Nepal-Canada Business Executive Committee formed

Nepal-Canada Business Executive Committee (NCBEC) was formed here on Monday aiming to further strengthen bilateral trade and investment.
The committee was launched in the presence of high-level government officials, Ambassador of Canada to Nepal Stewart Beck and business people from both the countries.
"This forum will help us to attract investment from Canada," Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said after the launch of NCBEC.
Gyanendra Lal Pradhan, executive member and chairperson of energy committee at the FNCCI; Om Bahadur Rajbhandari, executive member and coordinator of urban development forum at the FNCCI; Chandra Prasad Dhakal, executive member and coordinator of investment promotion forum at the FNCCI; and Ritu Vaidya of Vaidya´s Organization of Industries and Trading House are the members in the committee from Nepali side. Similarly, members from Canada in the committee are Pramod Radhakrishnan of IRD, Pradeep Kumar of Lea Associates, and Alisa Kreynes of Manitoba Hydro.
"I am quite hopeful that this forum will take forward trade and investment relationship between the two countries,” Ambassador Beck said.
Beck, who is leading the Canadian delegation in Nepal, expressed optimism that Nepal´s investment climate will get better in course of time.
The delegation is looking for investment avenues in sectors like infrastructure, waste management and hydropower.
The delegation comprises representatives from eight Canadian firms -- Arcop Associates, Bombardier, Indo-Canadian Business Chamber, IRD Inc, Lea Associates, Manitoba Hydro International, Premiertech Aqua, Ballard Power Systems.
Meanwhile, Radhes Pant, CEO of Investment Board Nepal (IBN), briefed the delegation on country´s economic outlook and potential areas that are in need of foreign investment. “We are doing series of policy reforms to welcome foreign investment," Pant said, highlighting the government´s move to attract FDI in the country.
According to the Department of Industry (DoI), Canadian firms have invested Rs 5.08 billion (approximately US$ 57 million) in 25 Nepali enterprises as of fiscal year 2010/11. These firms have created 1,926 jobs.

NBF discusses measures to ease energy crisis

The Nepal Business Forum (NBF), a mechanism created to promote public-private policy dialogue, held its eastern regional business forum (ERBF) meeting in Biratnagar on Sunday, recommending implementation of five issues raised in the forum.
ERBF is co-chaired by the regional administrator for the eastern development region on behalf of the government and the president of the Eastern Regional Chamber of Commerce and Industries on behalf of the private sector.
Major issues raised in the meeting were allocation of budget for ERBF to operate it effectively in the coming fiscal year, removal of hurdles in the export of agro products, making Nepali and Bangladeshi currency convertible, promotion of agro products by developing market linkages and establishment of company registration desk in eastern region which will ultimately facilitate businesses of the private sector, says a statement issued by NBF.
During the meeting, the issue of multi-fuel power plant was also discussed, while the private sector asked the government to develop dedicated line citing the eastern region and the Biratnagar industrial corridor were critical to the overall economic health of Nepal.
To maintain the supply of power to this critical area, the meeting discussed the rehabilitation of the multi-fuel plant at Duhabi and building of transmission lines to and from India to ease the current energy crisis, says the statement.
The meeting also discussed establishment of Integrated Customs Point in Biratnagar, formation of special economic zones and strengthening of industrial security, the statement further says.
With a mandate to cover ´doing business´ issues in 16 eastern Nepal districts, ERBF has been organizing public-private dialogue by bringing in 22 chambers into the regional forum.

Tenants of industrial estates start protest against IEML

Tenants of the country´s 11 industrial estates will go on protest against the government from Monday. They are protesting the government´s unilateral decision to increase rent of land and buildings inside the industrial estates.
“We will begin our protest form Monday as the government has turned deaf ear to our demand of reviewing the rent hike decision,” Shailendra Lal Pradhan, president of Federation of Industries in Nepal Industrial Estates (FINIE), said.
The businessmen operating factories inside industrial estates were agitated after Industrial Estate Management Limited (IEML) -- the authority overseeing the management of industrial estates -- increased the rent going against the agreement that it reached with FINIE in January.
IEML had raised rent of land and buildings inside industrial estates in January as per the understanding reached with IEML officials. “But later it increased the rate going against the understanding,” Pradhan said. “This is not acceptable.”
FINIE had asked the government to review the decision by Sunday. “Our demands, however, have not been addressed so far,” Pradhan told Republica over phone.
Meanwhile, IEML has invited FINIE officials for talks. "We will sir for talks,” Pradhan said, adding that the rent hike decision should be scrapped unconditionally.
The federation has set programs like submitting memorandums to industry minister and industry secretary, urging political parties for solidarity, and stop paying rent to IEML.
According to the statistics compiled by MoI, 11 industrial estates cover 5,128 ropanis of land in places like Balaju, Patan, Hetauda, Dhanusa, Nepalgunj, Pokhara, Butwal, Bhaktapur, Biratnagar, Dhankuta and Saptari.
Officials of the federation also lambasted IEML for ineffective management of industrial estates. “Industrial estates even don´t have load-shedding schedule. We don´t know when electricity comes and goes,” Pradhan said, “Security at industrial estates is also not satisfactory.”
Private sector has made investment of more than Rs 13 billion in industrial estates. Factories in the industrial estates employ around 25,000 people, according to the federation.

