Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

Page 67

Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth

● Poorly designed roads. Many roads have design flaws such as narrow width lane, lack of safety barriers, lane markings or drainage systems, thin or low-quality surfacing). Increased vehicles traffic, heavy trucks and monsoon rains lead to quick deterioration and surface cracks and potholes. During rainy season the risk of landslides or floods that may block roads, is significantly increased. (WFP n.d.) ● Inequitable spatial distribution of road facilities. Most of the strategic road networks are concentrated in the lowland. In hill areas, one-third of residents walk more than four hours to reach an all-season road and this is worse in the mountain regions (Paudel 2019). Poor road infrastructure makes transport risky and causes prices of basic commodities to increase significantly during rainy season.

5.3

Unreliable electric/power utilities

A greater percentage of respondents in Karnali suffer from unreliable electric power utilities than in Lumbini and Province 2. Among the three provinces, Karnali has the lowest electricity access at 34.5%. Electricity access in Province 2 and Lumbini is at 99.05% and 91%, respectively (MoPID 2021). Industrial estates and SEZ in these provinces have suboptimal performance due to electricity problems among others.

Figure 25. Extent that unreliable electric utilities hinder business growth

Incidence of power outages in 2020 was higher compared to the last four years. The outages were attributed to ‘forced load-shedding’ to meet the demand. (Ghimire 2021). Others attributed the outages to poorly maintained transmission lines and low water level in rivers (Kumar 2020).

February 2022

46


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Figure 39. Extent that limited internet connectivity hinders growth of tourism enterprises

1min
page 99

Figure 38. Extent that decline in tourist spending / tourist volume hinders growth of businesses in the Tourism Sector

1min
pages 97-98

Figure 37. Extent that high tax rate hinders business growth in the Construction Sector

2min
page 94

Figure 36. Extent that getting a business license is a problem for enterprises in the Manufacturing Sector

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page 87

Figure 35. Extent that corruption hinders business growth of enterprises in Manufacturing Sector

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page 86

Figure 32. Extent that insufficient supply of raw materials hinders business growth of Agribusinesses

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page 78

Figure 33. Extent that limited access to storage facilities hinders business growth of Agribusinesses

1min
page 80

Figure 34. Extent that customs and trade regulations hinder business growth in the Manufacturing Sector

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pages 84-85

Figure 31. Extent that lack of testing laboratories hinders business growth of Agribusinesses

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page 77

Figure 30. Extent that customs and trade regulations hinder business growth of Agribusinesses

3min
pages 74-76

Figure 23. Extent that high cost of transportation hinders business growth in the three provinces

2min
page 65

Figure 26. Extent that high cost of power utilities hinders business growth

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page 68

Figure 29. Indicative value added per worker per province

4min
pages 70-73

Figure 25. Extent that unreliable electric utilities hinder business growth

1min
page 67

Figure 17. Breakdown of respondents in manufacturing sector by number of workers, 2017 & 2021 35 Figure 18. Breakdown of respondents in the Tourism Sector by annual sales: 2017, 2019, and 2020

3min
pages 57-59

Figure 24. Extent that poor accessibility hinders business growth

1min
page 66

Table 9. Number of enterprises located in Province 2 by focus sector, 2018

4min
pages 43-44

Figure 3. Distribution of Construction and ICT enterprises by province

1min
page 30

Figure 5. Breakdown of respondents by major market

1min
page 34

Figure 10. Percentage contribution of each province to GDP, 2019/20

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Figure 9. Providers of financial services

2min
pages 38-40

Figure 8. Sources of funds for business expansion

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Figure 7. Sources of funds for purchase of fixed assets

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Figure 6. Sources of working capital

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page 35
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