Infrastructure investment mechanism setup a must

Kathmandu, Nov 11: The government has stressed the need to put infrastructure investment mechanism in place as big investment is inevitable on physical infrastructure to graduate the country in to a developing status within seven years.

The senior government officials made this remark on second day of the first-ever Nepal Infrastructure Summit organized in the capital with the assistance of government, Confederation of Nepalese Industries (CNI) and bilateral and multilateral development agencies.

Taking part at the discussion programme 'Infrastructure Investment Mechanism', Minister for Information and Communications Dr Minendra Rijal made it clear that the state has adopted a policy to collaborate with private sector since years back as the government's lone effort would not be adequate for physical infrastructure development.

The government has been effortful to bring in mega investment for infrastructure development, he said, adding that the government is also ready to reform bank and financial sector for this.

Minister Rijal, also the spokesperson of the government, further said, "The central bank would do needful efforts regarding financial management side".

"Nepal is an investment-friendly country. Flow your investment without any hesitation and bring back fruits with capital flow", Minister Rijal said this amid more than 500 domestic and foreign entrepreneurs.

The Minister called upon investors to flow capital for the construction of airports and fast tracks in Nepal.

Chinese Ambassador to Nepal Wu Chuntai said Nepal has not made leap forward on economic development front in lack of physical infrastructure and pledged to extend possible support to Nepal's efforts to that end.

Informing that President Xi Jinping has placed high importance to the development of the neighbouring country, he said the Asian Infrastructure Development Bank has been recently established to address infrastructure needs of the Asian countries.

He expressed his hope that Nepal as the founder of the bank would reap benefits from the newly-established institution.

Chief Executive Officer of Nepal Investment Board Radhes Pant said the Nepal Banijya Bank's reserve capital of around Rs 13 billion could be channelized for the operation of infrastructure mega projects.

He made it clear that the construction of the Upper Karnali Hydropower Project has been put forward on the investment of 37 support agencies including bilateral and multilateral development partners.

Earlier, at a discussion programme 'Investment Climate in Nepal', Nepal Rastra Bank Governor Yubaraj Khatiwada admitted that the implementation of mega projects has not been expedited due to limited availability of domestic capital. He also urged foreign investors to flow their investment since the government has adopted the liberal policy.

He called for the foreign investors to spur their capital flow in agriculture sector, hydropower and construction of transmission lines.

Former Indian Ambassador to Nepal Rakesh Sood said this is the need of the hour for Nepal to win confidence of foreign investors as the environment has been enabled with the beginning of peace process after a decade long civil unrest.

He added he has seen Nepal's bright future if policy reforms are institutionalized to bring in foreign investment. RSS