Nepal Infrastructure Summit 2014 Experts conclude Nepal now safe for investment Experts and stakeholders have said the conditions have turned favorable for investment in the infrastructure sector. They have also underscored the need for investment in infrastructure to accelerate economic growth. “Labor unrest and energy crisis are major problems deterring investment in infrastructure. The recent signing of Power Trade Agreement (PDA) and Project Development Agreement (PDA) assure that we will have surplus energy in three years,” said Finance Minister Ram Sharan Mahat deliver a key-note speech at a session of the two-day Nepal Infrastructure Summit 2014 that kicked off in the capital on Tuesday. “We (government) can now assure the investors that they will have reasonable rate of returns on their investment in Nepal,” he added. Mahat was delivering a key-note speech at a session of two-day-long ‘Nepal Infrastructure Summit 2014’ that kicked off in capital from Tuesday. Confederation of Nepalese Industries (CNI) is organizing the summit while Youth Community for Nepalese Contractors (YCNC), two line ministries, Investment Board Nepal are the co-organizers of the summit being held with partnership of six various donor agencies. Mahat also said that the government has taken various initiatives to create favorable environment for the investors to invest in the country. He pointed out the decisions of the government to permit International Financial Corporation and Asian Development Bank to issue local currency bonds for the first time, power trade agreement (PTA) with India, project development agreement (PDA) with GMR, start of the construction of three international airports and amendment to various laws have created favorable environment for investment in the country. “The macro-economic indicators of the country are positive. We have surplus budget this year; we are the least borrowing country in the South Asian sub-continent; our foreign exchange reserve is comfortable; we have many strengths,” said Mahat. “However, the only thing we lack is the investment and that is what we want to attract and make Nepal an investment haven.” Likewise, speaking at the session entitled ‘Outlook and Opportunities’, National Planning Commission Vice-chairman Govinda Raj Pokharel said the government is committed to initiating second generation reforms. Another prominent speaker was SD Muni, Professor of Jawaharlal Nehru University, said political stability is a must for attracting investment. “Peace, stability and regional harmony are the political DNAs for foreign investment,” added Muni. Shankar Sharma, former Vice-president of NPC, said the government should enhance its negotiating capacity with big companies for developing large-scale projects. “Except in electricity, we have not been able to partner with the private sector. There is a very big scope of such partnership,” Sharma, who is also Nepal’s former ambassador to the US, added. Similarly, founding president Non-Resident Nepali Association (NRNA) Upendra Mahato said the government should partner with the private sector for the development of the infrastructures in the country. “Government’s efforts alone may not yield the desired results so it should partner with the private sector to develop infrastructure projects,” said Mahato. NPC member Swarnim Wagle, tourism entrepreneur Yogendra Shakya, ADB Nepal Resident Mission Country Director Kenichi Yokoyama, Industry Minister Mahesh Basnet, among others, expressed their views on various themes related to infrastructure sector. More than 750 delegates including 30 foreigners are attending the summit which will feature sessions on ‘Private Sector Investment in Air Transport Infrastructure’ and ‘Infrastructure Financing Mechanisms’ on Wednesday. Source: Republica
Posted on: Wed, 12 Nov 2014 12:28:46 +0000
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