Preparations are underway to lease large government-invested structures for full operation, with government officials stating that projects worth more than Rs 1bn are being prepared for leasing to generate returns. The government has made arrangements to lease six structures: the current Parliament Building (Birendra International Conference Center), the Sunrise Assembly Hall in Godavari, Dharahara in Sundhara, the Damak Business Center, and the Assembly and Exhibition Halls in Butwal.
Since the government cannot use these structures intensively, they are not generating adequate returns. The government has proposed to improve their operation through partnerships with the private sector via leasing. However, there is currently no law or established practice for leasing government buildings and structures.
Although there is no law, the government is preparing to move forward by setting its own standards. According to Narayan Prasad Mainali, spokesperson for the Ministry of Urban Development, the ministry has already prepared standards for operating special structures for leasing government buildings. The former Birendra International Conference Center (now the Parliament Building) has been renamed, and a ‘Special Structure Management and Implementation Committee’ has been established. The government formed this committee under the ‘Special Structure Operation and Management Development Committee (Formation) Order, 2024’.
This government committee is responsible for the operation, management, conservation, and potential partnership (lease/rent) processes for government structures. The committee was formed in Nov 2024 after it became apparent that billions of rupees invested in these buildings would result in them remaining vacant, incurring losses, or being economically unsustainable if used only by government agencies. The committee was given the responsibility of deciding the operational model for these assets (government, private partnership, or lease).
The chairperson of this committee is the secretary of the Ministry of Urban Development, and the executive director is a government-designated individual. However, the executive director position has been vacant for about three months. “An advertisement has been issued for the post. The committee will get an executive director at some point. Until then, I have been assigned the responsibility,” said spokesperson Mainali.
According to Mainali, a board meeting of the committee is being held on Sunday, where the criteria for the operation of special structures, prepared by the Ministry of Urban Development, will be presented. He says that once the meeting passes the criteria, they will be submitted to the Ministries of Law and Finance for their opinions. “After receiving opinions from these ministries, it will be submitted to the Council of Ministers for approval, and the standards will be implemented with the approval of the Council of Ministers,” Mainali stated.
“A leasing document has been prepared that details the total government investment in the specified structures, operating expenses, and the projected return period. The standards have been set to lease for about five to six years,” Mainali said. Based on this, the price of each structure will be determined, and a tender will be called for an amount not less than that.
Of the six structures the government is preparing to lease, the Sunrise Assembly Hall, Damak Business Center, and Butwal Assembly Hall have been completed. Some construction work is still pending on the Dharahara in Sundhara and the Butwal Exhibition Hall. The Parliament Building in New Baneshwor was constructed by the Chinese government around 1993. The BICC Building, which was previously used for meetings and conferences, has been used as the Parliament Building by the government since the establishment of the Republic.
