Public-private partnerships (PPPs) in Nepal bring together the government and private sector to address development challenges. This collaborative approach, particularly in areas like infrastructure and healthcare, aims to leverage private sector efficiency and innovation. While PPPs offer opportunities for accelerated development, challenges such as regulatory frameworks and risk allocation need careful consideration for successful implementation. Overall, these partnerships play a crucial role in mobilizing resources and creating sustainable solutions for Nepal's evolving needs.

1. Presenter:
Santoshi Paudel
MPH 2023
SPH&CM
BPKIHS, Dharan Nepal

2. Table of Contents
PPP Overview
SDG and PPP
Investment Board Nepal
PPP in health sector of Nepal
Public Private Partnership Policy, 2072
Example of PPP: Venture waste 2 Energy Pvt. Ltd.
Challenges
Recommendations
Conclusion
References
2

3. Introduction
• Public Private Partnership (PPP, 3P, or P3) is a widely adopted
model mainly for public service delivery.
• Model of public service delivery includes:
3

4. Public Private Partnership
• A funding model for public infrastructure projects and initiatives
• It refers to an arrangement between the government and the private
sector, with the principal objective of providing public infrastructure,
community facilities and other related services.
• In the health sector it refers to collaborative arrangements between the
public and private sectors to jointly deliver healthcare services,
develop healthcare infrastructure, or implement health programs.
4

5. Types of contracts in PPP
5
Build-Transfer (BT) Gautam Buddha International Airport
(GBIA) project
Build-Own-Transfer (BOT) Kathmandu-Terai Fast Track Project
Build-Own-Operate-Transfer
(BOOT)
Venture waste to energy project
Build-Own-Operate (BOO) Upper Tamakoshi Hydroelectric Project
Build-Transfer-Operate (BTO) Melamchi Water Supply Project
Lease-Operate-Transfer (LOT) TIA (planning phase)
Develop-Operate-Transfer (DOT) Hydro Power Project

6. Reasons for PPP
6
• Access to
expertise and
resources
• Improved
efficiency and
effectiveness
• Reduced risks
• Access to profitable
ventures
• Opportunities for
Corporate Social
Responsibilities
• Experience in large
infrastructure
industry
• Wider service offering
• Enhance quality of services
• Moderated prices
• Reduced risk on service
delivery
• Defined accountability
Public Service Delivery Private Sectors Drivers Benefit to Community

7. SDG and PPP
7
SDGs can only be
realized with strong
global partnerships and
cooperation.
Promoting investment
for the least developed,
is vital for sustainable
growth and
development.

8. 8
Nepal Investment Guide, 2021

9. Investment Board Nepal
9
• Established in 2011 under
Investment Board Act,
2010
• Focal agency for PPP
• Facilitate and promote
Public-Private Partnerships
(PPP)

10. Mendates of IBN
10
Functions of IBN
Source: IBM Report 2021

11. 11
Source: IBM Report 2021

12. 12
Energy Projects
1. Arun-3 Hydro Electric Power Project
2. GMR Upper Karnali Hydropower Limited
and Karnali Transmission Company Private
Limited
3. Upper Trishuli-1 Hydropower Project
4. Upper Marsyangdi-2 Hydropower Project
5. West Seti and SR6 Joint Hydropower
Project
6. Tamor Storage Hydropower Project
7. Lower Arun Hydropower Project
8. 250 MW Grid-connected Solar Project
9. Grid-Connected Solar PV Project
10. 350 MW Solar Project in Sudurpaschim
Province
11.Solar Energy Project in Banke and
Kapilwastu
12. Lower Arun Hydropower Project
Non-Energy Project
1. Hongshi Shivam Cement Project
2. Huaxin Cement Narayani Project
3. Waste to Energy Project
4. Dang Cement Project
5. Samrat Cement Project
6. China- Nepal Friendship Industrial Park
Project, Damak
7. Vehicle Manufacturing and Assembly
Plant Project
8. Kathmandu Outer Ring Road
Development Project
9. Nijgadh International Airport
10. Birethanti-Muktinath Cable Car
11. Multi-Modal Logistic Park, Biratnagar
12. Private Freight Terminal and Bulk
Handling, Birgunj and Bhairahawa

13. PPP in Health Sector of Nepal
13

14. PPP in Nepal
Formulation of Public-Private partnership on Nepal’s healthcare system is
supported by:
• National Health Policy, 2019;
• National Strategy for reaching unreached(2016-2030);
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National Health Policy, 2019 committed to ensuring health as fundamental
health rights of citizens through optimum and effective use of resources,
collaboration, and partnership
Aims to reduce health and nutrition inequalities and to achieve UHC in Nepal.

