Under the Corporate and Investment Banking Awards category for 2021, the NMB Bank has bagged the “Green Deal of the Year” award.

Singapore’s Asian Banking and Finance magazine has bestowed the award on the NMB bank.

The magazine recognized the bank as the champion of ‘Green Financing in Nepal’ for its pioneering debt deal with International Finance Corporation (IFC).

Under the deal with the IFC, the NMB Bank has been providing credit facilities to projects that qualify as ‘Green Deals’ under the IFC eligibility criteria.

The Green Deal Award vindicates the Bank’s commitment towards Sustainable Banking and support for climate friendly projects and entrepreneurial activities.

“NMB Bank has been at the forefront of making Green Investments and we believe in making sustainable investments such that they create a balance between the environment and economic activities,” said Sunil KC, CEO of NMB Bank.

Earlier, the NMB Bank bagged “The Bank of the Year – Nepal” award in 2017, 2018 and 2020, by The Financial Times, London.

The NMB Bank is a committee member of Partnership for Carbon Accounting Financials and also a member bank of Global Alliance for Banking on Values (GABV).

The bank has around 181 branches in the country.

Stay Tuned to NepaliSansar for Latest Nepal Financing News!

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#NIS2019: The Conclusion Day

The last day of the summit included a parallel session and three plenary sessions followed by a concluding session at the end.

The first session of ‘Day-2’ NIS 2019, chaired by the Nepal Minister for Physical Infrastructure and Transport Raghubir Mahaseth made emphasis on the investment potential of road, railway and waterways in Nepal.

As part of the session, Joint Secretary at the Ministry Gopal Prasad Sigdel highlighted Nepal Government’s priority to mega physical infrastructure projects and informed that:

• Gautam Buddha International Airport project will be completed by 2019 end and Pokhara International Airport by 2020
• Cable cars were already successfully operated in Manakamana, Chandragiri and Kalinchowk areas

The session also stressed on water transportation potential of Koshi, Karnali and Gandaki rivers, and required investment on the same.

The panelists underscored the need for immediate formulation of plans and timely execution on physical infrastructure development for better economic development and prosperity.

As part of the session, Asian Development Bank (ADB) Vice-Chair Shixin Chen said Nepal needs to focus more on physical infrastructure. “The ADB has its investments in Nepal’s Gautam Buddha International Airport, Melamchi Drinking Water Project and various other projects including the rebuilding of earth-quake damaged schools,” said Chen, expressing their willingness for further investment in Nepal.

Speaking in another panel session on ‘Investment in Nepal: Exchanges of Experience’, investors lauded Nepal’s investment climate. @investinnepal19

“There is huge labor force, problem of load shedding is almost solved, and industrial atmosphere has been created. So, the foreign investors can make Nepal their destination,” said Confederation of Nepali Industries (CNI) Chairperson Bhawani Rana.

Non-Resident Nepali Association (NRNA) Founding Chairman Upendra Mahato also called on foreign community to invest in Nepal’s projects for its reliability and investment potential.

The Summit Outcomes

• Nepal Investment Summit 2019 (@investinnepal19) has reportedly witnessed signing of 15 new deals and MoUs for new projects in Nepal
• Besides, the country has also received proposals, 17 applications for 10 other projects presented as part of the Summit
• Transport, hydropower, hospital, airport, convention center and agriculture infrastructure were among areas that received investment proposals
• India, Vietnam, United States, South Korea, China, Britain were among countries that represented participating investors
• International Finance Corporation, World Bank Group, Asian Development Bank, Multilateral Investment Guarantee Agency, were among the key multilateral donor agencies entered into separate investment and cooperation deals during the summit
• One of the world’s largest solar development company SkyPower announced a new partnership with Nepal’s Chaudhary Group for a 600-MW capacity renewable solar energy projects #cleanenergy
• PM and Finance Minister Khatiwada held 30 side-line bilateral meetings with investors and delegates as part of the Summit
• More than 1300 participants and around 735 foreign delegates from more 300 companies attended the Summit

What Key Delegates Said on Nepal Investment Summit 2019?

