KATHMANDU, DECEMBER 9

The Ministry of Finance (MoF) has issued Joint Investment Procedure 2020.

MoF Spokesperson Rameshwor Dangal stated that the procedure has been issued for the effective implementation of physical and economic sector infrastructure projects through coordination and cooperation between the federal, provincial and local governments.

He further said that the procedure is necessary to ensure economic returns of the development projects undertaken by the three tiers of the government.

“The procedure has also aimed to ensure investment in potential commercial projects and to develop the provincial and local ownership in the operation of the project,” he said.

According to the procedure, while selecting a project, the minimum investment in the rural municipality and municipality should be Rs 200 million, while such investment must be at least Rs 500 million in sub-metropolitan and metropolitan city. Meanwhile, the minimum investment threshold set for the provincial government is Rs one billion.

As decided by the Cabinet, projects like construction of tunnels, roads, bridges, flyovers and airports, construction and operation of metro rails, monorails, cable cars, ropeways and internal water transport, hydropower, solar energy, wind energy and other alternative energy production and distribution projects and land banks are suitable for joint investment.

Similarly, excavation and processing of mineral products, commercial production, processing and storage of agricultural and forest products, commercial management of garbage, community electrification (renovation of transmission and distribution system), housing schemes, construction of smart cities, city halls and exhibition centres also fall under this investment procedure.

Meanwhile, it has also mentioned that the joint investment procedure can be implemented for projects like construction of tourism and industrial infrastructure that can directly generate income and manage operating expenses, construction of multi-purpose reservoir, and development of sports infrastructure.

Such projects should be submitted to the Board of Directors that will be formed under the procedure by mid-March.

While selecting the project, attention should be paid to high economic growth, job creation and poverty alleviation, maintaining balance at the provincial and local levels in terms of development, reducing dependence on the federal government, and utilising local resources and opportunities.

The selected projects will be implemented by concerned provincial or local governments.

The responsibility of operating, managing and general maintenance of the projects prepared in joint investment will be with the concerned province or local body.

There will be a steering committee consisting of the vice-chairperson of National Planning Commission or a member of the designated commission to coordinate and facilitate the identification, selection and implementation of the project to be implemented.

Similarly, the amount to be invested in the form of joint investment will be included in the annual programme and transferred from the federal government to the concerned province or local level, reads the procedure.