PM's China visit spurs investment in hydropower, banking

Prime Minister Madhav Kumar Nepal´s recent visit to Beijing failed to secure a zero-tariff facility for Nepali exports but proved fruitful in spurring Chinese investment in the country´s hydropower and banking sectors. During the visit the two governments sealed deals on Chinese investment in the Upper Trishuli and West Seti hydro projects, and individual investors also expressed eagerness to invest in various projects.

"China has adopted a policy of encouraging its investors to tap Nepal´s hydropower potential. This is a good sign," PM Nepal told myrepublica.com. He tagged the positive investment outcome of his visit an impact of that policy. Top Chinese ministers and officials also formally requested investors to plow their money into Nepal. On the last leg of the PM´s visit, the Nepali delegation took part Thursday in the China-Nepal Business Meeting, during which more than 15 of the largest entrepreneurs of China expressed interest in Nepal´s hydropower, tourism, mines and the agricultural sector, among others.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi drew their attention to investing in the special economic zones, which the government is mulling to operationalize at the earliest. PM Nepal also apprised Chinese entrepreneurs of Nepal´s liberal foreign investment regime. He said that the government was soon forming a high-level committee to oversee issues related to foreign direct investment (FDI) and facilitate matters for investors. "We will adopt an investment-friendly labor policy and also pledge special facilities for overseas investors," PM Nepal promised.

An FNCCI team led by Gyanendra Lal Pradhan held talks with entrepreneurs willing to invest in hydropower, while a team of bankers including past president of Nepal Bankers´ Association Radhesh Pant and Chairman of Nepal Investment Bank Prithvi Bahadur Pandey held business talks with parties willing to invest in the banking sector. Nepal-China Chamber of Commerce and Industry and the China Council for Promotion of International Trade (CCPIT) signed a seven-point memorandum of understanding (MoU) to promote medium enterprises, industry, trade, tourism and investment in Nepal.

"More Chinese were willing to expand their ventures in Nepal. We will encourage and support them in this endeavor of theirs," said Yu Ping, Vice President of CCPIT. Chinese government officials added that China would extend more support to Nepal for infrastructure development. The Chinese government agreed to do away with difficulties Nepali traders are facing at Chinese customs. "Chinese investors are eager to invest out of their country. Nepal must adopt a stronger project-based approach to tap them," said Joshi. To strengthen ties, a team of senior Chinese entrepreneurs are visiting Nepal later this year.
Source:Republica