IBN DISPATCH | YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) 1 MONTHLY E-NEWSLETTER OF OIBN IBN DISPATCH YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) IBN 32ND BOARD MEETING 3 HONGSHI ACHIEVES FINANCIAL CLOSURE 4 INTERACTION WITH GOVERNMENT OF 5 KARNALI PROVINCE GMR TO SIGN PPA WITH BANGLADESH SOON 9 OIBN INITIATES INTERACTIONS TO 10 FINALIZE KEY PROJECTS IN PROVINCES OICES 6 MOU SIGNED FOR CABLE CAR 11 OF PEOPLE’S REPRESENTATIVES 2 IBN DISPATCH | YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) INVESTO GRAPH INVESTMENT COMMITMENTS THROUGH IBN Since establishment of IBN (US Dollars in Million) 2.4 200 TOTAL COMMITMENTS Industry: Solar Power Industry: Solid Waste Mgmt. Project: Dolma Fund Management Project: Dharan Waste to Energy Country: Nepal Country: Nepal Year: 2018 Year: 2017 140 5550 140 Industry: Hotel Industry: Cement Project: Japan Club International Project: Huaxin Country: Japan ENERGY Country: China Year: 2018 Year: 2015 369 Industry: Cement 4000 Project: Hongshivam Country: China Year: 2015 1600 Industry: Hydropower CEMENT Project: West Seti 400 Country: China Industry: Cement Year: 2015 Project: Reliance 1160 Country: India Year: 2014 Industry: Hydropower Project: Upper Karnali 1459 Country: India Year: 2014 550 1040 HOTEL Industry: Cement Industry: Hydropower Project: Dangote Project: Arun-3 Country: Nigeria Country: India 140 Year: 2013 Year: 2014 8 49 Industry: Solid Waste Mgmt. Project: KTM Solid Waste Mgmt. Industry: Solid Waste Mgmt. SOLID WASTE MANAGEMENT (Package-II&III) Project: KTM Solid Waste Mgmt. Country: India+Nepal (Package-I) Year: 2014 Country: Finland+Nepal $Year: 2014 59 IBN DISPATCH | YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) 3 IBN 32ND MEETING HELD 5550 KATHMANDU: The 32nd meeting of the Invest- expressed an unwillingness to develop the project. ment Board Nepal (IBN) was held on 18th September, The meeting also decided to send a proposal to the 2018 under the chairmanship of Right Honorable Council of Ministers to recommend the preparation Prime Minister Mr. K. P. Sharma Oli. of feasibility studies for the development of Solar En- 4000 The meeting approved Foreign Direct Investment ergy, River Port and Magnetic Energy Project in the worth USD 139.8 million against a proposal from country. Japan Club International Pvt. Ltd. to invest in inter- During the meeting, Prime Minister Oli directed national standard hotels in Kathmandu, Bhaktapur, concerned officials to speed up the process of for- and Pokhara. mulating and amending necessary laws to promote The meeting instructed Office of the Investment foreign investment in the country. PM Oli stated Board Nepal (OIBN) to recommend a guideline to that the pace of developing infrastructure projects 1459 must be faster to achieve economic prosperity in the the Council of Ministers based on the concept of allowing developers of infrastructure projects, being country. facilitated by OIBN, to build necessary infrastruc- At the meeting, CEO of OIBN, Mr. Maha Prasad ture like access roads, bridges, and communication Adhikari gave a presentation on the implementa- and transmission lines on their own with the condi- tion status of IBN-facilitated projects. The meeting tion that the government reimburses the costs they decided to nominate Mrs. Bhawani Rana, Mr. Hari 140 incur. Under existing provisions, the government Bhakta Sharma, Mr. Rajesh Kaji Shrestha, and Mr. is responsible for developing the necessary infra- Balkrishna Sibakoti as expert members to OIBN structure for large-scale infrastructure projects. This from the industry, tourism, infrastructure devel- decision was taken to accelerate the development of opment, commerce, law and financial sectors. The essential infrastructure for big infrastructure proj- meeting also decided to organize an Investment ects. Summit in March 2019 in Kathmandu. The meeting also formed a high-level committee Other personalities attending the meeting were involving the Minister for Energy, Water Resourc- Honorable Ministers (IBN members) including IBN es and Irrigation, Minster for Finance, and CEO of Vice-Chair, Honorable Member of National Planning $ OIBN to finalize the development modality of West Commission, Governor of Nepal Rastra Bank, and Seti Hydropower Project since China Three Gorges Secretaries from the Government of Nepal. ♦ International Corporation (CTGI), the developer, 4 IBN DISPATCH | YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) HONGSHI-SHIVAM CEMENT PROJECT FM INSPECTS FINANCIAL FACTORY CLOSURE SECURED NAWALPARASI (EAST): Honorable Minis- ter for Finance and Vice-chairman of Invest- ment Board Nepal, Dr. Yubaraj Khatiwada inspected Hongshi-Shivam Cement factory at KATHMANDU: Hongshi Shivam Cement has