Finance Minister Dr. Ram Sharan Mahat has urged for Foreign Direct Investment (FDI) in the hydro power sector of the country.
Addressing a seminar called “Powering Nepal- Connecting Markets” on Friday in the capital, Dr. Mahat said there were three clear benefits to investors if they come to Nepal, “First, they can enjoy the access to market as Nepal is located between world’s two big markets, India and China; the second, there is tremendous amount of natural assets including hydro power and diverse climate; and third, our policies are quite encouraging since our tariff slabs are some of the lowest in the region and Nepali currency is fully convertible in current account.”
Dr. Mahat said that the government understands that there are still a lot that needs to be done to lure the investors. “We plan to develop around 5000 MW of power in next 10-15 years for which we will need foreign investment,” he said.
Likewise, US ambassador to Nepal James Moriarty said harnessing of Nepalese hydro power potential was needed not only for meeting Nepal’s own needs but also to address the energy security concerns of this region.
Ken Ohashi, country director of World Bank, said he was concerned by tendency to defer decisions among Nepalese officials. He said that with the new change in the country, he hoped that the country will seize the moment and face up the difficulties head on including its relations with India so that the potentials of exporting power can be tapped.
Deputy Prime Minister and Foreign Minister KP Oli also emphasized Nepal government’s willingness to harness power for prosperity.
The one-day seminar was organized by the US Embassy and USAID/Nepal, in association with the Nepal-USA Chamber of Commerce, the American Chamber of Commerce in India, and the International Resources Group.
The seminar brought together US companies and other foreign investors with key officials from relevant government agencies in Nepal and India to highlight the substantial opportunities to invest in Nepal’s hydropower sector.