Procedure For Co-Investment, 2077 Issued
December 10, 2020 | Investopaper
The government has issued the Procedure on Co-Investment, 2077 BS for the effective implementation of infrastructure construction in coordination and cooperation between the federal, state and local levels. Now the big project is going to be taken forward in such a way that the ownership of all will be maintained in three levels of investment.
The government has made policy arrangements for large projects from tunnels to railways to be owned by three tiers of government. Areas of co-investment have been identified in the working procedure and the ownership of the investment has also been clarified.
The three-tier government has made provision for co-investment in the construction of tunnels, roads, bridges, flyovers and airports. Construction and operation of metro rail, monorail, cable car, ropeway and internal water transport have also been included in the co-investment sector. Other sectors include Hydropower, solar energy, wind energy and alternative energy production and distribution.
Likewise, land bank, mining and processing of mineral products, production, processing and storage of agricultural and wildlife products, commercial waste management, community electrification, housing planning, smart city, city hall, tourism and industrial infrastructure construction, multi-purpose reservoir construction and sports infrastructure construction will also come under co-investment.
According to the working procedure, the minimum cost of local level project should be at least Rs. 200 million in village municipality or municipality, at least Rs. 500 million in sub-metropolis or metropolis and at least Rs. 1 billion in state level project.
The maximum implementation period of the co-investment project is 5 years. Such projects will be implemented at the state and local levels.
There is a provision to have a steering committee consisting of the Vice-Chairperson of the National Planning Commission or a member of the commission appointed by him/her to coordinate and facilitate the need for identification, selection and implementation of the co-investment projects .
Likewise, A provision has been made to transfer the amount to be invested from the Government of Nepal to the concerned state or local level through annual allocation by including it in the annual program. In case of insufficient investment from the state or local level during the implementation of the selected projects, the concerned state or local level has to send a letter to the Board of Directors requesting additional investment from the Government of Nepal.
