Investment Board Nepal Approves China FDI in Cement Plant
Published By : 29 Jul 2015 | Published By : QYRESEARCH
The Investment Board Nepal (IBN) has agreed to a foreign direct investment (FDI) deal worth US$ 352 million proposed by China based Hongshi Holding Group.
Hongshi Holding Group’s proposal to put money in the setting up of a new cement plant in Nepal together with Shivam Cement Ltd was approved at the board meeting chaired by Prime Minister Sushil Koirala and held by the Investment Board Nepal on Tuesday.
In March, Shivam Cement signed an agreement with Hongshi Holding Group to establish a cement factory in Nepal. The proposed unit will have the capacity to manufacture 6000 tons per day of cement and provide employment for over 2000 people.
This has been the third largest foreign direct investment in Nepal when it comes to cement factories. Reliance Infrastructure Co Ltd of India and Dangote Group of Nigeria have already received an approval on their investment proposals.
The joint consultation with two global donor agencies was held by Investment Board Nepal to enable the government to make a choice between the Public Private Partnership model and other models. The meeting was dedicated for the development of the proposed Second International Airport in Nijgadh, Bara and the upgradation of the Tribhuvan International Airport.
The discussion by Prime Minister Sushil Koirala was held with the Asian Development Bank and the International Finance Corporation of the World Bank Group.
The Chinese company proposing the FDI will invest 70 per cent in the project with the Nepali partner pitching in the remainder amount.
Chief executive officer of IBN Radhesh Pant said that the annual production capacity of the cement plant set up by Shivam-Hongshi will be 4.3 metric tons.
Pant said that the company is presently looking for an appropriate mining site. The investment will be the third largest foreign direct investment in the Nepal cement industry.