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Despite ongoing improvements in other areas, the 13-kilometer Daunne section of the Butwal–Narayangadh road remains in poor condition, causing significant difficulties for local residents and travelers. Although the project aims to ease travel across the route, slow progress by the Chinese contractor has drawn concern, with the company frequently cited for delays and lack of timely response.

Frequent accidents have been reported in the area, raising safety concerns, particularly during the monsoon and upcoming festival seasons. The project office attributed the delays to ongoing construction of culverts in the Daunne stretch, where 103 culverts are being built. While most are complete, work on several remains unfinished.

Shiva Khanal, Engineer and Information Officer at the Narayangadh–Butwal Road Planning Office (Eastern Section), said only four of the 65 kilometers from Daunne to Narayangadh are part of the problematic Daunne section. “All culvert work will be completed in a few days, and travel disruptions should ease,” he added. A diversion in Dumkibas is also set to be completed within five days. In the meantime, vehicles are forced to take a 20-kilometer detour via Hongshi Cement.

Dadhiram Kharel, President of Paschim Nepal Bus Entrepreneurs Pvt Ltd—Nepal’s largest public transport company—criticized the government for failing to ensure a passenger-friendly road system. “We knew the monsoon would come, but timely preparations were lacking. Passengers are suffering as a result,” he said. The company operates over 400 vehicles daily on this road. While vehicles heading to Kathmandu can divert via Palpa and Pokhara, those traveling east face major difficulties.

Delays in road construction have been attributed to multiple factors, including the Covid-19 pandemic, intergovernmental coordination gaps, delays in tree felling, and seasonal work stoppages during monsoon. Kharel noted that despite the introduction of modern buses in the transport sector, poor road conditions continue to discourage operators. “Once this road is completed, many travelers may opt for road travel instead of flying,” he said.

Last year, a bus en route to Nepalgunj from Kathmandu was swept away by the overflowing Triveni River while crossing a diversion late at night. Fortunately, all 38 passengers, including three infants, were rescued using an excavator. Such incidents, transport entrepreneurs say, are becoming increasingly common.

Ghanshyam Giri, Chair of Binayi Triveni Rural Municipality in East Nawalparasi, stated that local authorities and Nepal Police are regularly involved in rescue operations in the Daunne area. “While some work has been done, the contractor appears to lack urgency, and progress has slowed,” he said.

The Butwal–Narayangadh road spans 113 kilometers. The Butwal to Daunne section measures 48 kilometers and falls under the western section of the project. According to Bikash Khanal, Engineer and Information Officer of the Western Section Planning Office, physical progress there has reached 67.95 percent, while financial progress stands at 62.43 percent. The Daunne portion of this section is 10 kilometers long. Khanal said the target is to complete work by the 2024/25 fiscal year, although construction pauses during the monsoon. So far, 60.92 percent of the road has been blacktopped, with eight out of nine bridges completed and work ongoing on the Bhalhi main bridge. The total cost of this section is Rs 7.86bn, including VAT.

From Daunne to Narayangadh—a stretch of 65 kilometers—physical progress stands at 69 percent and financial progress at 68 percent. Of the planned 33 culverts, only six remain incomplete. So far, 53 kilometers have been blacktopped on one side and 34 kilometers on both sides. The budget for this section is Rs 130m, including VAT.

Both sections are being constructed by China State Construction Engineering Corporation (CSCEC-China) under a project led by the Department of Roads with support from the Asian Development Bank (ADB). The deadline for project completion has been extended three times, with the current deadline set for July 22. However, preparations are underway to seek a fourth extension due to incomplete work. A four-lane road is being constructed in forest areas and a six-lane road in market areas.

On 10 Nov 2024, local representatives from Rupandehi, East Nawalparasi, and West Nawalparasi submitted a memorandum to Prime Minister KP Sharma Oli, urging faster progress. This led to a high-level meeting involving federal and provincial MPs, district chiefs, and relevant ministries, after which the stalled work briefly gained momentum.

Bhagauti Yadav Rudal, Chair of the District Coordination Committee, Nawalparasi (Bardaghat Susta West), emphasized the hardships locals have faced due to dust and poor road conditions for years.

