Infrastructure and construction projects form the backbone of Nepal’s development agenda. In recent years, there has been a strong emphasis on building and upgrading roads, highways, bridges, airports, water supply systems, and urban infrastructure to support economic growth and improve connectivity. Additionally, significant investments are being funneled into large-scale projects such as hydropower plants, telecommunication towers, and even new cities or industrial zones. Given the scale, cost, and public importance of these projects, the infrastructure sector is one of the most closely scrutinized and regulated industries in Nepal. Projects typically involve coordination with multiple government agencies (e.g., Department of Roads, Civil Aviation Authority, public utility commissions, etc.) and must comply with comprehensive regulations covering procurement (if government contracts are involved), environmental and social safeguards, building codes, labor laws, land acquisition and rights-of-way, among others. Furthermore, infrastructure projects are inherently complex, long-term, and often subject to unforeseen challenges – such as landowner disputes, contractor-performance issues, political changes, or force majeure events – which can give rise to legal disputes or necessitate contract adjustments.

Gandhi & Associates has been at the forefront of advising on infrastructure and construction initiatives in Nepal, representing project developers, contractors, financiers, and government entities. We provide end-to-end legal support for project development, from initial project structuring and bidding to financial close and construction. Our services include reviewing and drafting tender documents and bid submissions, negotiating EPC (Engineering, Procurement and Construction) contracts, consortium agreements, and public-private partnership (PPP) agreements. We ensure that contracts clearly allocate risks related to delays, cost overruns, performance, and unforeseen events, in line with Nepali law and international standards. Our lawyers are well-versed in regulatory compliance relevant to construction: we assist in obtaining construction permits, ensuring adherence to local building codes and safety regulations, and securing any required approvals from local municipalities or central authorities. During project implementation, we advise on day-to-day issues such as contract management, variation orders, extension of time claims, and community relations, aiming to prevent disputes where possible. If disputes do arise, Gandhi & Associates is highly experienced in infrastructure dispute resolution – whether through mediation, Nepali arbitration (for example, under the Arbitration Act) or international arbitration (for cross-border contracts), or litigation in courts. We have successfully handled cases involving construction delay claims, payment disputes, calls on performance bonds, and termination of contracts. By combining technical understanding of construction processes with legal acumen, we strive to keep our clients’ projects on track and legally protected throughout their life cycle.

Representative Experience:

• Represented two major Indian infrastructure contractors in separate litigation matters involving tax withholding disputes with Nepal’s national electricity utility. Both cases arose from the implementation of high-voltage transmission line projects and involved claims related to VAT exemptions and income tax applicability on foreign contractor payments;
• Advised a Chinese state-owned construction company on resolving performance issues with a Nepali subcontractor during execution of a large infrastructure project. Our role included contract enforcement analysis and negotiation strategy, leading to an amicable resolution that preserved project timelines;
• Provided legal and regulatory guidance to a Chinese state-owned enterprise involved in national road upgrade projects in Nepal. Our engagement covered labor law compliance, contractor obligations under domestic legislation, and claims for additional compensation due to mid-project design modifications;
• Successfully represented a Chinese engineering and construction firm in lifting a court-issued stay order affecting an airport expansion project. Our intervention helped demonstrate regulatory compliance and enabled the resumption of critical construction works without significant delay;
• Advised a leading Indian power transmission conglomerate on market entry strategy for Nepal’s transmission infrastructure sector, including legal due diligence on regulatory frameworks, project bankability assessment, and government liaison for proposed cross-border grid projects; and
• Supported a Chinese contractor engaged in a national transmission line contract funded by Nepal’s power utility, advising on contract administration, local compliance, and maintenance of constructive working relationships with government stakeholders.