Investment board completes pre-qualification assessment of Rs 1.18 trillion worth projects

The Investment Board Nepal (IBN) claimed that it has completed the pre-qualification process of 14 projects worth Rs 1.18 trillion, out of the 50 projects that the investors showed interest during the Investment Summit 2019 held last March.
The board has already selected the company to conduct detailed feasibility study (DFS) of 756-megawatt (MW) Tamor Hydropower Project, IBN’s chief executive officer Maha Prasad Adhikari informed at a press meet orgainsed by the board today.
Likewise, the board has signed the initial investment agreement with Korean company Motrex to set up a vehicle manufacturing and assembly plant project worth Rs 10.54 billion, he said, adding that of the 77 projects that the government had showcased at the Nepal Investment Summit held in March, investors had submitted expression of interest (EoI) for 31 different projects amounting to more than $25.3 billion. “The board is continuously signing agreements with investors, who had expressed their interest in projects showcased at the investment summit.”
The board has also signed an agreement with a foreign firm to develop the Rs 64.6 billion worth Nepal-China Friendship Park Project in Province 1. “Similarly, the board has inked an agreement with two separate companies to conduct the DFS for developing the Rs 13 billion worth Multi-Model Logistic Parks in Biratnagar, Birgunj and Bhairahawa,” he said, adding that the board – as of today – is in the phase of implementing nine different projects worth Rs 565 billion. “Of this, development of Arun-III hydroelectric project is ongoing, while Hongshi Cement will soon start the second phase of production.”
These projects also include Kathmandu Outer Ring Road Project with a proposed cost of $1.87 billion, Lower Arun Hydro Power Project ($1.3 billion) and Nijgadh International Airport ($3.45 billion). Likewise, the applications for remaining 16 projects were not qualified during the evaluation process. “Similarly, the screening report has been prepared for Kathmandu Sky Train Project ($310 million) and Integrated National Agriculture Infrastructure ($70 million).”
Out of the total applications, the board disqualified 16 proposals and 20 did not receive any applications,” he said, adding that those projects which did not draw any eligible applicants will be still in the 'project list' of the board.
Adhikari, on the occasion, also sought government’s support in addressing few difficult legal processes that has been creating hassles in approving projects in a timely manner.

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.