International Finance Corporation (IFC) — a member of the World Bank Group — entered into a partnership with the government today for implementing the government’s public-private partnership (PPP) programme and PPP infrastructure projects that will help advance basic infrastructure and accelerate economic development in the country.
"IFC's advice and expertise in PPP transactions around the world will be instrumental in enabling Nepal to better structure private participation in public infrastructure projects that are in the pipeline," said chief executive officer of Nepal Investment Board Radhesh Pant.
"It will allow Nepal to reap more benefits from public-private partnerships while ensuring such transactions are fair and transparent," he said, adding that the government is looking forward to particularly build partnerships with the private sector in key priority areas like airports, roads, and tourism.
Under the partnership, IFC will complement existing efforts by the government with support from other agencies for capacity building of relevant officials and enhancement of an enabling environment for public-private partnerships, as well as support the government in project identification, transaction and bid process management.
Most infrastructure projects in critical public utility and social sectors in the country have so far been funded out of the national budget making it difficult for the government to attain desired progress amid many constraints.
Private sector participation in such projects will allow the government to accelerate infrastructure development.
IFC shall leverage its global expertise and incorporate best practices to structure and manage public-private partnership projects in a transparent and sustainable manner in consultation with all key stakeholders.
It has also offered to assist in the development of a regulatory, institutional and policy framework for effective implementation of public-private partnerships in the identified sectors, including development of model transaction documents for specific sectors.
Joint secretary Mukunda Paudyal of Nepal Investment Board and resident representative of IFC Val S Bagatsing signed the agreement here today on behalf of their respective institutions.
"We hope the partnership will help unlock the potential for successful public-private partnerships in Nepal," Bagatsing said after signing the agreement.
"Nepal will benefit from IFC’s global expertise, especially in overcoming the challenges facing the infrastructure, tourism and other thrust sectors," he said.
IFC is an active participant in public-private partnerships to expand access to basic services and the only multilateral agency to offer such advisory series to governments directly. It has the largest public-private partnership advisory portfolio in the world with a successful track record of advising governments on over 165 transactions worldwide since 1989.Likewise, Investment Board — as the leading agency representing the government — was set up in November 2011 as a one-window solution for foreign investors and developers investing in hydro projects of above 500 MW and other infrastructure projects of above Rs 10 billion to fast track projects.