– Deepak Sharma

Background

Private Equity and Venture capital (PEVC) is newly introduced alternative financing model in Nepal. Looking at the current trend PEVC could gain importance in Nepal. According to World Bank Enterprise Survey 2013, 364 percent collateral is needed for bank loans in Nepal which is way above the South Asian average. Only 35 percent of Nepali firms have access to bank loans and access to finance has been identified as a major constraint for 40 percent of Nepali firms. So, an alternative source of finance, risk capital to be specific, was to give vibrancy to the business sector in Nepal. Nepal’s first onshore PE fund with FDI, Business Oxygen Pvt. Limited, was established in 2012. At present there are several offshore and onshore (with and without FDI) PEVC funds for Nepal. The fiscal year 2018-19 budget mentioned about the promotion of alternative investment such as private equity, venture capital and hedge funds. Until now, PE funds are set up in traditional company form as investment company and are governed by Companies Act like any other company. However soon after the announcement in the last budget speech, Securities Board of Nepal (SEBON) took initiative to enact regulatory instruments to govern PEVC in Nepal.

PEVC Regulations

SEBON issued “Specialised Investment Fund Regulation, 2075” (SIF Regulation) to promote PEVC industry with effect from 6 March 2019 (22 Falgun 2075). This is a milestone in Nepal’s PEVC industry. The regulation has been welcomed by related stakeholders given the sector was waiting for a legal recognition and a framework for its operation. The regulation recognises ‘fund’ and ‘fund manager’ separately. Fund manager should be a company which can manage multiple funds and fund should be registered as fund with SEBON. Since the industry is in a very nascent stage, there is a need of facilitator than a regulator. The regulation encompasses this concept and has allowed hurdle rate, management fees, fund tenure and size (within the limits provided by the regulation) and carry to be as per the investment agreement. Qualification of fund manager, CEO & director of fund manager, provision of independent director, roles and responsibilities of fund manager, minimum requirement of a fund, content of an investment agreement and statute of fund have been outlined in the regulations.

Equity Investment Made Easy

Companies Act restricts a company to invest in excess of 60 percent of its paid-up capital and free reserves or 100 percent of free reserves whichever is higher in any other company. First amendment to Companies Act included “Investment Companies” in the exclusion list from this restriction. Company Directive 2015 (Clause 90) again put investment limit of 90 percent of paid up capital and 100 percent of free reserves on those companies in the exclusion list. This means investment company wouldn’t be able to invest 10 percent of their paid-up capital. What if an investment company uses debt to make the investment? It was an ambiguous topic. Now a PE fund can be set up as a fund and provisions of Companies act will no longer be applicable to a fund. The regulation has solved the problem allowing a fund to take loan from international investors for investment, however domestic loan has not been allowed yet.

Decision Making for PEVC Fund

In a typical PE fund, all investment decisions are made by an independent Investment Committee and is supervised by an Advisory Committee. In a company structure, decisions made by investment committee had to be reapproved by board of directors as Office of Company Registrar only accepts board minute for investment decision. This made the process redundant and Investment Committee could not make independent investment decision. Now, the regulation recognizes both Investment Committee and Advisory Committee allowing a PE fund to operate as per international practice.

Streamlining of Approval Process

PEVC fund is one of the most effective means to provide businesses an access to international fund. Large size projects and businesses may, on their own, pitch for FDI but SMEs may not be able to access FDI which can be bridged by a PE fund. FDI in PE fund, only from bilateral and multilateral organisations to begin with, is allowed by the regulation which is a very welcome step. At the same time, FDI is not allowed in investment business as Industrial Enterprise Act doesn’t classify investment business as an industry. This issue needs to be addressed to avail funds with FDI. Each FDI must pass through Department of Industries (DOI)/ Investment Board and Nepal Rastra Bank for approval and Office of company registrar (OCR) for recording of investment in share registry. Offshore funds have to go through all three bodies for each investment whereas incase of onshore fund, it has to go through all three bodies once and thereafter go through DOI and OCR for each investment to be made. How will the regulation help to simplify this process? If the regulation is going to add SEBON as another layer in the process, it will lose its essence.

Blacklisting Exclusion & FDI restrictions for PEVC

NRB’s provision on blacklisting of defaulter blacklists shareholder holding more than 15 percent equity and director of defaulter company which is a draconian provision for PEVC funds. FDI investors are waived of the blacklisting provision but onshore funds with FDI are not considered FDI investor for this purpose. Whereas Investment by onshore fund with FDI is considered as FDI by DOI and needs to go through FDI process at DOI for each investment. Current provisions seem to be biased against onshore fund. Banks and Financials institutions are immune of blacklisting provision, similar immunity should be provided to PEVC funds for level playing field. FDI is restricted in certain sectors as outlined in negative list and minimum amount of FDI has been revised to NPR 5 crore. In case of onshore fund with FDI, there arises two questions – 1. Will the negative list be applicable when onshore fund with FDI makes its investment in portfolio companies? (probably yes), and 2. Does FDI limit apply only when a foreign investor makes investment into the onshore fund or also when the fund makes investment in portfolio companies? It would be logical to apply the limit when FDI is brought into the fund. If FDI limit applies to onward investment by fund, it will restrict SMEs, larger segment of the economy, from access to funds with FDI.

Avoiding double taxation of PEVC Funds

Another important aspect to be discussed here is tax treatment on PEVC fund. The regulation has allowed PEVC fund to register as fund but tax treatment is still not spelled of which means there will be double taxation. Mutual funds have been exempted of income tax as per Finance Ordinance 2070-71 and only 5 percent withholding needs to be deducted while distributing income to unit holders. This is basically a pass-through treatment of tax with a logic that mutual funds are just a SPV for investment and don’t create income on their own, but pass return generated through investment to unit holders. PEVC fund is special purpose vehicle which pools investment from different investors and invests in portfolio companies. It is very much like a mutual fund from taxation point of view, so same logic should apply to PEVC fund as well. Once pass-through treatment of tax is available, more onshore fund will be attracted against current trend of offshore fund.

Lucrative Investment Sector

Investors assess return, liquidity and risk aspects before investment. Regulation has reduced post IPO lock-in period to 1 year for promoter shares held by funds. Investors (both domestic and foreign) would be more comfortable investing in PEVC funds managed by professionals than invest in individual projects. In frontier markets like Nepal, government’s approach towards a sector matters a lot for international investors. Since PEVC sector is now formally recognised and regulated, this can be a lucrative investment sector for domestic as well as international investors. We have been talking about investment requirement for Nepal, Nepal is investment ready and others, at the same time we also need to discuss of creative ways of channeling investment into Nepal. PEVC is one of those channels.

Conclusion

SIF regulations is a beginning and one cannot expect it to be perfect already. Harmonisation of different Act and regulation (like Industrial Enterprise Act, Income Tax Act, FITTA etc.) in line with SIF regulations is needed. SIF regulations itself needs to clarify lots of issues. SEBON should be able to function as facilitator on approvals, regulatory compliance, tax matters and provide one-point solution in bringing investment, creating fund and make investments. We have smaller funds at present, we can attract sector agnostic and sector specific bigger size funds by simplifying the process. Growth of PEVC industry can create a significant impact in Nepal’s economy by availing collateral free risk capital making PEVC funds “an impact fund” in real sense.

 

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The rule banning FDI less than Rs50 million is a slap in the face of small and medium enterprises

– Ritu Pradhan Malla

It is whimsical to expect a small tree to provide boundless fruit without fertilising it and enabling its roots to grow. But that seems to be what Nepal’s policy-makers think.

Government revenue is dependent on imports, instead of building a sustainably nurturing an enabling business environment for small and medium-scale enterprises (SMEs). Such narrow vision is discouraging entrepreneurship and making Nepal further dependent on the outside.

Our largest export market is labour with income generated by as many as 5 million young Nepali men and women who send money home, and which makes up 28% of the GDP. The money boosts consumerism, which means more imports.

Not even locally grown fresh vegetables can compete with imported, pesticide-laced vegetables because of the high cost of production compounded by lack of human resources to farm the land. And now, the climate crisis will reduce crop yield further.

Nepali SMEs have not been able to fulfill local demand in food and manufacturing sectors, as imported goods are cheaper. To compete requires access to technology, markets, information and finance, which is evidently not available. Foreign Direct Investment (FDI) should be able to change the situation, but SMEs are barely surviving due to neglect and adverse rules.

A recent law banning FDI less than Rs50 million is a slap in the face of the SME sector. It looks like Nepal’s policy makers did not do much homework before taking this kneejerk decision. It dashes the dream of entrepreneurs who want to  better technology to deliver competitive goods in the current market. It kills the initiative of entrepreneurs who do not have collateral to work with a bank and would have had the option from a foreign investor.

A recent example of an energetic young entrepreneur, who was partnering with a foreign investor to settle her high cost loan. She will no longer be able to do so as the investment threshold has now been increased ten fold.

