owner builder
buildings can be used up to three storeys
buildings
4 Guidelines - Construction works using only traditional
for Remote materials and technology without
Rural involvement of the technicians (mud,
Buildings stone, wood, adobe brick etc)
In spite of the several difficulties, the notice to implement this National

Building Code in all municipalities and in particular designated VDCs within
the Kathmandu Valley has already been published in Nepal Gazette supported
by the legal provision made in the Building Act, 2045BS. However, the code
has not been implemented as mandatory in practical terms as per the spirit in
all the municipalities of Nepal. There is still a prevalence of confusion even
among many professionals that building code and building bye law is the
same. Due to this confusion, the building permit is issued in many
municipalities without compliance to the provision of the building code. The
inability to disseminate this concept of National Building Code is for our own
safety among the common people from the point of view of earthquake risks
could not be checked or controlled in an institutional manner.
| 81 |
Bye laws related to Building Construction
Besides the National Building Code, most of the municipalities have their
own Building bye laws in practice. As per the authorities given by the Local
Self Governance Act and Regulation to local authorities, the local authorities
can implement building bye laws approved by the town development
committees as per the provision made in Town Development Act. In the case
of the Kathmandu Valley, due to the continuous changes in the urban
character and as per necessity there have been changes in the FAR, ground
coverage, set back etc. in the existing bye law and implemented it with
periodic modification and updating in 2064.
Building repair and maintenance Guideline Maintenance
For the repair and maintenance of the buildings Department of Urban
Development and Building Construction has implemented Building Repair
and Maintenance Guidelines in 2062. The information about the major
elements of the buildings and the methods for the repair and maintenance has
been explained in the five chapters of these guidelines. Though the major
subject has been covered in these guidelines however, it has not yet been able
to include the innovative construction materials and methods available in the
market. It is necessary to update these guidelines by including the subjects in
particular, the maintenance of the underground floor, repair and maintenance
of internal and external finishing works etc. The appropriate check list for the
purpose of the maintenance are also not included in this guideline.
Guideline for Green Building Technology (Draft)
The department, by internalizing the Green Building Technology as an
innovative technology under the concept of sustainable development,
formulated guideline in 2068. The major objective of this guideline is to
construct energy efficient and environment friendly buildings. The different
aspects relating to building such as location of the building, construction site,
appropriate size of doors and windows for the management of adequate light
for the use of human beings, use of solar heat, efficient use of air condition
and other equipments, rain water collection etc. have been covered under
different chapters. The different table to be used as standard of green
technology is given in the annex of this guideline. For the implementation of
this guideline in an institutional manner, it is recommended to tie up this
guideline with National Building Code.
The review of the documents mentioned above and the overall study and
analysis of existing different relevant legal and policy provisions show that
| 82 |
these policy documents have not been able to address the following subjects
as expected until now:
- Conservation of special construction materials and technology and local
architecture.
- Sustainable and environment friendly building construction technology as
per development of innovative technology.
- Mandatory compliance to building code.
- Clear responsibilities and authorities at the central and local level for the
implementation of the building policy.
- Building repair and maintenance related with building policy.
- Uniformity in the construction of government and public building, facilities
to be made available, use of materials, shape and size etc.
- Classification of the buildings as per use.
- Periodic updating of norms and specifications as per availability of
technology and materials to be used for the provision of water supply and
sanitation, electrification, civil works during the process of the construction
of the building.
- Regulation of high rise building construction.
- Capacity development of the existing institution in the building sector and
updating of the legal structures.
The traditional architecture, knowledge of local technology and skills are
gradually being lost due to the increasing attraction for imported construction
materials and using innovative technology in an attempt towards exploring
modernity. It has also become necessary to internalize innovative technology
and use of construction materials in order to make the construction technology
environment friendly and energy efficient. In this way to maintain the balance
and fusion between the conservation of ancient technology, architecture etc
and innovative technology, architecture etc. there is a need of legal structures.
b) Status of the availability and demand for government
and non government buildings
The analysis of the present quantitative situation of the building sector is
necessary in order to prepare the detail framework of these
programmes.Accordingly, the present description of the building is preseted
in the table below:
| 83 |
Table 32 Analysis of the quantitative situation of the building sector
Types of buildings Last five years agencies wise number (as far as available) Estimated Projected New
Type existing annual constr
2064/65 2065/66 2066/67 2067/68 2068/69 number growth uction
Cinema Hall 399 399 4 4
Entertainme Community
nt Building 30 60 2 2
Museum 11 11 1 1
Stadium 9 11 11 1 1
Sports
Covered Hall 65 70 70 1 1
Pre primary school 26772 28772 29272 29272 833 208
Primary school 29220 30924 31655 32684 33881 33881 932 233
Educational Lower secondary 9039 10636 11341 11939 13791 27582 950 238
institutions Secondary school 5894 6516 6928 7559 8233 16466 468 117
Higher secondary, 2512 2499 3383 10149 290 145
84
Campus, niversity 1077 3231 150 75
Temple, stupa,math 888 2664 3 3
Religious Baudha Bihar 64 192 1 1
Mosque,church etc 219 219 10 10
Palaces 70 70 0 0
Heritage
Public rest house 1232 3696 25 25
Departmental stores 32 64 6 6
Trade Commercial
complexes 8 16 2 2
| 84 |
Industrial area and
Industry factory 1443 2886 50 50
Cottage industries 228553 228553 11428 114
Jail(Bandi griha) 73 292 1 1
Improvemen
correction centre,
t
ashram 1 30 10 5
Health Hospital 94 102 102 102 105 315 2 2
85
Non hospital 4297 4290 4498 4499 4288 12864 51 51
Transportation 30 30 3 3
Godown Agriculture based 30 30 2 2
storage
80 80 2 2
Medical
Government offices 2850 5700 50 25
Local agencies 4048 16192 2 2
Corporation 37 555 5 5
Office
Cooperatives 12785 19963 22885 23540 25167 25167 2476 124
buildings
Registered
companies 10464 10386 20772 2400 120
NGOs 981 1962 196 20
| 85 |
Security
Security agencies 2250 15 15

Guest Star hotels 105 96 97 103 106 318 3 3
hospitality Other hotels, lodges 512 573 640 686 721 1442 30 30
Miscellaneo Airports 34 170 1 1
us Others 500 10 10
Total 62020 73100 107430 122847 371604 448161 20417
86
| 86 |
The information about the quantitative description of the buidings has been
collected from differet sources in an attempt towards the finalization of the
programmes for the proposed business plan. Basically, the major souce has
been the Economic Survey, 2068 and district profiles however, bulletins
published from different security agencies for the information generally not
possible to collect and web pages of different organizations etc.have also been
used.
C) Business Plan and Programmes
The framework of the road map about the activities to be implemented in the
building sector in the coming days can be chalked out based on the studies of
the overall assessment of the different activities under implementation in the
building sector, present condition of the building sector and existing problems
and challenges. In particular, it would be appropriate to consider National
Building Policy though it is in draft stage now, current Three Year Plan and
the different legal and regulatory documents formulated for the development
of this sector as the basis.
Twenty years long term vision,mission and objectives

The folowing twenty years long term vision,mission and objectives would be
be apprpriate to set basicaly to make it appropriate for the twenty years period
by analyzing the subject matters mentioned in the different sections of the
mid-term report and preliminary results etc. in the process towards the
formulation of this business plan.
Long term vision: To make public and private buildings

safe,durable,comfortable and cost effective by utilizing the local construction
materials and technology as far as possible.
Mission: To construct and develop safe,durable, cost effective and