Nepal values the FDI to embark on the high economic growth trajectory. – K P Sharma Oli, Right Honorable Prime Minister

Let us all join hands together to unlock Nepal’s Economic Potential.- Maha Prasad Adhikari, CEO, Office of the Investment Board

Affordable tax rates have been fixed and laws have been made targeting investors. There is a possibility for investors to have a big market in Nepal which lies between two big nations – China and India. I want to urge all investors to invest and get high returns on their investment. – Dr. Yuba Raj Khatiwada, Honorable Minister for Finance

Plans have been made to make long-term investments in Nepal. – Shixin Chen, Vice President of the Asian Development Bank

Nepal has been a rising star in South Asia with foreign direct investment flows reaching a record high in 2017, and likely to remain an important investment destination in the region. This confirms Nepal’s efforts to improve its investment climate and become a competitive investment destination for multinational companies that want to have an impact. We stand ready to work with investors and the government to make Nepal a hub for investment in infrastructure that improves lives, leads to sustainable growth and delivers opportunity for its citizens. –  Keiko Honda, CEO of Multilateral Investment Guarantee Agency (MIGA)

With 25 projects approaching USD 3 billion in financing, we are here for the long haul and will continue to support infrastructure development, policy reforms, skills development, and anything required. There is a clear acceptance by Nepal authorities that the country’s prosperity will rely on crowding in the investment from around the world. Not only financial resources, but also technical and managerial know-how, will be critical to realize Nepal’s vast potential. – Hartwig Schafer, Vice President of World Bank South Asia

IFC has played a role in creating markets and supporting investments for 60 years. In Nepal, we are looking to scale up significantly our investments in strategic sectors such as hydropower, agribusiness, tourism, and financial inclusion. We are encouraged by the government’s efforts to improve the enabling environment and IFC plans to increase its cumulative investment portfolio to around USD 1 billion over the next four years. – Hans Peter Lankes, Vice President, Economics and Private Sector Development, IFC

Province 2, Sudurpaschim Stand Special Attraction

Province 2 and Sudurpaschim emerged as the top investment destinations at the Summit.

While the Summit highlighted potentiality of different projects belonging to different provinces, Province 2 and Sudurpaschim have reportedly stood unique in attracting investors.

Despite number of projects, the province 2 attracted investors by showcasing its geographical importance, tax-related incentives and other special initiatives by provincial government.

It is noteworthy that majority districts of province 2 share borders with India, giving scope for trade and business opportunities.

Sudurpaschim also wooed investors in its way by showcasing its 7 seven projects identified by the Investment Board Nepal and 9 other projects of the region.

“There must be some positive competition among the provinces when it comes to wooing investors and develop provinces. Only if we try to develop on our own can federalism be stronger,” said Bijaya Kumar Yadav, Minister For Economic Affairs And Planning, Province 2 Government.

“It is difficult for provinces to organize such large-scale events. So, we sought to use the Investment Summit platform at best we can,” says Jhapat Bohora, Minister For Economic Affairs And Planning, Government of Sudurpaschim Province.

Responding on the Province 2 potential, CG Chairman Chaudhary said, “During our survey, we saw a very good investment opportunity in solar plant in Province 2. When we went to hold talks with Chief Minister Raut and his team, we were impressed by their professionalism and their commitment to support us. That boosted our confidence; our talks resulted in the signing of the memorandum of understanding during the summit.”

In this regard, Chaudhary explained that CG Infrastructure is planning to set up various solar plants in all 8 districts of the Province 2.

“Competition among provinces to attract investment can be described as the benefit of adopting federalism. It is good that provinces engaged in a healthy competition to attract investment,” says former Chief Secretary Som Lal Subedi.

The Conclusion

The Nepal Investment Summit 2019 worked out as a big platform for the Himalayan nation in showcasing to the world, its investment and development potential across sectors. Hope the Summit outcomes will add to the country’s portfolio in the days to come.

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Here in this story, we will take a look at some of the important updates that speak the rise of start-up and Small Medium Enterprises (SMEs) trends in Nepal:

Tourism Udhyami Seed Camp 2018: Developing Next Generation Tourism Entrepreneurs

Tapping on the tourism potential of emerging Nepal tourism entrepreneurs, Nepal Tourism Board (NTB) said it will present an opportunity for these young enthusiasts to boost their business and attract investments.

NTB has come up with an initiative Tourism Udhyami Seed Camp that will be held in Pokhara between October 30 – November 04, 2018.

The tourism body will hold an application drive and shortlist 20 finalists based on the criteria of the event, along with uniqueness and feasibility of the proposed idea.

