Nepal Invests launched to accelerate investment in Nepal

 CDC Group, the UK’s development finance institution, FMO, the Dutch development bank and Swiss Agency for Development and Cooperation SDC jointly launched a platform, Nepal Invests that will drive increased investment into the country.

The group comprising of Development Finance Institutions (DFIs) and a development partner, will complement existing efforts to attract more investments and advance the development of the country, by channelling efforts to unlock the possibilities of investing patient, flexible capital to support private sector growth and innovation – helping to solve the biggest development challenges in Nepal, accortding to a press note issued by the SDC.

The Covid-19 pandemic has challenged the world, it reads, adding that for Nepal, it is clear that there will be significant economic pressure as a result of potentially volatile remittance inflows, and a surge in demand for finance at a time when the crisis has significantly reduced access and option of capital for SMEs. "Nepal Invests will support the economic recovery from Covid-19 in multiple ways; partnering to address business environment challenges, exploring innovative ways to finance SMEs and increasing the skills and capacity of local investment professionals."

These measures are designed to better prepare Nepal’s market for increased investment from development finance institutions, frontier players, and intermediate vehicles in order to support the medium-term economic recovery, it adds.

Nepal Invests represents a ground-breaking collaboration between DFIs and development partners in the country, reflecting shared objectives to support business growth, strengthen investment and accelerate Nepal’s economic recovery from COVID-19. The platform intends to mobilise additional supporting projects and contributions from other DFIs and development partners, whilst engaging closely with the needs of the Nepali private sector.

"CDC is an active investor in Nepal, we want to encourage more foreign direct investment (FDI) into the prospering nation," managing director and head of Asia at the CDC Group Srini Nagarajan said, adding that they are delighted to partner with FMO and the Swiss government in the unique collaboration between DFIs and development partners in Nepal that aims to attract foreign capital into the country. "The role of DFIs has been important in Nepal and will remain important after Covid-19, to support green growth and economic transformation."

"We hope to play an even stronger role in the future, he added. "I am hopeful this initiative will help us deepen our contextual understanding, forge partnerships and enable us to do more."

"FMO has played a pioneering role for development finance in Nepal," manager capacity development officer at FMO Andrew Shaw said, adding, "With our support to Nepal Invests, we hope to accelerate investment in the country and to support foreign investors to increasingly focus on Nepal."

"As part of Nepal Invests, FMO is committed to support the Nepali private sector to raise its environmental and social standards together with local stakeholders, and to facilitate the adoption of international ESG practices to create a level playing field between companies and improve access to DFI funding in the country," Shaw added.

Likewise,  ambassador of Switzerland to Nepal Elisabeth von Capeller, on the occasion, said that Switzerland is a long-standing development partner of Nepal and is committed to supporting Nepali small and medium enterprises to grow and contribute to Nepal’s economic development. "Attracting and mobilising private investments will be key in achieving the economic transformation agenda that Nepal has set for itself and the Swiss Agency for Development and Cooperation SDC is delighted to partner with CDC Group and FMO to support the Nepal Invests platform which will contribute to preparing the Nepali market for greater investments," she said, adding that the initiative also sets a precedent for future collaborations of this nature between development partners and development finance institutions to contribute towards Nepal’s economic advancement.

The platform is managed by Nathan Associates, in Kathmandu, Nepal.

The partnership was formed following a joint-DFI stocktaking mission to Nepal in January 2020. This mission was coordinated by SDC and SIFEM, and is a part of a collective effort by IFC and CDC (the DFI Fragility Forum) aimed at promoting private investments and jobs creation in fragile or politically complex contexts. Participation included DFIs such as CDC, FMO, Proparco, SIFEM, and IFC; as well as Development Partners such as the ADB, EU, FCDO, SDC, and the World Bank.