environment friendly public and private buildings reflecting indigeneous y
/local architecture as far as possible.
Objectives:
a. To construct safe,durable, comfortable and cost effective buildings.
b. To promote local architecture, building construction technology
related knowledge and skills and construction materials.
c. To encourage the use of modern technology and new materials in the
building construction.
| 87 |
d. To develop effective financial instrument in the building sector.
e. To make special arrangement for the design,construction,use and
maintenence of the government buildings.
f. To improve in the institutional and legal structures of the building
sector.
Working policy and action plans
The following working policies and action plans have been proposed to
achieve the targets mentioned in the proposed long term vision and
objectives. The National Building Policy, which is in draft stage now, has
been taken as the basis for this proposal. Though the national policy has been
taken as the basis for the proposed plans to make it compatible with the policy
however,the action plans and programmes which can be accomplished in
twenty years is included here since national building policy will remain as a
long term document and this business plan is only for twenty years.
(a) Working policy to implement different guidelines and bye
laws/standards to make building safe, comfortable and cost effective by
categorizing buildings from the point of view of use.
-To construct public and private buildings in cost effective manner without
compromising in the safety of the buildins and availability of minimum
facilitiess and services inside the building required for human beings.
-To retrofit the existing buildings and to minimize the possible damages likely
to be caused by earthquake,fire,floods,land slides etc.
-To implement bye laws to control the construction of building around
historical and archaelogical significance.
- Minimum Design Standards which should be available in the public and
private buildings, High Rise Buildings Standards for the buildings above 17
meters high as well as implementation of different codes,guidelines,bye
laws,norms and specifications etc. appropriate to different geographical
regions. (b) Working policy to implement maintenance plan by
formulating it
-To formulate and implement guidelines in different necessary subjects
including to prioritize buildings for the regular repair and maintenance.
-To implement gradually by preparing detail work plan in order to repair and
maintain the buildings of historical and archaelogical significance in time.
-To let the local authorities take the responsibility of the dilapidated buildings
having risk in the public safety or causing obstruction in movement left by
| 88 |
the privte individuals and get its immediate repair and maintenence by the
concerned individuals themselves or if the owners are not identified/located
and manage to recoup/ recover the cost involved by using it or otherwise.
(c) Working policy to ensure quality assurance in building construction
- To make an arrangement of taking responsibilities of any damages caused
by making mandatory of ensuring the quality of the works being done by the
developers,contrators and designers during the process of building
constrution.
- To make an arrangement whereby no body can obstruct in the inspection of
the construction works in any time during the process of the construction and
the contractors should make available the quality test reports necessary
duirng the different stages of the construction to the house owner or to the
employer
- To make an arrangement to keep the record mentioning the subjects such as
foundation, number of reinceforcement steel,measurement and distance etc.
compulsorily of the portion of the building which will be covered later on
attested by the house owners or engineer and contractor.
-To put a restriction on the involvement in the construction of any type of
public or private buildings without being registered as the contractor and
formulate act including the right to take necessary actions by the local
authorities if the construction work is done against this in the case of the
private buildings.
(d) Working policy for full compliance to building code by timely
improvements
-To make an arrangement of reviewing building code every five years for its
timely improvements and amendments.
-To make mandatory to comply to building code in order to ensure the safety
and comfortable construction of the building.
(e) Working policy to promote and conserve the local architecture
-To conduct detail study and research about the local architecture and its
characteristics existing in the different regions of the country.
-To make available enabling facilities like provision of loan with concessional
interest rate or assist in mobilizing the financial resources and waive the fee of
building permit for those individuals and organization who builds building
based on the local architecture.
| 89 |
-To carry out awareness types of disseminating related works like
appropriateness and use of local architecture.
(f) Working policy to encourage local appropriate construction
technology, knowledge and skills
-To prepare the inventory of the local construction technology, knowledge
and skills existing in different regions of the country.
-To encourage the use of such available technology, knowledge and skills in
other geographical and ecological regions if it is appropriate to such regions
by disseminating such technology, knowledge and skills.
(g) Working policy to encourage the use of locally available construction
materials
-To recommend for the use of appropriate materials by preparing an inventory
of local construction materials used in different parts of the country.
-To study and recommend the possibility of using local construction
materials in the modern structures also.
-To disseminate the effectiveness of the use of local construction materials.
(h) Working policy to internalize the modern technology in the building
construction
-To study the appropriateness of the use of such technologies in the local
condition by collecting information of modern technology being applied in
the building construction.
-To implement the use of Green Building Technology guideline by
formulating it.
-To recommend the use of appropriate technology by carrying out the study
and research about the cost effective, energy efficient and environment
friendly building construction technology.
(i) Working policy to encourage the use of new materials in building
construction
-To study the available new materials and innovation in building construction.
- To recommend appropriate new building construction materials from the
point of view of cost effectiveness, energy efficiency and enviornment
friendliness.
(j) Working policy to identify possible financial resources in the building
construction
| 90 |
-To carry out necessary study and research to identify and explore the
possible financial resources to attract such sources in the construction works
of public and private buildings.
-To identify measures for the effective mobilization of the identified
resources.
(k) Working policy to establish and develop appropriate financial
instrument in building sector
-To explore the possibility of involvement of the financial secor in the
construction of public and private buildings.
-To establish and develop necessary instrument for institutionalization of the
possiblity of financial sector involvement in this sector by creating an
appropriate environment.
(l) Working policy to increase the involvement of the financial sector in
building
-To encourage Employees Provident Fund, Civil Investment Fund and public
corporation and organization like welfare fund associated with different
agencies organizations to invest in the building sector.
-To undertake necessary facilittion in other to promote partnership between
public and private sector in building sector.
-To develop an appropriate instrument to use certain portion of the amount
received from remittance in the building sector.
(m) Working policy to maintain certain identity and facility while
desigining the government building
-To maintain fixed shape, facade and structure as per agencies while
desigining the fully government owned and semi government owned
corporations building.
- To maintain consistency in the use of colour in the exterior facade and
interior rooms of the public buildings.
- To maintain consistency by preparing standards regarding the facilities to
be made available such as furniture and eqipments,toilet, air conditioning,
light and ventilation facilities, lamps,shape and size of the room according to
the responsibilities of the post and status or level of the employees in the
public buildings.
| 91 |
-To make an arrangement of design,construction and repair and maintenence
only to be done by Department of Urban Development and Building
Construction of all types of central level government office buildings
including VVIP’s official residential buildings.
(n) Working policy to regulate the system of renting government building
-To make an arrangement of taking building for rent which is constructed as
per approved building permit, appropriate from the point of view of security
and have all the facilities required in the public buildings.In this process,
make an arrangement of carrying out vulnerability assessment to ensure the
building safety.
-To implement evaluation method to bring consistency in the valuation of
immovable property and for rental buildings.
(o) Working policy to manage maintenence of the government buildings
- To prepare maintenence plan by preparing inventory of all governemnt
buildings with drawings of existing shapes and to update such inventory
after every five years period.
-To carry out maintenence works according to priority based on the
indicators such as structural safety, historical and archaelogical significane,
law and order, administrative significance etc. of the buildings while
undrtaking maintenance works.
-To prepare plan in time and implement by assessing the condition for
reconstruction of government buildings which are not feasible for
maintenance.
(p) Working policy to enhance the capacity ofthe stakeholders by
institutional improvement in building sector
-To assign the responsibility of implementing the National Building Policy by
establishing Department of Urban Development and Building Construction as
the apex body for coordination among the stakeholders of the building sector.
-To organize trainings,interactions and seminars for the periodic capacity
enhancement of different experts relating to building design and construction.
-To include in an integratd manner the subjects such as water
supply,electricity, machineries, equipments etc.while formulating the plans
and programmes relating to building by taking into consideration the services
and facilities to be made available in the buildings.
| 92 |
-To manage necessary physical infrastructures, manpower and resources in
order to enhance the organizational capacity of the instititions working in the
building sector.
(q) Working policy to improve timely in the existing legal instruments
relating to building sector
-To put restriction on the construction of any building without building permit
including the government buildings by making the procedures of approval for
building construction simple and effective.
-To assign the responsibility of monitoring,evaluation and regulation of
compliance to different codes,guidelines,bye laws etc. relating to building
construction to Department of Urban Development and Building
Construction at the central level and the concerned municipality and VDC at
the local level. The division offfices of the department will make available
necessary technical support to local authorities in this regard.
-To implement gradually to involve at least one trained technician having
completed training on earthquake resistant building construction from the
licensed training institution imparting such training to ensure the safe
building construction in any construction of building works.
-To make an arrangement by determining educational qualification and
experience of different experts involved in the building sector .
-To institutionalize the process of minimizing the risk by insuring the
buildings.
- To implement with necessary improvements and amendments by reviewing
the existing legal instruments for mandatory compliance of building policy
by formulating different codes,guidelines,bye laws,norms and specification
etc. as the jurisdiction of the existing building act and regulation is limited
and inadequate for the implementation of this policy.
-To make acts punishable which make changes in the use without
permission.If there is a need to make change in previous use of building
during the time of approval of plan, the local authority can issue such permit
after conducting the Vulnerability Assessment of the building.
-The FM or mobile towers cannot be installed in the building unless it is
proved appropriate from the point of view of the safety of the building.
| 93 |
Phase wise plans and programmes
The following activities need to be implemented as the major programmes in
a planned manner to achieve the targets set in this business plan based on the
proposed working policies and actions plans mentioned above.
Proposed major programmes
1)Building sector regulation programme: The following guidelines and
bye laws shall be implemented after its formulation under this heading to
make it suitable to different ecological regions.
- Building design guidelines
- Building construction guidelines
-Public building maintenence guidelines and working policy
- Private building maintenence guidelines
- Geen building guidelines
- Building norms
-Specifications of the building construction works
-Guidelines relating to high rise building
-Minimum design standard for public buildings
- Minimum design standard for private buildings
-Different building design based on application and construction guidelines
2)Disaster minimization programe: To continue the implementation of
builing code by reviewing and updating it. Retrofitting works of the important
buildings will be carried out by assessment of vulnerability under this
programme. It is proposed to assign priority to the buildings of those agencies
who will be involved in the provision of immediate relief facilities like
medical treatment and water supply, electricity,food,security etc. as well as
school buildings which could be uesd as the temporary shelter towards the
attempt of minimizing the effect of disaster.
3) Conservation of local architecture,technology and construction
materials: Study and research about special indigeneous/local
architecture,technology and construction materials under this programme to
increase public awareness about the local technology and construction
materials for its effective use.
| 94 |
4) Programme to use innnovative/new technoogy and construction
materials: Under this programe study and research will be carried out to
encourage the use of modern appropriate architecture, technology and
materials according to environent and energy effectiveness.
5) Building repair and improvement programme: To prepare an inventory
of important and public buildings with detail information aboutthe types of
building and present condition etc.,and accordingly prepare a mainenence
plan as per the necessity and priority.The maintenence works of the buildings
will be implemented gradually as per plan prepared in that way.
6) Building construction programme: The new buildings will be
constructed as per the necessity and priority under this programme.
7) Financial attraction in building sector:The works such as establishment
and mobilization of appropriate instrument, to carry out study and research
about the mobilizing and attracting different types of financial resources for
diffferent types of buildings, etc. will be carried out under this programme.
The priority will be given to public private partnership concept in this process.
8) Government building special programme: The works such as to manage
and direct the maintenence of government buildings, to manage the process
to be adopted while renting of governemnt buildings, to bring consistency in
the facilities to be made available and to maintain special identity in the
design of government building etc. will be carried out under this programme.
9) Building sector institutional improvement programme: The works such
as institutional strengthening, legal arrangement for the insurance of the
government buildings, capacity enhancement of the stakeholders of the
buildings and to make arrangemnt of an appropritye legal structures to
implement this business plan etc. will be implemented under this programme.
| 95 |
Table 33 Annual quantity of requirement of maintenence and construction of building
Annual necessary new construction First ten years annual maintenance Remaining ten years annual maintenance
Type Organized Organized Organized
Government Corporation Total Government Corporation Total Government Corporation Total
sector sector sector
4 4 0 0 40 40 0 0 44 44
1 1 2 3 0 3 6 4 0 4 8
nment
1 1 0 0 1 1 0 0 2 2
1 1 0 1 0 1 0 2 0 2
s
Sport Entertai
1 1 0 7 0 7 0 8 0 8
208 208 0 0 2927 2927 0 0 3135 3135
46 187 233 669 0 2719 3388 715 0 2906 3621
50 188 238 579 0 2179 2758 629 0 2367 2996
11 106 117 155 0 1492 1647 166 0 1598 1764
96
145 145 0 0 1015 1015 0 0 1160 1160
Educational
institutions l
75 75 0 0 323 323 0 0 398 398
3 3 0 0 266 266 0 0 269 269
us
1 1 0 0 19 19 0 0 20 20
10 10 0 0 22 22 0 0 32 32
0 7 7 7 7
age
15 10 25 222 0 148 370 237 0 158 395
6 6 0 0 6 6 0 0 12 12
e
Trad Herit Religio
2 2 0 0 2 2 0 0 4 4
| 96 |
Type Governm Corporatio Organized Organized Organized
Government Corporation Government Corporation
ent n sector sector sector
5 45 50 0 29 260 289 0 34 305 339
try
1 113 114 0 200 22655 22855 0 201 22768 22969
1 1 29 0 0 29 30 0 0 30
3 3 3 0 0 3 6 0 0 6
1 1 2 16 0 16 32 17 0 17 34
Health
25 26 51 631 0 656 1286 656 0 682 1337
3 3 0 3 0 3 0 6 0 6
1 1 2 2 0 2 3 3 0 3 5
97
storage
Godown Improvement Indus
1 1 2 0 4 4 8 0 5 5 10
25 25 570 0 0 570 595 0 0 595
2 2 1619 0 0 1619 1621 0 0 1621
5 5 0 56 0 56 0 61 0 61
124 124 0 0 2517 2517 0 0 2641 2641
120 120 0 0 2077 2077 0 0 2197 2197
Office buildings
20 20 0 0 196 196 0 0 216 216
240
Security 15 225 0 0 240 0 0
15 225
st
sp
ho
ita
3 3 0 0 32 32 0 0 35 35
| 97 |
Type Governm Corporatio Organized Organized Organized
Government Corporation Government Corporation
ent n sector sector sector
30 30 0 0 144 144 0 0 174 174
18
ous
1 1 17 0 0 17 18 0 0
Miscellane
3 3 4 10 15 15 20 50 18 18 24 60
200 20 1435 1655 4762 315 39741 44816 4961 335 41175 46471
The Fiscal Year 2068/69 has been taken as the base year for the calculation of the cost estimatse for the construction of the new
buildings as well as for the maintenence of old buildings which is as follows. In order to make the need for the investment realistic
and practical, it is assumed that the cost will be incrased by 10 per cent every year for the coming 20 year plan period and
accordingly the cost estimates and investment programme is presented here. The detail 20 year’s annual programme of the organized
sector or the private sector, corporation and government is presented in the next chapter of this report.
Table 34 Cost estimate of new building construction works
98
Type Types of buildings Annual Quantity Unit Rate Annual investment requirement Rs in ‘000
quantity per one
Government Corporation Organized sector Total
Cinema Hall 4 5000 Sq.ft 3500 0 0 70000 70000

