By Modnath Dhakal
Kathmandu, Dec. 6: Ambassador of the European Union (EU) to Nepal Veronica Cody has said that the European Investment Bank would increase its support to Nepal in the years to come.
"Conflict, political transition and instability had contributed to low investment in Nepal so far. But as the country has embarked on the path of political stability and development, more investment both from the EIB and individual investors will come to Nepal," she said at an interaction with journalists on Thursday.
She said that EIB had expressed its interest to do more in Nepal.
As the EIB has the mandate for external financing and has been heavily engaged in large infrastructure development like metro projects in Pune and Bangaluru in India, the multilateral financing institution is interested to finance large projects in Nepal.
According to Cody, unlike other multilateral financing institution, the EIB has been also engaged in software programmes like awareness and education in democracy and inclusion.
"It may take some time, but investment will come here. Investors don't want any surprises but predictability in policy and processes," she said. "Since Nepal has made a significant departure in terms of investment climate and policy regime, investors from Europe have shown interest to come to Nepal," she added.
But Cody maintained that the government must not discourage foreign investment in Small and Medium Enterprises (SMEs) by announcing the ceiling on the investment size.
The EIB is also partnering with other multilateral agencies like the World Bank and Asian Development Bank in developing transmission lines and hydropower projects for which discussions are underway.
The EU has also said that it would continue its support in sustainable rural development and nutrition, education, earthquake support and trade facilitation – the core areas of its assistance in Nepal.
The Delegation of the EU in Nepal is preparing next seven-year planning, 2020-2027 and reviewing the current programmes being implemented with about 360 million Euros under the Multi-Annual Indicative Program (MIP).
"The delegation is satisfied with the current programme as 93 per cent of the pledged budget is already programmed in Nepal," said Cody.
The EU is facilitating Nepal in the export of coffee. Currently, Nepal’s coffee is taken to other countries, and roasted and packaged there. Cody stressed on doing all value chain activities in Nepal so that more employment could be generated in the country.