Power Summit to start tomorrow

The seventh edition of Power Summit is scheduled to kick off here from tomorrow.
Being organised by Independent Power Producers’ Association, Nepal (IPPAN), the two-day event with the theme of ‘Powering the Asian Century’ – will take stock of the present situation and look ahead to future possibilities of export and regional integration and connectivity of power, according to the organisers.
President of IPPAN Shailendra Guragain informed that more than eight agreements will be signed with different governments and private firms during the summit. “More than 750 participants – including from Bangladesh, Bhutan, China, India, Norway, South Korea, Canada, Netherlands, the United Kingdom, United States, and Japan – are expected to take part in the event,” he said, adding that this year the summit will focus on cross-border electricity trade, energy markets, regional electricity market regulation, financing, inclusive and sustainable development of power projects, governing and facilitating energy projects, attracting investments, and will also feature project showcase to highlight current activities in the sector within and outside the nation.
According to IPPAN, minister of Water Resources of India Gajendra Singh Shekhawat and minister of State for Power, Energy and Mineral Resources of Bangladesh Nasrul Hamid will be the key speakers at the summit.
There will be speakers from Nepal, India, Bangladesh, China and Norway, including chief investment officer from Netherlands Development Finance Company (FMO), director general of Asian Infrastructure Investment Bank, director of Indian Energy Exchange, Guragain said, adding that other noted speakers will be from Power Trade Corporation (PTC) India and Bangladesh Power Development Board.

IPPAN plans agreements in Power Summit

Independent Power Producers’ Association-Nepal (IPPAN) is going to sign eight agreements with foreign firms and lender companies during the Power Summit scheduled to be held in Kathmandu on November 21-22.
According to the IPPAN, National Hydroelectric Power Corporation, India and Hydroelectricity Investment and Development Company Ltd, Nepal will ink a hydropower development agreement. Likewise, Nepal Power Exchange Ltd and Indian Power Exchange Ltd and Power Cell Bangladesh will also sign an agreement on the occasion.
“Women in Power Forum and International Finance Corporation (IFC), Nepal Bankers’ Association (NBA), IPPAN and Netherlands Development Finance Company (FMO), Investment Board Nepal and Power China will also sign a pact to construct Tamor Reservoir Project,” IPPAN press note reads, adding that the GMR Group of India and Bangladesh will also sign power trade agreement (PTA) of Upper Karnali Hydropower Project.
Some of the agreements are in negotiation phase and will be made public during the summit, according to president of IPPAN Shailendra Guragain, who thinks the summit is expected to create a platform for regional cooperation for power trade through various discussion sessions. The summit is also expected to explore new markets as well as expansion of power trade within and beyond the border.
According to the organiser IPPAN, experts from Nepal, China, India, Bangladesh, Bhutan, Japan, the Netherlands, United States, Canada, and Norway will participate during the two-day event. With the theme ‘Powering the Asian Century’, the summit – being organised under the patronage of Ministry of Energy, Water Resources and Irrigation – witnesses over 700 guests from various countries are expected to participate during the summit.
Guragain said that the experts are scheduled to deliver their deliberations on a number of topics including regional power trade, electricity market, regulation, and financing, sustainable development, execution and facilitation of the energy projects in the federal structure, foreign investment in hydropower and among others.