One can only imagine how many products and services would have been built in Nepal and how many jobs could have been added.  To address the lack of capital and technology transfer, private equity funds in Nepal are still working to make things happen and to attract FDI even when the cost of doing business is still very high.

The government needs to create an inclusive environment for investors who are helping build Nepal’s economy. An SME’s ripple effect on the local economy can be huge. Business Oxygen (Bo2), for instance, accelerates the growth of Nepali SMEs to help create direct jobs, reduce imports, create markets, increase dollar revenue, attract new SMEs in the value chain, etc.

There is still a yawning market gap in access to finance for SMEs working in FITTA negative listed sectors. Recently, newly added negative lists such as primary agriculture and dairy further constricts the growth of SMEs in the agri-sector at a time when the climate emergency is already affecting Nepal’s food security.

Foreign investment could help Nepal’s commercial agri-entrepreneurs use the capital for climate resilience purposes, but the recent FDI threshold limit discounts the need for this intervention where it is needed most.

Nepal needs a stronger support ecosystem for FDI which enable local SMEs, it should not derail them with new rules red tape. After all, we have plans to become a middle-income country by 2030, achieve all of our Sustainable Development Goals. Here is a checklist to harmonise the business environment:

• Make s sector-specific permission process
• Provide special concession for private equity that want to help scale up Nepal’s SMEs
• Provide special consideration of the working environment for foreign investors supporting inclusive growth in the economy
• The Department of Industry can always check proposals and raise questions when there are areas of suspicion

Ninety percent of companies registered in Nepal are SMEs, and yet we restrict FDI less than Rs50 million. It is no wonder that in 2019 Nepal’s position in the ease of doing business fell five points to 110.

Ritu Pradhan Malla is Senior Investment Manager at Business Oxygen Pvt Ltd

Source: Nepali Times

At the Global Private Equity Conference in Washington, DC last month discussions ranged from geopolitics and the global economy to investing across borders to releasing $150 trillion of blocked assets in emerging markets–among many other interesting topics that delved on issues of governance, climate change and impact investing. At the same time, halfway around the globe, back home in Nepal, new rules had been put in place that raised the barrier-to-entry for foreign direct investments from Rs5 million to Rs50 million. The logic behind the tenfold increment seems to escape everyone conversant in dealing with foreign direct investments (FDI), especially at a time when the FDI commitments have fallen by 68 percent. According to the fiscal year 2018-19 Economic Survey, the total FDI commitments were Rs34.91 billion last year. In the same period this fiscal year, the amount has dropped to Rs11.18 billion.  Furthermore, with the newly enacted Foreign Investment and Technology Transfer Act (FITTA) expanding the negative list, and adding primary agriculture and dairy to its prohibitive list for foreign direct investments, the hope for an increase in investments coming to Nepal seems unlikely. Ironically, the FITTA, which replaces an act of the same name from 1992 was passed around the same time the Investment Summit 2019 took place, and integrated agriculture was one of the showcased attractions at the Summit. There seems to be a belief among policymakers that FDI is only important for capital injection in large projects and this thought process totally disregards the intangible benefits made by investments–especially the smaller ones.

Do smaller foreign direct investments crowd out local investors?  In Nepal, the answer would be definitely not. With the liquidity crisis in the banking system, the low-risk appetite of banks towards providing loans without collateral and huge interest rates in the curb market–an unofficial market for trading stocks and shares, the missing middle has been addressed by small investments through FDI in recent years. Furthermore, these small investments have been beneficial by pumping productivity and enhancing worker skills along with introducing international best practices and technology to the equation. Small investments have the ability to grow and become large. Access to finance has emerged as the biggest obstacle to Nepali firms according to a recent survey jointly done by The Milken Institute and Nepal Stock Exchange. The survey noted that small and medium-sized enterprises were the hardest hit due to lack of capital.

No doubt, the number of small investors in the market is not commensurate with the volume of investments made compared to the figures of larger investments. However, the employment that these small companies have provided is much greater than the larger investments. According to the Department of Industry data, there were 39 large companies (investments over $500,000) with a total investment of about Rs52 billion ($468 million) and 39 small companies (investments less than $500,000) with total investments of Rs45.66 crores ($41 million) last year. The large companies in aggregate employed 4,091 people directly and the small companies in total employed 9,860 people. There is no further data available on other parameters by which we may have calculated the impact these investments have, but one can surmise that the indirect employment and other benefits to the value chain would be far greater in benefiting a post-conflict fragile nation like Nepal.

Majority of the investments, according to the Department of Industry data, comes from China and India. Last year 80 percent and 9 percent invested in large companies were Chinese and Indian investments respectively; 52 percent and 14 percent invested in smaller companies were Chinese and Indian investments respectively.  The United States with 32 smaller investments and 4 large investments comes third, followed by Japan (90 percent in small investments), France, South Korea, Sweden, UK and the Netherlands. From 2013, Chinese investments have diverted gradually from smaller investments to larger ones: from 37 percent of total investments in 2013 to 88 percent of the large investment segment in the fiscal year 2017-18. The data shows that by limiting the smaller investors, the share of the diverse international pie will gradually shrink in Nepal and Chinese investments will be dominant in the FDI scenario.

Many countries in the region have set entry limits to FDI at $50,000. Tried and tested to their economic development goals for many years, the same minimum had also been incorporated in Nepal. However, this has now suddenly been changed. As the world moves towards an integrated and digitised 21st century, smaller investments in information and communications technology will continue to drive new ideas and innovations. Along with these smaller investments comes the much-needed introduction to new technologies and added know-how.  Not only is Nepal in need of such technology transfers, but we also need to demonstrate to foreign investors, through investments in smaller projects, that their investments are safe, liquid and provide a good return. This needs to be demonstrated before anticipating larger ones where the risk appetite to invest would be much lower. The onus is on us. Arbitrary policy changes do not bid well for investors that are looking for stability across regulatory lines. As much as sound political and economic factors are mandated for foreign investment, mature policy stability is equally expected.

Pandey is the CEO of Business Oxygen Pvt Ltd.

Published: 03-06-2019 06:30

Source : Kathmandu Post (ekantipur.com)

Chalida Ekvitthayavechnukul (https://www.dealstreetasia.com/author/chalida/)

Business Oxygen (https://www.dealstreetasia.com/?s=Business+Oxygen) (BO2), the first private equity firm in Nepal, plans to make up to 14 investments in total and deploy about 80 per cent of its $14-million fund by the year end, chairman and CEO Siddhant Raj Pandey told DEALSTREETASIA.

IFC, a member of the World Bank Group, appointed White Lotus Centre Pvt. Ltd. as fund manager for Business Oxygen, its SME ventures fund in Nepal, in 2015.

BO2 is an 80:20 joint venture between International Finance Corporation (IFC) and local business consultancy firm White Lotus Centre.

BO2 fund focuses on investing in Nepal’s high-growth, small-and medium-sized enterprises across all sectors.

Pandey, a banking industry veteran and former CEO of Ace Development Bank, said that only 39 per cent of Nepal’s SMEs have access to finance, leaving a gap for funds like BO2 to bridge.

“The deal sourcing in Nepal has been incredible. A lot of companies are out there. There is a lot of demand especially now when the banks have liquidity crisis and companies are unable to grow because of lack of capital,” he said.

BO2 usually invests between $100,000 and $500,000 per company and takes up to 49 per cent equity with an expected IRR of a minimum 20 per cent.

It has already made seven investments over the past two and a half years and plans to seal six to seven more deals within this year, he cited.

BO2 has invested in local restaurant chain Dalle Restaurant, farmer market Le Sherpa, natural pet food producer Godawari International, solar energy solution provider Saral Urja Nepal, and eco-tourism resort chain Himalayan Chain Resort.

“Apart from the capital infusion, we also give importance to impact investment from the gender equality side. Employment has gone up four times in the companies that we have invested in, they [investees] pay 100 per cent more tax since our entry, or even the climate smart adaptation. All these are what the companies have to adhere to,” he said.

The CEO said, the fund will probably see two to three exits next year. “By then, we will be in position to pitch for a new fundraising,” he added.

BO2 secured $7 million from IFC in 2015 and an additional $7.3 million from IFC through the United Kingdom’s Department for International Development Fund and the Climate Investment Fund’s Pilot Program for Climate Resilience in 2017.

Source : Deal Street Asia

Nepal’s first private equity fund is empowering SMEs in a bid to foster development and augment the country’s economy.

As Nepal goes through a transformational change in business patterns, private equity is becoming a valid market solution for companies with excellent growth potential. The need for risk capital remains high in this situation. Business Oxygen Private Limited (BO2), a part of International Finance Corporation’s Global SME Ventures initiative, which supports the creation of risk capital funds in fragile, frontier, and post-conflict markets, is Nepal’s first private equity (PE) fund. It is also the first climate-related PE fund in the country. BO2 is a White Lotus Centre (WLC) venture that manages small and medium-sized enterprises (SMEs) and has been in operation for three years . BO2 is enabling Nepali companies with the vision of creating a social impact to grow further in the market.

