KATHMANDU: Investment Board Nepal on Thursday signed a memorandum of understanding (MoU) with Germany-based DIAG Industries GmbH for the Preparation of Detailed Feasibility Study Report for Establishment of Chemical Fertiliser Plant (Urea) in Nepal.
IBN Chief Executive Officer Sushil Bhatta and DIAG Industries GmbH Managing Director Benjamin Becker signed the MoU on behalf of their respective organisations.
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The 50th Board meeting of IBN held on March 31, 2022, had decided to issue a survey licence to DIAG Industries GmbH based on the unsolicited proposal obtained from the latter as per the provision of the Public Private Partnership and Investment Regulation, 2020. Likewise, the 53rd Board meeting of IBN held on April 13, 2023, had endorsed the MoU draft to be signed with the latter.
As per the MoU, DIAG Industries GmbH will have to submit the Detailed Feasibility Study Report (DFSR) within 24 months following the issuance of the survey licence. The latter will select the appropriate technology from among natural gas, electrolysis (with carbon capture storage) or hybrid (both natural gas and carbon capture) during the study for the production of at least 700,000 tonnes of chemical fertiliser (urea) per annum at a total initial estimated cost of $714 million.
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Investment Board Nepal Chief Executive Officer Sushil Bhatta and DIAG Industries GmbH Managing Director Benjamin Becker sign the MoU on behalf of their respective organisations, on Thursday, July 13, 2023. Photo: IBN/Twitter[/caption]
The fiscal budget of 2023/24 has announced the preparation of a detailed project report (DPR) to establish a chemical fertiliser factory in the country, and the work will be carried out through Public-Private Partnership facilitated by the IBN.
Addressing the MoU signing ceremony, IBN CEO Bhatta underscored that a credible study is the key to de-risking the project and providing a sustainable implementation roadmap and urged the proponent to submit a credible study with proper viability checks within the stipulated timeframe as prescribed in the MoU.
IBN Joint Secretary Amrit Lamsal, senior officials of the Office of the Investment Board, consultants, and representatives from DIAG Industries GmbH were present during the MoU signing ceremony held at the Office of the Investment Board.
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Investment Board Nepal Chief Executive Officer Sushil Bhatta and DIAG Industries GmbH Managing Director Benjamin Becker sign the MoU on behalf of their respective organisations, on Thursday, July 13, 2023. Photo: IBN/Twitter[/caption]
The fiscal budget of 2023/24 has announced the preparation of a detailed project report (DPR) to establish a chemical fertiliser factory in the country, and the work will be carried out through Public-Private Partnership facilitated by the IBN.
Addressing the MoU signing ceremony, IBN CEO Bhatta underscored that a credible study is the key to de-risking the project and providing a sustainable implementation roadmap and urged the proponent to submit a credible study with proper viability checks within the stipulated timeframe as prescribed in the MoU.
IBN Joint Secretary Amrit Lamsal, senior officials of the Office of the Investment Board, consultants, and representatives from DIAG Industries GmbH were present during the MoU signing ceremony held at the Office of the Investment Board.
READ ALSO:
Published Date: July 14, 2023, 12:00 am
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