Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 8/1/2019

  • Nepal needs significant infrastructure development.  Critical infrastructure was badly damaged by the April and May 2015 earthquakes, and the need for repair, reconstruction, and improvements is both urgent and extensive.  Cognizant of this need and to deliver on its electoral promises, the new government has continued to prioritize infrastructure development in its second budget presented to the Parliament on May 29, 2019. US$ 1.5 billion (more than a tenth of the total budget) has been allocated for the development of transport infrastructure alone. Large sums have been allocated to the development of energy, mainly hydropower ($750 million), and aviation ($140 million). This government’s stated long-term aim is to develop a total of 15,000 MW of new energy production in the next 10 years.  In addition to upgrading the current international airport, three new international airports are being planned. While budget pronouncements in Nepal are generally loftier than reality, opportunities in the infrastructure sector (hydropower, renewable energy, transport, urban infrastructure) will definitely rise in the coming years. Many infrastructure projects are financed by multilateral development banks.  Interested companies should monitor the websites of these organizations for tender opportunities.

 

  • In September 2017, the GoN signed a $500 million compact with the USG’s Millennium Challenge Corporation (MCC) to build 300 km of electricity transmission lines and upgrade/maintain 305 km of roads in different parts of the country. The GoN will contribute an additional $130 million to this project designed to “spur economic growth and private investment, and open new markets.” This is the first MCC compact in South Asia and the GoN’s additional contribution is the largest up-front country contribution in MCC’s history. Components of this project will be open to international bidding. Interested parties can obtain more information on working with the MCC via https://www.mcc.gov/work-with-us and https://mcanp.org/.

  • Tourism/hospitality is another area of budding opportunity. The government announced its aim to bring in 2 million visitors to Nepal in 2020, double the number of tourists that visited Nepal in 2018 (1.17 million). Indicative of the interest in Nepal’s tourism sector, a number of new international hotel brands are opening in Kathmandu as well as other parts of the country, including the Marriott and Sheraton.

  • Recovery and reconstruction from the major earthquakes in 2015 is still underway. Rural areas of central Nepal suffered more damage than the Kathmandu valley. While the earthquakes caused billions of dollars in losses, the reconstruction work, which is picking-up pace with a stable government, will create opportunities for businesses and investment.

  • The leading commercial sectors for U.S. exports are:

    • Aircraft parts;

    • Medical, optical and surgical instruments;

    • Airport and Ground Support Equipment;

    • Information Communication & Telecommunications (ICT) Equipment and Services (including computers/peripherals);

    • Electrical and Industrial machinery and equipment;

    • Water resource equipment/services;

    • Renewable energy equipment

    • Seeds and miscellaneous grains;

    • Franchising, and

    • Perfumery and cosmetics.

  • On the whole, despite valid allegations of sub-optimal performance by the elected majority government, the Nepali economy is on an upward trajectory. A young population and rising middle-class will mean new markets, opportunities for new and better products and services. Straddled in between even faster-growing markets of India and China, Nepal should be an interesting destination to explore business opportunities in the coming years.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.