The Meeting of Investment Board Nepal (IBN) held on Friday took the decision. The board is led by the prime minister. The decision has come as a response to the issues raised by a five-member delegation that CWE had sent to Kathmandu in October. [break]
Among others, the delegation had put forth land acquisition, resettlement of displaced families and construction of transmission lines as preconditions for the development of the project.
Mukunda Paudyal, joint-secretary of the IBN, said the board would make commitment to the developer in writing very soon.
Likewise, the IBN has decided to write to Exim Bank of China for investment for the construction of transmission to connect Butwal with the power house of the project based in the far-western region.
However, government has told the developer that the power trade will be settled in project development agreement and power purchase agreement later on.
The delegation had sought opinion from the government on power trade, saying that in general they seek rate of return of 17 percent of the investment.
Earlier, a team comprising technicians of CWE had completed preliminary technical study of the project located in Doti, Baitadi, Bajhang and Dadheldhura districts in the far western region. CWE is a subsidiary of China Three Gorges Corporation.
Likewise, the board also has approved foreign investment proposal of US $550 million for the Dangote Industries, a Nigerian company, to establish a cement industry in Nepal.
In an email, Hikmat Thapa, group manager of Dangote Industries, said the first plant, which will be established with an investment of $550 million, would produce 6,000 tons cement each day and will provide direct employment to about 1,000 persons. The company plans to sell its products in Nepal as well as in Indian states of Uttar Pradesh and Bihar.
Paudyal said that the company had applied for the development of the plant in Dadhing in the beginning. Now it is looking for other viable locations in Udayapur and Surkhet districts.
Moreover, the IBN has also decided to work out the Tribhuvan International Airport upgradation plan with technical support of International Finance Corporation (IFC).
A committee led by Paudyal was formed some eight months ago to prepare the plan.
The IBN has also extended its Terms of Reference (ToR) with additional task of inviting expression of intent, request for proposal and awards the bidders for the upgradation of the country´s only international airport.
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