Project Governance and Performance in Federal Road Infrastructure: A Study of Nepal's Strategic Road Network

Abstract

Federal road projects in Nepal consistently experience delays, cost overruns, and implementation failures despite established governance frameworks. This study examines the relationship between project governance mechanisms and performance outcomes in Nepal’s federal road construction sector. Using a mixed-methods approach combining Relative Importance Index (RII) analysis of survey data from 30 construction professionals, key informant interviews with six project stakeholders, and document review of three federal road projects, the research identifies critical governance gaps affecting project performance. Findings reveal that poor inter-agency coordination (RII = 0.853), inadequate grievance redress mechanisms (RII = 0.787), and political interference (RII = 0.653) are the most significant barriers to effective project governance. The study contributes to the literature on infrastructure governance in developing countries by demonstrating how institutional fragmentation — exacerbated by Nepal’s federal transition — undermines project performance. Policy recommendations include establishing dedicated coordination mechanisms, strengthening grievance redress systems, and enhancing institutional capacity within the Department of Roads.