Nine international lenders to invest $453 million in Upper Trishuli-1

After a long homework of around decade, Nepal Water and Energy Development Company Private Ltd (NWEDC) today signed a foreign direct investment (FDI) agreement with a consortium of nine international lenders agreeing to inject $453 in debt financing for the construction of 216-MW Upper Trishuli-1 (UT-1) Hydropower Project.
Representatives from IFC, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Export-Import Bank of Korea (K-EXIM), Korea Development Bank (KDB), CDC Group PLC (CDC), Netherlands Development Finance Company (FMO), PROPARCO Development Financial Institution, and the OPEC Fund for International Development (OFID) signed the financial agreement of $453.2 million – approximately Rs 51.30 billion – for the loan financing of Upper Trishuli-1 Hydropower Project.
Arranged by IFC, the loan agreements were signed to provide a total amount of $453.2 million for the project. “Loans amounting to $161.3 million from IFC, $60 million from ADB, $39.6 million from AIIB, $100 million from K-EXIM, $30.8 million from KDB, $21.9 million from CDC, $15.4 million from FMO, $11 million from PROPARCO, and $13.2 million from OFID have been provided for the project,” according to a press note issued by the Investment Board Nepal (IBN).
Speaking at the agreement signing ceremony, minister for Energy, Water Resources and Irrigation Barshaman Pun said that the project is a game changer as it serves as an example of how the private companies could help Nepal expand its hydropower sector and attract the much needed FDI.
Assuring of the support, assistance, and coordination needed to expedite the process to meet the timeline set by project development agreement (PDA) for the financial closure, he claimed that the project will be an example for foreign investors.
Located in Rasuwa district, the project will generate annual energy of 1,533 gigawatt per hour (GWh) from three power generating units of total installed capacity 216 MW. “Total 38.75 per cent of the annual capacity will be generated in dry season and the remaining 61.25 per cent will be generated in wet season,” according to the press note, which reads that the delivery point of such energy generated is the under-construction Trishuli-3B Hub substation in Nuwakot. The project site is located near the Kathmandu load center and can provide a firm power of 104 MW all round the year.
During the signing ceremony, Prime Minister KP Sharma Oli – in a video message – said that it is one of the largest FDI projects of the country. “The project is important as additional 9 million people will benefit as the project comes into operation,” he said, adding that it will also prove crucial to support the government’s plan to end poverty and foster the economy. “The government urges foreigners to invest in such mega projects wholeheartedly.”
The project includes 29.5-metre high dam in Trishuli River, 9.7 kilometer-long headrace tunnel, 292- metre high vertical pressure tunnel and an underground powerhouse.
Addressing the signing ceremony, finance minister Dr Yuba Raj Khatiwada said that the project is a pilot project for bigger projects. “We are working on creating investment friendly regulations and have been very clear about the PPA policy including PPA in US dollar terms,” he said, adding that land and forest acquisitions have been made very simple to attract the investment.
Upper Trishuli-1 is the first project in South Asia to successfully complete the process of Free Prior Informed Consent (FPIC) from the local people in the project area.
The construction of the project will be done based on a fully wrapped engineering, procurement and construction (EPC) contract. A joint venture of Korean firms — Daelim Industrial Co and Kyeryong Construction Industrial Co — will carry out main construction works of the project that is scheduled to be completed is 5 years.
According to NWEDC, the construction of the project will start after the approval of the
Financing Agreements by the central bank and after the fulfillment of other conditions in the signed Financing Agreement documents. Earlier, the company had seen a funding oversubscription with nine multinational lenders offering a loan of $631 million against the $453 million required in debt finance.
“There is no question that Nepal has the potential to be an energy powerhouse,” chief executive officer of NWEDC Bo-seuk Yi, said, on the occasion. “To realise that promise, Nepal can enlist the help of private companies, which have the capital and expertise to make major projects a reality,” he added.
Likewise, director of infrastructure finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty said that the agreement is a landmark transaction that will provide strong incentives for further private sector investment in Nepal’s energy sector.
To ensure it provides sustainable benefits, Chakraborty said that this project will adopt international best practices in safeguards management and will also introduce measures to promote gender equality, including job opportunities for women and better access to education, health care, amenities, and infrastructure.
On the occasion, IFC director for South Asia Mengistu Alemayehu said that the project represents a significant milestone in the development of Nepal’s hydropower potential as it has been able to attract meaningful private sector participation, particularly from international investors.
In July, the cabinet decided to extend the tax holiday to the company a few weeks after the anti-dollar alliance – Asian Infrastructure Investment Bank (AIIB) – approved its first $90 million loan to the project, raising eyebrows over the government’s decision to give tax holiday for the company, which has a dollar PPA with the power utility.
The project development agreement of the project was signed on December 29, 2016 while the power purchase agreement between NWEDC and Nepal Electricity Authority (NEA) was signed in January 2018.
When the NEA signed a power purchase agreement with Nepal Water and Energy Development Company a year ago to purchase the electricity generated by the project, the state-owned power utility agreed to pay in US dollars for a period of 10 years or until the portion of the investment made with foreign loans is recovered by the developer, whichever comes first.
After the row over hedge fund, the developer agreed to provide 17 per cent of the energy to the power utility free after 14 years and the government and electricity authority agreed to contribute two-thirds of the amount to the hedge fund.
According to the provisions, the company will be exempted from 100 per cent of income tax for the first 10 years of commercial operation and 50 per cent exemption for an additional five years.