Sq.ft
Community Building 2 4000 2500 10000 0 10000 20000
Sq.ft
Entertainment
Museum 1 4000 2500 0 0 10000 10000
s
Sport
Stadium 1 1 No. 50000000 0 50000 0 50000
| 98 |
quantity per one
Sq.ft
Covered Hall 1 4000 2500 0 10000 0 10000
Sq.ft
99
Pre primary school 208 1500 2000 0 0 624000 624000
Sq.ft
Primary school 233 3000 2000 276000 0 1122000 1398000
Sq.ft
Lower secondary 238 4500 2000 450000 0 1692000 2142000
Sq.ft
Secondary school 117 6000 2500 165000 0 1590000 1755000
Sq.ft
Higher scondary 145 8000 2500 0 0 2900000 2900000
Educational institutions l
Sq.ft
Campus,University 75 10000 2500 0 0 1875000 1875000
Temple,stupa,math 3 1 No. 500000 0 0 1500 1500
Baudha Bihar 1 1 No. 5000000 0 0 5000 5000
Religious
Mosque,church etc 10 1 No. 1000000 0 0 10000 10000
Palaces 0 Sq.ft 0 0 0 0
Heritage
Public rest house 25 1 No. 300000 4500 0 3000 7500
Departmental stores 6 1 No. 50000000 0 0 300000 300000
Trade
Sq.ft
Commercial complexes 2 2000 2500 0 0 10000 10000
| 99 |
quantity per one
Sq.ft
Industrial area and factory 50 5000 2500 0 62500 562500 625000
Sq.ft
Industry
Cottage industries 114 1500 2000 0 3000 339000 342000
Sq.ft
Jail(Bandi griha) 1 10000 10000 100000 0 0 100000
nt
Sq.ft
100
Improveme
Sudhar griha,ashram 3 5000 2000 30000 0 0 30000
Sq.ft
Hospital 2 8000 3000 24000 0 24000 48000
Sq.ft
Health
Non hospital 51 1500 2000 75000 0 78000 153000
Transportation 3 1 No. 10000000 0 30000 0 30000
Agriculture based 2 1 No. 5000000 5000 0 5000 10000

Sq.ft
Godownstorage
Medical 2 2000 2500 0 5000 5000 10000
Sq.ft
Governemnt offices 25 2000 2500 125000 0 0 125000
Sq.ft
Local agencies 2 1500 2500 7500 0 0 7500
Sq.ft
Corporation 5 2000 2500 0 25000 0 25000
Sq.ft
Cooperatives 124 1000 2500 0 0 310000 310000
Office buildings
Sq.ft
Registered companies 120 1000 2500 0 0 300000 300000
Sq.ft
NGOs 20 2000 2500 0 0 100000 100000
| 100 |
quantity per one
Secur Sq.ft
ity Security agencies 15 4000 2000 120000 0 0 120000
Guest Sq.ft
hospit
ality Star hotels 3 6000 6000 0 0 108000 108000
Sq.ft
Other hotels,lodges 30 3000 4000 0 0 360000 360000
Misce No.
101
llaneo
us Airports 1 1 50000000 50000 0 0 50000
Sq.ft
Others 10 1000 2000 6000 6000 8000 20000
Total 1655 1448000 191500 12422000 14061500
Table 35 Cost of building maintenence works

Type Types of buildings Rate per First ten years annual investment Rs.in ‘000 Next ten years annual investment]
building
Organized Organized
Government Corporation Total Government Corporation Total
sector sector
Cinema Hall 500000 0 0 20000 20000 0 0 21950 21950
nment
300000 900 0 900 1800 1200 0 1200 2400
Entertai
Community Building
| 101 |
building
Organized Organized
sector sector
Museum
200000 0 0 200 200 0 0 420 420
Stadium 2500000 0 2500 0 2500 0 5250 0 5250
Sports
Covered Hall 250000 0 1750 0 1750 0 2000 0 2000
Pre primary school 200000 0 0 585400 585400 0 0 627040 627040

200000 133800 0 543800 677600 142979 0 581241 724220
102
Primary school
Lower secondary 250000 144750 0 544750 689500 157363 0 591687 749050
Secondary school 250000 38750 0 373000 411750 41452 0 399448 440900
Higher scondary 300000 0 0 304500 304500 0 0 347970 347970
Educational institution
Campus,University 400000 0 0 129200 129200 0 0 159240 159240
Temple,stupa,math 200000 0 0 53200 53200 0 0 53880 53880
Baudha Bihar 500000 0 0 9500 9500 0 0 10100 10100
Mosque,church etc 200000 0 0 4400 4400 0 0 6380 6380
Palaces 1000000 7000 0 0 7000 7000 0 0 7000

100000 22200 0 14800 37000 23676 0 15784 39460
Heritage Religious
Public rest house
de
500000 0 0 3000 3000 0 0 6200 6200
Tra
Departmental stores
| 102 |
building
Organized Organized
sector sector
Commercial complexes 400000 0 0 800 800 0 0 1440 1440
Industrial area and
300000 0 8700 78000 86700 0 10158 91422 101580
factory
Cottage industries
Industry
200000 0 40000 4531000 4571000 0 40297 4553563 4593860
Jail(Bandi griha) 500000 14500 0 0 14500 15100 0 0 15100
ment
300000 900 0 0 900 1800 0 0 1800
Improve
Sudhar griha,ashram
Hospital 500000 8000 0 8000 16000 8375 0 8375 16750
103
Health
Non hospital 200000 126200 0 131200 257400 131118 0 136362 267480
Transportation 400000 0 1200 0 1200 0 2400 0 2400
Agriculture based 200000 400 0 400 800 500 0 500 1000
storage
Godown
Medical
150000 0 600 600 1200 0 750 750 1500
Governemnt offices 300000 171000 0 0 171000 178500 0 0 178500
Local agencies 250000 404750 0 0 404750 405300 0 0 405300
Corporation 250000 0 14000 0 14000 0 15125 0 15125
Office buildings
200000 0 0 503400 503400 0 0 528140 528140
Cooperatives
| 103 |
building
Organized Organized
sector sector
Registered companies 200000 0 0 415400 415400 0 0 439440 439440
NGOs 300000 0 0 58800 58800 0 0 64860 64860

Security Security agencies 200000 45000 0 0 45000 48000 0 0 48000
Guest
800000 0 0 25600 25600 0 0 27840 27840
hospitality Star hotels
104
Other hotels, lodges 400000 0 0 57600 57600 0 0 69680 69680
Miscellaneous Airports 10000000 170000 0 0 170000 180000 0 0 180000
Others 150000 2250 2250 3000 7500 2700 2700 3600 9000
Total 1290400 71000 8400450 9761850 1345063 78680 8748512 10172255

The following quantitative targets have been determined by taking into consideration the projected numerical quantities
of buildings prepared to include all the activities proposed in the working policies as per vision, mission and objectives of
this business plan.
| 104 |
Table 36 Annual quantitative targets
S.No Major programme 20 Year total Annual quantitytative target weightage
. quantity @) Govern Corpora Organized Total
emnt tion sector
1 Regulation of building sector
Formulation of different bye laws, design standards etc.
Design Standard 2 0.10 0.10
Norms according to geographical regions 4 0.20 0.20
Specifications according to geographical regions 4 0.20 0.20
Formulation of different guidelines including high rise buildings etc 5 0.25 0.25
2 Minimization of disaster
Vulnerability assessment of buildings 6953 69.53 278.12 347.65
Building retrofitting
105
School buildings 5360 53.60 214.4 268.00
Health buildings 1308 13.08 52.32 65.40
Other buildings 285 2.85 11.4 14.25
Building code update 3 0.15 0.15
Building code implementation 1 0.05 0.05
3 Local architecture and technology conservation
Detail study of historical heritage 2 0.10 0.10
Study of local architecture 10 0.50 0.50
Study of local building technology 10 0.50 0.50
| 105 |
S.No Major programme 20 Year total Annual quantitytative target weightage
. quantity @) Govern Corpora Organized Total
emnt tion sector
Study of local construction materials 10 0.50 0.50
Architecture, construction materials conservation guidelines 1 0.05 0.05
Incentive package in conservation 20 1.00 1.00
Enhancement of public awareness including construction of model
building 20 1.00 1.00
4 Use of innovative technology and materials 0.00 0.00
Periodic study of innovative technology and materials 10 0.50 0.50
Sustainable building technology guidelines 1 0.05 0.05
106
Evaluation of relevancy of innovative 10 0.50 0.50
Recommendation for use and public awareness 1 0.05 0.05
5 Building maintenance programme 0.00 0.00
Building maintenance guidelines 2 0.10 0.10
Listing of different types of building 10 0.50 0.50
Maintenance plan of listed buildings 10 0.50 0.50
Maintenance plan implementation 912870 4762 315 39741 44816
6 New building construction programme 33100 200 20 1435 1655
7 Quality assurance in buildings
Study of present condition 2 0.10 0.10
Establishment of laboratories according to needs 2 0.10 0.10
Capacity enhancement of existing laboratories 10 0.50 0.50
Standard of quality level 1 0.05 0.05
Implementation and monitoring 1 0.05 0.05
| 106 |
8 Government building special programme
Different standard and formulation of guidelines 10 0.50 0.50
Standard for the establishment of government building in rental building 2 0.10 0.10
Building evaluation standard and guidelines 2 0.10 0.10
Maintenance policy of the government buildings, standard and
guidelines 5 0.25 0.25
Priority investment plan of maintenance of government buildings 2 0.10 0.10
9 Building sector financial management programme
Study of investment possibility in building sector 2 0.10 0.10
Study of institutional and management of financial sector 2 0.10 0.10
Joint venture plan between public and private in building sector 2 0.10 0.10
Formulation of investment policy and implementation in building sector 2 0.10 0.10
107
Capacity enhancement of financial sector 10 0.50 0.50
10 Institutional capacity development programme
Institutional and management study of the building sector 2 0.10 0.10
Periodic updating and implementation of building policy 3 0.15 0.15
Study of building related facilities management 3 0.15 0.15
Capacity enhancement of medium and high level experts in building
sector 20 1.00 1.00
 Mason training 20 1.00 1.00
 Formulation and implementation of building insurance policy 1 0.05 0.05
 Updating of building sector related legal structures 3 0.15 0.15
 Establishment of monitoring instrument and building monitoring
evaluation 1 0.05 0.05
| 107 |
Five year plans and programmes
The business plan is prepard generally for the period of three to five years as mentioned in the begining of this report.The
detail framework of the departmental programmes for the coming five years as per the proposd business plan of the
building sector is presented in the following way.
Table 37 The framework of the departmental programmes for the coming five years as per the proposd business plan of the building sector
(Proposed budget in Rs.Lakh)
Year 1 Year 2 Year 3 Year 4 Year 5
S.N Major
Budge Budge Budg
o programme Programme Budget Programme Budget Programme Programme Programme
t t et
1 Regulation of
building sector
a) Different Guidelines for the 2 - - - - - - - -
byelaws/standard maintenance of
108
s different historical
buildings of
Kathmandu
b) Norms according - - Construction 33 Construction 36 - - - -
to geographical norms as per specifications as
region{ different per different
ecological/geo ecological/geogra
graphical phical regions
regions
| 108 |
S.N Major
Budge Budge Budg
t t et
c) Specification - - - - - - - - - -
d) Different High rise/multi storey 3 - - - - - - Design standard 4
guidelines building guidelines and guidelines
of community
buildings
2 Disaster
minimization
a_ Vulnerability Vulnerability 139 Vulnerability 150 Vulnerability 168 Vulnerability 185 Vulnerability 203
assessment of assessment of 70 assessment of assessment of 70 assessment of assessment of
schools,health schools ,health and 70 schools, schools ,health 70 schools, 70 schools
and other other important health and and other health and other ,health and
important buildings other important important other important
buildings important buildings buildings buildings
buildings
b) Building
109
retrofitting: M
Schoolbuilding Retrofitting of 54 268 Retrofitting of 295 Retrofitting of 54 324 Retrofitting of 357 Retrofitting of 392
schools 54 schools schools 54 schools 54 schools
Health buildings Retrofitting of 13 131 Retrofitting of 144 Retrofitting of 13 159 Retrofitting of 174 Retrofitting of 192
health buildings 13 health health buildings 13 health 13 health
buildings buildings buildings
Others (relief Retrofitting of 3 other 14 Retrofitting of 15 Retrofitting of 3 17 Retrofitting of 3 19 Retrofitting of 3 20
works related) buildings 3 other other buildings other buildings other buildings
buildings _ buildings
| 109 |
S.N Major
Budge Budge Budg
t t et
c) Improvement of - - - - - - - - - -
building code
d) Implementation Municipality of Terai 15 Municipality 16 Municipality of 18 Other remaining 19 Municipality of 21
of building code and Kathmandu of Terai and Terai and municipalities Terai and
Kathmandu Kathmandu Kathmandu
3 Local architecture and technology conservation
a) Detail study of - - - - - - Study of 7

