Nepal Investment Summit Wraps Up, Secures Billions in Investment Pledges

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Kathmandu, Apr.30: The much-hyped 3rd Nepal Investment Summit has been concluded, conveying the message that Nepal is a prominent and reliable investment destination for investors from across the globe.

The official conclusion of the two-day Investment Summit was announced on Monday by signing eight different memorandums of understanding (MoUs) in different sectors.

According to the Office of the Investment Board Nepal, on the first day of the Summit, two investment memorandums were signed.

During the opening session of the Summit, an agreement was reached between the Federation of Nepalese Chambers of Commerce and Industry and the National Chamber of Commerce and Industry of Malaysia on promoting bilateral trade and investment.

At the same time, an agreement has been signed between BLC Holding Group Nepal and Yotta Data Services, India for setting up a data centre in Nepal for about Rs. 3 billion.

According to the agreement, the data centre will be built in Ramkot, Kathmandu with the joint investment of both companies.

On the second day of the Summit on Monday, a bilateral cooperation agreement was reached between ‘World Association of PPP Units and Professional (WAPPP) and Nepalese Association of PPP Professionals and Practitioners (NAPPP) for advancing PPP in Nepal, said the Chief Executive Officer of IBN Sushil Bhatta.

WAPPP President Ziad-Alexandre Hayek and NAPPP Chair Anup Kumar Upadhyay signed the document on behalf of their respective sides.

It is mentioned in the agreement that both organisations will cooperate on matters of common interest and exchange knowledge and experience related to public-private partnership (PPP).

Similarly, an agreement has been reached between Saakh Group and Bor Group of Hotel China to cooperate in the hotel business.

According to the agreement, a hotel will be established at Gorusinghe in Kapilvastu with a joint investment of around Rs. 2 billion.

An investment agreement has also been reached between NexGen Management Solutions Pvt. Ltd. and China’s ‘MABC Investment Private Limited’.

According to the agreement, NexGen will facilitate the parent company of MABC in foreign investment in Nepal while the Federation of Nepalese Industries and Commerce (FNIC) will do the same to the Dongguan Jingliang Lighting Product Company.

In addition, a memorandum of understanding has been signed between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and China Dongan Jingliang Lighting Product Company Limited regarding cooperation for promoting investment in Nepal.

The FNCCI has signed an agreement on bilateral cooperation with the Indian Industries Association (IIA) on Monday.

The agreement was signed by Chairman Khimlal Bhandari on behalf of FNIC and Chairman Anuj Kumar Garg on behalf of IIA.

It is mentioned in the memorandum of understanding that there will be cooperation between Nepal and India in the fields of investment, trade and industry for mutual cooperation and promotion of interests.

During the Summit, an agreement was also reached to open a facility-rich resort in the Rara Lake area of Mugu.

Representatives from Expert Group, Badri Aryal and Sanjiv Sharma, alongside Abhishek Bikram Shah from Rara Holdings Pvt. Ltd. signed the agreement for the resort to be built on an area of 80 ropanis in Chhayanath Rara Municipality, Mugu.

It is estimated that an investment of around Rs. 1.1 billion will be made for the construction of the resort.

During the Summit, an agreement has been signed to use remittances in the productive sector.

The agreement has been signed between the Hydroelectricity and Development Company Limited (HIDCL) and the National Coordinating Council (NCC) of the Non-Resident Nepali Association (NRNA) with the aim of increasing the investment of Nepalis working abroad in the hydropower sector.

On the occasion of the Summit, Chief Executive Officer of HIDCL Arjun Gautam and the chairpersons of the National Coordinating Council in the presence of Minister for Energy, Water Resources and Irrigation Shakti Bahadur Basnet have signed an agreement.

According to the agreement, it is said that HIDCL will participate in the share investment of 70.3 MW capacity Simbuwa Khola Hydroelectric Project and 77.5 MW capacity Ghunsa Khola Hydroelectric Project in Taplejung district in line with the concept of Remit Hydro.

Investment promotion environment will be created: Oli 

Addressing the closing ceremony of the two-day Summit, Chairman of CPN-UML and Former Prime Minister KP Sharma Oli has said that private domestic and foreign investment was  necessary to achieve the common vision of a prosperous Nepal and  happy Nepali.

He asked to invest for the development and prosperity of Nepal citing the Summit had become a great place for Nepal to attract foreign investors.

He said, “Investment Summit is also a big place for Nepal to attract foreign investors. In the development of the country, all political parties must unite and fulfill their responsibilities. Those who are willing to contribute to the development process of Nepal through investment can help in development by investing.”

