KATHMANDU, Dec 28:Investment Board Nepal (IBN) has signed a preliminary agreement with Chinese company Huaxin Cement Company to bring foreign investment of Rs 15 billion in a cement factory.
Huaxin Cement Narayani Pvt Ltd, a company set up by Huaxin Cement Company, has already acquired a limestone mine in Panikharka of Dhading. It will produce 3,000 tons of cement daily in the initial phase, according to a statement issued by the IBN on Wednesday.
IBN CEO Maha Prasad Adhikari and Huaxin Cement Company’s overseas development director, Liu Jianguo, signed the Project Investment Agreement (PIA) amid a program organized in Kathmandu, IBN said in the statement.
The agreement, however, will be finalized after the IBN’ board meeting led by the Prime Minister endorses the Project Development Agreement.
IBN’s board meeting held in 2015 had approved investment for the company.
Speaking at the signing ceremony, CEO Adhikari said that recent foreign investment agreements indicate that the country has favorable investment climate.
Another Chinese company Hongshi has formed a joint venture with Nepali firm Shivam Cement to start a cement factory in Nepal with an investment of Rs 36 billion. Hongshi Shivam Cement has said that it will start production by April, 2018. It will have daily production capacity of 12,000 tons.