Benefits for the Participants
Participant teams will be provided with authentic mentorship and guidance from entrepreneurs & experts. Furthermore, they will have access to entrepreneurial communities that will assist them in developing, refining and validating their idea with the objective of bringing the model to life.

After the camp, participants have to conduct rigorous research, work on their business model for a month and make an investment pitch for the Demo Day, which will be held in Kathmandu. The presentation will have to be done in front of public/private sector operators and investors.

The event is being organized in joint collaboration of Udhyami Innovations Pvt Ltd and NTB.

41st PATA Travel Mart 2018

Nepal’s participation at the 41^st PATA Travel Mart 2018 drew attention to the contribution of Nepali start-up companies who came up with a unique promotion theme for one of Asia’s biggest event.

10 companies including Community Homestay Network, Shangri-La Hotel & Resort, Nepal Holiday Makers Tours & Travels, Himalayan Holidays Trekking put up an interesting stall called ‘Nepal Pavilion’ at the tourism expo held between September 12-14, 2018.

The stall reflected Nepal’s topography with its pagoda look and assets of Nepali culture and lifestyle. It was designed for the promotion of Nepal Tourism Campaign – ‘Visit Nepal 2020’.

Youth Crucial to Tourism Industry Development:
PATA Nepal Chapter General Secretary Bhibuti Chand Thakur who received the Next Gen. Engagement Award thanked the young Nepali tourism professionals for their continued efforts and dedication in carrying PATA’s mission of ‘sustainable tourism development’.

He stressed on the need for the engagement of Nepali Youth in this development process.

The award acknowledges great dedication and contribution in engaging the NexGen to promote the tourism industry among young tourism professionals.

Overall, the two-day program created a lot of opportunities for the youth in the form of PATA Youth Symposium, Travolution Asia Forum 2018 and World Tourism Forum Lucerne’s Start-Up Innovation Camp 2018.

Antarprerna Hosts Creative Business Cup

In another interesting update calling the attention of all Nepali startups, Nepali investment company Antarprerna has announced the Creative Business Cup (CBC), a platform that would showcase startups’ creativity.

Speaking at the program, Co-Founder and CEO of Antarprerna, Niraj Khanal revealed that a national challenge event will be held in the first week of September. The categories for CBC 2018 will include architecture & design, advertising, film, photography & video fashion and gastronomy.

The CBC Nepal winner will be entitled to pitch their business ideas in Copenhagen amidst 100 countries’ national winners.

Sharing their thoughts, Antarprerna Chairperson and Brihat Group Executive Chairman Om Rajbhandary stressed on the need for building an international network for Nepali companies, which will provide a global platform for learning and competing.

Nepal Engineer’s Association President Hare Ram Shrestha acknowledged and praised the role of Antarprerna in conducting such events which provide a great avenue for young engineering entrepreneurs and entrepreneurs from other sectors to explore their creativity.

In his announcement, Khanal also informed that the company recently became the CBC’s national partner, a global initiative for entrepreneurship and innovation.

As part of the Global Entrepreneurs Network, CBC conducts a global start-up event annually which brings together startups, investors, mentors and industry experts.

Nepal Start-up Meet: Phase – I

Taking the start-up trend to newer heights, the Nepal Entrepreneurs Society organized the first installment of ‘Nepal Start-up Meet’ on June 22, 2018.

The program is a network of start-ups, policymakers, business houses, diplomatic agencies, IGOs and NGOs, where entrepreneurs starting their venture can share ideas about their business and look for potential investors.

The event witnessed a gathering of 23 start-ups including Metro Tarkari, Champak Namuna, Sunbridge Nepal, Mobile in Nepal, Laurekho Khabar, Easy Abroad, AgriCorp, Nepali Dhobi and Vending Machine Nepal, who shared their ideas and made their business pitch amidst the gathering.

In his address to the start-up fraternity, the President of Ganesh Man Singh Academy Nabindra Raj Joshi said that the private sector has an important role in the country’s development and pitched for policy-level support for the same.

He also motivated Nepali youth by urging them to not only come up with ideas but also materialize them into successful businesses.

In his speech, Raj Joshi drew attention to how the government policies had failed to put the youth on the fore-front and assured that his team would persuade the government to develop a start-up policy.

In an interesting update for students, the Nepali Congress leader said that they were holding discussions with universities in Nepal to create programs on entrepreneurship.

