Kathmandu: Chaudhary Group (CG) has signed four Memorandum of understanding (MoU) on different projects in the Nepal Investment Summit 2019. CG has signed the MoU for establishment of solar plant, introduction of 5G networks and energy projects in Nepal.
CG has signed agreement with Saraf group on logistics, 600 MW solar plant with Sky Power, introduction of 5G Network project with TeleCell. Similarly, CG Infrastructure Pvt. Ltd, a sister company of CG, has signed an agreement with government of Province 2 for solar portable-type energy.
KATHMANDU: The Non-Resident Nepali Association (NRNA) will be investing Rs 10 billion for infrastructure development in Nepal.
NRNA inked an agreement with the government during the Nepal Investment Summit that concluded on Saturday.
According to NRNA President Bhawan Bhatta, a fund will be collected from NRNs and investment in different sectors will be made through the fund. As per the agreement reached with the government, NRN will invest in mutual funds, venture capital and investment company among others.
KATHMANDU: The closing day of Nepal Investment Summit 2019 saw signing of 15 different agreements on Saturday. An agreement letter has been signed for the construction of the 216 MW Upper Trishuli hydropower Project at an investment of USD 650 million.
Likewise, Chaudhary Group and Sky Power signed an investment agreement for 600 MW solar project. CG Mobile reached an agreement for operating 5G mobile in Nepal. Similarly, an agreement letter was signed between Chaudhary Group and Province 2 for solar energy projects in the province.
Satluj Jal Vidyut Nigam that had been failing to gather investment for the 900 MW Arun III hydro project has signed investment agreement with Everest Bank, State Bank of India and Nabil Bank.
Likewise, Hydro Solution and Chinese company Yunan Hydro signed an agreement for the construction of 164 MW Kaligandaki III hydropower project and International Finance Corporation (IFC) and Nepal Investment Board (IBN) signed agreement for Special Economic Zone (SEZ) in Samara on a Public Private Partnership model.
Moreover, an agreement was reached for the construction of Himalaya Boutique Resort in Banepa and Non-Resident Nepali Association (NRNA) signed agreement with Department of Industry for investment of Rs 10 billion for infrastructure development in Nepal.
Likewise, United Finance and Muthoot Group reached agreement for investment of Rs 390 million.
Likewise, Kandel Group operated by NRNs in Britain reached an agreement for construction of 18 MW solar project, 19 MW hydro power project and 10 MW wind power project in collaboration with Api Power Company.
KATHMANDU: Foreign delegates participating in the Nepal Investment Summit 2019 have said that Nepal is an appropriate land for investment. They said that Nepal has opened the door for foreign investment to accelerate the pace of development.
Speaking at the Summit, South African Ambassador to Nepal, Sadick Jaffer, said that his country is a believer of open economy system, adding that they do not have any trouble to invest in Nepal.
Similarly, United Arab Emirates (UAE)’s Deputy Secretary of Foreign Trade at Ministry of Finance, Abdullah al Saleh, observed that agreements on investment security and on exemption of double taxation to attract foreign investment were important.
Likewise, Malaysia’s Investment Authority CEO Shiva Surya Murti Sundar Raja shared that they had setup investment board offices in major investing countries at the first phase to extend the trade relations aiming to invite direct investment and it might be fruitful to a Nepal as well.
KATHMANDU: The International Finance Corporation (IFC) is planning to invest one billion dollars in the next four years in Nepal.
Hans Peter Lankes, Vice President, Economics and Private Sector Development, of IFC said at the ongoing Nepal Investment Summit 2019, ‘We call this strategy of creating market that enable to investment take place’.
IFC is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in developing countries.
.@IFC_org is aiming to invest $1 billion over the next 4 years as gov’t reforms proceed and become a reality on the ground — VP Hans Peter Lankes at #Nepal Investment Summit. #InvestInNepal pic.twitter.com/OZjTyE4zGm
— WorldBankSouthAsia (@WorldBankSAsia) March 30, 2019
KATHMANDU: The government has prioritized the railway construction projects since it is the essential for the country’s prosperity.
The construction work will begin within six weeks after finalizing the Detailed Project Report (DPR) on Kerung-Kathmandu railway.
Preliminary feasibility study is over and the preparations are underway to finalize the DPR, said Minister for Physical Infrastructure and Transport Raghubir Mahaseth.
The government will decide on how to raise fund as the estimated cost would reach around Rs 3 trillion.
Similarly, the DPR of East-West railway project has been completed which will be 1,100 km long.
Likewise, the preliminary study on the Kathmandu-Raxaul railway is underway, said Mahaseth, adding, “The government is looking for ways to raise fund for the construction.”
KATHMANDU: Tourism experts and tourism sector leaders have underlined the need to promote tourism in Nepal with a focus on its neighbors – China and India. Investments should be made in the tourism sector of Nepal in order to reap maximum benefits of the tourism market in the two countries.
Unique natural beauty, geographical diversity and archaeological heritage and diverse culture make Nepal one of the most attractive tourist destinations of the world. It has already attracted huge investment from home and abroad.
