By Our Reporter
The much-hyped 3rd Nepal Investment Summit concluded on Monday. However, the summit failed to attract foreign investment as was expected as the participants made no concrete commitments regarding their investment in Nepal.
The two-day summit inaugurated by Prime Minister Pushpa Kamal Dahal concluded with closing remarks from former Prime Minister KP Sharma Oli. Both the leaders as well as Nepali Congress President Sher Bahadur Deuba in their addresses to the jamboree tried to convey the message that Nepal is a prominent and reliable investment destination for investors from across the globe.
However, the participants did not believe them. It is evident from the fact that during the Summit, the Department of Industry approved the investment worth Rs. 9.13 billion by implementing the system of approving foreign investment through automatic route.
The Department that has the jurisdiction to approve investments of less than Rs. 6 billion has given the equivalent approval through the new system.
During the Summit, Minister of Industry Commerce and Supplies Damodar Bhandari handed over letters of approval to three investors.
According to this, the investment of the Chinese investment company has been approved for investment of Rs. 6 billion.
Similarly, the investment of Australia’s S.J.G. Investment Company of Rs. 3 billion and Achilles Energy UK’s investment of around Rs. 135 million.
The official conclusion of the two-day Investment Summit was announced by signing eight different memorandums of understanding (MoUs) in different sectors. On the first day of the Summit, two investment memorandums were signed.
During the opening session of the Summit, an agreement was reached between the Federation of Nepalese Chambers of Commerce and Industry and the National Chamber of Commerce and Industry of Malaysia on promoting bilateral trade and investment.
At the same time, an agreement has been signed between BLC Holding Group Nepal and Yotta Data Services, India for setting up a data centre in Nepal for about Rs. 3 billion.
According to the agreement, the data centre will be built in Ramkot, Kathmandu with the joint investment of both companies.
On the second day of the Summit on Monday, a bilateral cooperation agreement was reached between ‘The World Association of PPP Units and Professionals (WAPPP) and the Nepalese Association of PPP Professionals and Practitioners (NAPPP) for advancing PPP in Nepal, said the Chief Executive Officer of IBN Sushil Bhatta.
WAPPP President Ziad-Alexandre Hayek and NAPPP Chair Anup Kumar Upadhyay signed the document on behalf of their respective sides.
Similarly, an agreement has been reached between Saakh Group and Bor Group of Hotel China to cooperate in the hotel business.
Another investment agreement has also been reached between NexGen Management Solutions Pvt. Ltd. and China’s ‘MABC Investment Private Limited’.
Likewise, the FNCCI has signed an agreement on bilateral cooperation with the Indian Industries Association (IIA).
Although Finance Minister Barsaman Pun said that the Summit was a grand success, the agreements made during the summit proved otherwise. Many participants blamed the laws of Nepal and the rigid system of issuing visas to the workers and staff of foreign companies for discouraging them from investing in Nepal.
Although President Ramchnadra Paudel issued an ordinance making amendments to some laws which were obstacles for foreign investors, the participants still hesitated to invest in Nepal.
According to the Chief Executive Officer of the Investment Board Nepal Sushil Bhatta, the Summit, which was attended by over 2,000 persons, including 800 foreigners, succeeded in conveying the message that Nepal was a suitable destination for investors.
“We have received overwhelming interest from business entrepreneurs and investors on projects that we have showcased from around the world,” he said.
The summit also witnessed the event “Meet the PM” where over a dozen meetings took place with Prime Minister Pushpa Kamal Dahal ‘Prachanda’.
The delegations from China, India, Kuwait, UAE, the UK, and the USA, including the World Bank Group, discussed areas of cooperation and expressed their interest in exploring investment opportunities in Nepal, acknowledging Nepal as an attractive investment destination and expressed their commitment to support Nepal’s sustainable development initiatives.
The summit featuring 12 parallel sessions highlighted different potential investment sectors from renewable energy to ICT providing attendees with a comprehensive understanding of Nepal’s sectoral opportunities.
However, the summit was not managed properly as many journalists were unable to get factual data regarding the agreements made during the summit.
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