ADB signs $60 million private sector deal to build hydropower plant

The Asian Development Bank (ADB) has signed a $60 million financing package with Nepal Water and Energy Development Company (NWEDC) to help build and operate a 216-megawatt (MW) run-of-the-river hydropower plant on the Trishuli River near the capital. The project will enhance Nepal’s energy security by helping to utilise its renewable hydro resources and reduce imports of electricity, according to ADB press note.
The agreement for the Upper Trishuli-1 Hydropower Project was signed by the Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty and NWEDC’s chief executive officer Yi Bo Seuk at a ceremony in Kathmandu today. The project is one of the largest private sector investments in Nepal to date.
The financing comprises a loan from ADB and a loan from the ADB-administered Canadian Climate Fund for the Private Sector in Asia II (CFPS II). CFPS II was established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific. CFPS II funding was integral to the project’s financial viability as it helped attract private capital currently unavailable in the market.
“This is a landmark transaction that will provide strong incentives for further private sector investment in Nepal’s energy sector,” Chakraborty said, adding that the project will adopt international best practices in safeguards management and will also introduce measures to promote gender equality including job opportunities for women and better access to education, health care, amenities, and infrastructure to ensure it provides sustainable benefits.
The project has been prepared in compliance with international environmental and social standards. Detailed studies by international experts have assessed alternatives, impacts, and proposed mitigation measures representing global best practice in hydropower development.
ADB is cofinancing the project with other multilateral development banks and development finance institutions including the International Finance Corporation (IFC); Export–Import Bank of Korea; Korea Development Bank (KDB); Asian Infrastructure Investment Bank (AIIB); Commonwealth Development Corporation (CDC); Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden NV (FMO); OPEC Fund for International Development; and Société de Promotion et de Participation pour la Coopération Economique S.A.
Once operational, the plant is expected to provide over 1,200 gigawatt-hours of clean electricity annually to the national grid. The project is aligned with ADB’s operational priorities outlined in Strategy 2030, notably to eradicate remaining poverty; reduce inequalities; tackle climate change; build climate and disaster resilience; and enhance environmental sustainability.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members, 49 from the region.

