IBN’s role vital for Nepal’s graduation from LDC status: PM Deuba

Kathmandu, Sept. 14

The Investment Board Nepal (IBN) has launched the web-based 'One-Stop Service' (OSS) platform that would facilitate the investors in project registration, getting approval and also get connected with the relevant stakeholders.

Prime Minister Sher Bahadur Deuba launched the new facility at the Sustainable Infrastructure Investment Forum 2022 organised by the IBN in the Capital on Wednesday.

The OSS platform will provide services like visa and labour permit, foreign exchange, facilitation and cooperation required for the project and financial or non-financial facilities as per the laws or agreement.

Likewise, it will support in the access to industrial infrastructure such as approach roads, electricity and transmission lines, approval for environmental studies, leasing government land and forest land, and acquiring private land for the project.

It also helps to make available services of company registration, tax registration, industry registration, approval of the Nepal Rastra Bank, other registrations, licenses and approvals, said the IBN.

PM Deuba also unveiled 'IBN Project Bank Directory' that includes projects in offer for the investors, and feasibility study report prepared by the board for setting up a chemical fertiliser factory in Nepal.

The Project Bank is prepared by the IBN compiling a list of technically and economically feasible investable projects to be implemented in public-private partnership (PPP). The feasibility study report presents a comparative study of operation of fertiliser plant with electrolysis and natural gas.

Speaking at the opening ceremony of the one-day seminar, PM Deuba said that without structural transformation in our economy, the LDC graduation would not be easy and favourable for Nepal.

"The IBN has an important role in this regard to attract investment and support in national development," he said.

He said that Nepal should prepare the methods and means to achieve the goal of zero carbon emissions by 2045 and called on the development partners to increase cooperation to achieve this goal.

The government has also set specific targets to be achieved by 2030. This includes, but is not limited to, generating 15,000 MW of clean energy, construction of 200 km of electric rail network and 2,000 km of rail network and black-topped roads, building five international airports, and attracting five million tourists.

"In order to meet these targets, significant financing is needed to support these sustainability efforts, with public capital alone not being sufficient. It is noteworthy that we have an annual fiscal gap of nearly US$ 6 billion to meet the Sustainable Development Goals by 2030, alone," said PM Deuba.

The GoN has been implementing the 15th Periodic Plan that envisions investment of over US$ 79 billion in the five-year period starting from 2019, of which about 56 per cent investment is expected from the private sector.

 

Investors appreciate policy reforms

Nicola Pollitt, Ambassador of the United Kingdom to Nepal, said that investment in infrastructure, especially reliable energy, is a key for other developments.

"Significant investment in infrastructure is crucial for the next decade. That is why the UK has supported Nepal in this drive and the support will increase in the days to come," she said.

According to her, urbanization and building a net-zero carbon economy could be new areas of investment. She said that Nepal has made significant strides in terms of policy reforms for the attraction of investment and creation of business environment.

Arun Dhiman, Chief Executive Officer of the Arun III Hydroelectricity Project being implemented by SJVN India, praised the IBN for its facilitation in policy and implementation of projects. Arun III and Lower Arun hydroelectricity projects will be completed within the stipulated time, he said.

Hee Woong Kang, CEO of Upper Trishuli 1 Hydroelectricity Project, said that the efforts of the IBN and government of Nepal in removing the barriers to the investment in infrastructure is appreciable. "I can say, environment for investment in Nepal has largely improved over the recent years," he said.

 

Goal is to secure $16 billion by 2026

Sushil Bhatta, Chief Executive Officer of the Office of the IBN, said that the board has successfully attracted investments in clean and green energy projects. US$ 6 billion is in the energy sector alone.

"Key goals of the IBN are to approve investments of at least US$ 10 billion and manage PPP projects of at least US$ 6 billion by 2026, develop IBN as a PPP Centre of Excellence and contribute to improving the investment environment through effective investment promotion," he said.

According to him, to achieve these goals, IBN has adopted four strategies - project development and management, investment promotion, institutional development and coordination, and collaboration and partnership.

Currently, pre-feasibility studies for seven projects representing seven provinces of Nepal are under way and they were demonstrated at the SIIF on Wednesday.

"Operationalization of the web-based OSS system will definitely enhance project facilitation and management process in IBN and increase operational efficiency through saving time and costs of the office as well as of valued investors," said Bhatta.

He also stressed the need for effective coordination, collaboration and partnership between government and the private sector.

 

Reaching out to investors

According to Amrit Lamsal, Spokesperson and Joint Secretary of the IBN, objective is to reach out to the prospective investors in sustainable investors, developers, policy makers, development partners and other concerned stakeholders, and update them about investment climate, policy regime and facilitation.

It also aimed at creating a platform for market sounding of IBN’s PPP Project pipeline including green projects, and presenting and sharing experiences of large-scale investments in Nepal.

So far, IBN has approved 33 projects of about US$ 9 billion. Projects worth Rs. 4 trillion are under planning and implementation phase. Last year, it approved projects with investment over Rs. 122 billion.

Established in 2011 by then Prime Minister Dr. Baburam Bhattarai, IBN is a high-level government body chaired by the Prime Minister, and it functions as a central fast-track government agency established to facilitate economic development in Nepal by creating an investment-friendly environment, mobilizing and managing domestic as well as foreign investments. It organised two investment summits in 2017 and 2019 to attract investment in large infrastructure projects. 

Published in The Rising Nepal daily on 15 September 2022.