Face to Face : Will be ready to market investments by the start of next fiscal
MAR 05 -
Ever since its formation, Investment Board has drawn a lot of attention. And, with the government announcing the next fiscal year as ‘Nepal Investment Year,’ the Board has a huge responsibility of attracting foreign investors to the country and make them invest. The Kathmandu Post caught up with its Chief Executive Officer, Radhesh Pant, and sought more information on the preparations being made by the board for the Investment Year. Excerpts:
What are the major works you’ve completed after being appointed CEO?
It’s been only two-and-a-half months the board has been established. The setting up of the board from scratch was itself a big achievement. It has given momentum to the preparations for the Nepal Investment Year.
On the structural side, we are going to have our office very soon. The organisational structure and budget have been passed by the government. We are about to finalise our rules and regulations that will give us legal ground. One must understand that the rules and regulations have to be made very carefully as it is a new institution. Therefore, it should be done in a coordinated manner with the ministries and other government agencies.
On the investment side, we have held a lot of meetings with foreign investors. I believe that interest among foreign investors and even domestic investors has gone up. This shows things are moving ahead.
How is the board planning to move ahead as the Investment Year approaches?
What we are trying to do at the Investment Board is focus on a few things, such as coming up with a comprehensive but very transparent incentive framework that can be shared. So that the investors also know what they are getting into. However, it will take time as we need to work that out properly. We are conducting a lot of research on the modality for the incentives and are studying international models as well.
Secondly, we are trying to come up with a benefit-cost model for various projects. It will help us determine how much incentive we can give to investors.
Thirdly, we are working for an investor tracking mechanism that will give us financial and other data of our investors, such as how much they have invested, where they have invested etc. It will also tell us where we really need to improve.
Has the board finalised 50 viable projects having comparative advantage?
We are almost ready to finalise the 50 priority sectors and are also discussing with prospective investors on this. Infrastructure, minerals and mines, agriculture and agro processing, hydro, tourism and other service sectors like education, health and information, communication and Technology (ICT) are already on the top of the list and the rest will be finalised very soon.
We already have four sub-committees for the Investment Year and all these committees are working in full swing. In the next four-and-a-half months, we will have everything sorted out. We already have a work plan for that period. I think we will be ready to market investments for Nepal in other countries by the beginning of next fiscal year.
The role of the board obviously will not end with the Investment Year. So, how will it evolve in the years to come?
Investment is a continuous process and marking the Investment Year for a mere fiscal makes no sense at all. Investment is something that needs to be focused on for the next 15 to 20 years. Investors face problems once investment is made and they should be helped during the process. The projects that we receive need continuous surveillance and inveestors’ problems should be resolved during the course. As such, the board needs to exist in the long run so as to give post-investment service.
On the other hand, the investment commitments that we receive in a year are quite insufficient. A lot of projects will be signed, but the impact will be seen only in the following years. The world is competitive and investors need to be ensured till long. Even after the fiscal year 2012-13, the board will keep on attracting foreign and local investors and keep on taking care of their problems.
What are the facilities the board is planning, especially for foreign investors, as the board is seen as a ‘one stop service center’ for potential investors?
We have primarily designed two different models so as to serve the investors. First, as a facilitator, we must have investment relationship officers. These officers themselves will knock the doors of agencies to get the projects registered and prepare necessary groundwork before setting their projects off. Secondly, we also have conceptualised different desks from several agencies which the investors need to visit during their investment registration. But, it seems the second one will create some mess. For now, we have been concentrating on the first measure.
What are the policies, Acts and regulations that need to be amended so as to attract foreign investors?
Most of the Acts regarding labour and the industrial sector needs prompt reforms. We have already formed a sub-committee to coordinate with the respective government agencies for this. We have been holding discussions to include the private sector and foreign investors’ concerns and interests in the amendments. If we have to be competitive, we need to have refined Acts and policies governing the industrial sector.
You had recently visited Japan. How was the visit? How is the interest among Japanese investors on Nepal?
The Japanese government had asked me for a trip to Japan ever since I was appointed the CEO. The visit was quite remarkable as I got an opportunity to meet government officials, representatives of business bodies and businessmen. I briefed them on the achievements Nepal has made in the past four years. I found them interested in pouring money in Nepal. Hence, the Japanese government and its private sector are visiting Nepal very soon to see the business climate here.
RADHESH PANT, CEO, INVESTMENT BOARD
Source: Kantipur
