Investment Board aims to approve $10 billion investment in five years

 Kathmandu, Sept 8

The Investment Board of Nepal (IBN) has launched a five year Strategic Plan (2021-2026) with a business plan to approve investment worth US$ 10 billion in the next five years.

Prime Minister Sher Bahadur Deuba launched the plan at a ceremony organised on Wednesday to mark the 10^th anniversary of the IBN. The fast track one-door investment facilitation agency was established in 2011.

The plan targets to manage Public Private Partnership (PPP) projects of about US$ 6 billion and is prepared with the aim of moving ahead fighting the adverse situation created by the COVID-19 pandemic, natural disasters like floods and landslides and other challenges.

It also encompasses other goals including helping to create at least 100,000 employment in five years, contributing to improved investment climate through effective investment promotion and develop IBN as an excellence centre of PPP.

According to the IBN, the plan also has the four pillar concept of project development and management, investment promotion, institutional development, and coordination, collaboration and partnership.

PM Deuba also unveiled Nepal Investment Guide 2021 and Coffee Table Book of the IBN on the occasion.

 

Focus on prosperity

He said that with the political issues settled, the country focuses on the economic growth and prosperity.

"We have realized the need of private sector investment in national priority projects, including infrastructure. Therefore, public private partnership is being promoted," he said. "Nepal aims to be a middle-income country by 2030 and achieve the Sustainable Development Goals, therefore we need a huge investment in infrastructure."

According to the PM, to meet the SDGs, the country has the annual fiscal gap of Rs. 558 billion on an average which should be bridged with the private sector and foreign direct investment (FDI).

He expressed the commitment of the government to revising policies and processes to facilitate investment.

"Before the COVID-19 pandemic Nepal had achieved a high growth trajectory of above 6 per cent for three consecutive years. I am hopeful that we could repeat that trend in the post-COVID scenario as well," said PM Deuba.

He also maintained that the major political parties were on the same wavelength in terms of achieving the economic growth and development through the mutual cooperation of the public, private and cooperative sector. "However, we need private sector investment in key priority sectors," he said.

 

34 projects of Rs. 700 billion

The IBN has developed a project bank of 34 projects and about Rs. 700 billion investment has been confirmed for 27 projects, said Sushil Bhatta, Chief Executive Officer of the IBN.

Large projects – 900 Megawatt Arun –III Hydroelectricity Project in Sakhuwasabha district, Hongshi Shivam Cement in Nawalpur, Huaxin Cement in Dhading, Waste Processing Centre in Sunsari and Upper Karnali Hydroelectricity Project at the border of Achham, Dailekh and Surkhet – are being facilitated by the board.

Likewise, nine projects have received approval for the survey and study. These are: Upper Marsyangdi-2 Hydroelectricity Project, Muktinath Cable Car, Dolma Fund Management, Vehicle Manufacturing and Assembly Plant, Special Economic Zone, Private Freight Terminal and Bulk Handling Facility, Industrial Park, Multimodal Logistic Park and Tamor Hydroelectricity Project.

 

Policy implementation is key

Speaking on the occasion, Minister for Finance, Janardan Sharma said that although the country was creating investment climate, it is important how it facilitates investors and solves the challenges they are facing. "The government will pay enough attention to resolving the problems faced by the investors," he said.

According to him, groundwork for investment-friendly policies has been set. Nepal has formulated good policies for the same but their better and effective implementation is key to attracting investment.

He suggested to apply 4P (Public private and people partnership) in order to implement the large infrastructure and development projects smoothly.

"The IBN should reach out to all potential investors in domestic and international market. Next 10 years will be more crucial for the IBN and Nepal in terms of investment and development," said FM Sharma.

Minister for Energy, Water Resources and Irrigation Pampha Bhusal said that energy is key to Nepal's socio economic priorities so the government has accorded priority to it.

Saying that Nepal intends to produce 3000, 5000 and 15000 MW electricity in the next 3, 5, and 10 years respectively, she said that it will create a good opportunity of investment for the national and international private sectors.  

Minister Bhusal also said that the government is working to incrase per capita energy consumption to 700 kw in next seven years and 1500 in a decade.

 

IBN to be PPP excellence centre

CEO Bhatta said that the IBN would be developed as an excellence centre of PPP that will offer expertise to the federal, provincial and local governments.

"With a decade-long expertise, the IBN is capable of bearing the responsibility of project facilitation and play a role in the long-term national development," he said.

Regional Director of the World Bank, Guangzhe Chen, said that Nepal could be a destination for cost effective investment in hydro and other sectors. He also assured Nepal of the World Bank's support in its development efforts.

Likewise, President of the World Association for PPP Units and PPP Professionals, Ziad Alexandre Hayek, suggested Nepal for eco-friendly undertakings.

"Nepal has successful track record in developing small scale water supply infrastructure in collaboration with the community, private sector and even non-government organisation, we have much to learn from this in PPP sector," he said. 

Ambassador of the United Kingdom to Nepal Nicola Pollitt appreciated the role of IBN during the adverse time of the pandemic. "Despite the challenges of COVID, economic downturn, IBN has continuously involved in its duties to attract investment and facilitate the investors," she said.

Published in The Rising Nepal daily on 9 SEptember 2021.