Inaugurating the Nepal Energy Investors Forum organized jointly by the Government of Nepal and the Asian Development Bank (ADB) here on Thursday, the prime minister assured that the existing political problems will be gradually resolved. [break]
“I would like to assure all investing and financing communities, domestic and foreign, that our policies are naturally geared toward being as much investment-friendly as possible. If there are any shortcomings, we are prepared to revise them,” he said.
Stressing the importance of private sector investment in hydropower, he said the government has never obstructed foreign investment. “We welcome both domestic and foreign investment in the hydropower sector,” he stated.
However, the prime minister´s party, UCPN (Maoist), caused inconveniences to 14 big hydropower projects last year. Construction of the Upper Karnali Hydropower Project by the Indian company GMR has not resumed after Maoist cadres attacked its office at the project site four months ago.
For the major part of his address, the prime minister tried to woo foreign investors and expressed commitment to providing them security. “The government is committed to providing security and facilitating land acquisition for projects,” he stressed.
He also disclosed that the government is to celebrate 2012/13 as the year of investment and said it is prioritizing hydroelectricity during the investment year at a time when the country is reeling under power crisis. He claimed that the country cannot attain double-digit growth until the per-capita consumption, which is the lowest among South Asian countries, is increased.
Speaking at the opening session, ADB Vice President Xiaoyu Zhao expressed hope that the forum will contribute to creating an environment for increased private sector investment in the hydropower sector which is key to Nepal´s economic growth and poverty reduction. “I have no doubt the Government of Nepal and the private sector will seize this opportunity and make all efforts to develop this significant resource for the benefit of Nepal and the South Asia region as a whole,” Zhao added.
ADB has offered help in the construction of a transmission line that can be used to export power to India. It has also provided credit for the detailed project report on the 127-MW Upper Seti Reservoir Project. Zhao said additional loans will be provided in 2012 when the project reaches the construction phase.
The two-day forum will facilitate discussions on risks associated with undertaking hydropower projects in Nepal and explore innovative financing mechanisms.
Senior government officials along with national and international private sector investors, power developers and traders, financiers, development partners and civil society members are attending the forum to discuss investment in hydropower in Nepal.
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