Kathmandu, Apr. 6:Minister for Water Resources and Works and Transport Khum Bahadur Khadka, spoke on “Nepal’s Hydropower Policy and Prospects for Investment in Nepal,” Minister for Industry and Commerce Ram Krishna Tamrakar on “Prospects of business and investment in Nepal” and Minister for Tourism and Civil Aviation Tarini Datta Chataut on”Tourism and its prospects in Nepal” at the Export Promotion Meeting-2000 here today.
Minister Khadka, speaking on Nepal’s hydropower policy and prospects for investment in Nepal, said that the attractive export-oriented projects in Nepal can bring great benefit to both Nepal and India if decision makers and developers alike capitalise on the evident of synergy between Nepal’s abundant resources of hydropoewr and north India’s seemingly insiatiable appetite for energy to drive the motors of industry.
Stating that with the adoption of the policy of free market economy, positive indications are being seen in the hydropower development scenario of Nepal, Minister Khadka said that it had been realised that rapid development of vast hydropower potential of the country beyond its needs was essential if the country was to make a quantum jump in the economic development ladder.
He said, “I can see that the economic development trend in the hydropower sector is already shifting to private sector thanks to the timely hydropower development policy of 1992 of His Majesty’s Government which has opened up new avenues to develop the hydropower of the country by motivating national and foreign private investors in this sector.”
The hydropower development policy has made provisions of sole or joint venture of one or more national or foreign investors, joint venture of the government and one or more national or foreign investors, hundred per cent investment of one or more than one foreign investors and joint venture of national or foreign investors, he added.
Stating that the power trade agreement between Nepal and India had further opened up the export opportunities, Mr Khadka said “the main features of this agreement are that any party (government, semi-government or private) may enter into power trade agreement, parties themselves determine the agreement parameters (including quantity and tariff), parties will be afforded assistance in accordance with the existing laws and regulations and parties will be granted all incentives and concessions prevailing in both the countries for the generation and transmission of power.
As a result of the initiatives in creating a liberal investment climate, hydropower projects totalling 285 megawatt of installed capacity were being developed of which 120 megawatt was being developed in the private sector, he added.
In order to harness and develop Nepal’s water resources for hydropower generation, he said it has been experienced that policies and legal framework need to be redefined and amended in line with new concepts and trends emerging in the world market with due consideration of technological development, export of electrical energy, possibility of promotion of foreign investment and commitment to environmental conservation.
Hmg is in the process of revising the present hydropower development policy on the basis of the experiences gained in this sector so far, he added.
Speaking on prospects of business and investment in Nepal, Minister for Industry and Commerce Tamrakar said that since 1990 Nepal had been pursuing economic reform measures to liberalise financial, industrial and trade sectors in order to create favourable environment for promoting export, attracting foreign investment, and developing tourism.
Stating that in the finance sector liberal and market-oriented economic policies have been consistently followed by the governemnt, he said that the policy of liberalisation had been instrumental in improving Nepal’s trade performance.
Minister Tamrakar said, “the government sees export promotion as an essential condition for industrialisation and economic growth of the country. The trade treaty signed between Nepal and India in 1996 has provided preferential treatment to Nepalese products in huge Indian market. As a result, the trade deficit between Nepal and India has reduced considerably in the recent past.”
Nepal had very recently undertaken a multi-model transit and trade facilitation programme which is aimed at reducing the transport and transit cost in the import and export of Nepalese products, he said, adding that the construction of inland container depots in three major commercial zones of the country was executed to enhance the trade position of the country.
In order to further improve the transportation system, the government is making arrangements for railway line up to the Nepalese borders, he added.
Referring to the implementation of the policy of privatisation of public sector corporations in order to enhance the productivity and efficienty, he said that the current trade policy emphasises the lead role of the private sector in expanding both the domestic and foreign trade.
He said that various facilities have been provided to the private sector for the diversification of foreign trade of Nepal.
Minister Tamrakar said, “Nepal had already initiated the process of accession to the World Trade Organisation (wto). The government has started modifying its policies and regulations to be in line wtih WTO requirements.”
Referring to the slow industrial development and its contribution being only around 10 percent in Nepal, he said that Nepal had initiated economic reform measures to make the domestic industries competitive by liberalising imports as well as making them efficient for exports.
A bold and privatisation programme had been implemented by giving private sector an important role so that private enterprises could enhance efficiency and productivity in industrial sector, he added.
Minister for Tourism and Civil Aviation Tarini Datta Chataut, speaking on “Tourism and its prospects in Nepal” said that in Nepal, planned tourism develoment approach was initiated with the formulation of first master plan in 1972 and since then tourism had developed as an industry recognising its potentiality of generating much needed foreign exchange, employment opportunities besides balancing regional disparity and upholding the image of Nepal in the outside world.
Stating that development efforts were relying more on private sector participation in tourism industry while focussing government’s role to be more of catalytic nature, he said in order to institutionalise the existing partnership between government and private sector, an autonomous statutory Nepal tourism board is made functional since 1999 disssolving the Department of Tourism.
In order to expand tourism industry countrywide, developing tourism sites and spots involving local communities, local governing bodies were being motivated with the creation of a tourism development fund at the centre to finance partially the tourism infrastructure projects identified and to be implemented by those local bodies, he added.
He said “tourism is established as one of the most potential and significant economic sector with nearly four percent contribution to the national gdp. Basically, after the restoration of multi-party democracy in the country, government has accorded priority to this sector as an industry realising its comparative advantages.”
Stating that gross revenue from tourism in terms of convertible currency reached us $ 152.5 million in the year 1998 recording an increase of 10 percent annually since the last 10 years, he disclosed that average length of stay of tourists in 1998 was 10.76 days with average spending per tourist per day of us $ 44.2.
Adoption of liberalised aviation policy since 1992 brought a significant breakthrough in the field of air transport both in the international and domestic network, he said, adding that there were 14 online international air services in operation with the annual seating capacity of nearly one million connecting Kathmandu to 23 cities abroad.
Eighteen domestic air operators were providing services along the network of 44 air/STOL ports and number of helipads inside the country and hmg had concluded bilateral air services arrangements with 31 countries with the possibility of operating around four million seats per year.
Vice-chairman of the National Planning Commission Prithvi Raj Ligal presided over the session.