The Nepal Weekly 
May 7, 2024
Nepal hosted its Third Investment Summit on April 29-30 in a grand manner, attracting over 2,500 participants including 800 foreign investors from 55 countries. The two-day event, inaugurated by Prime Minister Pushpa Kamal Dahal, served as a platform to showcase the country’s investment opportunities, policy reforms, and commitment to facilitating foreign direct investment. He mentioned that a conducive environment has been created in Nepal for economic development and prosperity, urging both domestic and foreign investors to invest. Expressing confidence that the legal reforms made by the amending eight acts would convey a positive message to investors, Prime Minister Dahal stated that Nepal has ensured a robust regulatory framework, double tax relief, protection of intellectual property rights, and a competitive business tax system, among other significant provisions.
Delivering welcome remarks, Finance Minister Barshaman Pun expressed confidence that the summit would play a crucial role in conveying the message of investment promotion and legal reforms to investors. He stated that the summit provided an important opportunity for policymakers, investors, experts, and other stakeholders to exchange ideas and expand contacts for cooperation. He informed that the summit proved to be an important platform for receiving suggestions from investors.
After the inaugural session of the summit, two main sessions, “Exploring Investment Opportunities in Nepal” and “Investment Success Stories in Nepal,” were held. Various bilateral and multilateral side meetings were also conducted during the summit. Exhibitions showcasing projects aimed at attracting Foreign Direct Investment (FDI) and Public-Private Partnership (PPP) were held throughout the summit duration in various exhibition halls.
Department of Industry approved investments worth 9 billion and 13 crore rupees for four different projects signed at the Summit. The department also launched an automated system for granting foreign investment approvals. During the summit, more than half a dozen agreements were signed. An agreement was reached between BLC Group Nepal and Yotta Data Services India for cooperation in the construction and operation of a data center. Likewise, A bilateral agreement was signed between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the National Chamber of Commerce, Malaysia, for cooperation in promoting bilateral trade and investment.
On the second day of the Investment Summit, a Memorandum of Understanding (MoU) was signed between the ‘World Association of PPP Units and Professionals’ (WAPPP) and the ‘Nepal Association of PPP Professionals and Practitioners’ (NAPP) for the promotion of Public-Private Partnerships (PPP) in Nepal. An agreement was reached between Sakha and Company Private Limited and Bor Group Hong Kong for cooperation in the wellness resort and hotel business. This project is proposed to be developed in Gorusinghe, Kapilvastu, with an investment of 100 million yuan (excluding land).During the summit, separate Memoranda of Understanding (MoUs) were signed between ‘Nextgen Management Solution Private Limited and MABC Investment Private Limited of China,’ and between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the China Dongguan Jinlong Lighting Product Company Limited. An agreement was reached between Expert Group and Rara Holdings Resort Private Limited to invest in the construction of a luxury resort in the Rara Lake area of Mugu district. A Memorandum of Understanding (MoU) was signed between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Indian Industries Association (IIA) for bilateral cooperation.
A Memorandum of Understanding (MoU) was signed to operate the ‘Remit Hydro Project’ by investing remittance inflows into hydropower projects. The MoU was signed between the Hydroelectricity Investment and Development Company Limited and the Non-Resident Nepali Association, National Coordination Councils.
Former PM and Chairman of the Nepal Communist Party (NCP-UML), K.P. Sharma Oli stated that Nepal has been established as a new investment destination and reaffirmed Nepal’s commitment to ensuring the security of investments. Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha, stated that this summit proved to be a milestone in creating an investment environment in Nepal by informing investors about the policy reforms undertaken and seeking their suggestions and feedback. He mentioned that the summit conveyed a high-level political commitment from both the government and the opposition parties to improve the investment environment in Nepal.
Sushil Bhatta, Chief Executive Officer of the Investment Board and Member Secretary of the Investment Summit 2024 Steering Committee, said that Nepal succeeded in conveying the message of creating a favorable and competitive environment for investment promotion. He stated that projects showcased during the third Investment Summit received tremendous interest from entrepreneurs, businesses, and investors worldwide. Bhatta mentioned that Nepal successfully presented itself as an attractive investment destination by showcasing priority and potential projects in sectors such as energy, information technology, tourism, and infrastructure.
At the summit venue, 23 stalls (exhibition booths) were set up by government agencies, private sector organizations, international non-governmental organizations, and donor agencies, allowing participants and investors to gather detailed information about various projects through these exhibition booths. During the summit, a total of 150 projects were presented, including 19 projects for which Expression of Interest (EOI) was sought and 9 projects for market sounding. Investors were given 45 days for energy projects and 35 days for non-energy projects.
Compared to the First and Second Investment Summits, the third edition showcased a notable shift, with projects being presented under the direct ownership of government ministries. This move, coupled with amendments to eight out of 12 acts, aimed to create a more conducive environment for investment in Nepal. Pradhyumna Prasad Upadhayaya, the spokesperson for the Investment Board Nepal, highlighted a significant departure from previous summits, stating, “In this investment summit, we did not accept any investment pledges until the investors confirmed their commitment, a practice we followed in the first and second summits.”
Upadhayaya further underscored the summit’s unique approach, which prioritized the private sector as a co-organizer, facilitating more business-to-business (B2B) meetings. The presence of delegates from various political parties, particularly the prime minister’s delegation, signaled a broad-based commitment to attracting investments. Notably, the information technology (IT) and hydropower sectors garnered significant interest from investors, given Nepal’s vast potential in these areas to drive economic prosperity. By presenting ministry-owned projects, amending key legislation, actively involving the private sector, and highlighting lucrative sectors like IT and hydropower, the third Investment Summit aimed to showcase a more streamlined and investor-friendly approach, setting the stage for substantive investments to propel Nepal’s economic growth.
Distinguished personalities, including former Prime Minister and President of the main opposition party Nepali Congress, Sher Bahadur Deuba, addressed the gathering, expressing their commitment to encouraging private investment. The inaugural session was addressed by Chen Song, Ambassador of China to Nepal, Naveen Srivastava, Ambassador of India to Nepal, Dean R. Thompson, Ambassador of the United States to Nepal, and others. Rebeca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Suprathim Dutta, Executive Director of ITC Limited India and leader of the Indian industry delegation, and Atul Keshap, Senior Vice President of the US Chamber of Commerce, also delivered remarks. Similarly, Thingming Yang, Vice President of the Asian Development Bank (ADB), Rajat Mishra, Acting Vice President of the Asian Infrastructure Investment Bank (AIIB), and other distinguished individuals addressed the gathering.
The presidents of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI), and Nepal Chamber of Commerce, namely Chandra Prasad Dhakal, Rajesh Kumar Agrawal, and Kamlesh Kumar Agrawal, respectively, as well as Lu Chuanyu, Chairman of the China International Development Cooperation Agency (CIDCA), Sushil Sharma, Chairman and Managing Director of the Indian company Sutlej Jal Vidyut Nigam, and Sushil Bhatta, Chief Executive Officer of the Investment Board, among others, delivered remarks.
