MP Ashish Gajurel Stresses Need for Private and Diaspora Capital for Infrastructure Development

Kathmandu. National Independent Party (NIP) MP Ashish Gajurel has emphasized the need to mobilize private sector and diaspora capital as domestic revenue is insufficient for the country's infrastructure development.

Participating in the discussion on the principles and priorities of the Appropriation Bill for the fiscal year 2083/84 in the House of Representatives, MP Gajurel stated that policy and procedural clarity are necessary for infrastructure construction.

He mentioned that the potential budget of 4 kharba rupees allocated for infrastructure development in the upcoming fiscal year will not be able to meet the country's growing demand. He commented that although Nepalis living abroad are interested in investing, the government has not been able to create a suitable environment. He demanded that the government gain the trust of the private sector, as they will not invest in infrastructure without ensuring profits and security of investment.

Questioning the effectiveness of the Investment Board, MP Gajurel pointed out the need to restructure the board. He accused the board, despite being a powerful body chaired by the Prime Minister, of not delivering as expected. He stated that to attract the private sector, the 'Viability Gap Funding' mentioned in the Investment Board Act should be immediately implemented.

During the discussion, he said, 'There seems to be no possibility of meeting the demand in the infrastructure sector from our own revenue. In such a situation, prioritizing infrastructure bonds, diaspora capital, and public-private partnership (PPP) models to complete incomplete projects is positive.'

Similarly, he suggested that the government should be clear about methods such as revenue guarantee, traffic guarantee, buy-back guarantee, and concessional loans to involve the private sector in infrastructure development. MP Gajurel also urged to keep the projects in the 'Project Bank' ready for implementation ('Ready to Go') and to study and prepare suitable projects for private investors.

Stating that priority should be given to the development of road, air, energy, and digital infrastructure under integrated infrastructure, he drew the government's attention to focus on building climate-resilient and sustainable infrastructure.