Sectoral Overview and Investment Opportunities

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Sectoral Overview and Investment Opportunities

Maha Prasad Adhikari, CEO

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Investment Board of Nepal (IBN)

3Infrastructure Gap & Opportunities

Infrastructure Gap

▪ Acute Energy shortfall (per capita 132 KWH/year)

▪ One of the poorest road network (54 KM per 100 sq. km.)

▪ Only one International Airport with single runway

▪ Poor tourism infrastructure ▪ Poor Health facility (5 bed for 1000 people)

Opportunities

• infrastructure funding gap of $ 13-18 billion from 2011-2020

• Capacity to generate 83,000 MW of hydroelectricity

• Can be world best tourist destination• Religious Circuit : Buddhist, Hindu • Trade hub between India and China• Mass transportation, satellite cities• With sound Macro economic situations

4Investment Board of Nepal Created in 2011 by the Investment Board Nepal Act to promote economic

development in Nepal by creating an investment-friendly environment

Agriculture

Hydropower

Health

Mining & Minerals

Road & Transpor

tation

FDI Approval

“One Window”

Investment Promotion

Investment Facilitation

Facilitation Sectors

5IBN – Organizational Arrangement

High Powered

Board(Chaired by Rt. Hon.

PM of Nepal)

Office of Investment

Board (Lead by CEO)

Consulting Staffs

Regular Staffs

13 Members including Advisors

and Expert

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Construction of International and Regional Airports and investment

required for modernization and management of

existing airports.

Fast track road, Tunnel, Railway line, Rope-way,

Trolleybus as prescribed by Government of Nepal

Solid Waste Management and Treatment in urban

areas

Chemical Fertilizer production industries,

Petroleum Refinery Plants, Major Bridges as prescribed

by Government of Nepal.

Hydropower projects of > 500 megawatt (MW)

capacity.

Banks and Financial Institutions whose 51% or more investment is borne by foreign investors, and investment required for

establishing Insurance and Re-Insurance Companies.

Medical Colleges and state-of-the-art Hospitals or

Nursing Homes that > 300 beds.

Infrastructure or service industry that has a paid-up capital of > Rs. 10 billion.

Development of Special Economic Zones (SEZs),

Export Promotion or Export Refinement Zones, Special

Industrial Zones or IT Parks.

Mandates of IBN

IBN Mandates

Investment required for any project prescribed by

Government of Nepal.

Investment required to support any foreign

investment in a productive industry that has a paid-up capital of > Rs. 10 billion.

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JVA initialed between Nepal Electricity Authority & CWE

Investment Corporation (CWEI) , a subsidiary of Chinas

Three Gorges Corporation (CTG).

Project Development Agreement (PDA) has been signed with SJVN on 25th Nov 2014. Private Land Acquisition completed. Financial Closure & other transaction phase works underway.

IBN – Current Status on Initiated Projects

3. West Seti (750 MW)

1. Arun III (900MW)2. Upper Karnali (900MW)

4. Upper Marsyandi (600MW)5. Chemical Fertilizer Plant 6. Kathmandu Valley Waste

Management 7. Cement Industries

Project Development

Agreement (PDA) Negotiation with

GMR is underway.

FDI approval given to 4 cement industries

1. Dangote Cement (Estimated USD 555 Mn.)2. Honghi- Shivam Cement (Estimated USD 360 Mn.)3. Huaxin cement (Estimated USD 140 Mn.)4. Reliance Cement (Estimated USD 400 Mn.)

Hongshi Shivam – Under construction Huaxin & Dangore – Serching Mines Reliance – Not in contacts

PDA Negotiation with two companies

is underway and expected to be

completed within 2 months.

Project Development Agreement (PDA) has been signed with GMR Energy on 19th Sep 2014. Financial Closure & other transaction phase works underway.

Detailed Feasibility Study

completed. Modality of

development is underway.

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Sectoral Overview

9Sectoral Overview - Agriculture

10Sectoral Overview - Energy

11Sectoral Overview - Transportation

12Sectoral Overview - Tourism

13Sectoral Overview - Manufacturing

14Sectoral Overview – Mines & Minerals

15Sectoral Overview – Financial Services

16Sectoral Overview – ICT

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Investment Opportunities in Different Projects

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• IBN -Prepared project profile of different projects having feasibility studies and Some level of studies

•Develop Project Idea Note on the potential projects

•Feasibility studies – 21 Projects

•Some level of studies – 30 Projects

•Project Idea Note – 71 Projects

Project BankAgricult

ure (2

Projects)

Hydropower &

Transmission (16

Projects)

Health &

Education(21

Projects)

Mining &

Minerals(3

Projects)

Road & Transportation

(30 Projects

)

Others(9 Projects)

Smart Cities

(8 Projects)

19Approved Projects on Project Bank

23Feasibility Study Completed Projects

1. Tribhuvan International Airport (TIA) Modernization Project

2. Second International Airport (SIA)

1. East-West Electrified Railway Project2. East West Railway link to India Project3. Kathmandu Kulekhani Hetauda Tunnel Highway4. Kathmandu-Pokhara Railway5. Kathmandu Valley Metro Project

1. Tamakoshi 3 hydropower project (650MW) 2. Karnali Chisapani (10,800 MW)3. Budhigandaki Storage Hydro Project (1200 MW)