se- Nawalparasi district (East) on September 23. cured a loan worth Rs. 16 billion from a consortium of Nepali commercial banks through the largest loan During the visit, minister Khatiwada ex- pressed commitment to addressing the out- syndication in Nepal’s banking industry. The five bank consortium is led by NMB Bank, which has standing problems that the factory has been agreed to lend loans worth Rs. 6.75 billion. Similarly, facing regarding the construction of access Nepal Investment Bank is lending Rs. 4 billion, Pra- road, transmission line and others. “As the bhu Bank Rs. 3 billion, Everest Bank Rs. 1.25 and IBN Vice-chair, I have been fully briefed Nepal SBI Rs. 1 billion. The syndication happened about the issues that the factory has been after securing a bank guarantee from the Bank of struggling with, and I assure you that the China and China Minsheng Bank. government will put all efforts to resolve them Organizing a press conference on September 3, the company and lending banks shared information about the loan syndication, this can be considered to be the financial closure for the cement project. Lai Weipeng, general manager and director of Hong- shi Shivam Cement and Sunil K.C, chief executive officer of NMB bank exchanged the lending related documents. The loan has been approved for the ma- as early as possible,” Minister Khatiwada said. turity period of 7 years. Khatiwada also expressed pleasure in observ- OIBN and Hongshi-Shivam Cement P. Ltd. had ing the impressive progress made in project signed a Project Investment Agreement (PIA) on implementation. September 3, 2017 for the project. Hongshi Shivam Mr Lai Weipeng, Managing Director/General Cement is a joint venture of Hong Kong Red Lion Manager of Hongshi Shivam Cement briefed Cement No. 3, a subsidiary under Hongshi Hold- the Finance Minister on the progress made in ing Ltd., with 70 percent stake while the remaining project implementation and expressed grati- shareholding is with Shivam Holding Pvt. Ltd., a tude for the support that IBN has been provid- subsidiary under Shivam Cement Limited. The com- ing the company. pany commenced commercial production of cement “I sincerely appreciate IBN and other govern- from June 2018. ♦ ment agencies for the cooperation extended to the company,” Mr. Lai said. ♦ IBN DISPATCH | YEAR: 3 | ISSUE: 10 | VOLUME: 34 | ASOJ 2075 (SEPTEMBER-OCTOBER 2018) 5 INTERACTION WITH THE GOVERNMENT OF KARNALI PROVINCE KATHMANDU: The OIBN organized an inter- of Karnali Province Mr. Dharma Raj Regmi and Mr. action with the Government of Karnali Province Chandra Bahadur Shahi; and Honorable Speaker of in Kathmandu on September 10. The interaction Karnali Province Assembly Mr. Raj Bahadur Shahi was aimed at sharing investment opportunities in expressed commitment to creating an investment Karnali Province and exploring areas for cooper- friendly environment to boost delivery of infrastruc- ation between OIBN and the province to promote ture projects by attracting private investment. Simi- investment. The event is the latest in a series of larly, Ram Prasad Thapaliya, Principal Secretary of engagements conducted by OIBN with provincial Karnali Province, also stressed the need to promote governments. With the latest interaction, OIBN has investment in critical infrastructure including an completed the first round of discussions with prov- international airport. ince governments focusing on investment prospects Honorable members of the Federal Parliament and at the provincial level. members of Karnali Province Assembly, senior offi- Speaking on the occasion, Honorable Chief Minister cials of Karnali Province, and OIBN emphasized on of Karnali Province Mr. Mahendra Bahadur Shahi attracting investment and identifying crucial projects said Karnali Province was ready to make policies in the province. They also expressed a commitment and laws that encourage and facilitate investors. Mr. to playing a role in formulating laws to build a favor- Shahi also said that investors interested in Karnali able investment climate in the province. Province would get a bunch of attractive incentives. Mr. Maha Prasad Adhikari, CEO of OIBN, gave a Stating that Karnali Province is observing this year presentation on potential sectors for investment in as its ‘Planning Year’, Mr. Shahi also sought OIBN’s Karnali Province and expressed readiness to extend support to identify potential projects and find inves- any kind of support from OIBN to attract and facil- tors for those projects. He was of the view that Kar- itate investment in the province. “We are ready to nali Province should select a few vital projects for play our role to promote investment in Karnali Prov- quick delivery rather than just listing many projects.