Scaling up Nepali SMEs
BO2 helps entrepreneurs running SMEs to scale their operations by injecting equity and providing technical assistance. The requirement for the companies before collaborating with BO2 is that they need to have enterprise value and a good track record.The company provides four  to seven years of funding and a ‘harvest period’ of six months. Investments range between Rs 10 million to Rs 50 million, require no collateral and the companies don’t need to pay any interest.

BO2 combines risk capital financing with advisory support to help investee SMEs develop fundamental financial systems, quality-assurance standards, and corporate governance frameworks. BO2, which was registered in 2012 and started operations in 2015 , has International Finance Corporation (IFC), UK Aid’s Department for International Development (DFID) and the Strategic Climate Fund’s PPCR along with a Nepali company, WLC Ventures as its investors.

Creating Impact 
Nepal is among the countries most vulnerable and least resilient to the impact of climate change because of which being resource efficient is essential. BO2 considers helping companies become more resource efficient as its prime priority. The company does this in two ways – first by promoting low carbon growth by investing in solar energy, and secondly, by helping businesses it invests in, regardless of the sector, to become climate smart. BO2’s partner companies like Himalaya Chain Resort, Saral Urja, and Shanti Engineering have been promoting the use of a solar panel for electricity, harvesting rainwater, and recycling dry and wet wastages.

Even three years after the Gorkha earthquake, remote communities in Nepal still face challenges like lack of access to water and electricity. In Nepal, 22 percent of people don’t have access to electricity, and at least 20 percent don’t have access to clean water. Saral Urja, an investee company, has been installing solar panels that provide 30-kilowattsof electricity in Raksirang VDC, home to the Chepang, Dalit and Tamang communities of Nepal. These solar photovoltaic panels provide power to the solar-generated pumps to distribute 150,000 litres of water every day that not only irrigate the fields but also provide drinking water to each household through a network of pipes.The company claims that this measure has changed the face of this small town in less than a year as since its installation, every household has its own water tap and irrigation is now possible for 60 ropanis of land, on which villagers farm red chillies commercially.

Companies that have received investment from BO2 have reached the lives of 60,000 people and have employed over 2,800 people, which is an increase of 131 percent since BO2 started making investments. With an indirect employment contribution of 6,500 down the supply chain, it has seen a rise in female employment by 209 percent. In companies supported by BO2, women hold 23 percent of all direct jobs, a 250 percent increase from the date BO2 first invested. In an attempt to promote women’s economic empowerment and especially those from underprivileged backgrounds who are vulnerable, Bo2 has been employing women through its partner companies.

Challenges 
While 11,000 SMEs employ 1.75 million people and contribute 22 percent to Nepal’s GDP, its contribution towards poverty alleviation and the overall advancement of the private sector is also significant.

However, this is one of the neglected segments due to lack of funding available to the SMEs. Only 39 percent of SMEs in Nepal have access to finance. Alongside macro challenges like political instability and inadequate resources, they also suffer from a lack of proper managerial skills.

To create jobs and support local economies, BO2 has been working to promote the building of SMEs throughout Nepal. The company has been investing in SMEs for the past two years to become the alternative access to finance to narrow the gap slowly and to boost the country’s economy by creating jobs.

Investments Made
Impact investing is all about positively changing the livelihoods of communities. The focus of private equity impact funding is to establish fundamental financial systems in the companies. Quality assurance standards are developed along with the corporate governance framework. The idea revolves around creating entrepreneurs and companies along the lines of best international practices that make a difference in the local economy.

BO2 has made seven investments in SMEs from different sectors in the last two years. The companies that received investments are attempting to uplift the local economy be it by assisting hundreds of dairy farmers down the supply chain in the process of producing dog chew or by providing solar power systems as an electricity alternative.

BO2’s investment in the Himalayan Chain Resort (HCR) in the Khumbu Region is all about developing eco-tourism. They expect the ten lodges that are being built will improve overall hospitality standards and attract high-paying customers to generate better revenues in the region.

The accommodations will also facilitate better environmental and safety standards as well as improve medical and emergency preparedness in the area. Shanti Engineering, which fabricates metal products, has purchased two pieces of machinery and its relocation at Pokhara Industrial Park has made diesel consumption null from 1,641 litres in 2017 resulting in 5 percent wastage consumption. Due to the availability of 24-hour electricity, the overall efficiency of products has increased by 15 to 20 percent despite a 25 percent reduction in working hours per kg produced.

Godavari International Pvt Ltd, one of the companies BO2 has invested in, manufactures Himalayan Churpi (Pet food), a completely natural product and a signature export from Nepal. On average, a micro-dairy produces 300 kg of churpi per month, and around 20,000 stakeholders-livestock farmers, micro-dairy personnel, collectors, cooperatives, transporters are the direct beneficiaries of this sector. The churpi is sold to local retailers and exported to dog-chew brands in the US, Canada, Japan, Taiwan, Hong Kong, Malaysia and India.

BO2  is sector agnostic and invests in areas like agri-business, tourism, pre-fabricated housing, import substitution industries, education, e-education, eco-friendly manufacturing and technology.

Source : New Business Age

सरकार अन्तर्राष्ट्रिय लगानी सम्मेलनको तयारीमा जुटेको छ । आगामी चैत १५ र १६ गते मुलुकको राजधानी काठमाडौंमा बहुप्रतीक्षित लगानी सम्मेलन आयोजना हुँदैछ । सम्मेलनमा करिब ४० देशबाट सात सयभन्दा बढी विदेशी लगानीकर्ता सहभागी हुने सरकारको भनाइ छ । लगानी सम्मेलनलाई मध्यनजर गर्दै सरकार र निजी क्षेत्र मिलेर ३९ अर्बका परियोजना छनोट गरेका छन् । ती परियोजनामा बाह्य लगानीको अपेक्षा सरकारको छ । लगानी सम्मेलनलाई ध्यानमा राखेर सरकारले नीतिगत सुधारसमेत गरेका छ । यसबीच केही नयाँ कानुन बनेका छन् । केही पुराना ऐन–कानुन संशोधन गरिएका छन् । सरकारले ठूलो आशासहित आयोजना गरेको लगानी सम्मेलनको तयारी, यसका प्राथमिकता, लगानीको सम्भाव्यता र मुलुकले त्यसबाट लिन सक्ने फाइदालगायतका विषयमा केन्द्रित रहेर दृष्टि साप्ताहिकका लागि छविरमण अधिकारीले आर्थिक क्षेत्रमा राम्रो दख्खल राख्ने बिजनेश अक्सिजन प्रालिका सिईओ सिद्धान्तराज पाण्डेसँग विस्तृत कुराकानी गरेका छन् । विजनेश अक्सिजन प्रालिका अध्यक्षसमेत रहेका पाण्डेले लगानीसम्मेलनका वृहत पाटाबारे खुलेर कुराकानी गरेका छन् । प्रस्तुत छ, कुराकानीको सम्पादित अंश :

अन्तर्राष्ट्रिय लगानी सम्मेलन संघारमा छ । यसलाई कसरी लिनुभएको छ ?
सरकारको आयोजनामा यसै साता (चैत १५ र १६ गते) अन्तर्राष्ट्रिय लगानी सम्मेलन हुँदैछ । सम्मेलनमा करिब ४० देशबाट झन्डै सात सय विदेशी लगानीकर्ता सहभागी हुने सूचना सरकारले दिइरहेको छ । यसर्थ, लगानी सम्मेलनको आयोजना आफैँमा महत्वपूर्ण कुरा हो । यो ठूलो अवसर पनि हो । मेरो विचारमा त यस्तो सम्मेलन हरेक वर्ष गरिनुपर्दछ । किनभने यस्तो सम्मेलनले नेपालमा लगानीमैत्री वातावरण छ भनेर दुनियाँलाई देखाउन ‘सोकेस’ को काम पनि गर्छ ।

सरकारले कुनै एक सम्मेलनलाई हेरेर मात्र होइन, कानुन निर्माण वा नीतिगत सुधारको प्रक्रिया नियमित प्रक्रिया हो भन्ने ढंगले बुझ्नुपर्दछ र त्यसैअनुसार गर्नुपर्दछ । ऐन–कानुन पारित गर्दैमा लगानीमैत्री वातावरण बनिहाल्छ भन्ने ग्यारेन्टी हुँदैन ।

