China-Nepal industrial park project in Jhapa to progress as IBN expedites PDA process

By Republica
Published: August 26, 2023 06:00 PM

KATHMANDU, Aug 26: The China-Nepal industrial park project in eastern district in Jhapa, estimated to cost around Rs 64 billion, is set to move forward as the Investment Board Nepal (IBN) convened its 55th meeting on Friday. 

A decision was reached to establish a committee led by Sushil Bhatta, Chief Executive Officer of the Board, tasked with engaging in negotiations with the developer and formulating the final draft.

Earlier, discussions between the IBN and China's Lhasa Economic and Technology Development Zone Jingping Joint Construction Company, the developer, took place in Chaitra 2079 BS. The forthcoming negotiations are expected to span a year, culminating in the signing of the project development agreement (PDA), a pivotal step for the project's initiation.

Upon the finalization of the PDA, the developer will initiate the investment-raising process for the park's construction. This agreement will encompass investment models and other pertinent aspects crucial for project implementation.

The IBN has already granted its approval for the Detailed Project Report (DPR) of the industrial park, reflecting its commitment to the venture. The 47th meeting of the board further sanctioned the Rs 64 billion investment from the Chinese company to realize the park's construction.

The envisioned industrial park is slated to span 2,200 bighas between the Ratuwa and Mawa rivers in Damak, Jhapa, encompassing regions within Kamal Rural Municipality, Damak Municipality, and Gauradaha Municipality. Boasting comprehensive dimensions, it is poised to be Nepal's largest and model industrial park.

Anticipated to conclude within a two-year timeline, the park's construction and operation have been entrusted to the Chinese firm, Lhasa Economic and Technology Development Zone Jingping Joint Construction Company. The project's scope encompasses diverse industries including white goods manufacturing, transportation materials, textiles and garments, food processing, and electronic information technology materials.

As an embodiment of the Public-Private Partnership (PPP) model, the industrial park marks a pioneering venture in non-hydro projects. A total of 26 companies have already confirmed their presence within the park, with an additional 98 companies in various stages of consideration.

This transformative endeavor carries remarkable potential, opening avenues for international companies to operate within its vicinity, strategically located in proximity to India, Bhutan, and Bangladesh.

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