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Chinese companies fail to keep investment promises

Kathmandu, September 7

At the investment summit hosted by the Nepal government on March 6 this year, China became the country to promise the biggest investment for development projects in Nepal. In total, various Chinese companies promised to invest Rs 830 billion.

Most of Chinese investors had promised to invest in roads, mines and hydropower.

Exactly six months have passed since the conference, but Nepal has not received a penny from them. Neither have the companies started any legal process to implement their promises.

Investment Board’s spokesperson Uttam Bhakta Wagle says, “Some investors have inquired us about ¬†investment laws of Nepal and they seem to be studying the procedures now.”

It has been thought that the promulgation of new constitution in 2015 assured the Chinese investors of political stability and hence they did not hesitate to make promises. However, stakeholders are not sure why the companies are reluctant to keep their words.

The Nepali Embassy in Beijing had held rounds of consultations with Chinese industrialists and traders about investment in Nepal before the summit. During that time, as many as 18 companies had been found interested to invest in Nepal. However, less than half of those participated in the summit.

Nepal’s Ambassador to China, Leela Mani Paudyal, says he has been following up with the investors to launch their projects, but many of them have answered him that they are holding discussions about it.

Some officials view that the Chinese investors are reluctant also because of long administrative procedures in Nepal owing to lack of coordination among concerned government mechanisms.

Meanwhile, three committees formed to implement promises made during the summit are found to be inactive after the change in government in June.

 

 


Published on September 7th, Thursday, 2017 11:09 AM


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