Mr. Prithvi Subba Gurung is the Honorable Chief Minister of Gandaki Province. Mr. Gurung has previously served as the Minister for Culture, Tourism and Civil Aviation and is regarded as a visionary and dedicated leader. Mr. Gurung has been keeping a close watch on investment opportunities for the development of his Gandaki Province. Talking to IBN Dispatch, Mr. Gurung shared his plans and priorities for the economic transformation of Province 4 which has a lot of potential in tourism, hydropower and agriculture.
How are you assessing the economic status of Province 4?
In terms of geography, around 67 percent of Gandaki Province is covered by hills, 6 percent by plain areas and the remaining by the Himalayas. This province doesn’t have a huge industrial base barring a couple of big industries. With a weak industrial base, revenue from this sector is very low. However, we stand first or second in different economic indicators. We command huge potential in solar energy, hydropower, wind energy, natural gas, copper, iron and uranium in addition to other natural resources. We are also not in a bad position for vegetable, fruit, dairy and other farm production. The culture of this province is also very rich. Nepal Tourism Board collects around one billion rupees in revenue but this province is only getting a meagre 2 percent of that amount. A total of 747 MW of electricity is being generated in our province so far but our province is using very little of the electricity produced here. The main driver of this province’s economy is tourism. We see further potential in tourism development in this region.
Among the host of different potential sectors, which are your top priorities?
Our top priorities are undoubtedly tourism, energy, agriculture and industry. However, we can’t achieve the development we desire in these sectors without developing infrastructure. Keeping in mind the significance of vital infrastructure, we have allocated around 40 percent of our total budget for this purpose. We have also formulated a five-year plan and policies that place infrastructure development at the center.
But how are you arranging for such a huge amount of money for infrastructure development given the limited resources with the government?
Personally, I had several meetings with investors from different countries including China, Japan and South Korea. They are very interested in investing in our priority sectors. I have proposed some crucial infrastructures such as a Korala-Pokhara-Dumkibas fast track, a modern stadium, an international conference hall, a Polytechnic University, among others. We have already drawn a modality for the Polytechnic University. We can also develop infrastructure by establishing sister relations between Pokhara and cities in developed countries. But, the present constitutional provision inhibits our ability to mobilize both domestic and foreign resources to arrange for the funding of our infrastructure development. We are clear that we cannot deliver major infrastructure without attracting Foreign Direct Investment (FDI). The federal government didn’t allocate its budget to provinces in line with the spirit of a federal structure of governance. Without empowering provinces for effective implementation and monitoring of development projects, we cannot achieve economic prosperity. Despite limited budget allocations, we will make the maximum effort to attain visible results by drawing foreign as well as domestic private investment within the existing authority given to the province in coordination with the federal government.
What are the challenges for investment in your province?
The federal government does not empower provinces with sufficient resources and the necessary legal provisions. This mentality will not support a sincere implementation of federalism. We also need to guarantee the security of investments and safety of investors. The acquisition of land is also a challenge for implementing infrastructure projects. We want to arrange necessary land for developers at concessional rates in coordination with the federal government. We are fully committed to simplifying the laws and processes for the acquisition of land.
What kind of support do you want from OIBN?
We are interested to work with OIBN to promote investments in large scale projects in Gandaki Province. In the coming days, we will also be in close coordination with OIBN to explore investment opportunities and to facilitate investments.