Chairperson Ghanshyam Giri reiterated that if the roads in Daunne and Dumkibas are completed, long-standing issues in the Butwal–Narayangadh corridor would be resolved. He noted that the current challenges stem from delayed culvert construction and added that slum dwellers in the area may see some relief soon. However, only basic maintenance work is being carried out during the rainy season. The overall budget for this section has reached Rs 9.13bn, including VAT.

President of Federation of Nepalese Chamber of Commerce and Industries (FNCCI) Chandra Prasad Dhakal has urged the investors and business community in Spain to make their investment in Nepal with top confidence since Nepal has an investment-friendly environment. 

At a programme organized on Wednesday by the Embassy of Nepal in Madrid, Spain, Dhakal asked the investors from Spain for their investment in Nepal's tourism, agriculture, information technology and infrastructure sectors, the FNCCI shared.  

Members of the Spain Chamber of Commerce and Industry, business leaders, representatives of Nepali community and diplomats were present on the occasion.

Dhakal also said that high returns were possible from Nepal's tourism industry since this is the backbone of Nepal's economy.

The Nepal Stock Exchange (NEPSE) gained 34.60 points to close at 2,695.00 points on Wednesday.

Similarly, the sensitive index surged by 5.75 points to close at 462. 51 points.

A total of 30,182,341-unit shares of 317 companies were traded for Rs 9. 74 billion.

Meanwhile, Green Development Bank Ltd. (GRDBL) and Khanikhola Hydropower Co. Ltd. (KKHC), with their price surging by 9. 99 percent.

Likewise, 9% ICFC Finance Limited Debenture 2088 (ICFCD88) was the top loser as its price fell by 3. 73 percent.

At the end of the day, total market capitalization stood at Rs 4. 48 trillion.

The Lumbini provincial government has stopped payments 15 days prior to the end of the current fiscal year after exhausting its accumulated funds. The Lumbini Ministry of Economic Affairs and Planning has apprised the Provincial Treasury Comptroller Office of the matter.

The decision will affect many construction entrepreneurs who were expecting to receive their payments by this fiscal’s end. Most of the offices under the province have already informed construction entrepreneurs they cannot pay beyond July 9.

The provincial government has consistently adopted a deficit budget, shifting the liability to the next fiscal year. For the upcoming fiscal year 2025/26, it has proposed a deficit budget of about Rs 7bn. However, payments for schemes funded by the Government of Nepal’s conditional, special and complementary grant sources have not been stopped. These include matching funds from provincial sources in complementary grant projects; provincial contributions in foreign-funded projects under conditional grant; and provincial consolidated funds, including salaries, allowances, and operational expenses.

Payments for all other schemes were suspended from June 29.  If it is extremely necessary to spend, the ministry has issued a circular stating funds can be spent or disbursed with valid justification for doing so. The sudden freezing of accounts has affected the plans of the Ministry of Physical Infrastructure Development, which accounts for a significant portion of the development budget. The ministry has allocated a budget of Rs 9.9bn for the upcoming fiscal year.

After the sudden payment freeze, the Rupandehi Road Infrastructure Development Office has been unable to pay Rs 35m owed to 25 projects. “The liability had been transferred in the previous fiscal year as well,” said Office Chief and Senior Divisional Engineer Lalu Giri. “This year too, it seems that the liability will be transferred. Construction entrepreneurs are working in the field. There is a written agreement. However, there is no way to pay for them.”

Senior Engineer Deepak Khadka, chief of the Banke Road Infrastructure Development Office, said payments worth around Rs 20m are pending. “Construction entrepreneurs are demanding payments, but we have no answers,” he said.

The Pyuthan Road Infrastructure Development Office has been unable to pay Rs 10.5m for eight projects. “We had agreed to clear the payments by June 8, but the account was unexpectedly frozen,” said Senior Engineer Chandra Shah. 

The Provincial Financial Procedures and Fiscal Responsibility Act mandates closure of accounts a week before July third week. The provincial government has disregarded this provision.Sources estimate that the provincial government owes Rs 1.5bn for completed works.