Govt begins work to ink BIPPA with five more countries

RAJBIRAJ, FEB 15 -

The government has initiated preparations for signing the Bilateral Investment Protection and Promotion Agreement (BIPPA) with five countries, including China and Qatar, as per its commitment in the ‘Immediate Action Plan on Economic Development and Prosperity’.

Industry Minister Anil Kumar Jha said here on Tuesday that the government has responded to the BIPPA proposals put forth by China and Qatar. “Besides these two countries, the government will also sign BIPPA with other three countries,”

said the minister. “We are yet to identify other three countries.”

The government, thro-ugh the action plan, had announced signing BIPPA and Double Taxation Avoidance Agreement with five countries from the SAARC and other developed countries. Attempts had been made to the sign the agreement with China during the recent visit of Premier Wen Jiabao, but it could not materialise due inadequate homework.

Nepal has so far signed the deal with six countries, including India, the United Kingdom, France, Germany, Mauritius and Finland. According to Jha, his ministry has prepared a draft BIPPA and has been sent to other ministries for their opinion. “After giving final touches to the draft, we will send it to interested countries.”

According to the minister, priority will be given to the countries that are economically important to Nepal and from where foreign investment could be attracted. So far, investment from the countries, with which Nepal has signed the agreement, has been nominal, except for India. “This is the first time that the government is taking initiative for signing BIPPA,” said Jha. “Earlier, we used to respond to the drafts sent by other countries.”

BIPPA is an assurance to foreign investors that the signatory would protect their investments.

In its action plan, the government has stated that the country’s economic development lagged behind because of its failure to attract foreign direct investment in physical infrastructure development, export oriented industries, hydropower, tourism infrastructure and other potential areas. Considering this fact, the government sought to sign BIPPA with some friendly countries.

“As promised in the action plan, we will work to complete the signing of the agreement with five countries within this fiscal year.”

Source: Kantipur