heritage heritage
buildings
110
b) Study of - - - - - - - - Study of 15
architecture local/indigenous
architecture
c) Study of - - - - - - - - Study of local 15
building construction
technology technology
d) Study of - - - - - - - - Study of local 15
building matrials construction
materials
e) Conservation - - - - Design standard 4 - - - -
guidelines and guidelines of
architecture and
technology
conservation
f) Incentive For construction in 10 For 11 For construction 12 For construction 13 For construction 15
packages in world heritage site construction in world heritage in world in world
| 110 |
S.N Major
Budge Budge Budg
t t et
conservation in world site heritage site heritage site
heritage site
g) Model building Model house of Terai 15 Model house 17 Model house of 18 Model house of 20 Model house of 22
and public architecture of Terai and mountain and Terai mountain Terai,mountain
awareness mountain himal and himal and himal
architecture architecture architecture architecture
4 Use of innovative technology and materials
a) Periodic study Study of new 2 - - Study of new 2 - - Study of new 3
materials and materials and materials and
technology technology technology
b) Sustainable Implementation of 2 - - - -
building green(sustainable)
technology building guidelines
guidelines
c) Relevant Study of the relevance 2 - - Study of the 2 - - Study of the 3
111
assessment of new materials and relevance of new relevance of
technology materials and new materials
technology and technology
d) Application and Multi disaster safe 5 Multi disaster 6 Multi disaster 6 Multi disaster 7 Multi disaster 7
public awareness model building safe model safe model safe model safe model
building building building building
5 Building maintenance programme
a) Building - - - - - - - - - -
maintenance
| 111 |
S.N Major
Budge Budge Budg
t t et
guidelines
b) Listing of - - - - - - Listing of 20 - -
buildings important
buildings
c) Maintenance - - - - - - - - Priority of 9
plan building
maintenance
d) Plan Building maintenance 3530 Building 3883 Building 4271 Building 4698 Building 5168
implementation maintenance maintenance maintenance maintenance
6 New building Different buildings 3745 Different 4120 Different 4531 Different 4985 Different 5483
construction construction buildings buildings buildings buildings
construction construction construction construction
112
7 Quality
assurance
a) Study of present Evaluation of quality 2 - - - - - - - -
condition level at present
b) Establishment of - - Establishment 100 - - - - - -
laboratory of laboratory
in Hetauda
c) Capacity - - - - Capacity 12 - - Capacity 15
enhancement of enhancement of enhancement of
laboratory the laboratory the laboratory
d) Quality level Quality assurance bye 2 - - - - - - - -
standard law/standard
e) Implementation Monitoring of quality 10 Monitoring of 11 Monitoring of 12 Monitoring of 13 Monitoring of 15
| 112 |
S.N Major
Budge Budge Budg
t t et
and monitoring level quality level quality level quality level quality level
8 Government
building
programme
a) Standard and - - - - Bye law for 2 - - Bye law for 3
guidelines government government
building design building design
b) Standard of Bye law and 2 - - - - - - - -
rental buildings guidelines for renting
office buildings
113
c) Evaluation - - Bye law for 2 - - - - - -
standard/byelaw immovable
guidelines property
evaluation
d) Maintenance Building maintenance 2 - - - - - - - -
policy, bye laws guidelines
guidelines
e) Priority Priority investment 2 - - - - - - - -
investment plan for maintenance
projects of government
building
9 Financial
management
a) Possibility of Investment 2 - - - - - - - -
| 113 |
S.N Major
Budge Budge Budg
t t et
investment possibilities in
building sector
b) Institutional - - Capacity 2 - - - - - -
study study of
financial
institutions in
building
sector
c) Joint Feasibility study of 2 - - - - - - - -
venture/Partners joint venture of public
hip of public and and private sector in
private building sector
d) Investment - - - - Investment 4 - - - -
114
policy and policy in building
implementation sector
e) Capacity - - Capacity 11 - - Capacity 15 - -
enhancement enhancement of enhancement of
financial financial
institutions in
institutions in
building sector
building sector
| 114 |
10 Institutional capacity development
a) Institutional and - - - - - - - - Institutional 3
management managerial
study capacity
enhancement of
building sector
b) Facilities study - - - - - - Study of building 3 - -
facilities
c) Capacity Training, seminar and 20 Training, 22 Training, seminar 24 Training, 27 Training, 29
enhancement of study tours seminar and and study tours seminar and seminar and
the experts study tours study tours study tours
115
d) Technicians/artis Implementation of 50 Implementatio 55 Implementation 61 Implementation 67 Implementation 73
ans training artisans/technicians n of of of of
training artisans/techni artisans/technicia artisans/technici artisans/technici
cians training ns training ans training ans training
e) Insurance policy - - - - Building 2 - - - -
and Insurance policy
implementation
f) Improvement of Improvement of 2 Improvement 2 - - - - - -
acts building act in legal
structure
g) Monitoring and Building sectoral 30 Building 33 Building sectoral 36 Building 40 Building 44
evaluation monitoring and sectoral monitoring and sectoral sectoral
evaluation monitoring and evaluation monitoring and monitoring and
evaluation
evaluation evaluation
Total 8009 8928 9721 10669 11769
| 115 |
Budget arrangements for the plan implementation
The subjects like potential financial sources, present trend and investment requirements for the implementation of
this business plan are presented in the following tables.
Table 38Description of the Programme wise Annual Investment Requirement from the Government Sector
S.N Major programme Annual Investment Requirement Rs. in Lakh Total
o Base Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Regulation of building sector
Different byelaws/standards 2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
Norms according to geographical region{ 0 33 0 0 0 0 0 0 0 0 0 86 0 0 0 0 0 0 0 0 119
Specification 0 0 36 0 0 0 0 0 0 0 0 0 94 0 0 0 0 0 0 0 130
Different guidelines 3 0 0 0 4 0 0 0 6 0 0 0 9 0 0 0 0 15 0 0 37
2 Disaster minimization
 Vulnerability assessment of the
139 150 168 185 203 224 246 271 298 327 360 396 436 479 527 580 638 702 772 849 7950
buildings
Building retrofitting:
 School buildings 268 295 324 357 392 432 475 522 574 632 695 765 841 925 1018 1120 1231 1355 1490 1639 15350
116
 Health buildings 131 144 159 174 192 211 232 255 281 309 340 374 411 452 497 547 602 662 728 801 7503
 Other buildings 14 15 17 19 20 23 25 27 30 33 36 40 44 48 53 58 64 71 78 86 802
 Updating of building code 0 0 0 0 0 3 0 0 0 0 5 0 0 0 0 8 0 0 0 0 16
 Implementation of building code 15 16 18 19 21 23 26 28 31 34 38 41 46 50 55 61 67 74 81 89 834
3 Local architecture and technology
0
conservation
Detail study of heritage 0 0 0 7 0 0 0 0 0 0 0 0 0 17 0 0 0 0 0 0 24
Study of architecture 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
Study of building technology 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
| 116 |
Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Study of building materials 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
Conservation guidelines 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4
Incentive packages in conservation 10 11 12 13 15 16 18 19 21 24 26 29 31 35 38 42 46 51 56 61 573
Model building and public awareness 15 17 18 20 22 24 27 29 32 35 39 43 47 52 57 63 69 76 83 92 859
4 Use of innovative technology and
materials
Periodic study 2 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 0 54
Sustainable building technology guidelines 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
Relevant assessment 2 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 0 54
Application and public awareness 5 6 6 7 7 8 9 10 11 12 13 14 16 17 19 21 23 25 28 30 284
5
117
Building maintenance programme
Building maintenance guidelines 0 0 0 0 0 8 0 0 0 0 0 0 0 0 0 21 0 0 0 0 29
Listing of buildings 0 0 0 20 0 0 0 0 32 0 0 0 0 52 0 0 0 0 28 0 132
Maintenance plan 0 0 0 0 9 0 0 0 0 14 0 0 0 0 23 0 0 0 0 12 58
Plan implementation 12904 14194 15614 17175 18893 20782 22860 25146 27661 30427 34887 38376 42213 46435 51078 56186 61804 67985 74783 82262 761665
6 Quality assurance 14480 15928 17521 19273 21200 23320 25652 28217 31039 34143 37557 41313 45444 49989 54988 60487 66535 73189 80508 88558 829342
7 Study of present condition
Establishment of laboratory 2 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 0 7
Capacity enhancement of laboratory 0 100 0 0 0 0 0 0 0 0 0 286 0 0 0 0 0 0 0 0 386
Quality level standard 0 0 12 0 15 0 18 0 21 0 26 0 31 0 38 0 46 0 56 61 324
Implementation and monitoring 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
10 11 12 13 15 16 18 19 21 24 26 29 31 35 38 42 46 51 56 61 573
Government building programme
| 117 |
Year 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
8
Standard and guidelines 0 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 12 64
Standard of rental buildings 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 8
Evaluation standard/byelaw guidelines 0 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 8
Maintenance policy, bye laws guidelines 2 0 0 0 0 3 0 0 0 0 5 0 0 0 0 8 0 0 0 12 30
Priority investment projects 2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
9 Financial management
Possibility of investment 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 8
Institutional study 0 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 8
Joint venture/Partnership of public and
2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
private
118
Investment policy and implementation 0 0 4 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 13
Capacity enhancement 0 11 0 15 0 16 0 20 0 24 0 29 0 35 0 42 0 51 0 62 305
10 Institutional capacity development 0
Institutional and management study
0 0 0 0 3 0 0 0 0 0 5 0 0 0 0 0 9 0 0 0 17
Updating the building policy
Facilities study 2 0 0 0 0 0 4 0 0 0 0 0 0 7 0 0 0 0 0 0 13
Capacity enhancement of the experts 0 0 0 3 0 0 0 0 0 5 0 0 0 0 0 8 0 0 0 0 16
Technicians/artisans training 20 22 24 27 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122 1145
Insurance policy and implementation 50 55 61 67 73 81 89 97 107 118 130 143 157 173 190 209 230 253 278 306 2864
Improvement of acts 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
Monitoring and evaluation 0 2 0 0 0 0 0 4 0 0 0 0 0 0 8 0 0 0 0 0 14
30 33 36 40 44 48 53 58 64 71 78 86 94 104 114 125 138 152 167 183 1718
Tota
28118 30930 34023 37425 41168 45284 49813 54794 60273 66301 72931 80224 88246 97071 106778 117456 129201 142122 156334 171967 1610458
l
| 118 |
Table 39 Description of the Programme wise Annual Investment Requirement from the Corporation Sector
Annual Investment Requirement Rs. in Lakh
S.No. Major programme Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Total
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
5 Building maintenance 710 781 859 945 1040 1143 1258 1384 1522 1674 1842 2026 2228 2451 2696 2966 3262 3589 3948 4342 40665
6 New building construction 1915 2107 2317 2549 2804 3084 3393 3732 4105 4515 4967 5464 6010 6611 7272 7999 8799 9679 10647 11712 109682
Total 2625 2888 3176 3494 3843 4228 4650 5115 5627 6190 6809 7489 8238 9062 9968 10965 12062 13268 14595 16054 150347
Table 40 Description of the Programme wise Annual Investment Requirement from the Organized Sector
