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Project Management in Nepal’s Development Sector

 

Current Practices and Emerging Trends

 

January 2026 PM Update from Nepal

REPORT

By Yamanta Raj Niroula

International Correspondent

Kathmandu, Nepal


1. Introduction

Effective project management is central to Nepal’s development sector. All major actors; government bodies, non-governmental organizations (NGO), and United Nations (UN) agencies; depend on it to translate plans into tangible outcomes. Recently, project managers have faced a host of new challenges: rapid infrastructure expansion, the transition to federal governance, evolving donor expectations, and added pressure to achieve global targets like the Sustainable Development Goals (SDG) and strengthen climate resilience.

This report explores how NGOs, UN agencies, and development partners are currently managing projects in Nepal. It highlights ongoing changes on the ground, drawing from examples such as Karnali Province’s digital project database, earthquake reconstruction efforts, and the national nutrition program. Using data from 2023 to 2025, the report offers clear recommendations to help Nepal’s development sector improve project management – because the consequences are too significant to accept anything less. It also looks at where current practices fall short and what practical steps can help project teams deliver more consistently, on time, and with clearer accountability.

2. Background

Project management in Nepal has been influenced by decades of foreign aid and political transition. In the 1950s and 1960s, most projects were designed centrally with foreign technical assistance and little local involvement. Formal project management practices were largely absent. Over time, the project portfolio grew to include roads, electrification, and social programs. The 1990s marked a turning point, with the Social Welfare Act and NGO Regulation establishing oversight bodies such as the Social Welfare Council (SWC). By the 2000s, several local and international NGOs were implementing donor-funded projects, relying on ad-hoc methods or personal experience rather than standardized frameworks.

Major crises reshaped project management practice. The Maoist insurgency (1996-2006) and the 2015 earthquakes triggered large-scale reconstruction programs. The National Reconstruction Authority created Central-Level Project Implementation Units (CLPIU) to manage housing grants and provide technical support. Donors also followed this model, setting up parallel Project Management Units (PMU). Despite these institutional efforts, several weaknesses remained evident. A recent Auditor General’s report observed that many projects started without detailed reports, suffered from vague implementation modalities, and experienced delays due to poor coordination (Office of the Auditor General, 2023).

Nepal’s project management history shows strong dependence on foreign aid and reactive institutions, with limited local ownership or professionalization. Over the past decade, federal restructuring, growing focus on inclusion, and evolving donor expectations have begun to transform the practices. However, legacy issues remain, as donor-driven project cycles still dominate and there is an ongoing shortage of formally trained project management professionals.

More…

To read entire report, click here

How to cite this work: Niroula, Y. R. (2026). Project Management in Nepal’s Development Sector: Current Practices and Emerging Trends; Project Management Update from Nepal, report, PM World Journal, Vol. XV, Issue I, January. Available online at: https://pmworldjournal.com/wp-content/uploads/2026/01/pmwj160-Jan2026-Niroula-Project-Management-Update-from-Nepal-report.pdf


About the Author


Yamanta Niroula

Kathmandu, Nepal

 

Yamanta Niroula is a seasoned Project Management Professional with over 17 years of extensive experience in engineering, infrastructure development, and project management across diverse global environments. His expertise includes project planning, procurement, contract management, stakeholder coordination, and risk mitigation, with a strong focus on executing projects in remote and developing regions under complex operational conditions.

Yamanta holds a Bachelor of Engineering in Civil Engineering and a Master of Arts in Rural Development, along with a Diploma in Civil Engineering. He is a certified Project Management Professional (PMP®) and an active member of the Project Management Institute (PMI) since 2010.

Yamanta has extensive experience in project management, successfully overseeing all stages of construction projects from initial planning to final evaluation. He specializes in managing complex processes, including procurement, contracting, and execution, while maintaining efficiency and regulatory compliance. By staying updated on industry standards and advancements, he has ensured that projects are forward-thinking, sustainable, and adaptable to changing environments.

Yamanta has successfully managed large-scale infrastructure projects, including roads, electrical infrastructure, wastewater treatment plants, logistics facilities, and disaster recovery programs. He has served in various capacities as Project Controls Specialist, Design Manager, Planning Manager, Engineer and Project Manager across international organizations and UN agencies in Nepal, the Maldives, Singapore, Afghanistan, the Philippines, Nigeria, Yemen, Sudan, and Ethiopia.

He has been responsible for project design, planning, execution, and control, ensuring timely delivery, budget adherence, and quality assurance while enhancing overall program outputs.

Yamanta lives in Kathmandu, Nepal and can be contacted at niroulayr@gmail.com

View his full correspondent profile at https://pmworldlibrary.net/yamanta-raj-niroula/

To view other works by Yamanta Ray Niroula, visit his author showcase at https://pmworldlibrary.net/authors/yamanta-raj-niroula/