IBN doubts private sector's capacity to execute mega projects

The Investment Board of Nepal (IBN) is not confident about the domestic private sector executing mega projects under the public-private partnership (PPP) model.
"The Nepali private sector can form small ventures under PPP model, but it´s yet to grow and learn much in order to handle mega projects," Radesh Pant, chief executive officer of the IBN, said.
Interacting with media persons here on Friday, Pant said domestic private sector has to change its ´mindset´. However, Pant didn´t elaborate what exactly he meant by ´change in mindset´.
The IBN, which was formed more than one and half years ago to facilitate the implementation of large scale projects in the country, has a mandate to execute all its projects on the PPP model. The PPP model is an arrangement between the government and the private sector to execute different projects in the country.
"The private sector and its suitability is important to take forward the PPP model in order to execute any project," Sanjay Poudyal, senior advisor at Centre for Inclusive Growth, said, presenting a paper on PPP model during the event. "The private sector should have capacity as well as expertise to deliver services in a competitive price to make the PPP model successful while executing projects."
The IBN is currently handling 14 mega projects, including five large scale hydropower projects such as 650 MW Tamakoshi III, 900 MW Upper Karnali, 600 MW Upper Marsyangdi, 900 MW Arun III and 950 MW West Seti. The other infrastructure projects include Kathmandu-Tarai Fast Track, Kathmandu Metro Railway, and project to upgrade Tribhuvan International Airport, among others.
Meanwhile, private sector representatives have expressed dissatisfaction over the statement of IBN officials. "That´s not true," Pashupati Murarka, one of the vice presidents of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said, commenting on the statement of the IBN officials.
"The domestic private sector is competent enough to execute mega projects under PPP model," Murarka told Republica over phone. “I can´t believe that such a statement can from IBN.”
Similarly, Bhawani Rana, another vice president of the FNCCI, said the IBN should work toward creating a favorable environment for investment rather than making such statement. “Private sector is always ready to work in the PPP model if the government ensures investment friendly climate in the country," Rana added.