15. PPP in Nepal
Formulation of Public-Private partnership on Nepal’s healthcare system is
supported by:
• Nepal Health Sector Strategic Plan 2023-2030;
• National Health Financing Strategy (2080-2090);
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Strengthen Partnership to increase effective development aid on health sector
through International Development Mobilization Policy
Implementation of a mutually beneficial Public-Private Partnership in the health
sector with a focus on investment and benefits.

16. PPP in Nepal
Formulation of Public-Private partnership on Nepal’s healthcare system is
supported by:
• And Fifteen Five Year Plan( 2019/20-2023/24)
• Budget Speech for FY 2023/24
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To manage and regulate the collaboration and partnership among government, private
and non-governmental sectors while ensuring the leadership role of government in
health services
Need to mobilize domestic and foreign investment (capital and technology) by
developing an investment-friendly environment

17. PPP in Nepal
Historical Example:
Initiated in the 1950s- Partnerships with I/NGOs (Mission hospitals)
Successful Partnerships Examples:
Eye care and TB treatment partnerships,
Partnership between the Ministry of Health and Population and Nyaya
Health Nepal
PPP Models in Operation:
DBOT model operates Bayalpata Hospital in Achham, Safe Motherhood
program
17

18. PPP Model used in Health Sector of Nepal
PPP Models
Used in the
Health Sector
of Nepal
Service
Contracts
Joint Venture
Management
Contracts
Contracting
via Social
Franchising
Contracting +
Pay for
Performance
(P4P)
Design, Build,
Operate &
Transfer
(DBOT)
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19. 19
• Nepal received recognition from the United Nations (UN) in 2010 for its
remarkable progress in improving maternal health, with a significant reduction
in maternal mortality and stunting rates.
• Despite progress, Nepal still faces challenges related to accessibility, quality,
and equity in healthcare services.
• While Nepal has made commendable progress towards the SDGs, current analysis
suggests that the country is off track to meet the set targets particularly to
reduce maternal mortality crucial for achieving SDG targets.
• Hence, Implementing PPPs in basic health services can enhance service
provision, including improved coverage, quality, and healthcare
infrastructure. Additionally, PPPs can help generate increased demand for
healthcare within the community.

20. 20
• Sixty-one studies were included in the final review.
• PPPs in PHC can facilitate access to health care services, especially in
remote areas.
• Challenges related to education, management, human resources, financial
resources, information, and technology systems aspects in the starting and
implementation phases.

21. 21
• Following the 2015 Earthquake more than 95 per cent of Dolakha’s health posts
were damaged, and further damage was caused to Primary Health Centers and the
district hospital.
• PPP between Nyaya health Nepal and MOHP for rebuilding the damaged health
facilities and strengthening the health system in Dolakha district has helped fill
the gaps in the government health care system.
• With the introduction of PPP’s community healthcare program for over five years
significant improvement in institutional birthrate, surgical complication rate,
neonatal death rate.

22. Acts and Regulation for Public Private
Partnership in Nepal
22
Public-Private Partnership and Investment
Act, 2019
Public Private Partnership Policy, 2072
Public-Private Partnership and Investment
Regulations, 2020

23. Public Private Partnership Policy, 2072
Government of Nepal
Ministry of Finance
Singhadarbar, Kathmandu
Nepal
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24. Public Private Partnership Policy 2072
• Aims to promote collaboration between the government and private
sector for the development of public infrastructure and services.
• The policy encourages private sector investment in various sectors
such as transportation, energy, water supply, education, health, and
tourism.
• It emphasizes the principles of
transparency,
 accountability,
competitiveness in the implementation of PPP projects.
24

25. PPP Policy 2072 Continued…
• The policy establishes a clear legal framework and regulatory
mechanisms to govern PPP projects and ensure their successful
execution.
• It encourages the participation of domestic and international private
investors through a fair and competitive bidding process.
• The policy focuses on creating a favorable business environment by
offering incentives and tax benefits to attract private investment.
• It emphasizes the importance of risk-sharing between the government
and private sector to ensure the viability and sustainability of PPP
projects.
25

