IBN Hongshi Shivam Cement sign PIA worth Rs 36 billion
THE COMPANY IS CONSTRUCTING A CEMENT FACTORY IN NAWALPARASI
Published: September 04, 2017 4:55 am On: Business
Kathmandu, September 3
The Investment Board Nepal (IBN) and Hongshi-Shivam Cement Pvt Ltd, today signed a Project Investment Agreement (PIA) worth $359.18 million (approximately Rs 36.75 billion) to set up a mega cement factory in Nawalparasi. The PIA was signed between Maha Prasad Adhikari, chief executive officer of IBN and Lai Weipeng, director cum general manager of Hongshi Shivam Cement. This Nepal-China joint venture (JV) project is the largest JV project in Nepal so far. The mega cement project has 30 per cent stake of Shivam Holdings of Nepal while 70 per cent stake in the project is held by Hongshi Group of China. Speaking after the PIA signing ceremony, IBN CEO Adhikari said that the PIA will boost the confidence of the Chinese company regarding its investment in Nepal. “With this agreement today, we open endless doors of investment opportunity for foreign companies to confidently invest in Nepal and become a partner in Nepal’s journey towards economic prosperity,” he said. Similarly, Lai Weipeng thanked IBN for helping materialise the project. “Our experience regarding investment environment in Nepal would help circulate a positive message among international investors to attract more foreign investment in the country,” he said.
Addressing the PIA signing ceremony, Minister for Finance Gyanendra Bahadur Karki expressed his commitment to provide necessary support to the project on behalf of the government of Nepal. The JV project has planned to produce 6,000 tonnes of cement per day by 2018 while it has set a target to produce 12,000 tonnes of cement per day gradually. Similarly, the project aims to provide high quality cement in the local market and create competition for the quality of cement production in Nepal. As per officials of the project, more than 1,000 people have already been engaged for the construction of the project and its completion will generate employment opportunities to thousands more. IBN has also assured to develop necessary infrastructure for the project like access road and electricity.