S. Annual Investment Requirement Rs. in Lakh Total
N Major programme Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
o. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
119
 Vulnerability assessment
556 612 673 740 814 895 985 1083 1192 1311 1442 1586 1745 1919 2111 2323 2555 2810 3091 3400 31845
of the buildings
 Other buildings 57 63 69 76 83 92 101 111 122 134 148 163 179 197 216 238 262 288 317 349 3265
2 Building maintenance
84005 92406 101646 111811 122992 135291 148820 163702 180072 198079 217887 239676 263644 290008 319009 350910 386001 424601 467061 513767 4811386
programme
New building construction
124220 136642 150306 165337 181871 200058 220063 242070 266277 292904 322195 354414 389856 428841 471725 518898 570788 627866 690653 759718 7114700
3
Total 210433 231476 254624 280086 308095 338904 372795 410074 451082 496190 545809 600390 660429 726472 799119 879031 966934 1063627 1169990 1286989 12052550
| 119 |
Table 41 Description of the Programme wise Annual Investment Requirement from the Department of Urban
Development and Building Construction
Annual Investment Requirement Rs. in Lakh Total
S.
Major programme Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1 Regulation of building
sector
 Different
byelaws/standards 2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
 Norms according
to geographical
region 0 33 0 0 0 0 0 0 0 0 0 86 0 0 0 0 0 0 0 0 119
 Specification 0 0 36 0 0 0 0 0 0 0 0 0 94 0 0 0 0 0 0 0 130
 Different
guidelines 3 0 0 0 4 0 0 0 6 0 0 0 9 0 0 0 0 15 0 0 37
120
 Vulnerability
assessment of the
buildings 139 150 168 185 203 224 246 271 298 327 360 396 436 479 527 580 638 702 772 849 7950
 Other buildings 14 15 17 19 20 23 25 27 30 33 36 40 44 48 53 58 64 71 78 86 802
| 120 |
S.
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
 Updating of
building code 0 0 0 0 0 3 0 0 0 0 5 0 0 0 0 8 0 0 0 0 16
 Implementation of
building code 15 16 18 19 21 23 26 28 31 34 38 41 46 50 55 61 67 74 81 89 834
3 Local architecture and
technology
conservation
 Detail study of
121
heritage 0 0 0 7 0 0 0 0 0 0 0 0 0 17 0 0 0 0 0 0 24
 Detail study of
heritage 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
 Study of building
technology 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
 Study of building
matrials 0 0 0 0 15 0 0 0 0 0 0 0 31 0 0 0 0 0 0 0 46
 Conservation
guidelines 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4
 Incentive packages
in conservation 10 11 12 13 15 16 18 19 21 24 26 29 31 35 38 42 46 51 56 61 573
 Model building
and public 15 17 18 20 22 24 27 29 32 35 39 43 47 52 57 63 69 76 83 92 859
| 121 |
S.
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
awareness
4 Use of innovative
technology and
materials
Periodic study 2 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 0 54
 Sustainable
building
technology
guidelines 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
 Relevant
assessment 2 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 0 54
 Application and 284
public awareness 5 6 6 7 7 8 9 10 11 12 13 14 16 17 19 21 23 25 28 30
122
5 Building maintenance
programme
Building maintenance
guidelines 0 0 0 0 0 8 0 0 0 0 0 0 0 0 0 21 0 0 0 0 29
Listing of buildings 0 0 0 20 0 0 0 0 32 0 0 0 0 52 0 0 0 0 28 0 132
Maintenance plan 0 0 0 0 9 0 0 0 0 14 0 0 0 0 23 0 0 0 0 12 58
Plan implementation
3530 3883 4271 4698 5168 5685 6254 6879 7567 8324 9607 10568 11624 12787 14066 15472 17019 18721 20593 22653 209370
6 New building
construction 3745 4120 4531 4985 5483 6031 6634 7298 8028 8831 9714 10685 11753 12929 14222 15644 17208 18929 20822 22904 214495
| 122 |
S.
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
7 Quality assurance
 Study of present
condition 2 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 0 7
 Establishment of
laboratory 0 100 0 0 0 0 0 0 0 0 0 286 0 0 0 0 0 0 0 0 386
 Establishment of
laboratory 0 0 12 0 15 0 18 0 21 0 26 0 31 0 38 0 46 0 56 61 324
 Quality level
standard 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
 Implementation
and monitoring 10 11 12 13 15 16 18 19 21 24 26 29 31 35 38 42 46 51 56 61 573
8 Government building
123
programme
 Standard and
guidelines 0 0 2 0 3 0 4 0 4 0 5 0 6 0 8 0 9 0 11 12 64
 Standard and
guidelines 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 8
 Evaluation
standard/byelaw
guidelines 0 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 8
 Policy,bye laws 2 0 0 0 0 3 0 0 0 0 5 0 0 0 0 8 0 0 0 12 30
| 123 |
S.
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
guidelines
 Priority investment
projects 2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
9 Financial management
 Possibility of
investment 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 0 8
 Institutional study 0 2 0 0 0 0 0 0 0 0 0 0 6 0 0 0 0 0 0 0 8
 Joint
venture/Partnership of
public and private { 2 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 7
 Investment policy
and
124
implementation 0 0 4 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 13
 Capacity
enhancement 0 11 0 15 0 16 0 20 0 24 0 29 0 35 0 42 0 51 0 62 305
Institutional capacity development
10
 Institutional study 0 0 0 0 3 0 0 0 0 0 5 0 0 0 0 0 9 0 0 0 17
 Updating the
building policy 2 0 0 0 0 0 4 0 0 0 0 0 0 7 0 0 0 0 0 0 13
 Facilities study 0 0 0 3 0 0 0 0 0 5 0 0 0 0 0 8 0 0 0 0 16
 Capacity
enhancement of the 20 22 24 27 29 32 35 39 43 47 52 57 63 69 76 84 92 101 111 122 1145
| 124 |
S.
No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
experts
 Technicians/artisans
training 50 55 61 67 73 81 89 97 107 118 130 143 157 173 190 209 230 253 278 306 2864
 Insurance policy
and implementation 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2
 Insurance policy
and implementation 0 2 0 0 0 0 0 4 0 0 0 0 0 0 8 0 0 0 0 0 14
 Monitoring and
evaluation 30 33 36 40 44 48 53 58 64 71 78 86 94 104 114 125 138 152 167 183 1718
Total 8009 8810 9691 10660 11726 12899 14188 15607 17168 18885 20773 22851 25136 27649 30414 33456 36801 40481 44529 48982 466362
125
| 125 |
D) Financial instrument for the implementation of the plans and
programmes
There are many other sectors who are also making investment significantly in
the building related activities besides the annual allocation of budget to
building sector under the annual programmes and periodic plans therefore this
study will be incomplete until those investments are properly studied and
analyzed apart from the investment being made by Department of Urban
Development and Building Construction (DUDBC). Thus an attempt has been
made in this study to include all the investments by the private individuals,
investment by the other government offices besides DUDBC, businessmen
who import construction materials from different countries, industrialist who
produce construction materials, private organized sector etc. This kind of
analysis has been taken as an important basis to identify potential sources and
agencies to mobilize necessary resources for the Three Year detail plans and
programmes as well as 20 years long strategic plans and programmes as
presented in this business plan from this analysis.
Before analyzing the necessary resources for the development of the building
sector in Nepal, it is necessary to describe about different actors who are
making investment in the building sector. It is estimated that there are about
65 lakhs buildings used for the residential and other purposes according to
National Building Policy (Draft).The construction and maintenance of these
buildings are mostly being done by: 1) Government of Nepal (including the
corporation under the government ownership), 2) private sector (organized
sector including individuals and families), 3)Non Governmental
Organizations (religious organizations including INGOs). The budget
required for the construction and maintenance of the government buildings
and corporation buildings owned by the government is allocated by the
government through the Ministry of Finance (MoF) to these offices. The
budget for the government buildings (central, district level) under rent is also
provided by MoF. Similarly, in the case of private sector, whether it is
organized or private or families whatever it may be, the resources required for
the construction and maintenance of the buildings is mobilized by themselves.
For this, the private individuals and organized sector both approach the banks
and financial institutions for the necessary loans. The NGOs and INGOs
under the third category, also manage and mobilize the required resources for
the construction and maintenance of the buildings by mobilizing their own
resources. Community and religious organizations /associations generally do
not have income of their own so they depend on donors for the construction of
their buildings and usually request the government for providing public land
| 126 |
for the construction of their building. For instance, Government of Nepal has
recently made available land for the construction of building for Paropkar
Orphan Organization in Duwakot, Bhaktapur.
Most of the central, zonal and district level government offices are staying in
the rental buildings for their offices due to lack of their own buildings of and
the number of quarters necessary the employees residence is almost negligible
up till now. Therefore, government needs to allocate budget for these rental
office buildings and quarters in the coming few years also. Moreover, for
those offices having their own buildings the additional budget will have to be
allocated for the extension and maintenance of their buildings therefore it is
clear that government will have to make huge investment compulsorily in the
building sector in the coming few years. In addition to this, government will
have to allocate adequate resources for the regular repair and maintenance of
the existing government buildings. From the present estimates, there are about
1.5 lakhs public agencies which means the size of the maintenance budget
would be quite big which is quite understandable.
In the following tables, the investment required for the implementation of this
business plan, present trends, potential sources etc. are presented.
| 127 |
Table 42 Trend analysis as per programme booklet for the Fiscal Year 2068/69 BS
Annual budget (actual/projected) Rs.in 000 Quantity,Number
Programme
2067/68 2068/69 2069/70 2070/71 Construction Maintenence
Department
172971 186900 224539 260155 400
div. offices
Special
155180 146306 144127 153647
buildings
Special
physical 51105 64798 66330 69318 37 412
infrastructure
Singha
Durbar 56163 72140 62690 53680 2
development
Building code
and 83357 119050 229533 282535 17 3
(Retrofitting)
construction
Building
518776 589194 727219 819335 56 815
sector total
Overall
housing,
building and 433558 538794 665641
2559423 - -
urban 9 1 0
development
sector
| 128 |
48982
44529
40481
36801
33456
30414
27649
25136
Amount in Rs. Lakh
22851
20773
Required Amount
18885
17168
15607
14188
12899
11726
36032
10660
32756
9691
8810
8009
29778
27071
24610
22373
20339
18490
16809
15281
13892
12629
11481
10437
9488
8625
Current Allocation
7841
7128
6480
5891
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
year
Figure 10 Comparison of investment requirement and allocation of budget
Gov.
12% Corporation
1%
Organised
87%
Figure 11 Share of investment
The existing investment sources for the purchase of land, expenditure for the
rent, building construction and maintenance etc. for different types of buildings.
Government of Nepal Ministry of Finance: The budget required for the

