KATHMANDU, March 13: The Finance Committee of parliament has concluded that a five-year cooling period should be fixed for the CEO of Investment Board Nepal (IBN) to join any company and project implemented by the board.
This will be a new practice in government institutions as such cooling period has been introduced only by Nepal Rastra Bank (NRB) for bank CEOs and directors to join other bank and financial institutions so far.
The provision will be inserted in the Public-Private Partnership and Investment Bill which will be sent to parliament for final endorsement on Wednesday.
NRB sets 6-month cooling period for CEOs to join another bank
Likewise, the committee has also set work experience of 10 years as one of the criteria for candidates vying the post of IBN CEO. The bill had proposed 15 years of experience in project development, public procurement, public private partnership projects banks and financing institutions, among others, for the candidates.
Though many lawmakers participating in Tuesday’s discussion were for removing the threshold of 200-megawatt for hydropower projects to be implemented by IBN as proposed in the bill, the committee approved the provision without making any change. At present, IBN is allowed to implement hydropower projects with capacity of 500 MW or above only.
Likewise, the committee had decided that Minister of Finance should be vice chairman of the IBN which is chaired by the Prime Minister. The bill had proposed to include finance minister as board member only. Similarly, the committee removed Minister for Physical Infrastructure and Transport, Minister for Urban Development and Minister for Culture, Tourism and Civil Aviation as ex-officio members of the board.
According to the committee secretary Surendra Aryal, the committee has decided to insert a provision stating that ‘concerned ministers of the projects shall attend the IBN meeting as board member’.
The Finance Committee also decided to appoint three experts in the board giving them a four-year term. The bill has proposed giving them term of two years only. According to the bill, three members, including a woman member, having expertise in infrastructure development, industry, tourism, financial sector and others, will be appointed in the board as expert members.