The event was an initiative taken by the Ganesh Man Singh Academy.

MIT Steps In for Nepali Start-ups

Towards encouraging the country’s rising start-up and entrepreneurship culture, the world’s renowned Massachusetts Institute of Technology (MIT) of USA has recently launched the MIT Global Startup Labs (GSL) in Nepal.

As a joint initiative of MIT, Kathmandu University (KU) and NCell, the new program was launched at a special program in Kathmandu amidst the presence of international and national collaborators, Nepali government officials and academia.

MIT GSL-Nepal is going to be a two-phase intensive 7-week innovation boot camp (June 15-August 2, 2018) including a special course on mobile technology & entrepreneurship with a total of 35 KU students and other young alumni.

As a student-to-student lab led by four MIT instructors, the boot camp will help Nepali participants develop their own startup projects, right from the stage of ideation to final execution.

#MITGSLNepal will end with the Demo Day highlighting the teams’ project prototypes.

MIT Faculty Co-Director for GSL Professor Saman Amarasinghe, Senior Director of Nepal Telecommunications Authority Ananda Raj Khanal, Managing Director of Ncell Suren J Amarasekera, Registrar of KU Professor Dr Bhola Thapa, Cultural Affairs Officer of the US Embassy to Nepal Grace Caroll and Ambassador of Sri Lanka to Nepal Swarna Perera were among the key delegates present at the launch event.

J Amarasekera: We are delighted to partner with MIT and KU to bring the MIT GSL program to Nepal. This is in line with our vision to help nurture ‘technopreneurship’ spirit among young talent through innovation.

Prof. Amarasinghe: With Ncell’s generous support, I am excited that MIT is able to bring the GSL program to Kathmandu University for the first time. We hope some of the participants will be able to use this experience to revolutionize the Nepali digital ecosystem and even make a global impact.

The GSL program is part of MIT’s initiative to empower youth technology entrepreneurs globally and drive the start-up ecosystem in emerging economies. The program has so far covered 25 countries in last 18 years including South Asian nations such as India and Sri Lanka. Now, Nepal joins the list.

NSU Tech Fest 2018 For New Talents

In a move promoting new talent and their innovative ideas, the Nepal Students Union (NSU) hosted a special program on June 9, 2018, encouraging many Nepali students to showcase their innovative ideas to investors.

#NSUTechFest2018 is a day-long event that brought together many upcoming engineers from 30 different colleges.

“Students have different kinds of creativity, but they have difficulty finding a platform to showcase them. This kind of event is aimed at showcasing their talents and helping them find investors willing to finance their innovative ideas,” says Melli Shah, Coordinator of the event.

The program witnessed the participation of professionals from a wide range of engineering departments such as civil, architecture, rural development IT & Computer Science, and electrical branches.

More than 40 stalls that provided information on technology integration across various sectors such as agriculture, food, health, tourism, electricity and infrastructure development were also set up at the event.

Also Read: Women Entrepreneurship Expo 2075

Startup Exhibition & Expo Nepal 2018

In a move encouraging start-ups, Nepal’s resource organization committed to entrepreneurship Industrial Enterprise Development Institute (IEDI) and a private firm called Antarprerana jointly organised a one-day event in Kathmandu on June 04, 2018.

The #StartupExhibition&ExpoNepal was aimed at promoting Nepali start-ups and linking them with the big ventures while showcasing their respective products.

“We organised the expo to allow start-ups to gain real market experience,” says Niraj Khanal, CEO of Antarprerana.

The expo featured a total of 42 start-ups belonging to different sectors such as Information Technology (IT), construction, tourism, agriculture, food, health, hotel and handicrafts.

Speaking about the response to the event, Khanal said, “The kind of participation seen at the event shows that youths have interest in multiple sectors,” adding that they are planning a bigger expo in the future.

The expo has really drawn a good response as many start-ups and other participants, who participated in the event, said that was a great opportunity for them to showcase their business and plan further expansion.

Overall, participants opine that “start-ups need exposure and this type of platform provides immense opportunities to meet with investors and customers.” 

“We got an opportunity to meet with different types of people through the expo. It is definitely going to help us expand our business,” says Sabi Singh, CEO of Online Aausadhi, one of the first-of-its-kind medical start-ups of Nepal that provides medicines through online services.

