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Ibn Takes Important Decisions 3 IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) 1 DISPATCHMONTHLY E-NEWSLETTER OF OIBN IBN YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) IN THIS ISSUE Interview with Honorable Chief Minister of Gandaki Province, Mr. Prithvi Subba Gurung · 6 · IBN TAKES IMPORTANT DECISIONS 3 OIBN participates in the Nepal-Australia Business Forum · 8 · OIBN shortlists firms for a DFS on the Metrorail Project DISCUSSIONS ON LOCAL BENEFITS PLANS FOR ARUN-3 4 · 9 · 2 IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) INVESTO GRAPH FDI INFLOWS IN NEPAL 2012-2017 (Millions of dollars) DATA SOURCE: WORLD INVESTMENT REPORT 2018 198 106 92 71 52 30 2012 2013 2014 2015 2016 2017 FDI STOCK IN NEPAL 1608 2017 Millions of dollars IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) 3 IBN TAKES IMPORTANT DECISIONS KATHMANDU: The 31st meeting of the Invest- poration (CTGI) to expedite the implementation of ment Board Nepal (IBN) concluded on July 17 and the project. took various decisions. The meeting also endorsed the Project Investment The meeting, held under the chairmanship of the Agreement (PIA) signed between OIBN and Huax- Right Honorable Prime Minister and Chairman in Cement Narayani Pvt. Ltd. in China on June 17, of IBN Mr. KP Sharma Oli, approved the Project 2018. Similarly, it also granted approval for Foreign Development Agreement (PDA) to implement Pack- Direct Investment (FDI) worth USD 200 million to age-I of the Integrated Solid Waste Management implement a Solar Energy Production and Manage- Project in Kathmandu Valley. The PDA was finalized ment Project proposed by Dolma Fund Management after holding a series of negotiations with the project from Mauritius. developer, NepWaste Company Pvt. The meeting also formed a taskforce ST Ltd. Package-I covers Kathmandu 31 BOARD MEETING headed by a secretary of the Prime Metropolitan City and nine munic- Minister and Council of Ministers ipalities - Dakhsinkali, Chandragiri, Nagarjun, and representatives from other related agencies to Tarakeshwor, Tokha, Budhanilakantha, Gokarnesh- revise the amendment proposed by OIBN to make wor, Kageshwori-Manahara and Shankharapura in the IBN Act 2011 more relevant. Kathmandu district. The Chief Executive Officer of OIBN Mr. Maha The meeting also directed the Office of the Invest- Prasad Adhikari presented the agenda for the meet- ment Board Nepal (OIBN) to coordinate with the ing. Honorable Finance Minister and Vice-chair of Ministry of Finance and Ministry of Energy, Water IBN, Honorable Ministers, Honorable Chief Minister Resources and Irrigation to make a final decision of Province 3, Governor of Nepal Rastra Bank, IBN regarding the West Seti Hydropower Project within members representing the private sector, and secre- two months by holding discussions with the project taries of the Government of Nepal were present on developer – China Three Gorges International Cor- the occasion. ♦ 4 IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) DISCUSSIONS OF LOCAL BENEFITS PLANS SANKHUWASABHA: The Office of the Invest- Under the previous administrative structure, six ment Board Nepal (OIBN) organized interactions VDCs- Pathibhara, Num, Yaphu, Makalu, Diding on the local benefit plan with local governments and and Pawakhola were designated as project-affected government agencies in Sankhuwasabha district. areas after the developer acquired around 49 hect- The programs were conducted in rural municipalities are of land belonging to 269 households of the then affected by the Arun-3 hydropower project to share Pathibhara, Num, Yaphu and Diding VDCs. Two the highlights of the Local Benefits Distribution and additional VDCs - Pawakhola and Makalu were later Skills Training Plan to be implemented at the local designated as project-affected. level. The Local Benefits Plan is the ARUN-3 HYDROPOWER PROJECT The final draft of the Local first of its kind being imple- Benefits Distribution and mented in Nepal in a project Skills Training Plan was prepared by the OIBN and developed under the Public-Private Partnership (PPP) SAPDC, the developer of Arun-3 hydropower proj- model. The plan will be implemented in collabora- ect, as per the provisions made in the Project Devel- tion with the developer, project-impacted people and opment Agreement (PDA) signed in 2014. It cover all local governments. The plan will formally be shared six wards of Makalu Rural Municipality, three wards with people-affected by the project and representa- of Chichila Rural Municipality and one ward each of tives of 11 wards from the four rural municipalities Silichyong Rural Municipality and Bhotkhola Rural affected by the project after incorporating comments Municipality. The plan’s integrated policy includes received from the local governments and concerned the Nepal Employment and Skills Development government agencies. The OIBN will approve the Training, Local Industrial Development Plan, and plans once it is shared with them. Infrastructure Development