Over 60% of Nepal’s development expenditure is financed by international aid, with contributions from more than 40 donor countries and numerous multilateral institutions. Bilateral and multilateral aid agencies fund and implement projects in crucial sectors such as health, education, water and sanitation, renewable energy, and infrastructure, often in partnership with the Government of Nepal. These development initiatives operate in a unique legal and regulatory space: aid agencies and their contractors must align with Nepal’s laws (including registration requirements for INGOs, tax and customs exemptions, labor laws, etc.) while also adhering to their own institutional policies and objectives. Additionally, many aid projects involve policy reform components, requiring collaboration with government bodies to draft or amend legislation, build institutional capacity, and promote good governance and inclusive practices.

Gandhi & Associates specializes in providing legal and policy consulting services to bilateral donors, multilateral development banks, UN agencies, and international NGOs operating in Nepal. We leverage our broad expertise across practice areas – from energy and infrastructure to finance, corporate law, and governance – to offer advice that is both legally sound and grounded in practical realities. Our team has been engaged in numerous donor-funded technical assistance projects, advising on legal and regulatory reforms in sectors like renewable energy, financial markets, and corporate governance. We also assist aid agencies and their foreign contractors on operational matters, such as setting up local offices (e.g. registering with the Social Welfare Council or Companies Registrar), obtaining tax exemptions and import permits for project goods, and ensuring compliance with local labor and safety regulations. By combining our local legal knowledge with an understanding of development sector priorities, we help our clients design and implement effective development programs while minimizing legal impediments.

Representative Experience:

• Advised GIZ and GGGI on the design of the Sustainable Electric Transport for Nepal (SET4NPL) program, including legal structuring of an electric mobility fund and associated regulatory frameworks to support the country’s public transportation electrification goals by mobilizing approximately EUR 80 million of private and public funds. Also advised GIZ under its Renewable Energy and Energy Efficiency Programme on drafting the Renewable Energy and Energy Efficiency Bill and Regulations aimed at consolidating and modernizing Nepal’s clean energy legal and institutional framework;
• Collaborated with ICF International to support the World Bank–funded Urban Mobility Project, including technical assistance for the institutional development and operational framework of the newly established Kathmandu Valley Public Transport Authority;
• Engaged by the International Finance Corporation (IFC) to identify regulatory hurdles and recommend legal reforms to promote high-end hospitality investment in Nepal, culminating in a comprehensive report used for policy advocacy with the Government of Nepal;
• Served as legal advisors for the Asian Development Bank (ADB) on its Corporate and Financial Governance Project (2003–2019, approx. USD 7.3 million). Our work included strengthening the capacity of key financial institutions (such as SEBON, the Nepal Stock Exchange, the Office of the Company Registrar, and the Central Depository System) and improving legal infrastructure by helping establish the National Judicial Academy, a legal information center, and a secured transactions registry;
• Advised numerous foreign contractors/suppliers of aid agencies (including projects under USAID, FCDO/DFID, and IFC) on establishing a local presence and tax compliance in Nepal – for example, guiding organizations like Chemonics, ICF International, Bixal, and SafetyNet through entity registration, visa/immigration requirements for expatriate staff, and securing tax exemptions for donor-funded activities; and
• Advised United Nations agencies on a range of operational legal issues in Nepal, including compliance with local labor laws (hiring and contracting personnel) and occupational health and safety regulations for development projects, ensuring that UN programs run smoothly within the domestic legal framework.