Friday, September 1, 2017

IBN, Hongshi to seal deal on Sunday

The Investment Board Nepal (IBN) is planning to sign a project investment agreement (PIA) with Hongshi Shivam Cement on Sunday.
Hongshi Shivam Cement is constructing a cement factory in Nawalparasi at a cost of around Rs 37 billion, which is the largest Chinese investment in domestic cement industry and the second largest after Nigeria’s Dangote Cement, which entered Nepal with a $550-million foreign direct investment (FDI) pledge.
The Nepal-China joint venture company has already started construction of the factory at Sardi in Nawalparasi. "It has currently employed 500-600 Nepalis and 500-600 Chinese workers at the factory site,” according to the Board. "The company will start commercial production by May 2018, if things go according to plan."
The cement factory will have a daily cement production capacity of 6,000 tonnes – some 120,000 bags – according to cement company that is planning to double the production to 12,000 tonnes per day in the next five years.
Hongshi Shivam’s production is also expected to substitute cement import from India.
The company also plans to export cement produced at its plant to India, Pakistan and Sri Lanka.
Once the PIA is signed, Hongshi Shivam Cement, despite being a foreign joint venture, will receive the treatment like a domestic company. The PIA will also oblige the government to help the company acquire the land it needs, and build access road and transmission line to the factory and mining sites, according to the Board.
The Board was planning to seal the deal with the Nepal-China joint venture during Chinese vice premier Wang Yang’s visit to Kathmandu. But the visit concluded on Thursday and the agreement could not be signed as Prime Minister Sher Bahadur Deuba was about to visit India.
The signing of PIA with Hongshi Shivam Cement will be the first signing of mega agreement after the incumbent chief executive officer Maha Prasad Adhikari has been appointed. And it will  be the third major deal that the Board has sealed after its establishment.
Earlier, in 2014, the Board had signed project development agreements with developers of 900-MW Upper Karnali Hydroelectric Project and 900-MW Arun-3 Hydroelectric Project. Both these agreements were signed when Radhesh Pant was the chief executive of the Board. 

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