सरकारकोतर्फबाट लगानी सम्मेलनको तयारी कस्तो देख्नुहुन्छ ?
विश्वका विभिन्न देशका लगानीकर्ता लगानी सम्मेलनमा सहभागी हुने वातावरण सिर्जना गर्न सरकारले सक्दो प्रयास गरेको देखिन्छ । सरकारका ‘विङ्स्’ पनि परिचालित नै देखिन्छन् । आन्तरिक र बाह्य तयारी पनि भएकै होला । त्यसो तः केही महिनाअघि डाभोस बैठकमा सहभागी भएर पनि प्रधानमन्त्रीले नेपालमा लगानीमैत्री वातावरण छ भन्ने सन्देश दिन खोज्नुभएको थियो । अर्थमन्त्री, परराष्ट्रमन्त्रीलगायत अन्य सरोकारवाला मन्त्रालयका नेतृत्वबाट पनि जोडबल भएको देखिन्छ । सरकारले करिब ४० देशका झन्डै सात सय लगानीकर्ता सहभागी हुने भनिरहेको छ । यो सुखद कुरा हो । सम्मेलनलाई उपलब्धिमूलक बनाउन सरकार कस्सिएकै देखिन्छ ।

बाह्य लगानी भित्र्याउनका निम्ती आवश्यक नीतिगत सुधारको प्रयास पनि भएको देखिन्छ । यसको सन्देश कस्तो पाउनुभएको छ ?
अहिले लगानी सम्मेलनलाई ध्यानमा राखेर रातारात धेरै ऐन–कानुन पास गरिएका छन् । विशेष आर्थिक क्षेत्र ऐन २०७३ संशोधन, सार्वजनिक–निजी साझेदारी तथा लगानी बोर्ड ऐन २०७५, विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन २०७५, योगदानमा आधारित सामाजिक सुरक्षा ऐन २०७४ श्रम ऐन २०७४ जस्ता कानुन बनिसकेका छन् । अरु केही पनि प्रक्रियामा थिए, आइतबारबाट संसद्को हिउँदे अधिवेशन अन्त्य भएकाले ती कानुन बन्न सकेनन् । जस्तो, राष्ट्रिय प्राथमिकता प्राप्त आयोजनाको द्रुततर निर्माण तथा विकास विधेयक, सूचना प्रविधि सम्बन्धमा व्यवस्था गर्न बनेको विधेयक, सेफगार्ड्स, एन्टी–काउन्टर भेलिङ विधेयक, विदेशी विनिमय ऐन २०२०, बौद्धिक सम्पत्ति संरक्षण (पेटेन्ट, ट्रेडमार्क र डिजाइन) ऐन, खानी तथा खनिज पदार्थ ऐन २०४२, सार्वजनिक खरिद ऐन २०७३, औद्योगिक व्यवसाय ऐन २०७३, कम्पनी ऐन २०६३, वातावरण संरक्षण ऐन २०५३, औद्योगिक व्यवसाय विकास प्रतिष्ठान ऐन २०५३ अझै पारित हुन बाँकी छन् । जे जति पारित भए, तिनलाई हेर्दा लगानी सम्मेलनलाई केन्द्रमा राखेर मात्र ती कानुन बनाउनुपर्ने थिएन । त्यसअघि पनि त्यस्ता कानुन निर्माणमा जोड दिनुपर्दथ्यो । लगानीमैत्री कानुन निर्माण अथवा नीतिगत सुधारको सन्देश दिन लगानी सम्मेलन नै कुर्नुपर्ने हो भने देशलाई अगाडि बढाउन अरु धेरै कानुनको अवश्यकता छ, त्यसका लागि अरु धेरै सम्मेलन गरौँ । मेरो भनाइको मतलब सरकारले कुनै एक सम्मेलनलाई हेरेर मात्र होइन, कानुन निर्माण वा नीतिगत सुधारको प्रक्रिया नियमित प्रक्रिया हो भन्ने ढंगले बुझ्नुपर्दछ र त्यसैअनुसार गर्नुपर्दछ ।

नीतिगत सुधारको सरकारको प्रयास लगानीकर्ताको भावना र चाहनाअनुसार भएको देख्नुहुन्छ कि ड्राफ्ट बनाउनेहरूको ?
भर्खरै विदेशी लगानी तथा प्रविधि हस्तान्तरण ऐन (एफआइटिटिए) पारित भयो । २६ वर्षपछि ऐन संशोधन भएर अहिलेको रूपमा आएको हो । त्यसमा धेरै कुरा राम्रा पनि छन् । तर, यतिका वर्षपछि यो रूपमा आउँदा पनि हतार गरियो कि जस्तो आभास दिने व्यवस्था त्यहाँ राखिएका छन् । त्यसमा भएका दुई, तीनवटा कुरा हेर्नुस्, ‘नेगेटिभ लिस्ट’ को व्यवस्था त्यहाँ छ । त्यो भनेको विदेशी लगानीकर्ताले लगानी गर्न नपाउने क्षेत्रको लिष्ट (सूची) हो । अहिले त्यो सूची घट्नुपर्नेमा पहिलाको भन्दा बढेको छ । त्यस्तो गर्दा विदेशी लगानीकर्तामाझ सकारात्मक सन्देश जाँदैन । अहिले त्यो क्षेत्रमा लगानी गरेका लगानीकर्ताको मनमा एकखालको डर पैदा हुन्छ । कतै मैले आज लगानी गर्ने क्षेत्र भोलि फेरि ‘एफआईटिटिए –फिटा’ संशोधन हुँदा नेगेटिभ लिस्टमा पो पर्ने हो कि भन्ने डर रहिरहन्छ । लगानीको क्षेत्र खुला गर्नुपर्नेमा खुम्च्याउन खोजेको देखिन्छ । अर्कोकुरा, ‘आउट सोर्सिङ’को कुरा, यहाँ भएका बहुराष्ट्रिय कम्पनीहरू जस्तै डाबर, सूर्य टोबाको जस्ता बाह्य लगानीका उद्योग–कलकारखानले आफ्नो ‘प्राइमरी कम्पोनेन्ट’ आउट सोर्स गर्न नपाउँने अरु पाउने भन्ने नयाँ व्यवस्था फिटामा गरिएको छ । यस्तो नियम बनाउँदा कम्तीमा यहाँ अहिले भएकै कम्पनीसँग पनि छलफल भएको, उनीहरूका राय सुझाब लिएको देखिँदैन । किनभने कानुन आएपछि उनीहरू अहिले प्रतिक्रिया दिइरहेका छन् । त्यसकारण यस्ता कुरामा मनग्गे अनुसन्धान, गृहकार्य, सरोकारवाला पक्षहरूसँग धेरैभन्दा धेरै छलफल–अन्तरक्रिया गर्ने काम भएको देखिँदैन ।

लगानीमैत्री वातावरणका निम्ती सरकारले नीतिगत सुधारका पक्षमा केही काम गरेको देखिन्छ । यो कत्तिको पर्याप्त छ ?
ऐन–कानुन पारित गर्दैमा लगानीमैत्री वातावरण बनिहाल्छ भन्ने ग्यारेन्टी हुँदैन । ‘एक्ट रेगुलेसन फेसिलिटेटिङ इनेबलिङ इन्भारमेन्ट’ भनिन्छ, तर, ती लगानीकर्ताहरूले खोजेअनुसार आइरहेको छ कि अथवा त्यो जसले ड्राफ्ट गरेको हो, उसको सोचाइअनुसार भइरहेको छ भन्ने महत्वपूर्ण कुरा हुन्छ । यसमा ठूलो अन्तर आउन सक्छ । त्यसकारण लगानी खोज्ने हो भने हामीले उनीहरूको उद्देश्य के हो र उनीहरूको लगानी यहाँ ल्याउन कस्तो वातावरण बनाउनुपर्छ भनेर गृहकार्य भएको जस्तो मलाई लागेको छैन । लगानीकर्ताले मुख्यतः तीन कुरा सोच्छ, हेर्छ । सुरक्षा, तरलता र मुनाफा । संसारका कुनै पनि लगानीकर्ताले यो तीन कुराको ग्यारेन्टी हेर्छ । तपाईं आफैँ कुनै काम गर्दैहुनुहुन्छ र त्यसका निम्ती लगानी लगाउँदै हुनुहुन्छ भने तपाईंले पनि यही सोच्नुहुन्छ । सुरक्षा र तरलता सरकारले दिन सक्ने कुरा हो, मूलतः सरकारकै उत्तरदायित्व हो । मुनाफा भनेको चैँ उसको आफ्नो व्यवसायिक क्षमतामा भर पर्ने कुरा हो । त्यसैले सुरक्षा र तरलतामा सरकार चुक्यो भने यहाँ कुनै पनि लगानीकर्ता आउँदैनन् ।