Start-ups for Sustainable Development: A Glance At Success Stories

Ashish Dangal, coordinator of Smart Tech, a start-up that started 10 years back and now an IT service provider to government and private sectors, shares about bridging gaps between academia and profession.

“To fulfill the gap between study and profession, the company provides training to civil engineering students. They learn practical methods with us so that they can handle any problems that arise at work,” says Ashish.

Speaking on IT adoption across government departments, he adds, “Initially, it was difficult to convince them on how traditional working style can be changed particularly among government officials. Now, we are getting good feedback.”

Another start-up called ‘Ek Yatri’ intends to support the country’s tourism department.

Developed by Sunim Acharya, Manish Parajuli and Rabin Raj Gautam of Kathmandu Engineering College developed an app called ‘Ek Yatri’ to promote country’s tourism. The firm plans to launch the app soon and deliver its support for the Government of Nepal’s ‘Visit Nepal Campaign’ in 2020. “Idea is the key for a start-up and it has to be saleable in the market,” says Acharya.

There is another start-up that speaks about innovative eco-friendly solutions to address electricity concerns across the country by producing more electricity at a lower investment. “Nepal’s electricity sector is in need of innovative ideas. Proper government and private sector funding is necessary to boost start-ups,” says Roshan Bhatta, a civil engineer student.

Swad Gazzabko, a food start-up that started four years ago with a group of four people at New Baneshwor, has seen a good rise in business and is now well-known in Nepal for online food delivery to meetings and seminars, offices, institutions, parties and catering services.

Supporting Start-up and SME Businesses

Immediately days after the successful event that promoted start-up culture in Nepal, here is another announcement for the country’s Small and Medium Enterprises (SMEs).

In a move supporting small-scale businesses, the International Finance Corporation (IFC), a member of the World Bank Group, proposed USD 15 million financial assistance to Nepal’s commercial bank Global IME Bank Ltd towards supporting Nepali SMEs.

This fund comes as a support to the Nepali bank as part of its lender’s program to support SMEs.

“This project is part of a concerted effort by IFC in the Nepalese financial sector to enable local banks to access long-term USD resources,” read a disclosure statement pertaining to the proposal.

Through this fund, the bank plans to prioritize funding to SMEs under agriculture, tourism, micro-finance and small & cottage industries, supporting them in both daily business operations and capital expenditure.

Ranked fifth among the top commercial banks of Nepal, IME Bank has been covering a wide variety of other Nepali SMEs such as IT, energy, automobiles, banking & insurance, infrastructure and logistics with wider presence across the nation.

IFC has proposed another USD 15 million investment in another local commercial bank adding to its support to the Nepali SME sector.

Collateral-free Loans:
Giving wings to Nepal youth’s self-employment and entrepreneurship dreams, the Nepal Government has decided to offer financial aid in the form of collateral-free loans.

Nepal Minister of Labor, Employment and Social Security Gokarna Bista said that the government is coming up with the initiative for Nepal youth who want to start their own business ventures and invest in other enterprises in the country.

Bista who inaugurated the “Yunus Social Business Challenge-2018” organized by King’s College, Kathmandu on August 27, 2018, informed, “The government aims to promote entrepreneurship among the youths and will invest around Rs 500,000- Rs 1 million each on thousands of youths without seeking collateral from them.”

About Yunus Social Business Challenge-2018:
Yunus Social Business competition is a 3-yeard old entrepreneurship development campaign created for passionate Nepali student entrepreneurs from colleges and other institutions.

55 applicants registered to the competition which will run for 15 weeks and include workshops and mentorship programs on related topics.

Medium-scale Entrepreneurs Key for Economy

Adding to the rising start-up and SME trend in Nepal in recent times, here comes another statement highlighting the role of small and medium-scale entrepreneurs in strengthening the overall economy.

Speaking at the 15th anniversary of the Federation of Small and Medium Enterprises of Nepal, former Prime Minister and Nepal Communist Party (CPN) Chairman Pushpa Kamal Dahal said small and medium-scale entrepreneurs form the base for Nepal’s economic development.

They are also key to promoting large-scale entrepreneurs, added Dahal.

Highlighting the need for getting benefited from the development of neighboring nations, he called on the federation and all the related stakeholders to join the government in its mission for the nation’s progress.