26. Examples of PPP in Nepal
Health sector
• Nyaya Health
• Safe Motherhood program
• National Health Insurance Program
Hydropower Sector
• Khimti Khola hydropower project
• Chilime hydropower project
• Bhotekoshi hydropower project
• Upper Tamakoshi hydropower project
• West Seti hydropower project
Road Sector
• Kathmandu Terai fast track
• Kathmandu Kulekhani Hetauda tunnel
Airport Sector
• Nijgadh international airport
• Gautam Buddha international airport
Others:
• Manakamana and chandragiri cable
26

27. Example of PPP:
Venture Waste 2
Energy Pvt. Ltd.
Panbari, Dharan
27

28. • Waste treatment centre under a PPP model
• In partnership with the World Bank,
Alternative Energy Promotion Centre
(AEPC) under Nepal’s Ministry of Energy,
and Dharan Sub-metropolitan city
• Inaugurated on the occasion of Dharan Day
on 4th Jan , 2022 by PM Sher Bahadur
Deuba
28
Venture Waste to Energy Pvt. Ltd.
PM Sher Bahadur Deuba inaugurating the
Waste treatment plant

29. • Tripartite agreement signed on
Jestha 25, 2074 among:
Dharan Sub-Metropolitian
Alternative Energy
Promotion Center
Venture Waste 2 Energy Pvt.
Ltd.
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30. Modality of Partnership
DBFOT Model
Contract Period: 20 Years
• In this model, the private sector entity is responsible for designing,
constructing, financing, operating, and maintaining a public
infrastructure project for a specific period.
• Once the agreed-upon period elapses, the ownership and operation of
the project are transferred back to the public sector.
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31. Partnerships with different sectors
With Government sectors:
• The World Bank and AEPC provided a financial grant of 6 crore (23%
of the estimated total amount) for the establishment of the project.
• Approved by the Investment Board of Nepal
• Venture Waste to Energy Pvt. Ltd. invested the remaining 20 crore
(77% of the estimated total amount).
• There is no investment from Dharan Sub-Metropolitan.
With private sector:
• Mega Bank is the financial partner of the project
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32. Working Modalities
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33. Local level government
• Collection of waste and
dumping them in the waste
processing center.
(Only 10% of waste
collected are dumped in the
center.)
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34. Venture Waste 2 Energy Pvt. Ltd.
• Conversion of the received waste into
CNG (Compressed Natural Gas);
• Production of Bio fertilizers;
• Additionally, once the production begins,
the waste processing center is required to
pay a royalty of 1% from their gross
income to the Dharan Sub-Metropolitan.
34

35. 01
02
03
Unclear roles of different sectors
(Local government, private
organization)
Ownership and support
from Local government
Challenges
Sustainability

36. To Government of Nepal:
• Need to define clear role of different sector (local level, private sector)
• Addressing issue related to CNG registration process
To waste venture:
• Communication and Coordination with different government sector
• Workers protection health and Safety
• Expansion of their area of work
To Dharan Sub-Metropolitian:
• Segregation of organic and inorganic waste at the source
• Address the related issues and facilitate the discussion
Recommendations
36

37. Conclusion (1)
• Public Private Partnership (PPP, 3P, or P3) is a widely adopted collaborative
arrangement between the public and private sectors.
• PPP is used to jointly deliver healthcare services, develop healthcare
infrastructure, or implement health programs.
• The Nepal Investment Board serves as the focal point for PPP in Nepal.
• PPP in the health sector of Nepal is supported by various policies and strategies.
• It is evident that PPP has helped to fill the gaps in the health sector.
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38. Conclusion (2)
• Venture Waste 2 Energy was established in 2078 B.S. through a tripartite
agreement and operates under a DBFOT partnership.
• During the field visit, challenges observed include unclear roles of different
sectors, sustainability, and ownership and support from the local government.
38

39. References
• https://ibn.gov.np/
• IBN-annual-report-2021
• The public-private partnership PPP initiative in healthcare system as the pathways to achieve
the SDGs in Nepal
• A historic moment for Nepal and its healthcare system • Possible (possiblehealth.org)
• PPP in health care - The Himalayan Times - Nepal's No.1 English Daily Newspaper | Nepal
News, Latest Politics, Business, World, Sports, Entertainment, Travel, Life Style News
• https://thehimalayantimes.com/nepal/work-under-way-to-generate-biogas-from-garbage
• https://www.youtube.com/watch?v=tS6jIA3EQqI
• www.moljpa.gov.np
• Nepal-investment-guide
• Sustainable Development Goals
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