सुरक्षा र तरलतामा सरकार चुक्यो भने यहाँ कुनै पनि लगानीकर्ता आउँदैनन् ।

देशमा रोजगारी बढाउन त्यस्ता साना तथा मझौला उद्योगको ठूलो भूमिका रहन्छ । नेपालमा झन्डै २० लाख मानिस त्यससँग जोडिएका छन् ।
प्रतिबद्धता जनाएर पनि उनीहरू किन आएनन् भन्ने खोजी नगरी अगाडिको बाटो समाउन सकिँदैन ।
हाम्रो संरचना एक्सनमुखी होइन, प्रक्रियामुखी छ । एउटै फाइल निर्णय हुन वर्षौं लाग्छ । मन्त्रालय–मन्त्रालयबीच सहजिकरण छैन, सौहार्दतासमेत छैन ।
बाह्य लगानीकर्ता नेपाल बनाइदिन्छु, नेपालीलाई सहयोग गर्छु भनेर आएका हुँदैनन् । उनीहरू मुनाफा आर्जन गर्नकै निम्ती आउँछन् ।
दुई नम्बर प्रदेश सरकारले नयाँ उद्योग स्थापना गरे २० वर्ष कर नलगाउने निर्णय गरेको समाचार आएको छ । यो संघीय सरकारसँग छलफल भएर भएको हो वा उसको आफ्नो मात्र निर्णय हो भन्ने कुराले ठूलो अर्थ राख्छ ।

एउटा लगानीकर्ताको नजरमा सुरक्षाको सवाल कति महत्वको हुन्छ भनेर यहाँले भन्दै गर्दा मुलुक पछिल्लो समय पुनः द्वन्द्वतर्फ उन्मुख भएको हो कि भन्ने आशंका व्यक्त हुन थालेको छ । यसले लगानीकर्ताको मनोबलमा कस्तो असर पार्छ ?
हामी सबैले के बुझ्नुप¥यो भने कानुनको शासन मुलुकमा छ भने जतिसुकै ठूलो द्वन्द्व पनि आर्थिक विकास रोकिँदैन । सार्क क्षेत्रकै श्रीलंकालाई हेर्नुस्, ‘सिभिल वार’को अवस्था थियो । तर, कुल गार्हस्थ उत्पादन (जिडिपी)कहिल्यै घटेन । तिसौँ वर्ष द्वन्द्व हुँदा पनि जिडिपी माथि नै गइरह्यो । बरु, द्वन्द्व नहुँदा श्रीलंकाको अर्थतन्त्र अहिले खस्किएको छ । किनभने अहिले त्यहाँ राजनीतिक स्थिरता छैन र त्यसको असर कानुनको शासनमा परिरहेको छ । नेपालको सन्दर्भमा हेर्दा राजनीतिक स्थिरता कायमै रह्यो भने द्वन्द्वको त्रासले लागनीमैत्री वातावरण बिथोलिँदैन । तर, कानुनी शासन लागू हुनुप¥यो । सरकारले हिंसात्मक, विध्वसांत्मक गतिविधि गर्नेलाई कानुनी दायरामा ल्याउन सक्नुप¥यो । त्यसो हुन सकेन भने चैँ असहजता आउँछ ।

अहिले पास गरिएका कतिपय ऐन–कानुन नेपालकै कतिपयसँग रहेको कालोधनलाई विदेशी लगानीका रूपमा सेतो बनाउने उद्देश्यले प्रेरित छन् भन्ने पनि सुनिन्छ । यसमा सत्यता छ ?
मलाई त्यस्तो कुरा थाहा भएन । फिटामा त्यस्तो प्रवन्ध भएजस्तो मलाई लाग्दैन । मैले यसअघि भने जस्तै कानुनको शासन कडाइका साथ कार्यान्वयन हुने प्रणाली स्ट्रोङ हुने हो भने कसैले त्यस्तो नियत राखेको रहेछ भने पनि निस्तेज भएर जान्छ ।

बाह्य लगानीकर्ता आकर्षित गर्न सरकारले तय गरेका प्राथमिकता कत्तिको सान्दर्भिक छन् ?
सरकारले विदेशी लगानीकर्ता आकर्षित गर्न ३७ खर्बका करिब ५० परियोजना सोकेसमा राखेको छ । मूलतः सहरी पूर्वाधार, यातायात पूर्वाधार, पयर्टन पूर्वाधार, औद्योगिक पूर्वाधार, कृषि, स्वास्थ्य तथा शिक्षामा सरकारको जोड छ । काठमाडौं भ्याली मेट्रो, निजगढ अन्तर्राष्ट्रिय विमानस्थल, काठमाडौं बाहिरी चक्रपथ, लुम्बिनीमा गौतम बुद्ध प्रसूति अस्पताल, दोलखामा फिल्म सिटी, मनाङमा स्की रिसोर्टदेखि निजगढमा विमानस्थल बनाउने आयोजनमा लगानीको अपेक्षा सरकारको देखिन्छ ।
यता, निजी क्षेत्रले पनि २ खर्बको परियोजना सार्वजनिक गरेको छ । सम्मेलनमा आउने लगानीकर्तालाई आकर्षित गर्न निजी क्षेत्रले १७ परियोजनाको खाका नै तयार पारेको छ । त्रिशुली गल्छी जलविद्युत् परियोजना, मध्य कालिगण्डकी जलविद्युत् परियोजना, गरुड सिमेन्ट, जालपादेवी केबलकार, अन्नपूर्ण सिक्लेस केबलकारलगायत अन्य थुप्रै जलविद्युत् र केबलकारमा बाह्य लगानी आकर्षित गर्ने निजी क्षेत्रको तयारी छ । त्यसैले सरकार र निजी क्षेत्र दुवैका प्राथमिकता सान्दर्भिक नै छन् । तर, हामी सबैले बुझ्नुपर्ने कुरा के हो भने लगानी सम्मेलनमा आउने बाह्य लगानीकर्ताले वालेटबाट झिकेर पैसा वा चेक दिइहाल्ने होइन । मूलतः उनीहरूले सरकारको प्रतिबद्धता कस्तो आउँछ त्यो विचार गर्ने हो । उनीहरूले सुरक्षा, तरलता र मुनाफाको सम्भावना देखे भने ‘एमओयु’मा हस्ताक्षर गर्ने हो । उनीहरूलाई सरकारले कत्तिको विश्वस्त बनाउन सक्छ त्यो त्यसैबेला देखिन्छ ।

सरकारले लगानीका क्षेत्र पहिचान गर्न छुटाएको केही क्षेत्र छन् कि ?
मेरो विचारमा लगानी भनेको पुँजी मात्र होइन, प्रविधि पनि हो । विदेशबाट आउने लगानीमा प्रविधि पनि आउँछ । अन्तर्राष्ट्रियक्षेत्रका उत्कृष्ट अभ्यासहरू आउँछन् । प्रविधि आउँछ, प्रणाली पनि आउँछ । सरकारले अहिले ठूलठूला परियोजनाहरूमा मात्र ध्यान दिएको छ । नेपालमा सानासाना तर, ठूलो महत्व राख्ने परियोजना पनि छन्, तिनको सम्भाव्यता पनि धेरै छ । साना तथा मझौला उद्योगहरूको ठूलो सम्भावना छ । अहिले पनि कतिपय त्यस्ता उद्योगमा विदेशी लगानीसमेत छन् । कयौँ स्वदेशी लगानीकर्ताले त्यसमा लगानी गरिरहेका छन् । देशमा रोजगारी बढाउन त्यस्ता साना तथा मझौला उद्योगको ठूलो भूमिका रहन्छ । नेपालमा झन्डै २० लाख मानिस त्यससँग जोडिएका छन् । हाम्रो जिडिपीमा १८ प्रतिशत योगदान दिएको छ । त्यस्ता उद्योगको विकास, स्थायित्व र स्तरोन्नतिमा सरकारले ध्यान दिएको देखिएन । हेर्नुस्, ठूलो परियोजना सम्पन्न गर्न ७ देखि १० वर्ष लाग्ला । त्यसले कतिलाई रोजगारी दिन्छ ? यस कुरामा सरकारको ध्यान देखिएको छैन । लगानी सम्मेलन भनेर सरकारले ठूलठूला परियोजनालाई मात्र प्राथमिकतामा राखेको छ । साना उद्योगमा पनि बाह्य लगानी आउन सक्छ । यसतर्फ ध्यान पुगेको छैन । प्राइभेट इक्विटी भनेर नेपालमा नयाँ विकल्प सुरु भएको छ । हामी पनि इन्टरनेशनल फन्ड हो । हामीले विदेशबाट लगानी ल्याएर बैंकबाट लोन नपाउने कम्पनीहरूलाई हामी लगानी गर्छौं । हामीले त्यसरी लगानी गरेका कम्पनीहरूबाट प्रत्यक्ष पाँच सय र अप्रत्यक्ष ६० हजारले रोजगारी पाइरहेका छन् । हाम्रोजस्तो विदेशी लगानी भएको कम्पनी नेपालमा दुई, तीनवटा मात्रै छ । यहाँ अरुलाई पनि ल्याउन सकियो भने त्यसको योगदान कति होला ? यसलाई सहजिकरण गर्न के गर्नुपर्छ भनेर लगानी सम्मेलनले चासो दिएको छैन ।

