Nepal Awards NPR 56.94 Million Road Improvement Contract Under World Bank-Supported Infrastructure Program

Nepal has awarded a major road infrastructure contract under the World Bank-financed Provincial and Local Roads Improvement Program - Phase 1 (PLRIP). The contract, valued at NPR 56.94 million, has been awarded to SK Construction as part of ongoing efforts to improve regional connectivity and strengthen transportation infrastructure across the country.

Signed on 21 April 2026, the project represents another milestone in Nepal’s commitment to upgrading provincial and local road networks that are critical for economic growth, social development, and rural accessibility.

Contract Details and Scope

The awarded tender (Reference: PLRIP/SUPA/DCH/NCB/W/PM/05/082-83, TOT Ref No: 26013724) falls under the Provincial and Local Roads Improvement Program - Phase 1 (Project ID: P171836) and carries a total contract value of NPR 56,944,682.34.

Funded through World Bank support, the contract was procured using a National Competitive Bidding (NCB) process to ensure transparency and competitive participation among qualified domestic contractors.

Although detailed engineering specifications have not been publicly released, road improvement contracts under PLRIP typically include:

• Road rehabilitation and upgrading works

• Pavement strengthening and resurfacing

• Drainage and erosion-control improvements

• Road safety enhancements

• Culvert and minor bridge construction

• Slope stabilization and climate-resilient infrastructure measures

The project is expected to improve transportation reliability and accessibility for communities served by provincial and local road corridors.

Entities Involved

The project is financed by the World Bank in partnership with Nepal’s road and infrastructure development authorities.

The winning contractor, SK Construction, is a Nepal-based infrastructure company selected through the competitive procurement process. Its appointment reflects its technical capability and experience in delivering civil engineering and road construction projects in accordance with national and international standards.

Strategic Importance for Nepal

Road infrastructure remains one of Nepal’s most important development priorities, particularly in areas where connectivity challenges limit access to markets, healthcare, education, and public services.

The Provincial and Local Roads Improvement Program aims to:

• Enhance regional and rural connectivity

• Improve access to economic opportunities

• Reduce travel times and transportation costs

• Strengthen climate resilience of transport infrastructure

• Support balanced regional development

Improved road networks also contribute to stronger trade links and more efficient movement of goods and services throughout the country.

Economic and Community Impact

The project is expected to generate substantial economic and social benefits, including:

• Employment opportunities during construction

• Increased mobility for local communities

• Better market access for farmers and businesses

• Improved access to schools, hospitals, and government services

• Reduced vehicle operating costs and travel delays

Such government contracts and awarded tenders play a vital role in supporting Nepal’s long-term infrastructure modernization agenda.

Technical and Procurement Insights

The National Competitive Bidding process ensured participation from qualified domestic contractors while maintaining compliance with World Bank procurement guidelines. Projects under PLRIP emphasize quality construction standards, environmental safeguards, and climate-adaptive engineering practices to ensure long-term sustainability.

Conclusion

The award of the NPR 56.94 million Provincial and Local Roads Improvement Program contract to SK Construction marks another important step in Nepal’s infrastructure development journey. As implementation progresses, the project is expected to enhance connectivity, improve transport efficiency, and support economic growth in the regions it serves.

This procurement underscores the continued importance of strategic road investments in fostering inclusive development and strengthening Nepal’s transportation network.

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