IBN receives EoI for 31 projects worth $25.3 billion

Investment Board-Nepal (IBN) has received 48 expression of interest (EoI) for 31 different projects amounting to $25.3 billion.
"Of the 77 projects that the government had showcased at the Nepal Investment Summit held last month, investors have submitted 48 EoIs for 31 different projects," informed IBN chief executive officer Maha Prasad Adhikari today.
As the board has extended the deadline for potential investors to submit their EoI for projects showcased at the summit till May 20, the number is expected to increase. "We are expecting more investors to submit EoIs for different projects as we still have time," he informed, adding that the investors have, though, shown keen interest on various projects, Nijgadh International Airport has received the highest number of EoIs.
Investors are interested on projects related to transport infrastructure as the board has received 22 EoIs for nine transport infrastructure projects, including Bus Rapid Transit (BRT) on Nijgadh International Airport (6 EoIs), Outer Ring Road (4 EoIs), BRT on Ring Road of Kathmandu (4 EoIs), Kathmandu Valley Metro Rail, East-West Electrified Rail, Kathmandu-Pokhara-Lumbini Railways, Kathmandu Sky Train, Samakhusi-Tokha-Chhahare Road (2 EoIs) and Dhangadi Regional International Airport (2 EoIs).
Likewise, the board has received seven EoIs for five agriculture infrastructure projects including Integrated Agri Projects in Urlabari, Hemja, Banepa, Biratnagar and Tillottama.
The board has also received eight EoIs for seven energy infrastructure projects, whereas five EoIs for four projects related to urban infrastructure, apart from some EoIs for tourism, industry, health and education infrastructure projects. "Two investment proposals have been received for two projects of education and health infrastructure, while one application has been received for one industry infrastructure project."
The board, however, has not made identity of applicants public. "The identity will be made public after May 20, the deadline of the extension of the applications," the board said.
The government has extended the time for the submission of EoIs as during the two-day Nepal Investment Summit – held on March 29 and 30 – only above a dozen of projects were signed by the domestic private sector and Non Resident Nepalis Association (NRNA).
The board has categorised the EoIs into three categories. Among the applicants, some 27 projects are in the first category. The board plans to select eligible developers for these projects within three months by August 20, according to the board that will select developers for the projects in second category within nine months by February 20, 2020. Developer of these projects will be selected by reviewing their Request for Proposals (RFP). There are 17 projects in the second category. Likewise, projects in the third category are big and are of complex nature. An expert team or transaction advisory services led by secretaries of concerned ministries will look after these six projects in the category, according to the board that plans to select developers for them within 14 months by August 20, 2020.
The board has also formed a high-level committee – led by secretary at the Office of the Prime Minister and Council of Ministers Sishir Dhungana including joint secretaries from the Ministry of Physical Infrastructure and Transport, Ministry of Energy, Water Resources and Irrigation, Ministry of Industry, Commerce and Supplies and the board – to evaluate and monitor different proposals and EoIs submitted by investors for projects that were showcased at the investment summit.

NOC calls bids from international fuel suppliers

After India refused to send the petroleum products to Nepal – since the last two weeks – Nepal Oil Corporation (NOC) has called global tender to supply fuel to Nepal.
A board meeting of NOC today evening decided to issue a public notice tomorrow calling for global bids from fuel suppliers for 15 days, a source at the state oil monopoly said requesting anonymity.
It is the first time in history that NOC has called global bids from international fuel companies for petroleum supply.
Despite four decades of commercial association and agreement with the Indian Oil Corporation (IOC) – the sole petroleum supplier to the NOC – the latter has failed to supply fuel to Nepal citing security reasons – due to protests in the Tarai-Madhesh – since the past two weeks. While responding to the NOC official's request, the IOC officials said that they have been told not to supply petroleum products to Nepal, though India claims to have not been imposed blockade on Nepal.
IOC has slashed the fuel supply to Nepal by over 90 per cent compared to normal times though NOC has not violated the contract with IOC. NOC and IOC had renewed agreement in 2012. It is valid till 2017. According to the commercial agreement between NOC and IOC, the latter will supply as much as petroleum products NOC needs.
Following the unofficial India-imposed economic blockade, the IOC has refused to supply fuel – including cooking gas – to Nepali tankers and bullets reached in the Indian depots.
Likewise, the Indian customs officials have also been preventing loaded fuel tankers from entering Nepal.
Reeling under acute shortage of petroleum products – after IOC's failure in maintaining smooth supply – NOC has been left with no option other than to call global bids. After the IOC's reluctance to supply fuel that has not only paralysed normal life but has also crippled the economy, the NOC has no option to call global tender, the official said, adding that the NOC is expected to select the fuel supplier to Nepal through a competitive bidding process."
An unofficial blockade by India restricting the flow of oil tankers and trucks into the country has also caused disruptions in transportation and made schools to shut down. Hospitals are also running low on medicine. There could soon be humanitarian crisis, if India does not lift its embargo.
The cabinet had this week directed, the Ministry of Commerce and Supplies, to explore the alternative, in case the IOC does not cooperate. The cabinet had asked the ministry to ease the supply of petroleum products – including aviation fuel, petrol, diesel, kerosene and LPG (cooking gas) for 15 days – as a temporary measure. However, it is high time, Nepal should think of long-term option as the political arm twisting of India through IOC has made the Nepalis suffer a lot. NOC took long time to come to conclusion and look for alternative also due to non-cooperation of the ministry that has never thought of easing supply during the crisis in the past too.
The state-owned oil monopoly has asked the interested bidders to submit their Expression of Interest (EoI) within three days. "NOC wants 200 kilolitre of diesel, 100 kilolitre of petrol, 200 kilolitre of ATF, 200 kilolitre of kerosene and 100 metric tonnes of LPG immediately for 15 days either through land or air route," the bid read.
Earlier this week, NOC had even sent a letter to IOC requesting immediate resumption of regular supply. But the IOC did not heed NOC's request forcing the latter to call for gloal tender to maintain fuel supply.