HYDROPOWER

AVIATION

TRANSPORT

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1. Jumla SEZ2. Kapilvastu SEZ3. Rautahat SEZ4. Dhanusha SEZ5. Siraha SEZ6. Jhapa SEZ7. Biratnagar (Morang) SEZ8. Panchkhal SEZ9. Simara SEZ

Feasibility Study Completed Projects

1. Chemical Fertilizer Plant (CFP)

AGRICULTURE

SPECIAL ECONOMIC ZONES

1. Nepal India Petroleum Pipeline

PETROLEUM PIPELINE

25Projects having Some Level of Study

1. Kyirong - Kathmandu Railway Project2. Kyirong - Baireni, Dhading Railway Project3. Lumbini - Kurintar Railway Project4. North South Corridor- No. 85. North South Corridor- No. 76. North South Corridor- No. 67. North South Corridor- No. 38. North South Corridor- No. 29. North South Corridor- No. 1

1. Tamor Storage Hydro Electric Project (762 MW)2. Lower Arun (650MW)3. Bheri 3B (1003 MW)/Bheri 4 (964 MW)4. Sunkoshi 3 hydropower project (536 MW)5. Sunkoshi 2 hydropower project (1,110MW)6. SR-6 (642 MW)

HYDROPOWER

TRANSPORT

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1. Iron Ore (Dhaubadi)2. Gas (Dailekh)3. Petroleum Refinery (Jitpur)

Projects having Some Level of Study

1. Infrastructure Development Bank

1. Nuwakot SEZ2. Nepalgunj SEZ3. Gorkha SEZ4. Dhangadi SEZ


MINERALS AND MINES

BANKING AND FINANCE

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1. Attariya – Uttarakhand2. Lamki-Tikuniya3. Kohalpur – Rupaidiha4. Butwal – Gorakhpur5. Inaruwa – Punera6. Rasuwa – Kerung7. Khandbaari – Kimathangka

Projects having Some Level of Study

TRANSMISSION LINES

28Project Idea Note (PIN)

1. Rara Lake Luxury Resort2. Sagarmatha National Park Luxury Resort3. Shey-Phoksundo National Park Luxury

Resort4. Khaptad National Park Luxury Resort5. Ski Resort in Manang6. 5 Star Business Hotel Province 17. 5 Star Business Hotel Province 28. 5 Star Business Hotel Province 59. 5 Star Business Hotel Province 610. 5 Star Business Hotel Province 711. Tourist Bus Terminal & Stopover12. Amusement Park13. Historic/Cultural Part14. Regional International Airport15. International Convention Center

TOURISM

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•Bus Rapid Transit (BRT) Kathmandu•Bus Rapid Transit (BRT) Pokhara•Bus Rapid Transit (BRT) Biratnagar•Bus Rapid Transit (BRT) Bharatpur•Bus Rapid Transit (BRT) Nepalgunj•Bus Rapid Transit (BRT) Bhairahawa and

Butwal•Kathmandu Monorail Project•Monorail Project in Pokhara•Monorail Project in Biratnagar•Monorail Project in Bharatpur•Monorail Project in Birgunj•Monorail Project in Bhairawaha & Butwal•Monorail Project in Itahari & Dharan•Monorail Project in Nepalgunj•Terai-Kathmandu Ropeway•Cable Car Project

Project Idea Note (PIN)

1. Meat Processing Industry

AGRICULTURE

TRANSPORT


1. Private Hospital in Kathmandu2. Private Hospital in Province 13. Private Hospital in Province 24. Private Hospital in Province 45. Private Hospital in Province 56. Private Hospital in Province 67. Private Hospital in Province 78. Diagnostic Center9. CTEVT College Campus Kathmandu10. CTEVT College Campus Pokhara11. CTEVT College Campus Chitwan12. CTEVT College Campus Dhankuta13. CTEVT College Campus Jhapa14. CTEVT College Campus Dhangadi15. Education & Sports City in Nepal 116. Education & Sports City in Nepal 217. Education & Sports City in Nepal 318. Education & Sports City in Nepal 419. Education & Sports City in Nepal 520. Education & Sports City in Nepal 621. Education & Sports City in Nepal 7

TOURISMHEALTH AND EDUCATION

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1. Pulan-Yari, Humla Dry Port2. Zangmu-Kodari, Sindhupalchok Dry Port 3. Riwu-Olangchung Gola Dry Port4. Lizi-Nechung, Mustang Dry Port5. Chentang-Kimathanka Dry Port


1. 3 Units IT Parks

1. Nepal China Petroleum Pipeline2. Nepal Bangladesh Petroleum Pipeline


BANKING AND FINANCE

PETROLEUM PIPELINE

DRY PORTS

IT Parks

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1. Glass2. National Security Printing Plant


1. Smart City 1 - Phidim 2. Smart City 2 - Janakpur3. Smart City 3 - Kathmandu4. Smart City 4 - Pokhara 5. Smart City 5 - Butwal6. Smart City 6 - Birendranagar

7. Smart City 7 - Dhangadhi8. 10 Model Cities

PETROLEUM PIPELINE

SMART CITIES

MANUFACTURING


1. Solar PV in Tribhuwan International Airport (75 MW)

1. Insurance Company (with 51% foreign Investors)2. Re-Insurance Company

BANKING AND INSURANCE

ALTERNATIVE ENERGY

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Thank for you kind attention !!!

Sectoral Overview and Investment Opportunities

Investor Relations

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