Evolving Spatial Planning andDevelopment in Nepal:
Context and Issues

Mahendra Subba, Dr.ing

Regional and Urban Planners Society of Nepal(RUPSON)

Purpose• The purpose of this presentation is to reveal therelevant context and pertinent issues concerning
spatial planning and development in Nepal.
• The aim is to enable deliberation and solicit national andinternational experiences on these issues.
• The outcome is hoped to help MOUD in its current effort
to review its national policies, strategies, and acts.

National Level

Third Plan (1965-1970) and Regional Planning
Functional region• Early spatial planning effort atnational scale was introduced in
the decade of 1960s.
• Division of nation on functional
regions was conceptualized—
based on topography and riversystem.
• The river corridor following
Koshi, Gandaki-Bagmati, andKarnali river systems foundprominence.
• The river corridor is followed
because it serves as source ofpower and eases roaddevelopment.

Fourth Plan (1970-1975) and Regional Planning
Growth Axis
The concept of the GA is to reduce interregional disparity and integration ofnational economy. Development activities
to be promoted along major growth axes:.
• Koshi GA• Kathmandu GA• Gandaki GA• Karnali GA• Dhangadhi-Dadeldhura GA
These GAs are to serve as ribs, while
East-West highway as spinal chord.
East-West link was conceived for hill.
Four Development Regions conceived
in 1972—that became five in late 1970s

Fourth Plan (1970-75) and Regional Planning
Growth Centers

The objective is “creation ofpoly-functional settlements tocater to the diverse needs ofthe hinterland.”• Biratnagar, Birgunj,
Bhairahawa and Nepalgunj,
examples of the Terai towns.
• Dhankuta, Palung, Palpa,
Syangja, and Dailekh, models
for hilly areas.
• Hedangma, Dhunche, Jomsom
and Jumla, examples ofremote areas in the Himalayan
region.

Fifth Plan (1975-80) and Regional Planning
Regional balance• Aim is to remove disparity
between ecological anddevelopment regions• Principle of disaggregation
at the national level andaggregation at the regional
level for productive linkages• Regional policy does notmean “scattering of limited
resources” rather “it is tomaximize national income
through an investment patternthat mobilizes inherent
resources of regions andsocieties”.

NUP (2007): Balanced National Urban System
Functional Economic Region

National Economic CenterTransform development
region into self-contained
and self-reliant economic
region through strengthened
network of cities & towns ofthe NS Highway Corridor.
Network is to be built aroundthe first-order gateway city
Taklakotat terai and interconnected
second-order secondary
towns at the Chure-foothill
Dasarathchandand third-order towns of hill
and mountain regions—feeding to small towns andGaurifanta
market centers of theircatchment areas.

Regional Economic Center
Intermediate Growth Center

Population Growth
Population in 2001

LijiSimikot
Kalikot

JomsomPokharaRupedia

KerungKhasa

RasuwaRiyu
Khadbari

Kathmandu
ValleyNautanuwa

RaxualJogbani

NUDS, 2017

SUSTAINABILITY
URBAN
GOVERNANCE

Vision 2030:
Balanced andprosperous
national urban
systemURBAN
SYSTEM

INCLUSIVITYURBAN
FINANCEURBANINFRASTR.

URBAN
DEVELOPMENTURBANENVIRONMENT

URBAN
LAND

URBAN
ECONOMYURBANINVESTMENTGREENRESILIENCEEFFICIENCYNUDS is not limited to physical development, but aspires to attain a qualitative vision for
future cities that reflect highest value of a society.

Urban System: Strategies
S1: Facilitate higher level
functions and services in major
regional urban centers andprovincial capitals
S2: Improve connectivity
standards
S3: Promote environment,
heritage and tourism friendly
economic functions in KV anddeconcentrate incompatible
functions outside the Valley
S4: Integrate provincial capitals
with the development of(sub)national urban systemUrban infrastructure and Investment: Strategies
S13: Higher order/sharedinfrastructures in large urban
region and corridor throughcluster city approach
S80: Investment in urban
areas of mid and far-west
regions and in underdeveloped
regions of southern terai
towns & inner Terai.
S81: Prioritize investment instrategic small towns,
market centers, bordertowns, district/administrative centers, andnew towns

Urban Governance:
Strategies
S89: Strengthen the role andcapacity of MoUD to provide
sustained technical support
and guidance to provincial
and local level on urban
policies, planning, design andimplementation of upscaleurban sector projects.

Administrative
Area

Numbers

Provinces

7

Municipalities

293

Village Bodies

460

Projecteddensity, 2021

S93: Make town plans basis
for long term development ofurban areas.
S94: Improve the legal basis
for managing large urban
region and corridor

Emerging urban
agglomerations defy
administrative
boundaries

Source: CBS Pop data 2021; Author’s Analysis

Infrastructure Deficit
Infrastructure Deficit

Fund Allocation

Source: Author’s Estimate

Source: Author’s Estimate

Overall investment
requirement for 293
municipalities for the next
15 years could be
staggering at NPR 2,921
billion (USD 24.34 b).
This amounts to NPR
195 billion per year (USD1.62 b) for the next 15years.

appraisal of the urban sectorprograms and budgets of all threetiers of governments reveals
national urban development
budget to be NPR 97.2 billion(USD 810 m) for FY 2020/2021. It
is near 2.5 percent of national
GDP of NPR 3,914.7 billion (USD33.66 billion) in 2019/2020. This
share was 2.6 percent 2016/2017.

