PM Oli underscores private investment for prosperous Nepal

Kathmandu, Sept. 12

Prime Minister KP Sharma Oli has said that Nepal needed private investment to improve the economy. "Our policies and practices are perfectly aligned to welcoming private investments in Nepal. The government is always ready to provide handholding services to investors, whether they are national or international," he said while addressing the Nepal Infrastructure Summit 2024, jointly organised by the Confederation of Nepalese Industries (CNI) and the Ministry of Physical Infrastructure and Transport (MoPIT) in the Capital on Thursday.

According to him, the government is always ready to collaborate with the private sector for infrastructure growth. We can together build better transmission lines, better roads, better and livable cities, he maintained.

"The government and the private sector should be able to work together in building infrastructure in Nepal. I think we need to explore different alternatives in financing a number of infrastructure projects. For instance, we need to find out ways in harnessing financing instruments to build our infrastructures through private sector participation," said PM Oli.

According to him, infrastructure is the spine of the country's economy and the foundation upon which the future is built.

"It is not merely the physical framework upon which our cities and communities stand, it is also clean energy and industry infrastructure which promote sustainable development," he said. "For too long, our roads, bridges, and public transit systems have been neglected. We have seen the consequences of this neglect: increased traffic congestion, delayed goods and services, and a growing divide between those who have access to reliable infrastructure and those who do not," PM Oli said. 

He also mentioned that clean energy, IT and urban infrastructure have also been neglected for quite a long time which has hindered Nepal's growth process.

"Creating infrastructure is about creating jobs. Infrastructure also strengthens our communities, enabling businesses to thrive, and ensuring that every Nepali can access opportunities, no matter where they live," he said.

"We know that we need good roads, strong power transmission infrastructures, well-organized and sustainable cities, and better aviation infrastructure. These are my government's priority," he added.

Stating that these infrastructures should be environmentally sustainable, Prime Minister Oli said that though the infrastructure development is a top priority, the government alone cannot fulfill such huge infrastructure needs. "The private sector needs to walk hand in hand with the government for materializing this shared vision toward Prosperous Nepal and Happy Nepali," he said.

Dr. Bindu Lohani, former Vice President of the Asian Development Bank and infrastructure expert, said that Nepal needs infrastructure equity fund for the development of mega projects in this sector. Currently, the country lacks the financial capability to make investment in large infrastructure projects and a consortium of multiple banks and financial institutions is needed even to finance a 100 megawatt hydroelectricity project, he said.

Raekwon Chung, Nobel Laureate and Board Member of the Ban Ki-moon Foundation for a Better Future, said that right policy and active leadership is more important than the money. "If you have a right policy, money and technology will come to you."

Speaking at a session on 'regional connectivity' at the summit earlier, Minister for Physical Infrastructure and Transport, Devendra Dahal, said that Nepal is for proceeding ahead with the BBIN Motor Vehicle Agreement, and priority is accorded to promote inter-country trade and economic growth. According to Minister Dahal, 57 projects are being developed with foreign aid while private investment is given top priority in infrastructure development.

Likewise, former ambassador of Nepal to India, Dr. Shankar Sharma, said that although the South Asian region is a large area in terms of geography and population, it is the least connected and integrated region in terms of infrastructure development. He stated that without greater transport connectivity, regional trade wouldn't grow. For it, the countries should give priority to the development of rail and water transport, integrated check posts and digital connectivity.

Speaking at the inaugural session of the two-day summit, President of the CNI, Rajesh Agrawal, said that Nepal needs to accelerate its efforts in its drive toward infrastructure financing to fulfill its Sustainable Development Goals by 2030.

"We need huge investment in our critical infrastructures such as in energy, transport, and urban infrastructure. This year’s summit provides us with a renewed opportunity to explore innovative strategies, discuss cutting-edge technologies, and chart out a roadmap that will lead us toward green, resilient and sustainable infrastructure ecosystem," he said.

According to him, the summit will explore the importance of sustainable infrastructure practices, emphasizing the need for projects that are not only environmentally friendly but also socially and economically viable over the long term.

Likewise, the sessions on Friday will address the challenges and opportunities within the country’s particular sectors, be it transport, construction, waste management and others. One of the sessions will also focus on the role of provincial and local governments in infrastructure development, stressing the need for better coordination between the national and local levels to improve service delivery and project execution. 

Published in The Rising Nepal daily on 13 September 2024.