IBN approves ambitious Five-Year Strategy and Business Plan

 

KATHMANDU, MAY 2: The Investment Board Nepal (IBN) has endorsed its ‘Strategy and Business Plan 2081–86’ aimed at accelerating infrastructure development through the public-private partnership (PPP) model. The plan was approved during the Board’s meeting last Sunday.

According to IBN spokesperson Pradyumna Prasad Upadhyay, the strategy outlines targets for various projects to be initiated or completed within the next four years. “The strategy is ambitious, setting both minimum and maximum investment goals. We believe that with favourable investment conditions, adequate human resources, and necessary legal reforms, these targets are achievable,” he said.

The plan is also expected to play a pivotal role in institutional restructuring, capacity strengthening, and improved human resource management within the Board.

Key targets of the strategy:

• Completion of 11 projects worth USD 8.95 billion by FY 2085/86, with a fallback target of operationalizing at least 5 projects worth USD 4.7 billion.

• Initiation of 7 projects worth USD 2.83 billion at the construction stage by the same period.

• Advancement of 14 projects worth up to USD 5.55 billion to final-stage construction.

• Inclusion of 57 projects worth USD 24.3 billion in the pipeline for feasibility studies.

• Procurement-stage readiness for 52 projects worth USD 23.5 billion.

• Progress of 42 projects worth USD 17.95 billion to PDA and PIA negotiation phases.

• Advancement of 32 projects worth USD 15.7 billion to financial closure and pre-development stages.

Over the four-year period, IBN expects to approve investments totalling USD 7.45 billion for up to 67 private sector-led projects, and USD 3.15 billion for 25 projects initiated by other entities.

Institutional Strengthening

To support implementation, the Board has proposed a revised organisational structure featuring four new directorates:

1. Planning, Administration, and Financial Management

2. Public-Private Partnership

3. Investment Promotion and Facilitation

4. Project Development and Management

Each directorate will be headed by at least a joint-secretary-level official. Additionally, an Organisation and Management (O&M) survey is in the pipeline.

Past performance and persistent challenges

Despite these forward-looking plans, IBN's performance since its establishment over 15 years ago has been modest. To date, the Board has approved investment commitments worth NPR 1,200 billion for 38 projects, falling short when compared to its newly outlined strategic ambitions.

The one-stop service centre under IBN has struggled with inefficiency due to a lack of personnel and delayed decision implementation. Moreover, a dedicated Investment Board Fund, envisioned 12 years ago, has yet to materialize. Other critical mechanisms, such as the Land Acquisition Fund and Viability Gap Funding framework, remain unrealized. The Board continues to rely heavily on donor support for staffing and technical expertise.