Accordingly, the government is observing the coming 2020 as Visit Nepal Year. Easy VISA procedures and policy reforms in the tourism sector have been made to facilitate tourists visiting Nepal, said Chief Executive Officer of Nepal Tourism Board Dipak Raj Joshi while speaking at the Nepal Investment Summit on Friday. “Nepal takes a new place among the world tourism destinations with round-the-year tourism activities”, he said.
The government is also giving special priority to running promotional activities targeting the neighboring countries and identifying and promoting new tourist destinations in the country.
A total of 1.1 million tourists visited Nepal in 2018 with 200,438 of them from neighboring India. Likewise, the country received 153,602 tourists from China.
Speakers at the session on ‘tourist destination for pilgrimage and entertainment’ also described Nepal as an attractive destination for tourists. They however emphasized on the need for physical infrastructure development and expansion to exploit that potential.
Tourism entrepreneur Sangita Shrestha said Nepal that is rich in culture and hospitality could become a model tourist destination for the world.
CEO of Silver Heritage Group Mike Bolsovar said it was the right moment to invest in the tourism sector of Nepal, which carries abundant possibilities.
International tourism scholar Akihiko Hori said tourism could become the main basis for prosperity of a country like Nepal rich in natural beauty.
National Planning Commission member Dr Ram Kumar Phuyal said the increasing number of tourists’ arrival to the country has encouraged both the government and the private sector to boost investment in the sector. The government will come up with a long-term plan for the promotion of tourism development in the country.
(RSS)
KATHMANDU: The government has called on foreign investors to confidently invest in Nepal’s information and technology sector as Nepal expects their support in realizing the ‘Digital Nepal Project.’
The government has assured of full safety of possible investment, citing that the atmosphere for investment in the IT sector has been created by endorsing necessary laws.
During the opening day of the ‘Nepal Investment Summit- 2019′, the Ministry of Communications and Information Technology informed the gathering of the latest situation of IT in Nepal; made this call before domestic and foreign business community and investors. The Ministry was utilizing the IT- related session in the Summit.
Minister for Communications and Information Technology Banskota briefed the session that a draft of IT policy had been already prepared and it was on the process of further progress while other related laws were formulated. It may be noted that the government had, targeting the Summit, already enacted the Public Private Partnership and Investment Act’, Foreign Investment and Technology Transfer Act, and revised the Special Economic Zone Act.
On the occasion, the Minister said Nepal had made the digital connectivity better, and lately, the use of internet and IT was on the rise and the 4G service had been launched. Nepal was working for cyber governance and the project is expected to create a base for the country’s overall development with durable economic growth, he added.
“The project needs huge investment and the government has ensured the atmosphere conducive for foreign investment with the enactment of required laws. We have simplified the process of business and guaranteed the security of investment,” he reminded. He went on to say that administrative process had been simplified for the convenience of possible investors, calling on them to invest in the project confidently.
He further said in the aftermath of the three-tier election held in Nepal as per the constitution, political stability was achieved and the stable government formed.
Amazon Internet Service Company India’s Chandra Balani, Japan’s Sumitomo’s General Manager Masahiro Miyashita, Microsoft Asia Pacific Region’s Managing Director Sonia Bashir Kabir and Nepal’s Safal Partners’ Managing Director Ashutosh Tiwari were the speakers during the session where Joint-Secretary at the Ministry, Birendra Kumar Mishra gave his presentation on IT-related activities undertaken in Nepal.
KATHMANDU: While the nation is observing a two-day Nepal Investment Summit 2019, a survey report finds that foreign investors find visa-related delays and quota system in hiring foreign workers as hurdles discouraging.
Visa procurement for the first time for foreign employees is acute and subsequent visa application procedures are also long and difficult, according to a report by the Institute for Strategic and Socio-economic Research (ISSR)
The report is based on a rapid survey. Titled as ‘A quick diagnostic survey on visa-related issued faced by foreign investors in Nepal’, the survey was supported by ILO and DFID.
Total 22 business firms under foreign investment had participated in the survey. Prior to the survey, ISSR had held a consultation with foreign investors in Nepal, business community leaders, and representatives from government agencies.
All of the firms surveyed responded that they had experienced difficulties in terms of visa processing for their employees. However, it should be noted that firms under Indian investment do not face this problem since Indian nationals do not require a visa to enter Nepal.
According to the report, visa applications are mostly handled by employees’ lawyers (40%), firm’s lawyers (35%) and employees themselves (25%).
However, irrespective of who applies for the visa, the minimum time for obtaining a visa is six weeks whereas the maximum time as stated in the report is 32 weeks. Similarly, visa renewal takes from six to twenty weeks, according to the report.
The firms have identified visa-related delays and quota system in hiring foreign workers as some of the major hurdles in their business expansion.
Almost all the participating firms in the survey complained that the visa application procedure involved many paper works requiring an applicant to put as many as 32 to 38 signatures.
Other hurdles associated with visa procedure include variation in the interpretation of the acts, rules, and regulations across staffs and departments, unclear policies and lack of a timeline in processing an application.