यहाँले भन्नुभयो लगानीसँगै प्रविधि भित्रन्छ । तर, स्वदेशमा दक्ष जनशक्तिको अभाव छ । भएको जनशक्ति पनि विदेसिने क्रम जारी छ । यस्तोमा लगानी लगानी मात्र भनिरहँदा मुलुकले दीर्घकालीन लाभ लिन सक्छ ?
नेपालमा सानो लगानीका धेरै कम्पनी छन् । तर, उनीहरूका म्यानेजमेन्ट चुस्त छैनन् । तिनीहरूलाई अर्को लेभलमा पुग्न प्राविधिक दक्षता चाहिन्छ । हाम्रो जस्तो प्राइभेट इक्विटीले त्यो दक्षताको लागि सहयोग गर्ने गरेका छौँ । विदेशबाट विशेषज्ञ ल्याएर भए पनि दक्षता अभिवृद्धि गराइरहेका छौँ । अर्कोकुरा, लगानी नभए कसैले प्रविधि ल्याउँदैन । अहिलेको कम्प्युटर, टेक्नोलोजीको जमानामा लगानी धेरै चाहिने होइन । म तपाईंलाई केही उदाहरण दिन्छु, नेपाल अरब बैंक –अहिलेको नबिल बैंक) सन् १९८६ मा नेपालमा स्थापना भयो । त्यतिबेला उसले धेरै लगानी गरेको थिएन । त्यसको ३, ४ वर्षपछि स्टान्डर्ड चार्टर्ड बैंक खुल्यो । उसले पनि धेरै लगानी गरेको थिएन । अहिले नेपालमा भएका बहुसंख्यक बैंक तिनै बैंकका प्रविधि सिकेर स्थापना भएका हुन् । त्यस्तै, सोल्टी होटलमा ओबरोयले मेनेजमेन्ट सम्हालेपछि धेरैले त्यहाँ सिक्ने अवसर पाए । अहिले त्यहाँको अभ्यासले तालिमप्राप्त भएको अब्बल होटल म्यानेजरहरू दुनियाभर छन् । नेपालमै पनि फाइभस्टार होटल चलाइरहेका छन् । त्यो अवस्था बन्नुप¥यो । त्यसैले सरकारले दक्षता अभिवृद्धिमा पनि काम गर्नुपर्छ ।

दुई वर्षअघि नेपालले यस्तै अन्तर्राष्ट्रिय लगानी सम्मेलन आयोजना गरेको थियो । त्यसबेला लगानीको प्रतिबद्धता जनाउने अधिकांशको लगानी आएन । यसपटक विगत दोहोरिने सम्भावना देख्नुहुन्छ कि निकै आशावादी हुनुहुन्छ ?
दुई वर्षअघिको लगानी सम्मेलनमा विभिन्न देशका लगानीकर्ताले १४ खर्बको लगानी प्रतिबद्धता जनाएका थिए । ती कसैले पनि प्रतिबद्धताअनुसार नेपालमा लगानी गरेनन् । प्रतिबद्धता जनाएर पनि उनीहरू किन आएनन् भन्ने खोजी नगरी अगाडिको बाटो समाउन सकिँदैन । त्यस्तो गृहकार्य भएको मलाई थाहा छैन । तर, हामी आशावादी होऔँ, सरकारले यसपटकको सम्मेलनमार्फत जति प्रतिबद्धता आउला, त्यो लगानी भित्र्याउने वातावरण बनाउन पक्कै पहल त गर्नैपर्छ, सहजिकरण गर्नैपर्छ । यसअर्थमा यो सम्मेलन नेपालमा लगानीमैत्री वातावरण छ, नेपाल लगानीका निम्ती तयार छ भनेर सोकेस गरेको हो भन्न पनि सकिन्छ । यो राम्रो कुरा पनि हो ।

प्रतिबद्धता जनाइसकेकाहरू पनि आउन नसक्ने अवस्था किन समस्या हुन्छ ?
मुख्यकुरा, सरकारको प्रतिबद्धता व्यवहारमा कार्यान्वयन हुन कठिन छ । सरकारले लगानी वातावरण छ, हामी सहजीकरण गर्छौं त भन्छ, तर फिल्डमा जानुभयो भने कार्यान्वयनको क्रममा अनेक झन्झट खेप्नुपर्छ । हाम्रो संरचना एक्सनमुखी होइन, प्रक्रियामुखी छ । एउटै फाइल निर्णय हुन वर्षौं लाग्छ । मन्त्रालय–मन्त्रालयबीच सहजिकरण छैन, सौहार्दतासमेत छैन । सहजताका साथ समयमै काम गर्न ब्युरोक्रेसीले सघाउँदैन । यस्तोमा लगानीकर्ता धैर्य गरेर बस्न सक्दैन, अड्दैन । यी सब कुरा परिवर्तन नगरेसम्म लगानीको वातावरण बन्दै न । यहाँ बसिरहनभन्दा लगानीकर्ता भियतनाम जान्छ, म्यानमार जान्छ, अरु देशमा जान्छ ।

विदेशी लगानी भित्र्याउने सवालमा छिमेकी देशहरूबाट केही सिक्न सकिँदैन ?
अवश्य पनि सकिन्छ । हाम्रो दक्षिणको छिमेकी देश भारतलाई हेर्नुभयो भने एफडिआइमा भारतले चीनलाई उछिनिसकेको छ । किनभने उनीहरू कसरी छिटोछरितो प्रक्रिया गर्न सकिन्छ । लगानीलाई कसरी सहजिकरण गर्न सकिन्छ भनेर उनीहरूले ध्यान दिए उनीहरूले विशेष ध्यान दिएका छन् । यसबाट हामीले सिक्न सक्छौँ । हाम्रो सरकारले पनि ब्युरोक्रेसीमा रहेकालाई त्यसैअनुसार तालिम दिने, एक्सन ओरिएन्टेड बनाउने, परिणाम दिन नसक्नेलाई दण्ड सजाय गर्ने, लामो लामो प्रक्रियालाई छिटोछरितो बनाउने, लगानीलाई सहजिकरण गर्ने काम गर्न सक्यो भने अवश्य पनि बाह्य लगानी भित्रन्छ ।

लगानीका विभिन्न मोडलबारे चर्चा हुने गर्छ । अमेरिकन वा युरोपियन मोडल, चिनियाँ मोडल, इन्डियन मोडल । हामीले कस्तो मोडल अपनाउनुपर्ला ?
हामीले हाम्रौ मौलिकताको मोडल अपनाउने हो । हामीसँग भएको रिसोर्स पहिचान गर्ने हो । त्यसका आधारमा बाह्य लगानी आह्वान गर्ने, उनीहरूलाई लगानीमैत्री वातावरण बनाइदिने हो । हामी कहाँ जलविद्युत्मा अपार सम्भावना छ । पर्यटनमा ठूलो स्कोप छ । कृषिमा त्यस्तो सम्भावना छ । स्वदेशी लगानीकर्तालाई पनि सरकारले प्राथमिकतामा राख्नुप¥यो । लगानी गरेर रोजगारी सिर्जना गर्ने, कर तिर्नेहरूलाई हेर्ने दृष्टिकोण बदल्नुप¥यो । संसारमा कर तिर्नेहरूका निम्ती सरकारले कयौँ कार्यक्रम ल्याएका हुन्छन् । कयौँ देशमा ट्याक्स होलिडेको सुविधा दिइन्छ । हामीले पनि सहजता बनाइदिनुपर्छ । तर, हामीले बुझ्नुपर्ने कुरा को हो भने, बाह्य लगानीकर्ता नेपाल बनाइदिन्छु, नेपालीलाई सहयोग गर्छु भनेर आएका हुँदैनन् । उनीहरू मुनाफा आर्जन गर्नकै निम्ती आउँछन् । उनीहरूको लगानीबाट राज्यलाई तत्कालीन नाफासहित हाम्रो प्राविधिक दक्षता कसरी अभिवृद्धि गर्ने भन्ने कुरामा ध्यान दिनुपर्छ ।

