Rs. 100 bn investment approved for four energy projects

Kathmandu, Apr. 5: The Investment Board Nepal (IBN) has approved investments worth almost Rs. 100 billion for energy projects. The 57th meeting of the Investment Board held Thursday under the chairmanship of IBN and Prime Minister Pushpa Kamal Dahal 'Prachanda' has approved investment for 166 MW Super Tamor Hydropower Project, 42 MW Upper Modi 'A' Hydropower Project, 250 MW Solar Project and 139.2 MW Lower Manang Marsyangdri Hydropower Project.

According to the IBN, an investment of Rs. 34.59 billion has been approved for the 166 MW Super Tamor Hydropower Project and Rs. 10.08 billion for the 42-megawatt Upper Modi 'A' Hydropower Project.

Similarly, the Board has approved an investment of Rs. 21.10 billion for 250 MW Solar Power Project to be constructed in Kohalpur and Banganga and Rs. 33.41 billion for 139.2 MW Lower Manang Marsyangdi Hydropower Project.

Among the said projects, the 250 MW Solar Power Project and the Lower Manang Marsyangdi Hydropower Project are foreign investment ones.

The meeting constituted a negotiation committee under the chairmanship of the Chief Executive Officer of the IBN to negotiate with the developer for the project development agreement for two energy projects- 327 MW Upper Marsyangdi-2 Hydroelectric Project and 250 MW Solar Power Project (Kohalpur and Banganga).

In addition, the meeting has formed a working group under the coordination of Joint Secretary of Office of the Investment Board Nepal to study the matter related to additional investment of Huaxin Narayani Cement Project and submit a report within 15 days.

According to the IBN, the meeting has decided to submit the first report submitted by the high-level committee to study the compensation of the entrance route Chyangkuti to Diding road section of Arun-III Hydroelectric Project for decision.

Likewise, the Board has decided to approve the withdrawal of foreign investors' money according to the approved Share Purchase Agreement (SPA) of the Dang Cement Project.

In addition, it has been decided to extend the term of the committee formed to study the Tamor Reservoir Hydropower Project and the Nijgadh International Airport Project's blueprint and project development and investment framework until mid-July 2024.

The meeting made a decision to advance the process for institutional strengthening of the Office of the IBN according to the report submitted by the committee formed to prepare the amendment draft of the Public-Private Partnership and Investment Act, 2075.

In regard to the Integrated Waste Management Project (Package I) of Kathmandu Valley, the Investment Board has directed to proceed with the process for the project development agreement with NepWaste Pvt. Ltd. in accordance with the Public-Private Partnership and Investment Act, 2075 and Regulations, 2077 in coordination between the concerned local levels.

In the meeting, Prime Minister Prachanda has said that he has given priority to amending the law to bring in investment as per the commitment made by them.

Prime Minister Prachanda said that he has given priority to the amendment of laws for the mobilisation of domestic and foreign investment in the country's infrastructure and service sector.

He emphasised that the message should be spread so that the investors know that there is an investment environment in Nepal.

"We are holding the meeting on the eve of the investment summit, at this time our mechanisms need to convey the message that there is a favourable investment climate in Nepal," said Prime Minister Prachanda. "Our service delivery needs to be transparent, fast and efficient. Ministries, departments and offices should be result-oriented. Investors should know that the work of government agencies is result-oriented.”

Highlighting the role of IBN to attract investment in big projects, Prime Minister Prachanda emphasised on the need to mobilise private investment on a large scale in the changing situation.

"In a short time, transformative infrastructure should be built and faster economic growth achieved to transmit hope to the people," he said. "After the decision of the Board, the ownership of the members is imperative to make the decisions effective, for this they will take additional steps."

Emphasising the need to develop an environment of public-private partnership within the country, Prime Minister Prachanda directed all agencies to pay attention to the decisions of the Board that can make the PPP projects effective.

"Public-private partnership projects are of a different nature. The government has also made various commitments in the project development agreement," Prime Minister Prachanda said. "If the decisions and implementation of the project are delayed, compensation will have to be paid, which will cost the country. So take extra responsibility in these matters.”

He said that expertise should be provided to other agencies of the government as well as the provincial and local levels on how to work in a result-based framework in public-private partnership projects.

In the meeting, CEO of IBN Sushil Bhatta made a detailed presentation regarding the status of implementation of the decisions of the previous board meeting, the activities being carried out according to the strategic pillars of the Board, and the preparations for the upcoming investment summit.

In the meeting, the Finance Minister and the coordinator of the Steering Committee of the Investment Summit presented brief information about the state of preparation of the conference so far.