Nepal Investment Summit concludes with signing of key agreements
KATHMANDU: The two-day Nepal investment Summit 2024 concluded in Kathmandu on Monday, marked by the signing of significant agreements and laying the groundwork for increased investments in the country. The active participation of both domestic and foreign investors, coupled with notable outcomes, underscores Nepal's appeal as an attractive investment destination, according to Sushil Bhatta, Chief Executive Officer of Investment Board Nepal (IBN).
During the investment summit, approximately a dozen agreements were signed through memoranda of understanding, advancing the concept of public-private partnership (PPP). Additionally, over 30 foreign delegations held separate meetings with ministers from various related ministries, as reported by the IBN CEO.
On the first day of the Summit, three agreements were signed. BLC Holdings and Yotta Data Services Pvt Ltd India entered into an agreement for collaboration in data centre construction and operation. The signing took place between BLC Holdings Managing Director Megha Chaudhary and Yotta's Chief Executive Officer Sunil Gupta.
The second agreement, signed on Sunday, was between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the National Chamber of Commerce and Industry Malaysia (NCCIM). This agreement aims to promote bilateral trade and investment. FNCCI President Chandra Prasad Dhakal and NCCIM President Tan Sri Son Thain Lai were the signatories.
Similarly, FNCCI also established an agreement of cooperation with the Federation of Malaysian Manufacturers.
On the second day of the summit, a bilateral cooperation agreement was reached between the World Association of PPP Units and PPP Professionals (WAPPP) and the Nepalese Association of PPP (NAPPP). This agreement focuses on promoting Public-Private Partnership (PPP) in Nepal. WAPPP President Ziad Alexandre Hayek and NAPPP Chairperson Anup Kumar Upadhyay signed the agreement.
The agreement outlines mutual cooperation, knowledge exchange, and experience sharing related to PPP. Both organizations have committed to enhancing physical infrastructure and the PPP pipeline in Nepal, promoting international best practices in PPP projects, implementing joint programs, organizing meetings, summits, and seminars, and preparing joint publications.
Additionally, a second Memorandum of Understanding (MoU) was signed between Saakha & Co and the BOAR Group of Hotel China.
Furthermore, two MoUs facilitate private sector collaboration to attract investment from Chinese companies to Nepal. Separate MoUs were signed between Nepal's NexGen Management Solutions Private Limited and China's MABC Investment Private Limited, as well as FNCCI and China's Donggaun Jinyang Lighting Product Company Limited.
The Third Investment Summit has also secured Australian investment for a modern resort in the Rara Lake area of Mugu district. The Expert Group of Australia will invest in the resort.
An MoU for this investment collaboration was signed by Badri Aryal and Sanjeev Sharma on behalf of the Expert Group, and by Abhisek Bikram Shah representing Rara Holdings Resort Pvt Ltd.
The resort, to be constructed on an 80-ropani area at Murmatop in Chhayanath Rara Municipality-9, Mugu district, will receive an initial investment of approximately Rs 700 million in the first phase, followed by around Rs 400 million in the second phase.
Similarly, the Federation of Nepalese Industries and Commerce (FNIC) and the Indian Industries Association (IIA) have signed a Memorandum of Understanding (MoU) for bilateral cooperation. FNIC President Khimlal Bhandari and IIA Chairperson Anuj Kumar Garg executed the MoU on behalf of their respective organizations. The MoU aims to promote cooperation and mutual interests in investment, trade, and industrial development.
Likewise, during the Summit, investments worth Rs 9.13 billion have been approved by the Department of Industry for various projects. Shankar Singh Dhami, Director of the Foreign Investment and Technology Transfer Section in the Department, shared that Rs 6 billion has been approved to establish an investment company in Bhaktapur, and Rs 3 billion for constructing a commercial building complex in Kathmandu.
Additionally, an investment of Rs 76 million has been endorsed for a 200 KW hydropower project, with Eccles Energy Limited (UK) contributing 85% of the investment and Mohanyal rural municipality in Kailali district providing the remaining 15%.
Furthermore, Rs 62 million has been approved for the construction of hotels and restaurants in the Lalitpur district.
On this occasion, the Department launched a system that approves foreign investment through the automatic route. Earlier today, the department inaugurated the system for foreign investment approval via the automatic route. As a result, foreign investors can apply to establish new companies with 100% share ownership, joint ventures, or investment capital in existing companies through the automatic route.
Foreign investors can now submit their applications through this system and receive prompt approval for foreign investment. Notably, there is no minimum investment limit specified for information technology-based industries under this automatic route. The streamlined process is expected to save investors both time and money when making investments in Nepal.
Additionally, an agreement has been signed to operate remittance-funded hydropower projects. On the second day of the Summit, an agreement was reached among the Hydro Electricity Investment and Development Company Ltd, the Non-Resident Nepali Association, and the National Coordination Council.
Representatives including Ramesh Bhatta (Qatar), Raj Kumar Shrestha (Bahrain), Binod Thapa (Malaysia), Binod Shrestha (Iraq), Bikash Shahi (UAE), Bikal Jha (Oman), and Tikaram Kharel (Japan) signed the agreement on behalf of the Council.
Similarly, another agreement was signed between the Nepal Chamber of Commerce and delegates from Croatia, focusing on trade facilitation and investment in the tourism sector.