IFC, partners provide more than $450 million for Upper Trishuli-1

International Finance Corporation (IFC) – a member of the World Bank Group – and a consortium of other lenders today finalised a $453 million debt financing package that will support the construction of a landmark hydroelectric plant in central Nepal.
The plant – Upper Trishuli-1 – will increase Nepal's electricity supply by one-third from today’s levels and provide clean, reliable power to some 9 million people, part of a larger effort by IFC to create markets and fight poverty in the country.
IFC is the lead arranger of the debt package, which includes eight other lenders, and is one of the largest foreign direct investments (FDI) in Nepal’s history. The financing is being provided to the privately-owned Nepal Water and Energy Development Company. The firm will develop and operate a 216-megawatt (MW), run-of-the-river hydroelectric plant on the Trishuli River about 70-km north of Kathmandu. Officially known as Upper Trishuli-1, the project’s financing structure, competitive tariffs, and use of internationally accepted contract standards is expected to set a standard for future hydropower projects in Nepal.
“This project is a game-changer for Nepal," said energy minister Barshaman Pun, during the signing ceremony of the financial closure. “Not only will it power hundreds of thousands of homes and businesses, but it will also serve as an example of how private companies can help Nepal expand its hydropower sector and attract much needed foreign direct investment,” he added.
Nepal's rivers – fed by runoff from the Himalaya Mountains – could support 43 gigawatts (GW) of electrical generation capacity. But less than three per cent of that has been developed as of today. As well, the country has suffered from blackouts and brownouts, hampering businesses and making life difficult for residents.
"There is no question that Nepal has the potential to be an energy powerhouse," said the chief executive officer of the Nepal Water and Energy Development Company Bo-Seuk Yi. “To realise that promise, Nepal can enlist the help of private companies, which have the capital and expertise to make major projects a reality,” he added.
The new hydroelectric plant is expected to be completed in 2024. Along with providing clean, reliable power to millions, it will set new environmental and social-impact benchmarks and enhance benefits for local communities. Furthermore, a cumulative impact assessment of existing and planned hydropower projects has been completed for the Trishuli basin, which will help guide sustainable development in the watershed.
“This project represents a significant milestone in the development of Nepal’s hydropower potential as it has been able to attract meaningful private sector participation, particularly from international investors,” said IFC director for South Asia Mengistu Alemayehu. “It also shows the unprecedented resilience and commitment by the government, the sponsors, and other stakeholders against all odds over the years,   including a major earthquake,” he said, adding that the development partners expect the project to become a model for expanded investments in developing Nepal’s hydropower to meet the growing domestic demand and export to the neighboring countries.
IFC and a consortium of Korean and Nepali partners, in collaboration with the Government of Nepal, have spent over seven years developing the Upper Trishuli-1 project, which is a prime example of IFC’s ability to create markets through upstream project preparation work over many years in low-income countries.
The Nepal Water and Energy Development Company’s key owners are Korea South-East Power, Daelim Industrial, Kyeryong Construction Industrial, and IFC. IFC is providing $190 million in financing, including $95 million of equity and loans from its own account, and $95 million as the implementing entity for other funding sources. The Multilateral Investment Guarantee Agency (MIGA) – yet another member of the World Bank Group – will provide $135 million in guarantees to cover political risk for the sponsors. Other financiers include the Export and Import Bank of Korea, the Asian Development Bank (ADB), the Asian Infrastructure and Investment Bank (AIIB), the Korea Development Bank (KDB), the United Kingdom’s development finance institution, Commonwealth Development Corporation (CDC), the Dutch Entrepreneurial Development Bank,Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden NV (FMO), the OPEC Fund for International Development, and Proparco.
Because of its unique development impact, pioneering features, and demonstration to private investors, the project also includes support from the International Development Association’s (IDA) Private Sector Window, a global facility of concessional funds to support high-impact private sector investments in lower-income countries, the Finland-IFC Blended Finance for Climate Program, and the Climate Investment Funds.
As part of the record $75 billion IDA18 replenishment, the World Bank Group created the $2.5 billion IDA Private Sector Window to catalyze private sector investment in the poorest and most fragile countries. Recognising the key role of the private sector in achieving IDA18 objectives and the Sustainable Development Goals (SDGs), the window provides concessional funds for co-investment alongside IFC and Multilateral Investment Guarantee Agency (MIGA) private investments. Concessional funds help to mitigate risk and reduce barriers, which unlocks and crowds in private investment in emerging markets.
Likewise, IFC – a sister organisation of the World Bank and member of the World Bank Group – is the largest global development institution focused on the private sector in emerging markets. “We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most,” the agency said, adding that it delivered more than $19 billion in long-term financing for developing countries – in the fiscal year 2019 – leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