मुलुकमा तीन तहका सरकार क्रियाशील छन् । लगानी सम्मेलनमा संघीय सरकार मात्र सक्रिय देखिन्छ । यसलाई कसरी हेर्नुभएको छ ?
यो निकै महत्वपूर्ण पाटो हो । संघीय सरकारले एकखालको नीति लिने, कर लगाउने, फेरि प्रादेशिक र स्थानीय तहले पनि आआफ्ना ठाउँमा त्यस्तै कर लगाउने अवस्था बन्यो भने लगानीकर्ता आउँदैनन् । दुई नम्बर प्रदेश सरकारले नयाँ उद्योग स्थापना गरे २० वर्ष कर नलगाउने निर्णय गरेको समाचार आएको छ । यो संघीय सरकारसँग छलफल भएर भएको हो वा उसको आफ्नो मात्र निर्णय हो भन्ने कुराले ठूलो अर्थ राख्छ । किनभने कुनै पनि उद्योगीले दुबल ट्याक्स तिर्न सक्दैन । संविधानले आआफ्ना जिम्मेवारी तोकिदिए पनि कतिपय कुरामा विवाद आउन सक्छ । त्यसैले संघीय सरकार र अन्य तहका सरकारबीच यस विषयमा गम्भीर छलफल हुन जरुरी छ । कुनै पनि किसिमको झन्झट आयो भने लगानीकर्ता बिच्किन सक्छ । संघीय सरकार यस्तो विषयमा गम्भीर हुनुपर्छ र समन्वय गर्नुपर्छ । अझ मेरो विचारमा संघीय सरकारले लगानी सम्मेलनमा प्रदेश सरकारलाई पनि सहभागी गराउनुपर्दछ । किनभने लगानी गर्ने क्षेत्र काठमाडौं मात्र होइन, र हिजोजस्तो काठमाडौं मात्र सरकार होइन । अब त गाउँगाउँमा सरकार छन् । प्रदेश–प्रदेशका सरकार छन् । लगानीका निम्ती उनीहरूका क्षेत्राधिकार रहेका ठाउँमा लगानीकर्ता पुग्नुपर्ने हुन्छ । उनीहरूबाट थोरै पनि व्यवधान भयो भने मैले माथि भने जस्तै लगानीकर्ता बिच्किन सक्छ ।

 

Source : https://www.drishtinews.com/archives/8660?fbclid=IwAR3QKGbZBL-xkyxoJiHRuKlmDJnrRVL23E6OnM93h8MzAw1rXHj3PnviBp8

The Post talked with some of the stakeholders who deal with FDI to know whether new laws address investors’ concerns, whether they will allure them into investing in Nepal and whether they are on a par with regional standards.

– MUKUL HUMAGAIN, Kathmandu

The government is organising the Investment Summit 2019 on March 29-30. And to attract foreign investors, the government has introduced three vital legislations–foreign Investment and Technology Transfer Act, Public-Private Partnership and Investment Act, and Special Economic Zone Act (First Amendment). The KP Sharma Oli government plans to showcase these Acts as the driving force for more and sustained foreign investment in Nepal.

While the much talked about Foreign Investment and Technology Transfer Act has promised FDI approval within a week and one-stop service at the Ministry of Industry for facilitating investors, there are also concerns over some of the provisions as well as overlapping of authority.

The Post’s Mukul Humagain talked with some of the stakeholders who deal with FDI to know whether the new laws address investors’ concerns, whether they will entice them into investing in Nepal and whether they are on a par with regional standards.

‘New FITTA is not progressive on the approval regime’

Semanta Dahal

The Foreign Investment and Technology Transfer Act, when it was promulgated in 1992 to implement the first wave of economic liberalisation, had significant comparative advantage over the peer legislations in South Asia. Aspects of FITTA 1992 that are worth mentioning include relaxed requirements of percentage for foreign ownership (except few sectors), free repatriation and treatment of equity, debt and technology transfer as foreign investment. These major elements have received continuity in the FITTA Bill.

The requirement under the FITTA 1992 regime–to file an approval even in sectors opened for foreign investment, along with agreement between the parties–were issues of concern for foreign investors. Unfortunately, the new FITTA Bill is not progressive on the approval regime. The procedure to obtain approval is even more complicated, with the creation of three hierarchical entities empowered to clear foreign investment approval based on the amount of investment.

Prior approval for foreign investment has been relaxed significantly in South Asia and this is where Nepal loses advantage. Foreign investors will have to come to grips with the approval regime and clearances required from entities involved in project implementation. Investors will be confident to invest in Nepal if, for instance, One Stop Centre–introduced in both the new FITTA and the new PPP and Investment Bill–is the place for receiving the set of application for approvals for implementing the project from the foreign investors and granting them.

On PPP and Investment Act

The PPP and the Investment Act is a product emanating for two reasons. First, the need to convert PPP Policy 2015 into a law, and second, the Investment Board’s aspiration to become an entity having the potency to remove the obstacles faced by private investors. The first characteristic of the legislation to conduct procurement of PPP projects is clearly laid out.

The provincial and local governments can also rely on this law to procure and implement projects under the PPP for project falling under its jurisdiction. Similarly, at the federal level, there could be ministries and an investment board that could be PPP project implementing entities. But the role of ministries in implementing a PPP project is significantly reduced with IBN exercising authority over hydropower projects over 200MW and other projects above Rs6 billion. However, here is the primary problem. An infrastructure project could be privately financed or funded with government resources. The bill does not address the issue of determination of privately financed or government-funded project and how the determination is to be done.

On Hedging Regulations

Foreign exchange hedging introduced by the Hedging Rules passed under the Foreign Exchange Regulation Act is conceptually different from the Hedge Fund under the Specialized Investment Fund Regulation issued by the Securities Board of Nepal. While Hedging Rules attempts to mitigate the foreign exchange loss that foreign investors making an investment in Nepal may suffer due to the devaluation of Nepali currency, the Hedge Fund, on the other hand, is a specialised pool investment to make an investment in high-risk sectors.

The Hedging Rules allows protection to foreign investors availing the loan in foreign currency, and thus foreign investors have an option to take advantage of the Hedging Rules. The facility is extended only to some critical infrastructure sectors. The amount of loan repayment in foreign currency that a borrower has to make could increase if Nepali rupee devalues from the date of availing the loan. By paying hedging premium to Nepal Rastra Bank, the central bank protects the investor from making the increment in the loan payment. It is not immediately clear, however, if both principal and interest are covered. But the amount of hedging premium is not prescribed and is left for future negotiations, making the entire rules perfunctory.

In addition, the main rationale behind the introduction of hedging in the Dollar PPA Guidelines passed by the Ministry of Energy, Water Resources and Irrigation and adopted by the Nepal Electricity Authority was to ensure that the NEA is protected from foreign exchange losses when it makes payment under power purchase agreement entered with tariff calculated in US dollars. This situation is not considered by the Hedging Regulations.

While legal reforms are always welcome by foreign investors, the law is not a significant determinant to attract foreign investment. What is more important is an independent, consistent, uniform and investment-friendly application of the laws by the entities and persons with authority.

Dahal is an advocate and partners at Abhinawa Law Chambers.

‘FITTA is only looking at investments from the capital injection part’

Siddhanta Raj Pandey

The Foreign Investment and Technology Transfer Act could have been more in tune with what the investors are looking for. Instead, the negative list has been lengthened: there is no more FDI in primary agriculture, and there are new caveats for manufacturing industries that may not outsource their production lines.

It seems the FITTA is only looking at investments from the capital injection part and not from the point of view of technology transfer and international practices.

On empowering investment board

Right now, in Nepal, I don’t believe that it is the acts and regulations that are inhibiting investments. What is inhibiting FDI is the implementation side, i.e. the lack of urgency in facilitating the deals and the delays of government agencies. It is a man-made problem on the implementation side, i.e. government agencies have their own manufactured translation of laws that are turning out to be the problems.

I was a member of the Industrial Promotion Board under the Industry Ministry for two years. During this period, I worked with three ministers and the board had just six meetings. The fact that investors have to wait for industrial promotion board to meet to get their investment approval, which does not sit regularly, sums ups how the government system operates.

The same is the issue with the Investment Board Nepal, which requires the prime minister to officiate and sanction the projects. The prime minister’s job is not to oversee the ratification of investments. There should have been an investment committee–a smaller working committee that decides and approve the projects. Unless you do that, there are going to be delays. One thing we have to understand is that investors have very little patience. If they are not facilitated and have to wait for different levels of approvals, Nepal will continue to be where it is now, i.e. attracting low amount of investments.

Don’t ignore small investments

It seems more emphasis is given on big investments and little thought is given to small investments–not considering that these small investments can be very big in aggregate. While we focus on big investments that take many years, we actually should be concentrating on how to deal with SMEs (small and medium-sized enterprises). But the focus does not seem to be on SMEs.

Foreign investment is not just about money, it is also about technology transfer. We tend to forget this fact. The international best practices through the investments that come into the country can add so much value. For example, joint venture investments made by Standard Chartered Banks brought technology transfer in the Nepali banking industry. The amount was small in terms of investments but the technology transfer it brought was enormous.

On Private Equity Regulation

The good news for those like us who’re working in the private equity space is the introduction of the Specialized Investment Fund Regulation. This has ensured that there will now be a legitimate regulatory body to regulate Private Equity and Venture Capital. It also means there will be no confusion among government agencies about private equity and what it can do.

Having said that, we still need to see how it is implemented. Banks are given a special sort of treatment through Banks and Financial Institution Act (BAFIA). Will this regulation also give private equity a special treatment to invest without the hassles of going through the company act, rules and regulations? Or are you meant to follow all those rules and regulations? We don’t know. That’s why harmonisation is extremely important. If there is no harmonisation, the specialised investment regulation will continue to be another layer on top of the existing layer.

Pandey is CEO at Business Oxygen Pvt Ltd, Nepal’s first private-equity fund.

