Chinese investment in Damak Industrial Park

By Modnath Dhakal

Kathmandu, Mar. 29: Chinese investors are investing in a modern industrial area, Clean Industrial Park, in Damak municipality of Jhapa district in south-east Nepal.

The Chinese investment is being channelised through the 'One Belt One Road (OBOR)' initiative.

"The detailed project report (DPR) of the park is in the final stage, and the land acquisition process is underway, said Bhaskar Raj Rajkarnikar of OBOR International Trade Platform Nepal Committee, an international non-government organisation established here as a national coordinating agency to collaborate with similar organisations from other countries in the OBOR network.

“Most of the industries in the park will be established with Chinese investment," he added.

According to him, the DPR will be completed in a couple of months.

However, he said that it was too early to announce the amount of foreign direct investment (FDI) that would come to the park.

About 700 bigahas of land have been acquired for the industrial park with support from the municipality office.

Rajkarnikar appreciated the effective coordination shown by the municipality office in acquiring the land and said that the park would be expanded to 2,200 bighas.

Although the nature of the industries to be set up in the park has not yet been finalised, most of the industries will be of a manufacturing nature and export-oriented.

The DPR of the park was initiated a couple of months after a memorandum of understanding (MoU) was signed between the two countries in Chengdu during the visit of former Prime Minister KP Sharma Oli to China in 2016.

The agreement was signed by Rajkarnikar, who is also advisor to the Park, and executive director of OBOR Jong Chaohui.

Former Prime Minister Oli, Minister for Foreign Affairs Kamal Thapa, Minister for Finance Bishnu Poudel and Minister for Commerce Deepak Bohara as well as Chinese ministers and high ranking officials had been present at the MoU signing ceremony.

Rajkarnikar said that the industries in the park would follow international standards in that they would be eco-friendly in set up and operation.

The Ministry of Industry confirmed the development of the park.

More than 22,000 Chinese manufacturers are connected with the OBOR network through 100 centres in China.

"OBOR had helped us during the Nepal Investment Summit earlier this month. It has also pledged to support us in establishing a business platform in Nepal and displaying Nepalese products online and offline in China," said Rajkarnikar.