Koshi Province Gets Major Budget Boost

Nepal’s federal government has unveiled an ambitious package of infrastructure, energy, sports, tourism, water supply and religious tourism projects for Koshi Province in the budget for fiscal year 2083/84 (2026/27).

The budget places special emphasis on strategic connectivity projects, hydropower development and tourism promotion, aiming to accelerate economic growth in the eastern province.

Infrastructure and Transport

One of the key projects included in the budget is the blacktopping of a 15-kilometre section of the northern stretch of the Koshi Corridor, a strategically important road network in eastern Nepal. The project will be implemented under a broader allocation of Rs 6.25 billion earmarked for three major transport corridors.

To strengthen trade and transportation links with India, the government has also committed to completing the remaining construction work on the Bathnaha–Biratnagar railway and bringing the cross-border rail service into operation.

The budget further proposes upgrading the East-West Highway section from Kakarbhitta to Laukahi into a four-lane roadway, improving connectivity across the province and facilitating regional trade.

Hydropower Development

The energy sector has been given high priority, with the government seeking to establish Koshi Province as a major hydropower hub.

Under the plan, funding sources for the 1,061-megawatt Upper Arun Hydropower Project will be secured, and the tendering process will move forward. The government will also advance financing and development work for the 490-megawatt Arun-4 Hydropower Project.

In addition, the budget pledges continued support and facilitation for the development and implementation of the under-construction Arun III and Lower Arun hydropower projects.

Drinking Water and Sanitation

The government has allocated Rs 2.34 billion for drinking water supply and wastewater management projects in six municipalities, including major urban centers such as Damak in Jhapa and Dharan and Itahari in Sunsari.

The budget also includes plans to bring a water treatment and sewage processing center into operation in Khandbari, Sankhuwasabha district.

Irrigation and River Management

Funding has been allocated for the repair, maintenance and rehabilitation of key irrigation projects, including the Sunsari-Morang Irrigation Project and the Koshi Pump Irrigation System.

A total of Rs 440 million has been earmarked for various irrigation schemes, while ongoing Koshi River management and flood-control programs will continue.

Housing and Urban Development

As part of a housing initiative, the government plans to construct 100 residential units on land owned by the National Housing Company in Mechinagar, Jhapa, and sell them to the public.

The budget also includes plans for an integrated solid waste management project and the reconstruction of government offices and public infrastructure damaged during the Gen-Z movement protests.

Sports Infrastructure

The government has announced plans to complete a multipurpose indoor stadium with a capacity of at least 2,000 spectators in Biratnagar within the next three years.

The budget also includes the construction of a modern cricket stadium in Biratnagar and a review of the design of the Girija Prasad Koirala Cricket Stadium to accelerate its development.

Tourism and Religious Heritage

To promote tourism, the government plans to develop the Tinjure–Pathibhara trekking route in eastern Nepal’s hill region.

A special tourism development program stretching from Koshi Tappu to Kanchenjunga has also been proposed to enhance the province’s tourism appeal.

In addition, the budget aims to develop and promote a provincial religious tourism corridor connecting the sacred sites of Halesi in Khotang, Pathibhara in Taplejung and Chatara Dham in Sunsari, creating a major pilgrimage and cultural tourism circuit in eastern Nepal.

The budget reflects the government’s broader strategy of improving connectivity, boosting hydropower production, expanding tourism infrastructure and strengthening urban services in Koshi Province.