The federation is moving ahead with the slogan of ‘one home: one entrepreneurship’, said the Federation Chair Babu Kaji Maharjan.

In line with the ongoing support, let’s hope that more domestic push is driven by large, medium and small-scale industries, entrepreneurs and SMEs, along with timely foreign investment and global support, supported by efficient governmental policies will create more business opportunities for the country contributing to the overall economy and country’s employment sector!

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The report entitled ‘Local Shares: An In-depth Examination of the Opportunities and Risks for Local Communities Seeking to Invest in Nepal’s Hydropower Projects’ analyzed the country’s innovative benefit sharing policy that allows communities’ investment in local hydropower projects in the form of ‘local shares’.

Currently, the Government of Nepal mandates hydropower developers to give 10 percent of their shares to communities affected by the project.

Considering the government’s goal of generating 10,000 MW hydropower in the next 10 years, around USD 439 million can be raised from project-affected communities as ‘equity’, says IFC.

Nepal’s local shares model is unique. It recognizes the importance of communities in private sector hydropower investment, says Wendy Werner, IFC Country Manager for Bangladesh, Bhutan, and Nepal.

“For example, in the last three years, over USD 10 million was raised through local shares by 13 small-to-medium hydropower companies. The investment model offers great potential to create local ownership and increase public support for hydropower projects,” adds IFC, a World Bank Group member.

However, IFC reports lack of awareness about the sharing market mechanism and safety measures that can reduce investor risk among locals, majorly women and socially, economically & culturally disadvantaged communities of the country.

The report found that locals borrow at high interest rates or sell primary assets in order to invest in local shares, ending up in unrealistic expectations and risk of loss.

To address such gaps, IFC recommends community-level education and enhanced regulations that can maximize investment opportunities and also protect them from undue risk.

The study also recommends simplification of financial information making it understandable event to non-subject matter experts, creation of low-risk mechanisms for vulnerable households, digitizing the share allocation process and information online for more transparency and accountability in the process.

“IFC aims to ensure the private sector contributes to sustainable power development and that this investment opportunity is within reach of every citizen, balancing the potential returns with the project risks,” adds Werner.

“The comprehensive consolidation of this report is very timely and will hopefully enable informed discussions at the policy level to improve and strengthen the local shares mechanism as a viable model of equity participation involving local people,” says Kulman Ghising, Managing Director of Nepal Electricity Authority.

Also Read:

• Nepal 2017 Highlights: Hydropower Potential Grows Three-fold with 16 New Projects
• Himalayan Hydro Expo 2018: Investors Urged to Tap Nepal’s Hydropower Potential
• Nepal For Clean Energy Solutions, Bets Big on Hydropower

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The Board of Executive Directors of #WBG on August 07, 2018 enacted a new five-year Country Partnership Framework (CPF) for Nepal with an aim to support the country in its path of development driven by federalism.

CPF for Nepal also includes WB’s commitment to offering needed support to all Nepali institutions that are key to successful implementation of federalism and fast-paced development of the country.

According to the Chief of the International Economic Cooperation Coordination Division of the Finance Ministry, Shri Krishna Nepal, WBG also promised enhancement of its financial support to the Himalayan nation significantly over the next five years period.

Nepal’s transition to federalism unlocks opportunities for all citizens to participate in its development. This represents a window of opportunity for the country to further reduce poverty, increase the income of the bottom 40 percent, and pursue its ambitious agenda of inclusive growth and accountable service delivery.
– Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan and Nepal

What CPF Envisages for Nepal?
CPF noted that #NepalFederalAgenda comes as a boost to WBG’s programmes at the operational and policy levels, while also cautioning the nation with supposed societal challenges that can arise in the federalism implementation process.

“Transitional vulnerabilities could heighten in the early days of federalism as development roles are adjusted and the new structures take root,” notes CPF.

According to an official release, CPF’s key areas of focus for Nepal include:

• Strengthening public institutions for economic management, service delivery and public investment
• Promoting private sector-led jobs and growth
• Enhancing inclusion for the poor, vulnerable, and marginalized groups, with greater resilience against climate change, natural disasters, and other exogenous shocks 

The new partnership strategy with the World Bank Group is focused on supporting our transition to federalism, fits squarely within our vision and underpins a Nepali-owned model, says Yuba Raj Khatiwada, Nepal Finance Minister.

