Kathmandu. The Investment Board of Nepal has approved the ‘Strategic and Business Plan 2081-86’, which includes a plan to achieve ambitious goals in the field of infrastructure development under the Public-Private Partnership (PPP) concept.
The Investment Board of Nepal meeting held last Sunday approved the plan. According to the board’s spokesperson, Pradyumna Prasad Upadhyay, a plan and strategy have been prepared for the work to be done in various projects within the next four years.
“The issues set in the strategy are very ambitious. The minimum and maximum investment that can be brought in has been set as a target. Our estimate is that if there is a good environment for investment, human resource management is in place, and necessary laws are made, that much investment can be made,” said spokesperson Upadhyay.
He said that this document is important for changing the institutional structure of the board, strengthening the organization, and managing human resources. According to the Board’s strategic and business plan, the target is to complete 11 projects worth 8.95 billion US dollars by the fiscal year 2085/086.
However, even if all 11 projects are not completed as per the target, the target is to bring at least five projects worth 4.7 billion US dollars into operation. Similarly, seven projects worth at least 2.83 billion US dollars will reach the construction stage by the fiscal year 2085/086.
The Board’s target is to complete 14 projects worth a maximum of 5.55 billion US dollars by this period. A total of 57 projects worth a maximum of USD 24.3 billion have been proposed for feasibility studies in the pipeline over the next four years.
Similarly, 52 projects worth USD 23.5 billion will be taken to the procurement stage. According to the board, 42 more projects worth USD 17.95 billion will be in the Project Development Agreement (PDA) and Project Implementation Agreement (PIA) negotiation stage by this period. In addition, the business strategy states that 32 projects worth 15.7 billion US dollars will be taken to the stage of financial management and pre-development activities.
Looking at the status of projects implemented by the private sector and other entities, the board will have approved investments worth 7.45 billion US dollars for a maximum of 67 private investment projects and 3.15 billion US dollars for 25 projects implemented by other entities within the next four years. The board has also prepared a blueprint for the organizational structure with various directorates required for the implementation of this investment plan.
Under which the Directorate of Plan Administration and Financial Management, Directorate of Public-Private Partnership, Directorate of Investment Promotion and Facilitation and Directorate of Project Development and Management have been placed. The strategy states that at least a joint secretary is required in all these directorates. The board has also decided to conduct an organizational and management survey of the Investment Board. While the board is approving its strategic plan with such ambitious goals, the achievements in the past one and a half decades are weak.
The board has approved only Rs. 1.2 trillion worth of investment for 38 different projects since its inception. The gap between the approved investment and the actual realization is also very large. Although a single point of contact service center has been established in the office of the Investment Board, it has not been able to operate effectively.
The single point of contact service center does not have sufficient manpower, and the implementation of decisions made by the board is being delayed and reluctant. Although it was said to establish a separate fund for the Investment Board, it has not been possible for 12 years. Similarly, funds such as the Land Acquisition Fund and the Potential Shortage Compensatory Fund have not been established. There is a situation where donor agencies have to be relied upon for expert and staff management.
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