House finally okays Investment Board Bill
KATHMANDU, AUG 16 -
Two years after it was tabled in the Legislature Parliament, the Investment Board Bill was finally endorsed by the House on Monday.
With the passage of the Bill, the door has opened for the formation of the board led by the prime minister that will give a one-window solution to potential investors in big projects.
The private sector has been demanding such a board since long, while lawmakers representing the private sector in the Constituent Assembly had strongly lobbied for the endorsement of the Bill. The idea of the board was actually floated 14 years ago by bi-national chambers.
The private sector has expressed happiness on the endorsement of the Bill. Lawmaker and President of the Confederation of Nepalese Industries (CNI) Binod Chaudhary said they lobbied hard with all the parties for the endorsement of the Bill. “It has provisioned a secretariat under the board which will work as a one-window system to address investors’ concerns,” Chaudhary said.
The Investment Board will be directly under the Prime Minister’s Office and chaired by the PM. “As it will be chaired by the prime minister, the board will be more effective than the earlier Investment Promotion Board (IPB),” said lawmaker Rajendra Khetan. “The IPB failed to work as it was headed by a minister and conflicts between the ministries hit the one-window solution system.” The PM will now appoint a minister as the vice-chairman of the board.
At a time when country is witnessing a slowdown in foreign direct investment, the bill envisions creating an investment friendly environment with faster decision-making processes. With the board especially facilitating investment in infrastructure projects and projects with large capital base, investors will be the ones to benefit.
The Bill has been endorsed at a time when Nepal’s image as an investment destination has hit an all-time low. The latest World Investment Report (WIR) of the United Nation’s body on trade, investment and development issues (UNCTAD) puts Nepal at the bottom of the list attracting foreign capital amongst least developed countries. Even among the South, East and South-East Asian countries, Nepal lies at the bottom with Afghanistan, North Korea and Bhutan when it comes to attracting FDI.
As per the Bill, fasttrack roads, railway, international and regional airports, fertiliser industries and petroleum refinery plants will now be looked after by the investment board. Likewise, foreign investment that comes for major projects fixed by the government, banks and financial institutions with foreign investment of more than 51 percent, medical college and modern hospitals above 300 beds, hydropower plans of 500 MW and above and investment for special economic zones will come under the board.
The board will formulate a policy on investment, select the project with potentials of investment, consult the investors, approve the investment and sign agreements as per the fixed procedures. It will also monitor the work on the projects, determine and provide financial and non-financial facilities to the projects, ensure availability of government-owned land for the project, mobilise Nepali missions abroad for investment promotion and ensure coordination among the different ministries for investment promotion.
The board will be run by the executive chief. The Cabinet will appoint the executive chief once a two-member selection body comprising the National Planning Commission’s Vice-chairman and ex-secretary of Nepal government forwards three names.
Source: Kantipur
Two years after it was tabled in the Legislature Parliament, the Investment Board Bill was finally endorsed by the House on Monday.
With the passage of the Bill, the door has opened for the formation of the board led by the prime minister that will give a one-window solution to potential investors in big projects.
The private sector has been demanding such a board since long, while lawmakers representing the private sector in the Constituent Assembly had strongly lobbied for the endorsement of the Bill. The idea of the board was actually floated 14 years ago by bi-national chambers.
The private sector has expressed happiness on the endorsement of the Bill. Lawmaker and President of the Confederation of Nepalese Industries (CNI) Binod Chaudhary said they lobbied hard with all the parties for the endorsement of the Bill. “It has provisioned a secretariat under the board which will work as a one-window system to address investors’ concerns,” Chaudhary said.
The Investment Board will be directly under the Prime Minister’s Office and chaired by the PM. “As it will be chaired by the prime minister, the board will be more effective than the earlier Investment Promotion Board (IPB),” said lawmaker Rajendra Khetan. “The IPB failed to work as it was headed by a minister and conflicts between the ministries hit the one-window solution system.” The PM will now appoint a minister as the vice-chairman of the board.
At a time when country is witnessing a slowdown in foreign direct investment, the bill envisions creating an investment friendly environment with faster decision-making processes. With the board especially facilitating investment in infrastructure projects and projects with large capital base, investors will be the ones to benefit.
The Bill has been endorsed at a time when Nepal’s image as an investment destination has hit an all-time low. The latest World Investment Report (WIR) of the United Nation’s body on trade, investment and development issues (UNCTAD) puts Nepal at the bottom of the list attracting foreign capital amongst least developed countries. Even among the South, East and South-East Asian countries, Nepal lies at the bottom with Afghanistan, North Korea and Bhutan when it comes to attracting FDI.
As per the Bill, fasttrack roads, railway, international and regional airports, fertiliser industries and petroleum refinery plants will now be looked after by the investment board. Likewise, foreign investment that comes for major projects fixed by the government, banks and financial institutions with foreign investment of more than 51 percent, medical college and modern hospitals above 300 beds, hydropower plans of 500 MW and above and investment for special economic zones will come under the board.
The board will formulate a policy on investment, select the project with potentials of investment, consult the investors, approve the investment and sign agreements as per the fixed procedures. It will also monitor the work on the projects, determine and provide financial and non-financial facilities to the projects, ensure availability of government-owned land for the project, mobilise Nepali missions abroad for investment promotion and ensure coordination among the different ministries for investment promotion.
The board will be run by the executive chief. The Cabinet will appoint the executive chief once a two-member selection body comprising the National Planning Commission’s Vice-chairman and ex-secretary of Nepal government forwards three names.
Source: Kantipur
