Kathmandu. KATHMANDU: Investment Board Nepal (IBN) has decided to mobilize private sector investment in infrastructure development based on Swiss Challenge and Hybrid Annuity Model.

At a program organized by IBN Nepal in collaboration with Green Growth Nepal in Kathmandu, CEO Gyewali informed that the Board is preparing to forward the proposals that have not been invited by the Investment Board and for that the Board has prepared the draft of the proposal evaluation procedure using the Swiss challenge method.

It is mentioned in the draft that uninvited proposals can be submitted in any field and the proposals can be forwarded on the basis of competition.

CEO Gyewali expressed the belief that investment sector would increase if the new issues and innovations were taking place at various levels at national and international level.

Similarly, the hybrid annuity model helps to expedite the implementation of large projects like roads, bridges, hydropower, transmission lines, waste management, share the costs and risks between the government and private sector, increase quality construction and so on.

The board has also prepared a draft working procedure for the hybrid annuity model. Chief Executive Officer (CEO) Sushil Gyewali said that all PPP projects with an investment of Rs 6 billion or more will be approved by the Investment Board.

He expressed the view that even if the projects of Rs 6 billion or more are approved by the Board, they can be sent to other bodies for implementation on the basis of thematic expertise and capacity. “Projects below Rs 6 billion can be raised by the concerned agencies,” CEO Gyewali said. Therefore, the Investment Board will provide thematic expertise and technical support as per the need. ’

He assured that the Investment Board would also support the local and provincial governments to forward the public-private partnership projects.  Stating that the Board was in favour of increasing maximum investment at the federal, state and local levels, he expressed the view that the investment would be implemented from anywhere.

Stating that Rs 112 trillion should be invested to meet the national goals and objectives set by the 16th five-year plan, he said that Rs 7.4 trillion should be mobilized from the private sector. CEO Gyewali said that a lot of effort would have to be made to achieve the goals of the private sector. The Investment Board of Nepal (IBN) has approved projects worth Rs 1.716 trillion in the last 14 years.

On the occasion, Joint Secretary of Investment Board Nepal Sunita Nepal said that the Swiss Challenge Method would further help increase the investment of the private sector.

Sam Feil, a representative at the Embassy of the UK, said public-private partnerships were critical to bridging the economic gaps and effective outcomes of projects.

On the occasion, working papers on Swiss Challenge Method, Public Private Partnership and Hybrid Annuity Model were presented and discussions were held among experts and officials of concerned ministries and agencies.