Nepal- The new cooperation proposal has recently been approved by the Investment Board Nepal. The $140 million contract was signed between the country and the Huaxin Naravani Investment – a large cement company located in China.
A China concrete factory has offered a $140 million deal to Nepal. The proposal, which was made by the Huaxin Naravani Investment, is reported to become the second largest FDI deal between the two countries in the industry. It is also the second offer made by China to Nepal within 2015 and was was quickly approved by the IBN (Investment Board Nepal).
According to the information provided by Radhesh Pant, an IBN CEO representative, the Chinese company currently requires a new place in the Central, Western or Eastern regions to construct a new factory that is expected to manufacture over 1.1 million tons of the concrete each year. With consideration to the fact that there are specific concerns associated with the potential threat to the environment by the coal and fly ash and carbon emissions, the contract was signed successfully. The Chinese company promises to adopt special measures to reduce the risks to minimize the risks created by the manufacturing of coal combustion products.
The other investment proposal accepted by Nepal was made by China in July. The overall deal cost $360 million. The offer that was made by the Hongshi Holdings Limited implied the cooperation between the factory and the Shivam Cement Company located in Nepal. The result of the cooperation was the construction of the new cement factory in the country. The agreement, which was signed in March, became the largest proposal made to Nepal by China.
All in all, there are more than 40 cement companies in the Nepal region, which cover over 85% of the overall product consumption in the country. This information was reported by the Cement Manufacturer’s Association of Nepal who has carried out the corresponding research.