Canada grant supports UN ESCAP’s project to help women entrepreneurs in Nepal

Global Affairs Canada, in partnership with the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and the Government of Nepal, held a consultation today related to a new initiative to support the growth of women entrepreneurs as a strategy to address poverty reduction, improve social well-being and promote sustainable economic growth.
The five-year project titled, ‘Catalyzing Women’s Entrepreneurship: Creating a Gender-Responsive Entrepreneurial Ecosystem’ aims to create an enabling policy and business environment that enhances women entrepreneurs’ access to capital through innovative financing mechanisms as well as increase their use of ICT and digital solutions.
In September 2018, Global Affairs Canada announced a $13.9 million grant to ESCAP, over five years (2018-2023) for projects that aim to reduce the barriers women-owned micro, small and medium-sized enterprises (MSMEs) in South Asia, Southeast Asia and the South Pacific face in growing their businesses. For example, access to finance is a key barrier that the project will address through the use of innovative financing mechanisms, such as impact investing and women`s bonds.
More than 110 policymakers, MSME representatives and other stakeholders participated in today’s national consultation on integrating women’s needs and considerations into policy and other initiatives supporting entrepreneurship, financial inclusion and creating an enabling environment for businesses.
“Promoting gender equality and empowering women and girls is the most effective approach to achieving sustainable development goals,” said acting deputy ambassador of Canada to Nepal Amanda Strohan. “However, women entrepreneurs continue to face barriers,” she said, adding that tackling the unique challenges faced by women entrepreneurs will require innovative approaches, including novel financing mechanisms and technologies. “Canada is pleased to support the Catalysing Women’s Entrepreneurship project to provide women-owned enterprises in Nepal with the resources, skills and an enabling environment needed to grow their businesses and generate sustainable and inclusive economic growth.”
“Developing women’s entrepreneurship presents an invaluable tool for boosting Nepal’s economy as well as empowering women,” said UN under-secretary-general and executive secretary of ESCAP Armida Alisjahbana. “Yet women’s entrepreneurship is hindered by lack of access to finance and ICT tools for business development,” she said, adding that the case for investing in women’s economic empowerment is compelling. “Women are true agents of change whose innovations can lift companies, communities, and countries. Together, governments, the UN, civil society and the private sector can improve women’s and girls’ prospects.”
During the consultation, ESCAP and the UN Capital Development Fund (UNCDF) announced the winners of the project’s Women Fintech MSME Innovation Fund and thanked the Government of Canada, the Dutch Development Bank (FMO) and Visa Inc for their support to this initiative.
Nepal’s Aeloi Technologies and Khalti (Sparrow Pay) were among the 10 winning innovative business models.
In recent years, Nepal has made significant progress regarding its socio-economic status. However, it is estimated that women own only three per cent of MSMEs and face various barriers to entrepreneurship. These barriers include, amongst others, limited access to finance and ICT infrastructure, lack of financial and business knowledge, and discriminatory social norms.
The Canada Fund for Local Initiatives announced a total grant of $77,900 to three projects to be implemented by civil society organizations in Nepal this year. The projects include reducing incidences of sexual and gender-based violence in Godavari Municipality in Nepal through transformative behavioural change, including awareness-raising, training and advocacy; to be implemented by Prerana. Likewise, decreasing violence and discrimination against LGBTIQ+ people in Nepal through sensitisation workshops, capacity building, media messaging, and local stakeholder coordination meetings; to be implemented by Blue Diamond Society, and promoting the adoption of climate smart agriculture practices among female smallholder farmers of Kageshwori Manohara Municipality through integrated training and establishment of resource centres/demonstration sites of Climate Smart technologies; to be implemented by Small Earth Nepal.

UN’s Asia-Pacific Trade and Investment Committee convenes amid global trade uncertainty