Plan. IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) 5 The constitution of Nepal envisions the distribution ness opportunities to local industries, suppliers and of benefits from the project to project-affected people service providers. and the region in return for the utilization of local Similarly, under the Local Infrastructure Develop- resources. Such programs are also expected to estab- ment Program, the developer is spending Rs. 336.8 lish cooperation between the project developer, local million to implement various development activities governments and the project-affected people during at the local level. The plan envisages enhancing road the development process. access, foot trail rehabilitation, developing commu- The project-developer has already conducted surveys nity drinking water supplies in schools, building at the local level to identify the necessities and skills community irrigation, and constructing school and training required for local people. Under the Nepal health infrastructure. It also includes plans for com- Employment and Skill Training Plan, the developer munity infrastructure programs like the construction of the Arun-3 project has offered a number of ben- of cardamom storage units, community centers, sup- efits that includes opportunities for acquiring basic porting local cottage industries, upgrading commu- skills training to 725 affected people, 3-year diploma nication towers, and promoting local tourism. ♦ courses for 39 people, and 4-year engineering cours- es for 20 people. Under the Local Benefits Distribution and Skills Training Plan, the project is supposed to spend 0.5 percent of the project cost on the Project Area De- velopment Plan in 11 wards of the four affected rural municipalities, mainly in enhancing road access and improving educational, health, drinking water and community infrastructures. All these benefits are in addition to the compensation being paid to people for the loss of their land and other assets. The Local Benefits Distribution and Skills Training Plan also has a provision to implement rural electri- fication by providing 30 units of electricity to project affected-households free of cost on a monthly basis. It also provides project shares worth Rs. 1.6 billion to local people. Under the plan, a local industrial development program has been drawn to offer busi- 6 IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) Prithvi Subba Gurung Honorable Chief Minister, Gandaki Province TOURISM: MAIN DRIVER OF “GANDAKI PROVINCE’S ECONOMY Mr. Prithwi Subba Gurung is the Honorable Chief Minister of Gandaki Province. Mr. Gurung has previously served as the Minister for Culture, Tourism and Civil Aviation and is regarded as a visionary and dedicated leader. Mr. Gurung has been keeping a close watch on investment opportunities for the development of his Gan- daki Province. Talking to IBN Dispatch, Mr. Gurung shared his plans and priorities for the economic transfor- mation of Province 4 which has a lot of potential in tourism, hydropower and agriculture. How are you assessing the economic status of Prov- this province is also very rich. Nepal Tourism Board ince 4? collects around one billion rupees in revenue but this In terms of geography, around 67 percent of Gandaki province is only getting a meagre 2 percent of that Province is covered by hills, 6 percent by plain areas amount. A total of 747 MW of electricity is being and the remaining by the Himalayas. This province generated in our province so far but our province is doesn’t have a huge industrial base barring a cou- using very little of the electricity produced here. The ple of big industries. With a weak industrial base, main driver of this province’s economy is tourism. revenue from this sector is very low. However, we We see further potential in tourism development in stand first or second in different economic indica- this region. tors. We command huge potential in solar energy, hydropower, wind energy, natural gas, copper, iron Among the host of different potential sectors, and uranium in addition to other natural resources. which are your top priorities? We are also not in a bad position for vegetable, fruit, Our top priorities are undoubtedly tourism, energy, dairy and other farm production. The culture of IBN DISPATCH | YEAR: 3 | ISSUE: 8 | VOLUME: 32 | SHRAWAN 2075 (JULY-AUGUST 2018) 7 visible results by drawing foreign as well as domestic private investment within the existing authority giv- Despite limited budget en to the province in coordination with the federal allocations, we will make the government. maximum effort to attain What are the challenges for investment in your visible results by drawing province? foreign as well as domestic The federal government does not empower provinc- es with sufficient resources and the necessary legal private investment. provisions. This mentality will not support a sincere implementation of federalism. We also need to guarantee the security of investments and safety of agriculture and industry. However, we can’t achieve investors.
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