‘Regulation is about controlling as well as facilitating’

Sujeev Shakya

It’s good to see that the government is serious about bringing the much-needed reforms in the foreign investment regime. However, in the midst of this hype, we must take a closer look to new changes being made and how it will make foreign investors’ entry and exit flexible and simplify administrative process while doing business in Nepal.

Why can’t Foreign Investment Technology Transfer Act be called Foreign Investment Facilitation Act? The choice of the word itself is wrong. The amendments are not progressive as they should have been. Why should there be a negative list in the FITTA?

Prioritise facilitation

The objective of amending these acts is to ease business and facilitate investments. But our focus has always been on regulation and control. Regulation is not only about controlling, it is also about facilitating. The regulators in the country–Nepal Rastra Bank, Securities Board Nepal, Industry Department–do not realise that one of their jobs is also to make conducting business hassle-free and investors comfortable.

There is a “no welcome” attitude for FDI in Nepal. That is why I often say FDI here means “foreigners don’t invest”. We never made foreign investors feel welcome. More than legal issues, we’re harassing investors through procedural issues. If we want to execute a larger project (hotel), we need technical manpower from abroad and that should be paid in foreign currency. As per the existing legal arrangement, their remuneration can be paid only after completion of the work. Who will come to Nepal if we continue to have this system? This is where we need intervention.

If Nepal wants to execute mega projects, international legal, accounting and consulting firms must come to Nepal. But we’re not seeing top class contractors, consultants coming to Nepal.

Any international company handling a project worth over $1 billion will trust none of the Nepali legal and accounting firms. Even if they have to hire Nepali firms, they will hire them under international consulting firms umbrella. The practical issues–easy availability of working visa, remuneration–have become impediments of late. And this is something the government must look into.

The government has recently introduced new regulations to govern private equity and venture capital, but the document is in Nepali. How can foreign investors understand what is there in the regulations? This shows the narrow vision of Nepali stakeholders. We cannot dream of large scale FDI if we continue to have every document written in Nepali.

Shakya is CEO at Beed Management, a management consulting firm.

Published: 22-03-2019 08:08

Source : http://kathmandupost.ekantipur.com/news/2019-03-22/will-the-new-acts-helpor-hurtforeign-direct-investment-in-nepal.html

Visitors to Mount Everest and other sites around Nepal—which is home to some of the richest biodiversity in the world—contribute significantly to the country’s economy. Tourism makes up around 20 percent of foreign exchange earnings. The sector employs about 425,000 people directly and provides employment to approximately 1 million people indirectly.

So when an avalanche and an earthquake struck the country in 2014 and 2015, the consequences were felt widely. Visitor numbers dropped, slashing tourism earnings and wiping out jobs for local people.

As the industry recovers, one family of business owners is strategizing to woo tourists back to Nepal’s most popular sites. For Dawa Steven Sherpa and his younger brother Tenzing David Sherpa, who own Himalayan Chain Resorts (HCR), top-quality hospitality infrastructure is the key to long-term success.

IFC’s investment of $1.7 million supports this strategy. The financing helps HCR as it develops and leases seven new mountain lodges and expands two of its three existing lodges along the Gokyo Lakes trekking trail and the Everest Base Camp trekking trail, two popular tourist destinations in Nepal. IFC offers a grace period that is not readily available in Nepal, especially for local entrepreneurs aiming to invest in tourism infrastructure in the remote regions of the country.

IFC’s investment is complemented by an equity investment from Nepal’s first private equity fund, Business Oxygen (BO2). BO2 is part of IFC’s Global SME Ventures initiative, created to support risk capital funds in fragile, frontier, and post-conflict markets. BO2 has been funded by IFC, the United Kingdom’s Department for International Development (DFID), and the Climate Investment Funds’ Pilot Program for Climate Resilience.

Ultimately, HCR’s project will help the Nepalese government reach its goal of increasing the number of international tourist arrivals in the country from about 753,000 in 2016 to 2 million by 2020. HCR’s project is expected to create approximately 120 direct jobs, as well as temporary jobs during construction, for the local Sherpa community in the Everest region. These employment opportunities will generate economic activity, benefiting Sherpa communities including indigenous women.

All Systems Go

According to the World Travel and Tourism Council, every dollar spent on travel and tourism generates over three dollars of economic output. Over 100 million workers are employed in this industry worldwide, and tourism revenues account for more currency flows to developing countries than all aid flows from foreign donors.

IFC invests in hotels and tourism because of this strong development impact, particularly in low-income countries. At the same time, we focus on mitigating environmental risks in the sector. IFC’s Environmental and Social Performance Standards, which define clients’ responsibilities for managing environmental and social risks, were critical to the HCR expansion. During the project, IFC helped the company create plans for biodiversity management, waste management, occupational health and safety, and emergency response and preparedness among other areas.

This approach aligned with the vision of HCR’s founders to create a lasting, positive impact. “IFC has been an incredible support in helping us achieve the dream of my family, to provide high standards of hospitality in one of the most extreme environments, the Mount Everest region,” says Dawa Steven Sherpa. “From helping us develop our administrative and accounting processes to introducing strategic opportunities and global best practices, IFC has been an invaluable partner on this journey.”

Join the conversation: #IFCimpact

Article Source : https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/impact-stories/entrepreneurial-family-scales-nepal-tourism-sector

Globally, budding companies that have failed to secure much-needed growth capital from sources like banks have turned to private equity funds. This trend has also made inroads into Nepal but at a much smaller scale. Private equity funds generally invest in firms that are looking for capital to grow. The investment is made in the form of equity, meaning the fund acquires shares in companies, which are offloaded after certain years. Private equity funds here have relieved companies, relying on bank credit to expand their business, from the burden of cobbling assets that need to be pledged as collateral and periodic debt servicing. Rupak D Sharma of The Himalayan Times met Siddhant Raj Pandey, chairman and CEO of Business Oxygen (BO2), Nepal’s first private equity fund, to discuss the prospects of alternative investment like private equity in Nepal and challenges faced by these funds to grow. Excerpts:

It’s been almost three years since BO2 formally launched its operation. How has the experience been?

The whole concept of private equity is very new to the market. We are, therefore, spending a lot of time generating awareness among both investees and regulators, including the bureaucracy. The whole process has been challenging, but rewarding as well. We didn’t know there was so much of scope as well as demand in this segment. Currently, our investment is focused on small and medium enterprises, and we are injecting anywhere between $100,000 to $2 million in each company with average investment hovering around $350,000 per company. Private equity is a hand-holding mechanism and the investment we make is not in the form of loan but equity. This means we share the risk with entrepreneurs and also provide value addition through technical assistance. This has enabled us to introduce international best practices in companies that we have invested in. We also make sure our partner companies are complying with all the laws of the land and do not maintain two account books to evade taxes.

Over the years, BO2 has invested in six companies ranging from restaurants and a resort to firms engaged in manufacturing and renewable energy. How are they performing?

In the last three years, we’ve scanned over 3,000 companies, out of which we have invested in six. Some of these companies are doing extremely well and some are in growth stage. Of course, there will be ups and downs and some companies need intervention. But majority of our companies are doing well and their performance is in line with our financial forecasting. We are currently conducting ‘active assessment’ of eight more companies. We will soon be closing a couple of deals that are in the final stage. So, by the end of 2018, we should have about 12 companies under us. In 2019, we will be adding another 10 companies. And mind you, 50 per cent of our investment must be outside Kathmandu valley.

But not all companies you invest in succeed, isn’t it?

Yes, odds are very high. That’s why we have to assess companies carefully because we do not ask them to back the investment we make with collateral. So, we look for companies that have been around for a couple of years. These companies should also have enterprise value, a positive balance sheet and demonstrate that they are in need of capital to expand business. In post-conflict nations like Nepal, certain components of private equity resemble blended finance as well. And blended finance means impact investment because it creates a win-win situation for both investors and communities that we work in.

So, how do you assess the companies?

We look at four aspects: Financial, economic, social and environment. The financial part focuses on a company’s balance sheet and profitability. The economic part deals with the number of jobs created by the company and taxes paid to the government. Under the social component, we make sure there is no participation of child labour; check the number of women employees; and see whether the workforce is inclusive. Under environment component, we look at climate-friendly initiatives taken by companies and ways we can help them become climate-friendly. So, these are values that we add once we invest in a company.

Globally, pension funds and sovereign wealth funds have started bypassing private equity funds to make direct investment in companies with good prospects. Nepali contractual savings institutions and Nepali Army’s Welfare Fund, which sit atop piles of cash, may also follow suit. Won’t this affect private equity funds?

No, I don’t think so, because someone needs to manage the fund for them. The cost of managing the fund will be huge for them. If you give two to three per cent of the investment to a fund manager, they can easily manage that fund. So, that’s not going to be a threat for us.

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A version of this article appears in print on September 11, 2018 of The Himalayan Times.