The recently held Third Investment Summit has exposed systemic hurdles in Nepal's efforts to attract significant domestic and foreign investments. Despite the participation of over 2,500 attendees, including more than 800 foreign delegates, none of the 12 government-proposed projects secured investment commitments, raising concerns about the event's effectiveness.
The two-day event, held on April 28 and 29, aimed to attract funding for projects spanning sectors such as hydropower, infrastructure, tourism, and healthcare. However, not a single foreign investor submitted an Expression of Interest (EOI), and two domestic firms that applied were disqualified during evaluation due to non-compliance with project criteria.
The disqualified EOIs included Janaki Heritage Hotel and Cultural Village Project (estimated at Rs 2.25 billion) by Soltee Shivkrim Pvt Ltd, Kathmandu and Babarmahal Administrative Plaza Project (estimated at Rs 10.02 billion) by Gansu-SS-Landmark Bluebird Mall, Kathmandu.
Both proposals were rejected during the screening phase, with the Investment Board Nepal (IBN) citing a lack of alignment with project selection standards.
"The evaluation process found gaps in the documentation and eligibility of the applicants," said IBN spokesperson Pradyumna Prasad Upadhyay. He added that the board is preparing to call for new EOIs and would allow resubmissions by the same firms if they meet qualifications.
The government spent approximately Rs 80 million for the summit, with high hopes of attracting investment for large-scale projects like hydropower reservoirs, expressways, and industrial zones. However, the absence of investor commitments has raised critical questions about Nepal’s ability to market itself as an investment destination.
Stakeholders have highlighted challenges such as frequent political changes, bureaucratic inefficiencies, and inadequate project preparedness as significant barriers. Experts argue that these structural issues undermine the potential of such high-profile events.
While large-scale investments failed to materialise, the government’s policy of allowing automatic approval for investments up to Rs 500 million saw a modest influx of commitments, particularly in the information technology sector. By November 2024, the Department of Industry recorded commitments worth Rs 2.13 billion across 138 projects through this route.
IBN spokesperson Upadhyay remarked, "Although the conference did not directly attract substantial investments, it contributed to creating a conducive investment atmosphere and expanding networks."
To address these challenges, IBN has outlined plans to organise sector-specific and country-focused investment conferences. Future efforts will target industries such as infrastructure, tourism, and urban development while tailoring projects to meet investor expectations.
The board also aims to reformulate the project list, incorporating new initiatives and refining existing proposals to improve their appeal.
The summit, while falling short of its immediate goals, underscores Nepal's need for a strategic approach to attract investments. Strengthening institutional frameworks, improving project readiness, and fostering investor confidence will be crucial as the country seeks to position itself as a viable investment destination in South Asia.
