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COVID era holding centers worth Rs 2 billion turn into costly ghost structures

April 21, 2026
6 MIN READ

Holding centers built at eight border points during the pandemic remain unused and are slowly deteriorating due to lack of clear operational plans

Holding Center built on 33863.13 square meters of Biratnagar Jute Mills property. All Photos: Anil Shrestha
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BIRATNAGAR: About four kilometers south of the Office of the Chief Minister and Council of Ministers at Roadshesh Chowk in Biratnagar, Morang, lies an expansive compound within the Biratnagar Jute Mills. Roughly 100 meters north of the Armed Police Force Border Security Post stands a cluster of white structures with blue rooftops spread across 33,863.13 square meters. This is the 1,000 beds Holding Center, built in haste by the government at significant cost during the COVID-19 pandemic.

Upon entering through the main gate, three large blocks come into view. The first houses a kitchen equipped with 15 dining units. At the center stretches a long row of 22 buildings designed as isolation wards, each with a capacity of 50 beds. The final row consists of 22 toilet facilities.

Despite its imposing exterior, the interior presents a stark contrast. Basin pipes outside the toilets have deteriorated due to prolonged exposure to sun and rain, while several basins have become unusable without ever being put into service. Plastic materials and other fittings inside the isolation wards have degraded to the extent that they are beyond restoration. The structure, built at an estimated cost of Rs 290 million, is now gradually being overtaken by neglect and cobwebs.

Unused Holding Center located within Biratnagar-16

The federal government commissioned the construction through the Army to manage infected and suspected individuals entering Nepal from India during the pandemic. The project was completed in 2021 by Hanuman Construction. However, nearly four years since its completion, the facility has neither accommodated patients nor been repurposed for any alternative use.

Constructed on the premises of Biratnagar Jute Mills at a cost of Rs 289.1 million, the prefab structure now remains idle, awaiting both utilization and maintenance. With no human activity, infrastructure components, including taps and water tanks, have begun to deteriorate. Although the Koshi Province Government previously discussed converting the facility into a hospital, the proposal did not progress beyond deliberation.

Basins outside toilet facility

“The state’s investment has been wasted, like pouring water onto sand,” said Santosh Lama, a local resident of Biratnagar Metropolitan City 16. “At the very least, the buildings should have been used for some temporary purpose. Because they remain unused, the materials are decaying on their own.”

A platoon of the Army is currently deployed to secure the premises, preventing theft of materials. “If the army had not been stationed there, pipes, zinc sheets, and window panes would likely have been stolen,” said Uddhab Bhujel, Ward Chair of Biratnagar 16. “But there is little point in keeping the army there solely as guards. The facility needs to be brought into operation as soon as possible.”

While security has been maintained, the structure itself continues to degrade. Cracks have begun to appear in the prefab walls, and zinc sheets are peeling away. Should an emergency arise requiring immediate use of the center, substantial additional investment would be needed for repairs.

Toilet facility inside the Holding Center

Morang Chief District Officer Yubraj Kattel said a study committee formed by the Ministry of Defense prior to his tenure has already submitted its report to the government. “The study committee has already submitted its report,” he said. “However, no decision has yet been made regarding its operation.”

An identical mess in Jhapa

The situation is not limited to Biratnagar. A similar pattern of neglect is evident in Jhapa, where another holding center, constructed at an estimated cost of Rs 250 million on the banks of the Hadiya River in Mechinagar Municipality 14, remains unused.

“It is disheartening that such a large structure is deteriorating without being utilized,” said Gopal Chandra Budhathoki, Mayor of Mechinagar. “We have repeatedly urged the government to make use of it. We have proposed converting it into a drug rehabilitation facility or a training center, but a decision from the central government has yet to materialize.”

Collapsed wall on the west side of the Holding Center

In Jhapa alone, 22 permanent buildings constructed during the COVID-19 period for holding purposes, along with 1,000 oxygen cylinders, remain idle. Nationwide, the government had spent approximately Rs 2 billion to build similar holding centers at eight border points. Facilities in Gaddachauki in Kanchanpur, Gauriphanta in Kailali, Jamunaha in Banke, Belahiya in Bhairahawa, Krishnanagar in Kapilvastu, Kakadvitta in Jhapa, Birgunj in Parsa, and the Rani area of Biratnagar in Morang are all currently out of operation.

Indra Mani Parajuli, minister for internal affairs and law of Koshi Province, attributed the underutilization of these state-funded infrastructures to poor coordination among government bodies.

“Coordination between the federal and provincial governments is essential for effective implementation,” Parajuli said. “Many initiatives carried out without such coordination have now resulted in systemic challenges. The core principle of federalism lies in coordination, cooperation, and coexistence among federal, provincial, and local levels. The absence of these elements has led to the current complications.”

Care and oversight by the Army

In response to the nationwide spread of COVID-19, then Prime Minister KP Sharma Oli directed the Army around April 2021 to construct 1,000-bed temporary hospitals, referred to as holding centers. As per the Cabinet decision on April 26, 2021, the Army was assigned responsibility to build these facilities in Gaddachauki, Gauriphanta, Jamunaha, Belahiya, Krishnanagar, Kakadvitta, Birgunj, and Biratnagar.

Armed Police Force Border Security Post situated ahead of the Holding Center

Army spokesperson Raja Ram Basnet said the Army continues to oversee and secure all holding centers across the country. “The Army is currently providing security and supervision at all constructed sites,” he said. “A committee formed by the Ministry of Defense has already visited these locations and collected necessary feedback. The modality for operation will be determined following a decision at the ministry level based on that report.”

According to Sabita Aryal, the Ministry of Defense has formed a committee to assess the nationwide operation of holding centers, which has already prepared a preliminary report. “Once the committee’s report is finalized, decisions are expected to be taken at the ministry level,” she said. The committee inspected all eight sites and compiled its findings in the fiscal year 2024/25.

Tara Niraula, vice chairperson of the Koshi Province Planning Commission, emphasized that infrastructures built with substantial public investment should not be left idle. “The central government must move beyond simply shelving reports and immediately formulate operational procedures,” he said. “Either the federal government should assume full responsibility, or authority and adequate resources should be delegated to the provincial level.”

“If empowered with the necessary authority and budget, the province can repurpose these facilities into health centers, training institutes, or educational establishments based on local needs,” Niraula added. “Even relying solely on the recommendations of the study committee formed nearly a year ago, these structures could be revived and given a new purpose.”