construction and maintenance of the buildings, budget for the payment of rent for all
the government buildings and government owned corporation is being allocated to the
concerned offices through the Ministry of Finance, Government of Nepal and this
trend or the practice is likely to remain intact even in the future.
| 129 |
Other corporation and offices: The other corporation and offices are bearing
the cost for the construction of new buildings and maintenance of the existing
buildings by themselves.
Banks and financial institutions: The purchase of land as per need,

construction of new buildings and maintenance including the payment of rent
etc. are bearing by their own resources themselves and this practice is likely
to remain intact even in the future.
Nongovernmental Organizations (NGOs): Most of the national level non

governmental organizations (NGOs) are implementing their programmes
with the financial support of the international donor organization and agencies
in one way or the other therefore the required resources for the construction of
the buildings is also mostly come from the same sources and most of the
NGOs are in rental houses for their office and some NGOs are requesting for
the land to the government of Nepal too.
Philanthropic social organizations/associations: Naturally due to their

involvement in religious and social works, they are dependent entirely on the
donations provided by the donors for the construction and maintenance of the
buildings. Generally, they approach to the government to make available the
government land under the government ownership for the construction of
their buildings.
International missions and agencies: These missions and agencies mobilize

the required resources for the purchase of land, construction and maintenance
of the buildings as well as for the payment of rent by themselves and this
practice is likely to remain intact even in the future.
Individual private buildings: The share of individual private buildings

construction is the largest in Nepal therefore this sector is making a huge
investment annually in the purchase of land and construction and maintenance
of the buildings. This practice is likely to remain intact even in the future.
Note: Some government buildings are constructed with the financial support
of the donor countries and agencies also.
| 130 |
Identification of the possible sources and their mobilization
As mentioned above, the investment necessary for different types of buildings
such as government buildings, banks and financial institutions buildings,
organized sector buildings, NGO buildings will be made by the concerned
offices in the future also. Owing to lack of resources, Government of Nepal is
not in a position to allocate necessary budget for the construction of buildings
for all the government offices even if it desires so. The construction of
quarters necessary for the residence of the employees is still not a priority
issue on the part of the government therefore it is clear that government will
face the greatest problem of investment or the resources when the issue of
constructing buildings is raised. There is no short cut and easy way to address
and solve this challenge of investment however, the following potential
sources could be explored for the mobilization of the required resources. This
type of potential sources could also be used for other different offices by
developing and managing appropriate financial instrument by the Government
of Nepal.
1) Internal loan
Employees Provident Fund

The Employees Provident Fund is currently investing about 1 per cent of its
total investment in buildings construction and housing sector and the fund has
adequate idle capital for investment therefore, fund could be one of the
important and reliable and dependable source for the mobilization of the
resources necessary for the development of the building sector. But for this,
necessary efforts will have to be made by the concerned agencies of the
government.
Banks and financial institutions: Although banks and financial institutions

are making huge investment in housing and real estate sector but they have
not made invested much in building construction sector. There is a great
possibility to attract these banks and financial institutions in the building
sector as there are limited areas for investments for them now and deposit is
growing day by day. This type of arrangement would be beneficial not only to
government but other organizations and agencies.
Remittance: Remittance is on the increase and there is a significant role of

remittance in the economy of Nepal. The substantial part of remittance money
thus received at individual and family level is invested in land and housing at
| 131 |
present .Therefore, there is a great possibility for mobilizing necessary
resources for the building sector from this remittance if the government
develops and manages the appropriate financial instrument.
Employees Welfare Fund: There is an adequate resources in the welfare

fund of many agencies including the Nepal Police and Nepal Army according
to news from different media therefore at least part of such fund is utilized for
the construction of their own office buildings and quarters meant for their
own employees it will provide a great relief to MoF. The saving thus realized
could be used for the construction of buildings and quarters of other offices.
2) Non Resident Nepali
The NRN is showing great interest in the development and construction

activities both at the individual and institutional level therefore the possibility
of mobilizing the NRN for the necessary resources for the construction of the
buildings particularly government buildings and the buildings of the
charitable organizations like Paropkar Orphan organization and social
facilities related agencies cannot be underestimated and undermined in this
context.
3) Bond Issue
The bond can be issued for the mobilization of the required resources with
fixed interest rate and time for the construction of the buildings particularly
that of the government buildings and employees quarters through some
financial institutions. There are many examples where the government has
issued the bonds to raise the necessary capital in the past. Thus, it is desirable
to consider this option also in order to address the challenge of investment by
the government.
4) Building Construction Development Fund
A thought can be given towards the creation of national level permanent

Building Construction Development Fund for the construction and
maintenance of buildings and employees quarters of different agencies
including the government. The necessary resources for the fund can be
mobilized through issuance of shares including the use of appropriate
financial instruments.
| 132 |
Table 43 Potential sources to fulfill the deficit
S.No. Source Amount required Annual
for the 20 years average Rs.
period Rs.in in Crores
Crores
1 Internal loan
Employees Provident 100 5
Fund
Bank and financial 200 10
institutions
Employees Welfare 100 5
Fund
2 Association of Non 100 5
Resident Nepali
(NRN)
4 Bond or Bachat Patra 400 20
5 International donor 389 19.5

agencies
Total 1289 64.5
It is very difficult to get investment plan of the NGOs though they implement
plan by preparing long term plan, medium term plan and annual plans and
programmes as per their goals, objectives and mandate in the context of
investment in the building sector from other institutional agencies. But in
order to avoid duplication in the programmes and to use the resources
efficiently it is necessary to implement programmes in an integrated manner
as far as possible.
| 133 |
5. INSTITUTIONAL ARRANGEMENT
A) Institutional Development
Housing Sector
The analysis of requirement of human resources and its pervasiveness
involved in the housing sector is not possible without the lack of information
system in the regulating agencies. The major actors in the housing sector are
the citizens themselves who buil and consume the housing services and each
household is involved in the mobilization of resources for the construction
and maintenence of the housing therefore in this sense all the families are the
available human resources in the housing sector.Looking from this
perspective, there will never be shortage of human resources in the
housing.However, it would be appropriate to identify sectoral human
resources only those individuals who are directly related with technology and
skills and contribute directly towards making housing construction cost
effective,organized and qualitative.
It can be said that there is adequate availability of medium level manpower in
the architecture and civil engineering subjects in different places for the
construction of the housing units at individual level.The CTEVT is producing
SLC level technical manpower in adequate number as well as in particular
lately certificate level of this subject is taught in different cities.
There is no deficiency of technical manpower in the construction of the
housing at private or other institutional sector at present.Therefore,in the
context of the analysis of the availability of human resources in the housing
sector, the human resources necessary only for the governmen and
corporation sector is included.
Department of Urban Development and Building Construction is the only
remaining government agency working in the field of the housing sector as
Kathmandu Valley Town Developemtn Committee which was previously a
government office has been recently converted into a corporation as
Kathmandu Valley Authority (KVA). As a corportion besides KVA, there is
Rural Housing Company(proposed as National Housing Company) and
National Housing Bank as proposed by this business plan working in the
housing sector.
The study of the provision of existing manpower to shoulder the volume of
works in housing in the government sector clearly allocated for the housing
sector in DUDBC shows that ther is one Housing Section and one Housing
| 134 |
Division and the manpower involved indicates that there is one Gazetted First
Class,as Division Chief and under this there is Housing Section where there is
one Section Chief and some architect and engineers( the total manpower for
this section is not specifically mentioned). Even other sections under the
Housing Division is not related to housing but works as planning,monitoring
and foreign aid sections.There is no housing section in the division offices
under the department and no manpower is allocatedd categorically for the
housing only.However, these divisions offices are also undertaking the works
of the housing sector besides building and urban developments works
therefore by assuming the manpower assigned to the division offices also
works for the housing sector indirectly then the manpower in the housing
appears like the following:
Table 44 Description of the existing manpower only for the housing sector
Agency Gaz. Gaz. Gaz. Non Total Remarks
1st 2ndst 3rd Gaz.
1st
Department of Urban 1 (0) 1(2) 2(0) 0 4(2) Indirectly
Development and related
Building manpower
Construction is shown
in the
A Division Office 1(3) 0 (4) 0 (8) 0 (16) 1 (31) bracket
B Division Office 0 0 (15) 0 (15) 0 (15) 0 (45)
C Division Office 0 0 (5) 0 (5) 0 (10) 0 (20)
Total 2 (3) 1 (26) 2 (28) 0 (41) 5 (98)
For the purpose of this table among the A Class Division Offices, the Division
Chief of Kathmandu Division Office has been taken as directly related to
housing as this office is undertaking the works of regulation and approval
relating to housing as there is separate agency working for the building sector
like Building Cnstruction Maintemnance Division.
Based on the prsent budgetary allocation and the volume of the proposed
necessary investment in the housing sector, the volume of works under the
government sector is going to be almost doubled therefore it is indispensible
to increase in the existing manpower. The division office in the convenient
areas can cover more than one district however in the remote places much
time is taken for travel to and from such offices to district head quater
therefore in order to address the geographical pervasiveness it would be
appropriate to make the provision of one Senior Divisional Engineer, one to
two engineers as per the remoteness of the district, and under the engineer
| 135 |
there should be minimum two sub-engineers in each district just for housing
sector activities only.According to this analysis, for the implementation of this
proposed business plan there is a need of 360 different level technical
manpower categorically mentioned for the works relating to the housing
sector.
Table 45 Description of additional technical manpower necessary only for the
housing sector
Description of Gaz.1 Gaz.2nd Gaz.3r
NonGaz.1st Total
manpower st st d
According to presently 2 1 2 0 5
approved
manpower(Darbandi)
Required additional 3 74 93 190 360
manpower
Total 5 75 95 190 365
Among this manpower, the manpower currently working indirectly in the

