Since 1992, “The Build, Own, Operate and Transfer” (BOOT) model for infrastructure development has been included in Nepal’s planning documents, although the actual progress in project and legislation development wasn’t significant and suspended for over a decade. In August 2003 Nepal’s PPP legislation first came into operation in the form of an ordinance and was ratified as an Act in December 2006.  In spite of the BOOT policy adopted in the early 1990s, the Three-Year Interim Plan (2007-10) recognizes that private sector investment in infrastructure has been moderate. Under the BOOT policy, a privatization cell in the Ministry of Physical Planning was set up and put in charge of developing documentation related to concession agreements, guidelines, technical specifications, and feasibility studies. A project coordination committee under the chairmanship of the Vice-Chairman of the National Planning Commission was formed to complement the institutional framework by coordinating and monitoring project implementation and identifying and determining priority projects. As of 2015, PPP activity has been focused on the provision of the most essential urban services, such as water supply and distribution, energy focused on development of the hydropower sector, sanitation, solid waste management, and, to a lesser extent, on road and urban transportation management.

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