KATHMANDU: Despite the government's claim of success, the third edition of the Nepal Investment Summit (NIS) organised earlier this year has failed to attract interest from both domestic and foreign investors for the project it showcased.
The Investment Board Nepal (IBN) had called for Expressions of Interest (EOI) twice for a dozen projects, but only two projects could garner investors’ interest. In response, the Board has undertaken a review of its current standards and procedures to improve future outcomes.
The third edition of the summit was held in Kathmandu on April 28-29, focusing on the private sector and foreign direct investment to Nepal.
Eleven days after the conference, on May 10, the board issued a notice inviting EOI for the first time to attract investment in 12 of the projects featured at the summit.
After receiving no proposals, a second EOI was issued on June 1. The EOI periods were 45 days for energy projects and 35 days for non-energy projects.
The board reported that domestic investors have submitted Letters of Intent (LOIs) for two of the twelve projects, but no LOIs were received from foreign investors. The board's expectation that foreign investors would express interest during the second call for Expressions of Interest (EOI) did not materialise.
According to the board, Soaltee Shivkrim Pvt Ltd from Tahachal submitted a letter of intent for the Janaki Heritage Hotel and Cultural Village project, while Gansu-SS Landmark, Blue Bird Mall, Kathmandu, submitted a letter of intent for the Babarmahal Administrative Plaza Project.
Board spokesperson Pradyumna Prasad Upadhyay said that the evaluation of both LOIs is still pending.
“Nepali private sector has shown its interest in two projects,” Upadhyay said. “We will conduct a review, after the appointment of the new CEO, to understand why the remaining 10 projects failed to attract the foreign and domestic investors.”
IBN has been without a CEO since Sushil Bhatta's term ended on August 2.
The board will evaluate if adjusting the existing standards could attract investors, according to Spokesperson Upadhyay. “We might reissue EOIs after a review and assessment of the current situation.”
It has been said that the employees at the board had done the homework for the evaluation and review of the matter.
An official at the board, in condition of anonymity, informed that the board’s focus was limited on general aspects such as project feasibility and the availability of a Detailed Project Report (DPR) while calling for the EOIs and proposals for the projects.
“The limited information might have been insufficient to reassure investors," said the official.
Radhesh Pant, former CEO of the IBN, said that the board might not have provided enough information about the projects to potential investors.
“Investors will not be attracted merely by the information provided,” said Pant. “Changes in the government could also have caused investors to hesitate from making a decision.”
While the coalition of Nepali Congress and CPN (Maoist) led the government when the preparations were in full swing for the investment summit, the coalition of CPN (UML) and the Maoists had come to power when it was held.
Pant emphasised that attracting investors requires more than just general information, especially for large-scale projects that take years to complete.
“Specific details such as availability of land, electricity, government taxes, and provisions on dividends need to be disclosed to draw in investors,” said Pant.
The government had sought letters of intent for a dozen projects aimed at boosting investment in reservoir hydropower projects, industrial areas, maternity hospitals, expressways, and conference centres.
Over 2,500, including more than 800 representatives of foreign firms, had participated in the summit which showcased a total of 154 projects.