housing could be used in the housing sector then there will be a reduction of
98 number of manpower thereby requiring only 262 technical manpower in
total.
It is also recommended to make necessary arrangement for the mobilization of
the proposed budget and programmes for the capacity enhancement of this
training centre from this centre itself by developing the existing Building
Technology Research and Training Centre(BTRTC) by developing this
centre as a centre involved in housing related activities in particular, the
construction of low cost model house and demonstration, conducting
research,study and test of economical and cost effective construction
materials, and providing training on these subjects by making minor changes
in the organizational structure of the department to enhance the area of
jurisdiction of present Building Technology Research and Training
Centre(BTRTC).
| 136 |
Building Sector
In the case of the corporations, the total investment required for the
construction and maintenance of the buildings is Rs.19 crores and 7 crores
respectivelywhich is comparatively low therefore the capacity could be
enhanced just by imparting training to the existing manpower. Different
organized sector which are supposed to invest Rs.21 Arba annually according
to base year price and though they maintain expert service internally in a
limited manner, basically there is a practice of getting the services of the
consultants for the technical services through the outsourcing process by the
organized sector.
There is a very negligible involvement of the medium and high level experts
because about 90 per cent of such houses are constructed through the advice
of the local technicians as per the information of the department in the
construction of those buildings. Compared to the existing technical manpower
of the govrnment instrument, the technical manpower available in the market
is comparatively more therefore there is no need of producing additional
expert manpower for the construction of the private buildings.But in
technical manpower there ia a dearth of experts and technicians who has
adequate and indepth knowledge about the building code and who really
internalize it faithfully in their consultancy works is worth considering in this
context. In this regard, there is a need of imparting adequate compulsory
training to the private consultants providing consultancy services and high
and medium level technicians involved in the design and construction outside
the governemnt service. Similarly, there in no shortage of the technicians
uptill now only for the construction of the buildings as these types of
manpower is mostly mobilized by the private house owners and then after by
the contrctors in the case of the technicians involved in the building sector.
However, there is a need of implementing wide level trainning programme in
order to transfer the skills of constructing earthquake reistant buildings for
them as well.
The comparison between the volume of activities expected to be formulated
and implemented by Department of Urban Development and Building
Construction under its annual programme including the other committees for
the proposed programmes in the governemnt sector and proposed volume of
works is presented respectively in the following table while analyzying the
existing technical manpower available in the government organization in the
present condition.
| 137 |
Table 46 Comparative studybetween the proposed plan and present trends
S/ Relevant point of the major Annual average quantity of building sector
N programmes Unit Proposed Present Required Budget
trend amount of the
base
year
1 Building construction No. 200 56
2 Building maintenance No. 4762 812
3 Building retrofitting No. 70 3
4 Study works and Regulations Works 7 12
5 Expert training programme No 2 1
6 Mason training programme No 25 10
800900 589194
7 Incentive packages / public Works
3 1
awareness
8 Establishment of laboratory No
3 0
and capacity development
9 Monitoring/evaluation and Works
1 1
other works
The comparative study of the existing manpower based on the real figures
presented in the Table above assigned to handle the works in the government
sector, in particular only in the building sector of the Department of Urban
Development and Building Construction indicates that there may be an
increase in the volume of works particularly in the major works such as in
construction by 3.6 times, in maintenance by 5.9 times and in retrofitting by
23.3 times and the size of the budget will also increase by 1.36 times and the
manpower approved for the implementation of less than total budget of Rs.1
Arba and therefore the total manpower currently involved to handle the
budget up to Rs.2.5 Arba under housing, building and urban development
sector on the whole cannot be considered adequate to implement the
programmes amounting to proposed Rs.1.45 Arba only in the building sector.
| 138 |
25.0 23.3
20.0
15.0
10.0
5.9
3.6 3.0 3.0
5.0 2.0 2.5
0.6 1.0
0.0
k|jnLs/0f
dd{t
New Constructionlgdf{0f
cg'udg
sflnu9 tflnd
/ lgodg
k|f]T;fxg
Laboratory k|of]uzfnf
ljz]if1 tflnd
Regulation
Mason Training
Expert training
cWoog
Maintenance
Retrofitting
Monitoring
Incentives
Study and
Figure 12 Ratio of increment in the volume of works
The size of the separate manpower arrangement assigned only for the building
sector in Department of Urban Development and Building Construction is as
follows.
Table 47 Description of existing manpower only for the building sector
Non Non
Gaz. Gaz. Gaz.
Agency st Gaz. Gaz. Total
1 2nd 3rd
1st 4th
Department of Urban 1 5 6
Development and Building
Construction
A-Class Division Offices 4 4 8 16
B-Class Division Offices 15 15 31 61
C-Class Division Offices 5 5 14 24
Building Maintenance Division 1 2 5 16 2 26
Building Technology Research 1 1 3 3 8
and Training Centre
Total 3 32 32 72 2 141
| 139 |
It is indispensible to expand the jurisdiction of the divisional offices to
implement still more development programmes in the remote regions
according to the concept of the balanced national development based on the
proposed programmes. The division offices located in the convenient places
can handle more than two districts but this principle could not be result
oriented in remote districts. There should be a provision of at least one Senior
Divisional Engineer only to look after the works of the building sector in each
district taking into consideration the vast geographical coverage and local
remoteness, one to two engineers based on the vast geographical coverage and
remoteness and at least two sub-engineers under each engineer. According to
this analysis, there is the need of the following additional 224 different level
technical manpower for the implementation of the proposed business plan.
Table 48 Additional technical manpower required only for the building sector
Non
Gaz. Gaz. Gaz. NonGaz
Description of manpower 1st 2nd 3rd
Gaz.
.4th
Total
1st
As per approved 3 32 32 72 2 141
positions (darbandi)
Additional manpower 43 63 118 224
required
Total 3 75 95 190 2 365
| 140 |
Roles and Responsibility of Urban Development Division of DUDBC
Vision: Sustainable urban development

Objective: Promote sustainable urban development and urban rural linkages
through development of modern physical facilities and conservation of
cultural, religious, and historical heritage sites
Major Roles and Responsibilities:
• Preparation and Implementation of Development Plans
o Physical Development Plan
o Periodic Plan
o Integrated Development Plan
o Long Term Development Plan
o Urban environment related program
• Mapping and Data base preparation
o Municipal Base Map
o Land Use Map
• Management of Urban Development Project
o Urban and environment Improvement Project
o Urban Governance Development Project
o Integrated Urban Development Project
o New Town Development Project
o Secondary Town Integrated Urban Environment
Improvement Project
• Project Preparation and Proposal Writing for Donor Agencies
• Small Town and Market Centre Planning and Implementation
• Urban Infrastructure Planning and Construction
• Land Development
| 141 |
o Land Pooling
o GLD
• Human Resource Support and capacity building (man power supply)
o Trainings
o Technical personnel deputation to Municipality, TDCs
• Cultural and Historical site conservation and planning
• Advocate in ministry for contemporary policy, acts and strategies
The urban development activities around the nation have been implemented 25
local division offices and supported 5 sections headed by senior divisional
engineer (2nd class gazetted officer) at central level and supervised by urban
planning division headed by DDG in the DUDBC. One division office in general
covers around 3 districts in general.
Existing Institutional arrangement of Urban Development Division of

DUDBC
Director General
DUDBC
STUEIP/
Urban Development IUDP
Division UGDP
Urban Physical Small Urba Municipalit Statistics Division

Environme Planning Town n y Section and GIS Offices (24
ntal Section and Urban Section Road (SDE) Section Nos)
(SDE) Developme (SDE) Secti (SDE) (SDE)
nt Section
The existing strategic programs and the sections of Urban Development

Division shows that there are clear division of work between sections, there
are new emerging issues like climate change, new township development etc
which are assigned to specific sections. The urban development has becoming
priority sector and similarly the annual budgets have been increasing. The
| 142 |
institutional arrangement should be made flexible to accommodate the new
emerging issues. in this context some new units have been proposed and new
institutional framework has been proposed to implement this business plan.
Considering the national and international context, new section like disaster
risk reduction section has been proposed to deal with urban ecology.
Similarly, the new opportunity and challenges have emerged to streamline and
develop new urban areas along major corridors. Project Design and Appraisal
and Research on Urban Issues needs inter sectional team or concerned section
to carry out the activities depending upon the nature of project appraisal and
research. Human Resource Development, capacity development, project
appraisal and research on urban issues are cross cutting issues and will be
carried out my concerned unit in the department.
Division offices at local level are highly under-staffed as they have to cover
large geographic area and other activities like housing and building
construction. The division offices are least involved in urban development
issues and programs as their priorities are building construction and housing.
This reflects in the perception of people as they term the division office as
office of Building Construction.
| 143 |
Proposed Institutional Development
Director General
DUDBC
Urban Development
Division
Urban Physical Small Urban Municipalit Statistics and Disaster

Environme Planning and Town Road y Section GIS Section and
ntal Urban Section Sectio (SDE) (SDE) Climate
Section Development (SDE) n Change
(SDE) Section (SDE) Section
Division Offices 8 Regional Urban New Town

(16 Nos) Development Offices Development Unit
(SDE)
Different Units under various Sections
B) Human resources development

