The main objective of the much-awaited Nepal Investment Summit 2024, which started in Kathmandu on April 28th, was to draw foreign direct investment (FDI) for the country’s massive development projects.
Over 1,600 Participants from 55 Countries
With over 1,600 attendees from 55 nations, this year’s summit is anticipated to be the biggest ever. With 265 participants, China is sending the largest delegation, followed by the United States (33), Japan (28), India (143), and the United Kingdom (14).
Focus on Hydropower Projects
The Nepalese government intends to request letters of intent for 20 projects, with a particular focus on hydropower projects. After completing feasibility investigations, all of these projects are currently looking for both domestic and foreign investors.
Notable Projects on Display
- Dhulikhel Medicity Project: With an investment of Rs 11 billion, this project aims to establish a super-specialty hospital in Dhulikhel, Kavrepalanchowk. The intention is to establish Nepal as a hub for medical tourism.
- Sudurpaschim Public Transport Project: The goal of this project is to enhance public transportation in the Sudurpaschim Province’s Kailali, Kanchanpur, and Doti districts. The project, which is expected to cost Rs 31.13 billion, involves the introduction of 173 buses over a three-year period, including 104 electric cars.
- Naumure Multi-Purpose Project: With a projected cost of Rs 92 billion, the project’s goal is to produce 281.04 MW of electricity.
- Khimti Those Shivalaya Reservoir-Based Hydropower Project: With an estimated cost of Rs 289 billion, this project, which is situated on the border of the districts of Dolakha and Ramechhap, is expected to be Nepal’s largest hydroelectric project.
- Other noteworthy projects include: Humla Karnali Hydropower Project (61.2 MW), Upper Chameliya Hydropower Project (53.85 MW), and Panchkhal Special Economic Zone.
Government Seeking Concept Papers for Additional Projects
In addition to the hydropower projects, the government is also seeking concept papers for other projects, including:
- Pokhara International Convention Centre and Exhibition Centre
- Daiji Industrial Zone
- Babarmahal Administrative Plaza
- Mahadev Stream Reservoir Project (focused on climate action)
- Karnali-Chisapani Wind Energy Project
- Chandragiri-Chitwan Expressway
- Janaki Heritage Hotel and Cultural Village
- Dhaubadi Iron Mine and Excavation Project
Past Investment Summits and Challenges
The first two Nepal Investment Summits were held in 2017 and 2019. While these events helped the government identify potential investment areas and existing hurdles, they fell short of their goals in terms of actualized FDI.
One of the main challenges facing Nepal is the gap between approved FDI and actual FDI inflows. In 2021/22, for example, only around 36.2% of the total approved FDI resulted in actual net FDI inflows.
In order to solve these issues, the government is changing regulations to make the climate more welcoming to investors. Still, a few international and local investors have their doubts.
All things considered, the Nepal Investment Summit 2024 is a shift in the right direction toward attracting much-needed international investment for Nepal’s development. The success of the summit will depend on the government’s ability to address investor concerns and create a more transparent and efficient investment climate.
Also Read: https://whatthenepal.com/2024/04/26/nepal-where-mountains-meet-rainbow-tourism/