Against the backdrop of uncertain trade relations between the United States and China, senior government officials from across Asia and the Pacific gathered in Bangkok this week to re-iterate their commitment to strengthening regional trade and investment.
Convened by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) from March 11 to 15, the Asia-Pacific Trade and Investment Week is a regional platform to discuss issues of importance to trade and investment for ember states. A key event of the five-day meeting is the sixth session of the Committee on Trade and Investment, which provides guidance to ESCAP on its work on bolstering trade and investment cooperation. Delegates engaged in thematic deliberations, including discussions on the implications of rising protectionism for the region, the benefits of trade digitalisation, navigating non-tariff measures for sustainable development, and the pivotal role of science, technology and innovation policies.
Opening the Committee, ESCAP executive secretary Armida Alisjahbana said that ESCAP analysis shows that regional integration can be a powerful stabilising force, and could offset economic losses caused by international trade tensions.
Addressing participants, director-general of the Trade Policy and Strategy Office at the Ministry of Commerce, Thailand Pimchanok Vonkorpon highlighted that, “ESCAP can be a bridge among countries with different backgrounds, needs and experience on trade and investment development that is changing rapidly." She added that ESCAP can play a crucial role in forging cooperation and collaboration in the future.
A record number of 30 member states also attended the intergovernmental steering group on cross-border paperless trade facilitation, which made progress on shaping regional and national action plans to accelerate trade digitalisation in Asia and the Pacific. The preliminary results for the region of the UN Global Survey on Digital and Sustainable Trade Facilitation were reviewed and block chain and other frontier technologies explored to reduce the use of paper documents in trade transactions and boost regional integration.
Among the highlights of Trade and Investment Week was the ‘soft’ launch of ESCAP’s Trade Intelligence and Negotiation Advisor (TINA), an automated online platform that is designed to assist, particularly developing and least developed countries, with often complex trade negotiations. Future extensions of TINA may include legal provisions, non-tariff information, product-level estimates of trade mis-invoicing and resultant tax revenue losses, and the impact of LDC graduation and quantifying impact of tariff reductions.
Another highlight was the launch of the Women Micro, Small and Medium-sized Enterprises (MSME) Fintech Innovation Fund. The Fund will support the expansion of innovative digital and fintech solutions for women-led MSMEs. Implemented as part of a five-year, Canada-funded ESCAP project which aims to support the growth of women entrepreneurs in Asia and the Pacific, the fund is hosted by the United Nations Capital Development Fund’s (UNCDF) Fund Facility investment mechanism, and also has financial support from the Netherlands Development Finance Cooperation (FMO).
"The Women MSME Fintech Innovation Fund contributes to SDG5 by providing support for greater financial inclusion for women including their access to capital, markets and business development services," ambassador of Canada to Thailand Donica Pottie said, adding that the Fund is aligned with Canada’s feminist development policy and Canada is pleased to support the Fund’s work to support innovation to allow women to grow their businesses, improve their lives, and contribute to their families and communities.
"We will be working to co-fund creative solutions that truly address the specific barriers women MSMEs face," UNCDF SHIFT programme manager Rajeev Kumar Gupta said, adding that they look forward to working with the next generation of innovations to impact women MSMEs in the Asia-Pacific region with innovative digital and fintech solutions changing the landscape of how MSMEs operate.

IFC, FMO Invest in hospitality

The International Finance Corporation (IFC) – a member of the World Bank Group – has invested $2.75 million in Nepal Hospitality and Hotel Pvt Ltd to develop the new 3-star hotel, Fairfield Marriott at Thamel in Kathmandu. In addition to its own investment, IFC has mobilised a further $2.75 million investment from FMO, the Netherlands-based development bank. The 115-room hotel is operated by international chain Marriott under its Fairfield brand, and is the first internationally-branded, professionally-managed mid-market hotel in Nepal.

This initiative of IFC and FMO will help in building skills of those employed in the sector and contribute to the development of local supply chains, and thereby support significant employment in ancillary industries as well, according to IFC.
International-standard hotels like the Fairfield Marriot property help emerging markets like Nepal attract business and leisure travelers, managing director of Nepal Hospitality and Hotel Pvt Ltd Gaurav Agrawal, said, adding that investments that support vital economic industries like tourism will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to travellers’ needs.
The Fairfield Marriott Hotel will help increase Nepal’s capacity in the mid-market hotel segment, create jobs, and promote energy-efficient hotel design, and is expected to stimulate tourism and support the economy. It will also help build skills of those employed in the sector and contribute to the development of local supply chains. State of the art construction principles have been implemented by adopting green building design in order to increase energy and water-efficiency measures, which will serve as a model for replication across the industry.
International-standard hotel like the Fairfield Marriott property help emerging markets like Nepal attract business and leisure travelers. Investments that support vital economic industries like tourism, will send a strong signal to international investors that Nepal is poised for growth and is an attractive destination that continues to cater to traveler’s needs.
According to IFC, it remains committed to promote such development in Nepal as the country and industry recover from the impacts of the 2015 earthquake. IFC’s tourism investments promote development of critical infrastructure in places where there is often a shortage and send a positive signal to other investors.
IFC also pledged to invest in hotels and tourism especially in low-income and fragile conflict-affected countries like Nepal, which contributes in strengthening their economy.