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The Investment Board Nepal is going to move forward with preparations to mobilise private sector investment in infrastructure development based on the Swiss Challenge and Hybrid Annuity models.

At a programme organised by Investment Board Nepal in collaboration with Green Growth Nepal in Kathmandu, Chief Executive Officer of IBN Sushil Gyewali said that the IBN is preparing to move forward with unsolicited proposals as well.

For that, the Board has prepared a draft proposal evaluation procedure using the Swiss Challenge method, he said.

The draft states that unsolicited proposals can be submitted in any sector, and that received proposals can be advanced through a competitive process.

CEO Gyewali expressed confidence that as new topics and innovations are being introduced at various levels at the national and international levels, organising them through procedures will help increase the investment sector.

Similarly, the hybrid annuity model will help in expediting large projects such as roads, bridges, hydropower, transmission lines, waste management, sharing costs and risks between the government and the private sector, and ensuring quality construction. The Board has also prepared a draft of the working procedure related to the Hybrid Annuity Model.

On the occasion, Gyewali said that all public-private partnership (PPP) projects costing Rs. 6 billion or more will be approved by the IBN.

He expressed the view that even if projects worth Rs. 6 billion or more are approved by the Board, they can be sent to other bodies for implementation based on thematic expertise and capacity.

“Projects below Rs. 6 billion can be advanced by the concerned agencies,” CEO Gyewali said, adding that increasing investment and achieving effective outcomes are the key priorities. Therefore, the IBN will provide subject-specific expertise and technical support as needed.

He said that the IBN will also support local and provincial governments in advancing public-private partnership projects. Stating that the Board is in favour of increasing investment at the federal, provincial and local levels, he expressed the view that it will be implemented from wherever it is implemented.

Stating that Rs. 11,200 billion should be invested to fulfill the national goals and objectives set by the 16th Five Year Plan, he said that about 7,400 billion should be mobilised from the private sector. Gyewali said that a lot of effort needs to be made to achieve the goals of the private sector.

The Investment Board Nepal has approved projects worth Rs. 1,716 billion in 14 years.

Joint Secretary of IBN Sunita Nepal said that the Swiss Challenge method would further support the increase in private sector investment.

Representative of the British Embassy, Samuel Fell, said that public-private partnership is important to reduce the gap in the economic sector and for effective results of projects.

A working paper on the Swiss Challenge method, public-private partnership and hybrid annuity model was presented at the programme, and discussions were held between experts and officials of the concerned ministries and agencies.