Such complications in procedure and regulation have adversely affected in hiring skilled employees by 100 percent thereby affecting the quality and quantity of productions of the firms, according to the report.
According to the firms, the government could ease their visa related hurdles through shorter visa processing days and by initiating an online visa process system. Similarly, academic qualification should not be a bar in hiring workers, as mentioned in the report.
Likewise, the report suggests that the quota system in hiring foreign workers should be relaxed in order to FDI.
Investment, work permit and visa provisions in some south Asian and ASEAN countries:
Bangladesh
Work permit is mandatory for every foreign national seeking employment in Bangladesh. For private sector industrial enterprise, outside of Export Processing Zone (EPZ), Bangladesh Investment Development Authority (BIDA) issues the work permit whereas for the employment of foreign national in the EPZ, Bangladesh Export Processing Zones Authority (BEPZA) issues the work permit.
Cambodia
The employer should submit a work permit application to the Ministry of Interior (MoI) for review and approval. An application may also be submitted to any police station of a province or municipality and when submitted, the police through the governor forwards application to the MoI for review and approval. Two types of work permit (temporary and permanent) are available in Cambodia. To get a temporary work permit which is valid for up to one year, an application along with passport with valid visa, photographs, health certificate issued by a physician of the immigrant country, written work contract, insurance policy, and payment slip should be submitted. The temporary work permit is made available to skilled workers, staff and management specialists, technical staff; and service providers. The temporary work permit is issued by the MoI.
Vietnam
Foreign employees working in Vietnam shall comply with the labor law of Vietnam, as well as international conventions and treaties, to which Vietnam is a signatory. Foreign workers in Vietnam shall be protected by Vietnamese law.
Investors can employ foreign citizens only in the positions of managers, executive directors, specialists and technical workers, in which Vietnamese workers cannot meet the demands of production and trade. Foreign investors, before employing foreign citizens to work in Vietnam, are required to provide an explanation of their demand to employ foreign workers and obtain a written approval from the competent state authority.
A foreign employee shall have to present his/her work permit when undertaking immigration procedures and when required by a competent state authority.
Lao PDR
According to the Labor law of Lao PDR, employer has to create a staffing plan within a labor unit giving a priority to Lao labor. However, if the demand for labor cannot be supplied by Lao nationals, the employer has the right to request the use of foreign labor. The ratio of acceptance of foreign labor within a labor unit must be fifteen percent of the total number of Lao laborers within a labor unit for technical experts undertaking physical labor; and twenty-five percent of the total number of Lao laborers within a labor unit for technical experts undertaking mental labor.
For large projects and priority projects of the government spanning five years or under, the use of foreign labor is accorded by the contract between the project owner and the government.
Myanmar
Foreign employees of enterprises covered by the Foreign Investment Law must apply to the Ministry of Labor, Immigration, and Population (MOLIP) with a recommendation of the Myanmar Investment Commission (MIC) for work permits and apply to the MIC for local residence permits in Myanmar. Permits for foreign workers working in SEZs are governed under the SEZ Law.
Sri Lanka
Investors and expatriates need to apply for entry visa; which expires after one month of arrival to Immigration Department. Investor and shareholder have to apply for the residence visa which has the validity of one year and is subject to extension. Extension of residence visa for sec. 16 project is of one year while that of sec. 17 project is of two year. The expatriate’s temporary visa is available for 3 months.
KATHMANDU: On the first day of Nepal Investment Summit 2019, Prime Minister KP Sharma Oli and other government officials urged foreign investors to invest in Nepal arguing that an investment-friendly environment is in place.
Inaugurating the summit, PM Oli said that Nepal is a virgin land where immense opportunities are awaiting for investment. Likewise, Finance Minister Yubaraj Khatiwada and other government officials urged for investment saying that necessary laws have been already promulgated.
Beside from the opening ceremony, officials briefed potential investors regarding 77 projects of different sectors showcased at the Summit.
Addressing the Summit, Minister for Energy, Water Resources and Irrigation, Barshaman Pun said the government has put energy in top priority as the sector is the major basis of country’s economic transformation. Addressing a session on ‘ Energy for Economic Prosperity’, Minister Pun said that the government has set a target to produce 15,000 megawatt power within next 10 years and export 5,000 MW.
Potential investors attending the Summit have showed interest for investments in energy, agriculture, physical infrastructure and tourism.
Vice president of the Asian Development Bank Shixin Chen said investments had already been made in energy, drinking water, town infrastructure and education of Nepal, and strategies had been made for more investments. He referred to the Bank’s investment in Melamchi Drinking Water Project, Gautam Buddha International Airport.
U Thaung Tun, Minister for Investment and Foreign Economic Relations of Myanmar, suggested that Nepal should focus on agriculture to boost its economy while referring to progresses it has achieved in poverty alleviation, trade increment and attracting foreign investment.
The Summit is participated by 600 investors from 40 countries. The summit titled ‘A Promising Investment Destination’ has showcased a total of 77 projects in various sectors, worth $31.93 billion.