Nepal’s investment climate is still relatively better

AUG 11 - Shesh Ghale, an Australia-based non-resident Nepali who is among 200 wealthiest Australians with a fortune of $225 million, has announced his candidacy for the presidency of the Non-Resident Nepali Association (NRNA). Ghale, founder and chief executive officer of Melbourne Institute of Technology, under the MIT Group Holdings Nepal, has signed a management contract with Starwood Hotels and Resort Worldwide, Inc. to build a five-star property named—the Sheraton Kathmandu. Sangam Prasain and Prithvi Man Shrestha of the Kathmandu Post talked to Ghale on his investment plans and his aspiration to lead the overseas Nepali community. Excerpts Where has the process of building the Sheraton Kathmandu reached? When will the construction begin? Currently, design work of the hotel is being carried out in Singapore. A team of 15 consultants are preparing the design of the 225-room Sheraton Kathmandu. We have planned to invite bids for the project construction in November this year, and lay the foundation stone in March 2014. Our target is to open the hotel in February 2018. What is the size of the total investment? And, why did you choose the Sheraton brand? We have planned an investment of Rs 7 billion for the hotel. The Sheraton brand was selected through competition. A dozen of international hotel brands had shown interest for the management contract of the hotel. Sheraton’s selection was based on merit. Are there any specific reasons to get into Nepal’s hospitality sector? We are involved in the commercial property market in Melbourne. This expertise is very similar to luxury properties or hotels. Hence, we decided to diversify our investment. Realising that investment in the hospitality sector in Nepal will create viable investment avenues, we decided to go for hotel. I believe that in context of tourism, investment in the hospitality sector will create new jobs, boost foreign exchange earnings and the country’s economy. How do you look at Nepal’s investment environment?   Investors’ major concern in Nepal is undoubtedly political uncertainty, but we cannot deny the fact that Nepal’s investment environment, compared to other countries, is still relatively better. I personally think that Nepal is flexible in tax and operational aspects. The government has offered tax incentives to encourage investments, while in operational part, labour is cheaper in Nepal. But still many investors say doing business in Nepal is a risky job? The Nepal government has an open door or investment-friendly policy for foreign investment, but in practical, it has not been implemented well. Predominantly, bureaucratic hurdles are the major concern for investors at present. The mindset of bureaucracy should be changed. Bureaucrats should acknowledge that investment, either big or small, has its impact on the society. In fact, the bureaucracy should act in line with what the country’s investment policy speaks. You have announced candidacy for the presidency of the NRNA. What are your manifestos for the upcoming NRNA election? My focus would be on increasing capital investment and welfare activities in Nepal. Reviewing past work, I will continue the existing agenda of the NRNA. I have planned concentrating on two agendas—commercial investment and social investment funds. The commercial investment fund will be mobilised for the country’s economic development, while the social fund will be mobilised for charity work or to help the underprivileged people. Besides, I believe there is a need for increasing investment in knowledge and skill to produce skilled manpower in the country. The issue of safe migration and ensuring better condition in foreign employment and dual citizenship or continuation of Nepali citizenship are among my priorities.   Source: The Kathmandu Post