Koshi Province Pushes Forward 50 Projects Pledged at Investment Summit Amid Implementation Hurdles

Biratnagar. The government has announced that 50 projects for which investment commitments were made during the Koshi Province Investment Summit, held in Biratnagar on Jestha 18 and 19, 2082, under the theme 'Foundation for Progress: Water Resources, Tourism, Agriculture, and Infrastructure,' are moving toward implementation.

According to the review report published by the Provincial Investment Authority, although investment commitments and their implementation are progressing, various challenges have emerged. The Provincial Chief Minister, Hikmat Kumar Karki, stated that the provincial government is striving to convert the total commitment of NPR 157.98 billion for these 50 projects into tangible results.

A total of 71 projects were presented to investors at the summit. Memorandums of Understanding (MoUs) were signed for 51 of these projects, with industrial production accounting for 42.49% and infrastructure and urban development for 39.13%. Agreements were also reached for 10 projects in agriculture, 12 in tourism, 4 in energy, 2 in information technology, and 1 in health.

The Authority's progress report categorizes over 50 projects into different stages. Some projects are in the final stages of construction, while many others remain stuck in the phases of revising Detailed Project Reports (DPRs) and drafting Project Development Agreements (PDAs).

The organic fertilizer factory, being built at a cost of NPR 200 million in Barahkshetra, Sunsari, has started trial production. Similarly, a project in Urlabari is also preparing to commence operations. The government considers these projects as successful examples from the summit.

The construction of R.R. International Hospital in Biratnagar, costing NPR 2.48 billion, has reached its final stage. Furthermore, financial management has been completed for the 6.9 MW Panchkhapan Hydropower Project in Sankhuwasabha, and construction work has advanced.

The investment summit also brought to light the policy and legal complexities present in Koshi Province. There are some projects that cannot move forward despite investor interest, due to existing government policies.

The Duhabi Multipurpose Cold Storage project, valued at NPR 340 million and strategically important, is still in the stages of drafting the PDA and forming a committee.

The Rastal and Barjuta tourism projects (NPR 980 million and NPR 4.28 billion, respectively) are both large-scale tourism ventures. However, these projects are still revolving around PPR evaluation and feasibility studies for their construction.

The investment summit also brought to light the policy and legal complexities present in Koshi Province. There are some projects that cannot move forward despite investor interest, due to existing government policies.

The millet liquor branding project in Dhankuta, aimed at branding local millet liquor with an investment of NPR 400 million, is currently caught between the 'Liquor Act' and the 'Excise Duty Act.' The Investment Authority has clearly stated, 'A policy decision is required.'

The proposed 'Big Housing' project in Birtamod, Jhapa, valued at NPR 600 million, remains in status quo due to the stringent policies of the banking and financial sector. This illustrates how national economic policies affect the success of the investment summit. The issue of land possession rights and ownership for most projects is still unresolved. Procedural delays in allowing private sector use of government land have become a discouraging factor for investors. Such projects include the Kakarbhitta Bus Park and the Koshi Refreshment Center.

Although the Authority, up to its 31st meeting, has been forming PDA draft committees, reviewing DPRs, and maintaining continuous dialogue with investors, the effectiveness of 'One Stop Service' is yet to be seen. Until the compulsion for investors to visit multiple ministries for a single task ends, it seems difficult for these understandings to materialize into physical structures.

Some very ambitious projects were also presented at the summit. Examples include the NPR 500 million 'Koshi Podway (Rani-Bhedetar)' and the NPR 15 billion 'Barahkshetra Cable Car.' The government has given 'Right of Way' consent for the Podway, and the investors have changed. However, a clear picture of how the necessary capital and technical expertise for constructing such large infrastructure will be managed has not yet emerged.

Furthermore, the NPR 26 billion 'Green Hydrogen' project proposed for Udayapur and Sunsari is still in the initial survey phase.

Projects like Bio Fertilizer (NPR 600 million) in Jhapa, Chhurpi processing (NPR 280 million), and Herbal processing (NPR 1.16 billion) in Morang have raised hopes for the utilization of local raw materials and employment generation. However, the Authority still needs to facilitate the preparation of the required 'Business Plan' for these projects.

The progress report presented by Dr. Saroj Koirala, Chief Executive Director of the Provincial Investment Authority, shows that the Authority is attempting facilitation, but due to limited authority and resources, many issues depend on the decisions of the Federal Government.

Although the Authority, up to its 31st meeting, has been forming PDA draft committees, reviewing DPRs, and maintaining continuous dialogue with investors, the effectiveness of 'One Stop Service' is yet to be seen. Until the compulsion for investors to visit multiple ministries for a single task ends, it seems difficult for these understandings to materialize into physical structures.

Koshi Province Chief Minister Hikmat Kumar Karki stated that the strategy is to hold discussions every three months to implement the commitments made at the investment summit. He mentioned that efforts are being made to resolve legal complications, even though individual and collective discussions with investors are taking place.

Saroj Koirala, Executive Director of the Provincial Investment Authority, informed that five projects have already moved to the PDA stage.