Project Management in Nepal

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PROJECT MANAGEMENT IN NEPAL

Historical Overview of Project Management in Nepal


1. Nepal is one of the least developed countries in the world and ranks low in human
development index (HDI). This indicates that development plans and project are much
less than desired level.
2. Project concept in Nepal began in 1951 with a grant assistance of USD 1,00,000 by USA.
The planned development began with the implementation of first five year plan in 1956.
Since then Nepal has implemented 13th development plan. 14th development plan is
under operation.
3. Project management model appeared in Nepal during 1970s. The organization structure
adopted for project was Development Committee. It was autonomous pure project
organization for the management of project. The matrix project organization has been
used in selected cases.
4. INGOS, NGOs and private sector are also using the project management concept since
1980s.BOT( Built, Operate and Transfer) modality has been emerged for road
construction project. Kathmandu-Hetauda-Nijgad fast track road is an example.
5. The foreign aided project in Nepal consists of
 Turnkey Projects: Contractors through global bidding process
 Donor Executed Projects: Implemented directly by donors
 Nationally executed projects: Implemented by Nepalese project managers
6. Foreign direct investment has led to greater use of project Management concept in
Nepal
7. National Planning Commission (NPC) is responsible for preparation of five year
development plan. Central level projects need approval from NPC. NPC is responsible
for identification, planning, monitoring and evaluation of developmental projects in
Nepal.

Current Status of Project Management in Nepal


1. Project management concept in Nepal is in the early stage of development. Foreign
companies and investors bring their own concepts in regard to project management.
2. Nepal’s economy is mainly on agriculture which contributes almost 40 percent of GDP.
The Government tried during the last decades to develop transport and communication
facilities, service and industry. The country is almost 5 percent dependent on foreign
aid.
3. Hydropower is more focused area for investment. Currently there are approximately
1500 MW power available but has a potential for 8300 MW in total which needs to be
developed rapidly to overcome the energy shortages in Nepal.
4. Another area of project operating in Nepal is the construction of roads, bridges and
construction of houses after the massive earthquake of 2072 BS. This is the reason for
why the construction projects of the earthquake resilient principles on account.
5. The third main area of concern for the projects and programmes are humanitarian
projects, mainly focusing on education still high percentage of people suffers from
illiteracy, and other projects like community development programmes to overcome
poverty and health related issues.
6. Project Management Association of Nepal(PMAN)was established in 2006 A.D. PMAN is
the member of International Project Management Association(IPMA) and Asian Pacific
Federation of Project Management(APFPM). Main activity of project management is to
involve Governmental agencies, private institution and other nonprofit making
organization to foster project related developmental activities in the country.

Benefits and Limitations of Project Management in Nepal


Benefits
1. Change Management
2. Environmental adaptation
3. Resource mobilization
4. Infrastructure development
5. Better resource utilization
6. Human resource development
7. Organizational Re-Engineering
Limitations
1. Unsuitable
2. Problem of authority delegation
3. Top management interference
4. Lack of professional human resource
5. Conflicts
6. Cultural constraints

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