Housing sector:
It may not be required to recruit the permanent type of employees for the
fulfilment of the manpower necessary in the housing sector as explained in
detail in the above section. The expected works could have been done from
the outside manpower also to make the civil service resulted oriented,
economical and efficient. There will be no liabilities to the government of
making available the pension until the death of the employees by creating the
additional liabilities of new 262 employees as shown above in the civil
service with this approach. The service contract for the necessary manpower
could be the most practical measure in this regard and alternatively locally
available consultancy services could also be procured. It would be best to
mobilize the medium and high level technical manpower produced locally as
far as possible during the process of the service contract from the point of
| 144 |
view of conserving and promoting local technology, architecture and
construction materials.
In the case of the technicians involved in the construction works of housing

,there in no shortage of the technicians uptill only for the construction of the
buildings as these types of manpower is mostly mobilized by the private
house owners and then after by the contractors therefore there is no need of
programme relating to producing additional technicians immediately.
However, in the context of the lack of technicians having adequate knowledge
of building code and accordingly can provide advice to construct the building
as per National Building Code in order to ensure the safe housing
construction, it would be appropriate to produce qualified technicians
manpower by implementing training massively on building code assigning
special priority in the areas where the quantitative weightage of construction
of new residential houses are comparatively high.
Building sector:
It may not be required to recruit the permanent type of employees for the
fulfilment of the the manpower necessary in the building sector as explained
in detail in the above section. The expected works could have been done from
the outside manpower also to make the civil service resulted oriented,
economical and efficient. There will be no liabilities to the government of
making available the pension until the death of the employees by creating the
additional liabilities of new 224 employees as shown above in the civil
service with this approach. The service contract for the necessary manpower
could be the most practical measure in this regard and alternatively locally
available consultancy services could also be procured. It would be best to
mobilize the medium and high level technical manpower produced locally as
far as possible during the process of the service contract from the point of
view of conserving and promoting local technology, architecture and
construction materials.
In the case of the technicians involved in the construction works of building,

there in no shortage of the technicians up till only for the construction of the
buildings as these types of manpower is mostly mobilized by the private
house owners and then after by the contractors therefore there is no need of
programme relating to producing additional technicians immediately.
However, in the context of the lack of technicians having adequate knowledge
of building code and accordingly can provide advice to construct the building
| 145 |
as per National Building Code in order to ensure the safe building
construction, it would be appropriate to produce qualified technicians
manpower by implementing training massively on building code assigning
special priority in the areas where the quantitative weightage of construction
of new buildings are comparatively high. For the full compliance and
effective implementation of the building code, the provision of mandatory
involvement of the trained technicians during the process of issuing building
permit can be made once there is adequate availability of such manpower.
There is a situation of depending upon external manpower mostly the
technicians coming from India due to the non adequacy of the local
manpower related to particularly for building service and facilities, though
there is adequate supply of technicians level of manpower for the construction
of buildings. There is no adequate supply of local manpower for water supply
and sanitation and electricity related works. It is indispensible to implement
adequate trainings of this sector as per local needs in this regard.

Development of Human Resource in urban development sector
Human resource will be developed through:
• Appropriate training manuals and guidelines will be developed as per
need for training junior level officers and field level staffs.
• Refresher training will be conducted for training senior level officers.
• Workshop and Seminars should be conducted at central and regional
level to disseminate knowledge about emerging trends and issues
• On the whole, in ordr to ensure the placement of capable and
appropriate person as per qualification and responsibilities of the post
in the context of human resource development in housing, building
and urban developent sector,the existing building and architecture sub
group needs to be made practical and for this there is a need to
constitute separate sub group under building(civil), architecture and
urban development.
| 146 |
C) Budget Requirement for the institutional and
human resources management
The budget necessary only for the housing building and urban development is
as follows:
Housing sector:
There is a need of Rs.40 Lakhs for the implementation of legal structure
development, housing technology development and institutional development
plan, in the base year and for the overall 20 years period there will be a need
of total Rs.2400 Lakhs. There will be a need of total Rs.7248 in 20 years
period under the housing sector for the establishment of National Housing
Bank and operation including the investment necessary from the corporation
sector.
Building sector:
There will be a need of Rs.102 Lakhs in the base year for the capacity
enhancement of the organization by implementing the programmes like
monitoring and evaluation, legal updating, building insurance policy and
implementation, training of technicians, capacity enhancement of the experts,
study of facilities and services, updating of building policy, and institutional
and management study under this sector and for the 20 years period there will
be a need of total Rs.5789 Lakhs.
Urban development sector:
On the whole as the sectoral business plan is entirely concentrated in the
development and construction of urban infrastructures and assuming this
subject will be included in the cost estimates of the programmes for the
institutional development and human resources management therefore the
separate budget has not been proposed.
D) Legal and policy Arrangement
Housing sector:
The following activities needs to be given priority towards the
implementation of this plan for the production of safe and cost effective
housing by regulation, management and facilitation of this sector:
| 147 |
- It has become necessary to control the tendency of allowing to construct
or approve building plan contrary to the National Building Code and bye
laws although the authorities to formulate different bye laws relating to
housing has been given to town development committees and local
authorities and to assign the responsibility of monitoring and evaluation
for its regulation to Department of Urban Development and Building
Construction and agencies under it and accordingly to update Town
Development Act and Building Act to enable the Ministry of Urban
Development to punish concerned those individuals and authorities based
on the report received.
- To prepare legal instrument including the provision to punish if
somebody violates or breach this as no individual or the agencies
including the government is not allowed to construct the housing or the
plotting of the land without getting proper approval for apartment or
group housing construction and land development.
- To implement the proposed bill relating to commercial land and housing
business as soon as possible.
- Timely updating of the present apartment act and regulations.
- To make an arrangement for the involvement only of those experts
having such qualification and experience by determining educational
qualification and experience of different experts involved in the housing
related works.
- To institutionalize the process of minimizing the risk by insuring the
residential buildings.
- To make an arrangement of restricting in the use of building for health,
education and other purposes by changing in its use once the permit is
taken for the residential use.
- To implement land use plan restricting in the use of non residential and
other activities in the residential areas.
Building sector:
The following activities needs to be given priority towards the implementation of
this plan to make building safe and cost effective as well as for the construction,
repair and maintenance of this sector.
To assign the responsibility of monitoring, evaluation and regulation of
compliance to different codes, guidelines, bye laws etc relating to building
construction to Department of Urban Development and Building Construction at
the central level and the concerned municipality and VDC at the local level. The
| 148 |
division offices of the department will make available necessary technical support
to local authorities in this regard:
- To put restriction on the construction of any building without building

permit including the government buildings by making the procedures of
approval for building construction simple and effective.
- To implement gradually to involve at least one trained technician having
completed training on earthquake resistant building construction from the
licensed training institution imparting such training to ensure the safe
building construction in any construction of building works.
- To make an arrangement by determining educational qualification and
experience of different experts involved in the building sector for
involvement only of those experts having such qualification and
experience in design and construction of the building.
- To institutionalize the process of minimizing the risk by insuring the
buildings.
- To implement with necessary improvements/updating and amendments
by reviewing the existing legal instruments for mandatory compliance of
building policy by formulating different codes, guidelines, bye laws,
norms and specification etc. as the jurisdiction of the existing building
act and regulation is limited and inadequate for the implementation of
this policy.
- To make punishable such acts which haphazardly make changes in the
use without permission and if there is a need to make change in
mentioned use of building during the time of approval of plan, the local
authority can issue such permit if it is appropriate after conducting the
Vulnerability Assessment of the building.
- The FM or mobile towers cannot be installed above the building unless it
is proved appropriate from the point of view of the safety of the building.
| 149 |
Urban Development sector :
- TDC Act and guidelines has to be revisited and amended as per the need
of the day
- Building Bye Laws and regulations should be reviewed and amended
- Land Development Act formulation and Modification of Land
Development Manual
- National Urban Policy has to be further modified and implemented
- The policy guidelines on projects implemented and operated by the Users
Committees, will be modified to mobilize increased participation of the
users groups.
- Formulation of Physical Development Act and Guidelines
- Completion of Planning Norms and Stndards, 2013
- Updating Periodic Plan Guidelines
- Identify stake holder and their SWOT analysis.
| 150 |

Bussiness Plan of DUDBC

Uploaded by

Copyright:

Available Formats

Bussiness Plan of DUDBC

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bussiness Plan of DUDBC

Uploaded by

Copyright:

Available Formats

Business Plan-2014

The second chapter is related to housing sector.The quantitative

The activities such as expected improvement in the organization of the

BUSNIESS PLAN OF THE DEPARTMENT OF URBAN DEVELOPMENT AND

2) Business plan of the Housing Sector...................... 4

3) Business plan of the Urban Development Sector.................... 47

4) Business Plan of the Building sector................ 79

Table 1 House and household number............................................................................... 6

Table 3 Population projection .......................................................................................... 7

Table 4 Quantitative requirement of housing production ................................................ 10

Table 23 Minimum Economical Infrastructure for Various level of Urban Sector.......... 61

Table 33 Annual quantity of requirement of maintenence and construction of buildings96

A) Vision, mission, aim and objectives of the Department of Urban

Department of Urban Development and Building Construction (DUDBC) under

Roles and Responsibility of DUDBC and its Institutional Set-up

The long term vision of the department is:

i. Safe, economical and environmentally friendly building construction

The objectives of the three divisions are as follows:

Promote construction and development of safer, economical, and

ii. Urban Development Division

Promote sustainable urban development and urban rural linkages through

The function and responsibilities of DUDBC are:

i. Formulation, planning and implementation of urban policies

B) Need of Business Plan

 what its objectives are

National Shelter Policy 2012:

- To assign implementation responsibilities and authorities of shelter policy

Vision, mission and objectives of National Shelter Policy, 2012 are:

Long term vision

- To provide housing, which is safe, adequate and affordability to all.

1. To increase appropriate, safe and environment-friendly production of

Household number and ownership of housing unit

Table 3 Population projection

Figure 1Population Projection

b) Group and apartmet housing

c) Housing constructed bythe private sector

C) Business Plan and Programme

Long term vision

- To implement land development programmes in an institutional

The programes have been formulated by dividing housing services basically

a) Involvement of the institutional sector in the housing service

It is not desirable to involve the institutional sector in the production and

Though land development programee, like land pooling project is claimed to

The small settlement development programme with necessary infrastructures

The apartment housing production is given prominence under this heading.

The other type of housing produced by the private sector in an organized

The programme to facilitate cooperative housing has also been proposed

c) Housing service targeted to the deprived group

Generally the private sector is not involved in profitless activities except in

d) Capacity enhancement for the management and regulation of the

There is no comparable role of the management and regulation aspect towards

Housing is not only land or a house but it is a composite form of

The different institutional improvement programes like capacity enhancement

For the programmes proposed under this heading, it would be appropriate to

Phase wise plans and programmes

In order to determine the quantitative needs of the works mentioned above

1 Housing development from the institutional sector

e)Rental housing 110000 Family

b)Land bank cooperative farming plan 10000 Family 500 500