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Chinese investors commit highest amount of FDI at Investment summit in Nepal

Xinhua | Updated: 2017-03-04 10:27

KATHMANDU - Nepal received the highest investment pledges from China as the Himalayan country received a total pledge of $13.52 billion from seven countries at Nepal Investment Summit that concluded on Friday.

Chinese delegation, which has the largest number of investors, committed foreign direct investment (FDI) of $8.2 billion in the two-day event, according to Investment Board Nepal (IBN), one of the organizers of event along with Industry Ministry.

The Chinese investment pledge is 61 percent of total pledged amount during the event.

According to IBN, Bangladeshi investors committed FDI of $2.4 billion, second highest from among the seven nations. The investors from Japan and the United Kingdom pledged over $1 billion.

The Himalayan country also received FDI pledge of $500 million from Sri Lanka, $317 million from India and $11.5 million commitments from Nepalese investors.

Chief Executive Officer of IBN Maha Prasad Adhikari said that they were encouraged by FDI pledges from the Chinese investors along with their participation in the event.

"They have resources and technology and receiving largest investment pledge from there is natural," he told Xinhua.

China has been topping in investment commitment to Nepal in the last few years. China committed largest FDI in the last fiscal year 2015-16 that ended in mid-July 2016, and also pledged more than two third of total FDI to Nepal during the first half of the current fiscal year, according to Nepal's Department of Industries.

Of 16 companies that signed letter of intent pledging investments in Nepal during the event, six are from China, the most from one single country. Among the Chinese investors, China Machinery Engineering Corporation pledged $3 billion for hydropower, hospital and Kathmandu Metro, being the largest investment pledge from single company at the summit.

China State Construction and Engineering Co, CTCE Group, Sichuan Wanping Energy Science and Technology, Wuling Power Corporation and Sichuan Boxing Country Wanping Mining are other Chinese companies making investment commitments. Three companies from India, one each from Japan, the United Kingdom and Sri Lanka and three companies from Nepal also pledged investments during the event, according to IBN.

Nepalese Industry Minister Nabindra Raj Joshi termed the event a great success. "Now I will personally keep following up with the investors and facilitate them to ensure that they invest here as per the commitment," he said.

Nepal has also formed a follow up mechanism for realization of committed investment.

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