West Seti hydro project likely to fall in limbo

China Three Gorges Corporation, a Chinese power developer involved in development of much-delayed 750-megawatt West Seti hydropower project, has maintained conspicuous silence on development of the project in the last six months.
"No communication has been held with the developer since last October," a source privy to the Investment Board Nepal (IBN) told Republica.
The corporation had dispatched a team of experts to conduct preliminary study of the project site last October. At that time, the team had promised to discuss future plans within next couple of months.
"It has not shown much interest in the project since then," the source disclosed. "IBN officials claim they had video conference with corporation officials but since nothing has materialized in more than six months we have no grounds to believe the conference--if it was ever held--was fruitful.”
The IBN that received authority to facilitate project implementation from the government also confirmed that it has not heard from the corporation. "We are waiting for their response," Radhesh Pant, chief executive officer of the IBN, told Republica over the phone on Saturday. "We are hopeful they will soon communicate and come up with a financial report."
The 18-year-old project has always made locals dream of a prosperous far western region--where the project is located. But the latest development has disappointed them as the project seems to be falling in a limbo even after the government established a separate high-level entity, IBN, to fast track the implementation of the mega project.
"No one has shared any information about the project since last year," Ratan Saud, president of West Seti Concern Group, a pressure group formed by locals, told Republica. "We are now worried about the future of the project."
Officials at the Office of the Prime Minister and Council of Ministers (OPMCM) also expressed pessimism about development of the project in the near future.
"China is in the wait-and-see mood to make investment in Nepal as the country is going through a transitional phase," a high-ranking OPMCM official said requesting anonymity. "It had expressed enthusiasm to invest before May 2012--before the demise of the Constitution Assembly on May 27. The Chinese developer´s mood has changed since then and is not that interested in project implementation."
Earlier, China´s Exim Bank had expressed interested to finance the project and had proposed Nepal to take commercial loans.
West Seti is one of the priority projects of the government. Through this project, the government aims to supply up to 150 MW of electricity in the western industrial corridor, while the remaining power would be used to fulfill domestic power demand.

Indo-Canadian investors to explore investment

A team of Indo-Canadian businessmen led by Stewart Beck, ambassador for Canada to Nepal, is visiting Nepal next week to explore investment avenues in infrastructure development sector.
“Another focus of the visit is to launch the Canada-Nepal Business Executive Committee (CNBEC)," Archana Mirajkar, senior media and communication officer at High Commission of Canada in India, told Republica over phone.
According to Mirajkar, the CNBEC comprises representatives from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Indo-Canadian Business Chamber (ICBC). "The business community from Canada is, mainly, looking to have an understanding of Nepal and investment climate there," Mirajkar said.
The delegation will visit Nepal from May 5 and 8.
Mirajkar further informed that the team comprises of representatives from firms like Arcop Associates, Bombardier, IRD Inc, Lea Associates, Manitoba Hydro International, Premiertech Aqua and Ballard Power Systems, and Indo-Canadian Business Chamber.
The Indo-Canadian business delegation will explore investment avenues in sectors like urban development, roads, hydroelectric power and waste management.
“The delegation will explore commercial opportunities in the different potential sectors," Mirajkar said. "It will also try to gain a deeper understanding of the priorities, challenges and achievements of the current government in Nepal."
Additionally, the team will also have in-depth discussion with the officials from FNCCI about the potential projects to invest.
"We are holding a meeting with the Indo-Canadian delegation on Monday," Pashupati Murarka, vice president of the FNCCI, said. "The meeting will focus on identifying different areas where we can work together and where we need foreign direct investment."
Meanwhile, Ambassador Beck also has plans to call on leaders from different political parties and high-level government officials.
According to Mirajkar, Nadira Hamid from Indo-Canadian Business Chamber, Harsh Dhingra from Bombardier, Debaissh Guha from Arcop Associates, Alisa Kreynes from Manitoba Hydro, Pramod Radhakrishnan from IRD, Pradeep Kumar from Lea Associates, Vijay Malani from Premiertech Aqua, and Alok Goel from Ballard Power System are in the delegation.
Statistics of the Department of Industry (DoI) shows 25 firms in the country have foreign direct investment worth Rs 5.08 billion (approximately US$ 57 million) from Canada as of fiscal year 2010/11. These firms have generated 1,926 jobs.
"We will explain the situation of the country to the Canadian investors and convince them that the investment climate here is not that bad," Murarka said. "We will demonstrate them that the real situation is not as bad as portrayed outside."

Improving value-chain for income generation

The One Village, One Product (OVOP) program that is under implementation in some of the districts of the country in public-private partnership (PPP). The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is seeking support from the development partners to improve the PPP for better implementation of the project.

Changed landscape of hydro sector

The government increased the application fee for survey license of hydroelectric project in October 2012 aiming to curb the growing proclivity of holding licenses of projects by developers. The news that highlights the issuance of 13 new survey licenses: 

• The Department of Electricity Development (DoED) issued 13 new survey licenses for different hydropower projects with installed capacity of 715.15 MW in the last six months.
  The licenses were extended after the department revised the survey license fee structure from a range of Rs 50,000 to Rs 200,000 in the past to Rs 1 million to Rs 6 million in October 2012.

The immediate effect of that policy change has been reflected in the number of application that come in the Department of Electricity Development (DoED).