Mega park, logistics and hydel projects get IBN go ahead

Kathmandu, Aug 2

The Investment Board of Nepal (IBN) has approved the investment of Rs. 64 billion in China-Nepal Friendship Industrial Park in Damak of Jhapa.

Lhasa Economic and Technology Development Zone, Jing-Ping Joint Creating Construction Project Development Company Limited is investing to develop the facility.

The 39^th meeting of the board held at Singhadurbar on Friday also gave permission to Damak Clean Industrial Park Pvt. Ltd. to prepare the Detailed Project Report (DPR) of the industrial infrastructure.

Likewise, the meeting led by Prime Minister KP Sharma Oli approved the Multi Model Logistics Park proposed to be developed in Biratnagar and assigned CG Logistics Pvt. Ltd. to conduct the feasibility study of the park. CG Logistics and Sharaf Group of the United Arab Emirates (UAE) had signed a Memorandum of Understanding, at the Nepal Investment Summit 2019 in March, to build the park.

Similarly, Railway Linked Private Freight Terminal project in Janakpur has also got approval. Green Infrastructure Pvt. Ltd. will conduct the feasibility study of the project.

The meeting has decided to ask sealed proposal from the two companies which had shown interest in developing 756 MW reservoir-based Tamor Hydroelectricity Project.

Among many companies that had expressed their intent to invest in the project, two joint-venture companies of the Hydroelectricity Investment and Development Company Limited (HIDCL) and Power Construction of China Limited, and Power Qatar Holding LLC and Fuju Electric Company Limited, Japan.

All the projects that got IBN approval were showcased at the Investment Summit earlier this year.

PM Oli directed the IBN and line ministries to expedite the process of project selection and implementation process.

“The responsible ministries and agencies must put their efforts to make the process faster and facilitate the foreign and domestic investors,” he said.

Chief Executive Officer of the IBN Maha Prasad Adhikari had updated the meeting about the projects the board had been facilitating.

He said that the IBN would continue to give approval to other projects screened by a technical evaluation committee.

A project evaluation committee comprising of technical team from the IBN and representatives from the concerned ministries has recently concluded the screening of the proposals for the projects showcased in the summit submitted by the investors during and afterwards the summit.

Of the 50 government projects presented at the summit, investors have applied for 31 projects. The IBN has received the investment commitment of Rs. 3.1 trillion in those projects from the investors of about 21 countries around the globe. 22 projects from the private sector were also displayed at the summit.

It received 71 applications for the 31 projects. Some projects like Tamor Hydroelectricity had witnessed multiple investment applications with a couple of them having up to seven proposals.
The projects were screened on the basis of the financial capability of the applicant company and their past experience.

Earlier, the IBN had approved investment in Freight Station Bulk Handling Terminal in Butwal and Birgunj, World Buddhist Exhibition Park in Lumbini and 550 MW solar projects in seven provinces where Indian-Nepali joint venture, Chinese and Philipino companies are investing. These projects were proposed by the private sector.

Following the investment summit, the government had set April 20 as the deadline for investors to apply for their choice of project among the 77 ventures showcased at the mega convergence. The date was later extended to March 20.

Published in The Rising Nepal daily on 3 August 2019.