He said there was a need to bridge the capital and technology gap.

Former Prime Minister Oli said that making an emerging Nepal through new investments was the need of the day.

He made it clear that his party was committed to the effective implementation of the amended law and the creation of a proper environment for the promotion of domestic and foreign private sector investment.

“The present government has moved forward with a clear blueprint for effective work. It aims to upgrade Nepal from an underdeveloped country by 2030. Therefore, I urge you to confidently help and invest in Nepal’s journey to prosperity.”

Summit becomes platform to showcase Nepal as an emerging destination: DPM Shrestha

On the occasion, Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha said that the message of Nepal as an emerging destination for investors from across the world had been conveyed through the Investment Summit.

The third episode of Nepal Investment Summit has been a platform to showcase Nepal as an emerging destination for global investors, he said, and added that it stood as a testament to the government’s unwavering commitment to transforming Nepal into a premier investment destination.

“While we aim for attracting higher investment, we are aware that such an investment should be mutually beneficial to the investors and partners as well. Hence, we are working with the goals of offering a dynamic investment landscape to our investors while ensuring optimum protection and security of investments, returns and repatriation, along with efficient and effective facilitation for the entire business cycle,” he said.

The economic growth will also be crucial as Nepal is graduating from an LDC status in 2026, is pursuing the goal of achieving a middle-income country status by 2030, and is striving to achieve internationally committed development goals including the SDGs, he said.

The economic development and prosperity are the main tasks of the country, to which the government is fully committed, he said.

He noted that the government issued an ordinance amending eight different laws and legislations moving ahead in this direction on Sunday and recently the government approved the model framework Bilateral Investment Agreement (BIA) to open the way for bilateral investment agreements with interested countries.

Summit a catalyst for action: CEO Bhatta

Chief Executive Officer of the Investment Board Nepal Sushil Bhatta said that the Summit, which was attended over 2,000 persons, including 800 foreigners, succeeded in conveying the message that Nepal was a suitable destination for investors.

“We have received overwhelming interest from business entrepreneurs and investors on projects that we have showcased from around the world,” he said.

Over the past two days of the Summit, we have witnessed an incredible exchange of ideas, insights, and opportunities, reflecting the unwavering commitment of all stakeholders towards advancing Nepal’s economic prosperity, he said.

The summit witnessed the event “Meet the PM” where over a dozen meetings took place with the Prime Minister Pushpa Kamal Dahal ‘Prachanda’.

The delegations from China, India, Kuwait, UAE, UK, and USA, including the World Bank Group, discussed areas of cooperation and expressed their interest in exploring investment opportunities in Nepal, acknowledging Nepal as an attractive investment destination and expressed their commitment to support Nepal’s sustainable development initiatives.

The Summit saw the signing of more than a dozen of MOU deals including MOU between World Association of PPP (WAPPP) and National Association of PPP professionals and practitioners for advancing PPP in Nepal, said Bhatta.

More than 30 foreign delegations held separate meetings with honourable ministers of different line ministries.

The summit featuring 12 parallel sessions highlighted different potential investment sectors from renewable energy to ICT providing attendees with a comprehensive understandingof Nepal’s sectoral opportunities.

“Each sector was thoroughly scrutinized, every potential avenue explored, all with a singular objective: to unlock the immense potential of our nation and foster a conducive investment environment,” said Bhatta.

In view of the persistent interest and request from international and domestic investors for reform in investment legislations and the government’s long-time commitment to addressing their concerns, the government of Nepal amended investment related acts including Public Private Partnership and Investment Act at the outset of Nepal Investment Summit 2024.

“I am proud to declare that the Summit has not only been a platform for dialogue but a catalyst for action,” he said.

Learning from the global best practices, the government will continuously strive to enhance our effectiveness as a catalyst for climate investment ecosystems, he added.

“Our aim through this Summit was to attract investment in abundant potentials available in Nepal for global investment community by showcasing not only the potential but also demonstrating the improved investment environment,” he said.

Investment of Rs. 9.13 billion approved 

During the Summit, the Department of Industry has approved the investment worth Rs. 9.13 billion by implementing the system of approving foreign investment through automatic route.

The Department that has the jurisdiction to approve investments of less than Rs. 6 billion has given the equivalent approval through the new system.

During the Summit, Minister of Industry Commerce and Supplies Damodar Bhandari handed over letters of approval to three investors.

According to this, the investment of the Chinese investment company has been approved for investment of Rs. 6 billion.

Similarly, the investment of Australia’s S.J.G. Investment Company of Rs. 3 billion and Achilles Energy UK’s investment of around Rs. 135 million has been approved, the Department said.