Regional Level

Urban Corridor Initiative

Urban Corridor Initiative:
EUC: USD 1.2 b

Provincial Level

Provincial Level Spatial Planning
Urbanization, Rural Development, andSettlement Management Strategies of P1G(Periodic Plan, 2020/21-2024/25):
S1: Cluster small towns and market
centers in the hills and mountain region
and develop regional urban
infrastructures—and integrating theseclusters with the urban corridors.
S2: Transform large urban corridors into
an planned economic region throughcoordinated development and management
S3: Promote integrated development ofmarket centers of rural areas combining
urban infrastructure provisions andlivelihood opportunities.

Province 1
Periodic plan 2020/21-2024/25
Spatial Structure Plan (STP)Schematic map of P1 STP revealing locational potentials

Proposed investment scenario

Provincial Spatial Strategies stress on locational potentials, and the investment be
directed in a manner to unleash these potentials. It seeks collaborative investments.

Local Level PlanningLocal Planning: Green City Dharan (IUDP 2018)
Local planning with finer
spatial grains• 70% Forest Area
• Many Parks andcommunity forest
within city
• Conservation ofgreen areas• Waste segregation
and recycling
initiation- waste toenergy concept• Solar energy
promotion• Rain water
harvesting

Source: IUDP Dharan SMC, 2018/ECoCoDE/DIGICON

Municipalities with IUDPs prepared in 2017/2018
About one third of 293
municipalities and all 460 village
bodies do not have integrated
urban development plans(IUDPs).

Map showing LGs with or without IUDPs.

Of the prepared, thematic plan
period of five years hascompleted--requiring review &update of all IUDPs. Also, newpolitical leadership has come.
The IUDPs suffer inimplementation—due to various
constraints. Different local
planning initiatives are underway
without integration to IUDPs.

Source: DUDBC/MoFALD/Author’s Analysis

Strategic Urban Sector Projects
Average annual spending(2002-2023) of the Centrally
Executed Strategic Projects isabout USD 29m.

Population Change
2011-2021

It is inadequate than theassessed budget of USD 1.6
b required per annum tosuffice existing deficit andnew infrastructure demand forthe period of 2017-2031.
The Terai and Valley focusedinvestment efforts appear to
be not helping to reduce themigration from the hills andmountains.

Major urban sector
investments (2002- )Source: DUDBC, Author’s mappingSelected photographs of UEIP interventions
Bharatpur Bus Park

Source: DUDBC/UEIP

Bharatpur Land Pooling, 40 haSource: DUDBC/UEIP

Selected photographs of STIUEIP interventionsBiratnagar Road Works

Source: ADB

Biratnagar sewer system

Issues affecting spatial planning and development
ISSUE 1: Inadequate institution building for spatial planning anddevelopment• How can we build/strengthen necessary organizational structure,capabilities, and mechanisms to operationalize national policies
and strategies?
• Do we have necessary guidelines and manuals to guide province
and local level in urban policies, planning, and implementation?
• Do we have necessary norms and standards for periodic review
and update of plans and policies?
• Do we have adequate legislative provisions to guide on spatialplanning, approval, development, and growth management of theclustered city region?

Issues affecting spatial planning and development
ISSUE 2: Absence of or weak mechanism to forge coordinationand collaboration between and at all three tiers ofGovernments• What does a workable coordination framework andmechanism look like in the federated structure including Center,Province and Local Level—that enables programmatic information
sharing, planning, and investment?
• How can a horizontal coordination among stakeholders beestablished and strengthened?

Issues affecting spatial planning and development
ISSUE 3: Difficulty in accessing to urban land
• How can production of “serviced” urban land be enhanced ina manner that optimizes an efficient utilization of land?
• How can the role of private sector be organized in theproduction of serviced land?
• What should be the role of Government in the production ofserviced urban land?

Issues affecting spatial planning and development
ISSUE 4: Scaling up urban sector program and budget• How to scale up urban sector budget at all tiers of governments
and assure the quality of impact of investment? The urban sector
budget tends to be inadequate, fragmented, overlapped or
uncoordinated, lagging guidance by plans such as IUDPs/PPs, andis less prioritized at provincial level.
• How to increase investment for urban infrastructures? Specially
how to attract private sector investment: where will their role be likely
and beneficial?

Issues affecting spatial planning and development
ISSUE 5: Lack of IUDPs at local level, and its timely review andupdate. Thematic plans uncoordinated and unintegrated withIUDPs/PPs. The current land classification practices areunhelpful for preserving agricultural land and urban landmanagement.
• How to ensure spatial structure planning at province and IUDPs at local
level mandatory? Lack of IUDPs are failing National and Provincial level
policies and strategies to cascade to local level.
• How to ensure that all local governments (LGs) have their IUDPs prepared andperiodically reviewed and updated?
• How to ensure a mechanism whereby all thematic and strategic planning iscoordinated and integrated with IUDPs of the LGs?

Thank you for your patience!

Organization of the session activities and time
Activities

Time

Responsibilities/ Requirements

Presentation: Context setting and revealing issues

20 m

Mahendra Subba, RUPSON

Query/Clarification/Guidance for breakout session

10 m

Mahendra Subba, RUPSONRUPSON Executives (Arjun, Sanjay, Suman,Gyan, Barsha—Mahendra supports all) facilitateeach breakout group

Conducting 5 breakout groups

40 m

Need a volunteer to support each facilitator
Logistics: meta card (3 colors), color pens, 10boards, brown roll papers, thumb pins

Presentation by the 5 Group Leaders in the Plenary

30 m

Each group selects its leader

Session closing
President RUPSON summarizes key
recommendations

5m

UN Habitat

5m

UN/Habitat expresses thoughts on the session

MoUD10 m

MoUD expresses thoughts on the session

2 hours