FinMin directs IBN to build large projects by raising capital on its own

Published On: March 10, 2022 02:55 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, March 10: Finance Minister Janardan Sharma has instructed the Investment Board Nepal (IBN) to move ahead with big projects by raising capital on its own. Attending the seventh meeting of the Monitoring and Facilitation Committee under IBN on Wednesday, Minister Sharma said that the ministry would extend necessary assistance to the Investment Board in building capital.

“The nature of work of the board is such that it waits for someone to come and do what s/he says. This is not always the case now,” he said. “The IBN itself should focus on building capital and investing in big projects. Instead, we will discuss how we can help if such a fund is created.”

Finance Minister Sharma, who is also the vice-chairperson of the IBN, suggested to the board to set up a capital fund for export-based projects after holding discussions with the private sector. He urged IBN to take initiatives for investment by envisaging projects that would make a significant contribution to the Gross Domestic Product (GDP) and capital formation. "We don't have to wait for the project and wait for investors to come and have their say, the investment board has to create projects itself," he said.

In the committee meeting, the IBN presented the progress of Arun III Hydropower Project and its subordinate projects, logistics projects, Khaptad Integrated Tourism Development Program, Tamor Reservoir Hydropower Project, Upper Marsyangdi Hydropower Project, Vehicle Manufacturing and Assembling Plant and Huaxin Cement Project.

Speaking after the presentation, Finance Minister Sharma expressed his dissatisfaction over the non-implementation of the decision of the IBN to provide one-door approval to large foreign investors. "We have promised to provide one-door approval through the board to facilitate foreign investment. We need to be aware of where that process is," he said.

He said that all should be facilitated by treating everyone equally as foreign investors come to Nepal by choosing the project themselves or as investment partners in the project. He said that the mindset of traditional development should be changed.