Risk sources in over-budget, delayed projects of Nepal

Many Nepali projects (roads, hydropower, buildings, irrigation) finish late and over budget. The main sources of risk are:

1. Weak planning and design: incomplete survey, drawings and cost estimate; lack of detailed investigation; unrealistic schedule; many design changes during construction.
2. Land acquisition and compensation: delay in getting the site and right of way, forest clearance, tree cutting and utility shifting.
3. Procurement and contractor problems: lowest-bid awards to weak contractors, abandonment of work, poor capacity, slow bidding process, contract termination.
4. Funding and payment delays: late release of budget, payment delay, shortage of counterpart funds, dependence on donors.
5. Political and administrative factors: frequent change of government and officials, delay in approvals, bandh, local interference, corruption.
6. Natural and geographic factors: monsoon floods, landslides, earthquakes, difficult terrain, remote access and a short working season.
7. Shortage of material and labour: price rise of cement, steel and fuel; transport cost; shortage of skilled labour due to migration abroad; blockades.
8. Weak management and supervision: poor monitoring, lack of coordination between agencies, weak project management skills.
9. Contract and dispute issues: variation orders, claims, arbitration, unclear contracts.
10. Environmental and social issues: delays in EIA and IEE, public opposition, protests by affected people.

Most of these risks are not analysed or planned for in advance in Nepali projects, which explains the cost and time overruns.