Khatiwada feels that this partnership strategy with the World Bank is in line with Nepal’s goal of giving every Nepali equal access to security, justice, good governance, basic services and an opportunity to participate in the developmental process.

Need of the Hour!
According to World Bank, Nepal will need significant financing beyond currently-available public and development aid resources in order to achieve fast-paced growth and fight poverty in its transition to federalism.

In this regard, CPF states that the government’s growth strategy pitching for higher investment and productivity and effective participation by public institutions will need carefully-calibrated policies to draw required private investment in parallel with the federal process.

We will expand our investments — both debt as well as equity — and advisory services for private investment in Nepal. Our efforts will encourage high-quality private investors to support the government’s strategy of inclusive development – Wendy Werner, International Finance Corporation’s Country Head for Nepal, Bangladesh and Bhutan.

Behind CPF
CPF priorities under its developmental agenda for Nepal were formed after a wide range of consultations with the federal, state and local governments.

The results also included recommendations and opinions of Nepal’s related stakeholders and development partners including private sector, civil society, academia, community groups and media.

This includes hearing from over 200,000 citizens across Nepal through SMS and online surveys. The framework aligns with the government’s development priorities and Nepal’s goal to graduate to middle income country status by 2030, said the World Bank in its official release.

WBG Support to Nepal
The World Bank Group has been actively supporting Nepal through its three main arms:

• International Development Association (IDA): Under this concessionary lending arm, WB is currently supporting 21 active Nepali projects at a USD 2.5 billion investment promised under IDA. Under IDA18, WB has indicative resources worth USD 300 million for Nepal for FY 2018-2020 through the IDA Risk Mitigation Regime.
• International Finance Corporation (IFC): This is WBG’s private sector arm in Nepal, which is committed to infuse about USD 800 million-USD 1.2 billion investment in Nepal over the coming five-year period.
• Multilateral Investment Guarantee Agency (MIGA): This is WBG’s investment risk insurance arm in Nepal, which is actively finding opportunities to pump in foreign private investment into Nepal. IFC and MIGA use IDA IFC/MIGA Private Sector Window (PSW) and the MIGA Guarantee Facility to underwrite eligible projects.

WBG’s first economic mission to Nepal arrived in 1963 to assess the country’s development prospects and challenges. Following this, the country received its first WB credit in 1969 for a telecommunications project.

Since then, the World Bank continued its support to Nepal and provided USD 4.75 billion in assistance (USD 3.48 billion in credits and USD 1.27 billion in grants), so far.

Hope the World Bank’s country-wise development strategy will offer more benefits to the development of Nepal in the years to come!

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The International Finance Corporation’s (IFC) report titled ‘Climate Investment Opportunities in South Asia’, released last week, said Nepal holds USD 46.1 billion worth investment potential and would also fulfil its national climate targets promised under the Paris Agreement by 2030.

According to the report, Nepal offers such opportunities in key sectors such as transport infrastructure, renewable energy and municipal solid waste for the 2008-13 period as part of its moves towards achieving climate change targets.

IFC’s assessment was based on Nepal’s commitment under Nationally Determined Contributions (NDC) to the United Nations Framework Convention on Climate Change in October 2016.

Hydropower and Solar Energy, Among Others

In its NDC, Nepal promised generation and distribution of 12,000 MW hydroelectricity and 2,100 MW solar energy, better waste management and control of methane emission, while also equipping every rural household with smokeless cooking stoves by 2030.

Meeting all these requirements would mean almost USD 46.1 billion investment with 12,000 MW hydropower generation alone requiring USD 22.5 billion investment, says the report.

Besides, the Nepali Government’s policy to integrate technological solutions in the country’s agricultural sector would need another USD 4.8 billion.

Private Sector Participation

While highlighting the role of private sector, IFC called on the Government of Nepal to facilitate private-public partnerships and also conduct awareness programs on climate smart-projects to understand the financial benefits of investing in green projects.

The report also recommended revision of foreign ownership limits, restrictions on non-equity investments and sector caps for attracting foreign investment.

Overall, the South Asian countries, which contribute to seven percent of global CO₂ emissions, hold USD 3.4 trillion climate-smart investment opportunities to fulfil their national targets, highlights the report.

“The only way that the South Asian countries can take advantage of these climate investment opportunities is with a strong and engaged private sector,” says Philippe Le Houérou, CEO, IFC.

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