Infrastructure Summit Concludes

PPP proposed for large projects

Kathmandu, Feb. 20:

Clear legal provisions, a competitive environment and value propositions are the key elements in attracting both domestic and foreign direct investment in large infrastructure projects, experts said.

Deliberating on topics like value proposition, financing resilient and green infrastructure, and successful public-private-partnership (PPP) models at the Nepal Infrastructure Summit 2017, they stressed on creating a better investment environment by formulating favourable policies and reforming the existing policies.

"Quality infrastructure is a must to increase productivity in the areas of goods and services. It is equally important to remain competitive in the globalised world," said former finance minister Dr. Ram Sharan Mahat.

He said that the PPP could be an effective model to develop large-scale infrastructure as it combines efficiency, expertise and management skills of the private sector and authority and regulation of the government.

"However, PPP is not a substitute for public sector financing of infrastructure, it’s complimentary," he said.

Former vice-chairman of the National Planning Commission Dr. Shankar Sharma said that as the PPP was instrumental in attracting the right skills and management expertise, promoting innovation, reducing corruption and waste, efficient operations and maintenance, and reducing the burden on taxpayers, Nepal should adopt this model by formulating the necessary policy framework.

"The government should reorient itself from only focusing on projects to efficient service delivery. PPPs can change the role of the government from supplier of services to buyer of services," he said.

Chief Secretary Dr. Som Lal Subedi said that the current government spending on infrastructure was insufficient because the country had been spending only 4-5 per cent of its Gross Domestic Product (GDP) on infrastructure development while 8 to 12 per cent was required annually.

"There should be better designing, implementation and maintenance system for infrastructure development, and there should be better supervision at every step," he said.

Deputy Prime Minister and Minister for Physical Infrastructure and Transport Bimalendra Nidhi said that the government was putting its efforts in creating an investor-friendly environment.

President of the Confederation of Nepalese Industries (CNI) Hari Bhakta Sharma urged the government and political parties to provide an opportunity to the private sector.

He said that if given the opportunity, the private sector was capable of establishing more businesses, creating employment opportunities and leading the country on the path of progress.

Head of Cooperation in the Delegation of the European Union Andreas Rottger said that another 'P' – people – should be added to the PPP; due attention should be paid to the ultimate consumer while developing projects; and the project should ensure benefits to the poor sections of the people in the society.

The two-day summit was organised by the CNI in collaboration with the government and Youth Community of Nepalese Contractors (YCNC).