The current committed exposure in Nepal is $62.7m in four projects (two in power generation; one in tourism and one in a leasing company).
Until recent progress on the peace process there has been no new investments pursued. As the peace process evolves however, and democracy and economic stability return, IFC is beginning to look again at investment opportunities in Nepal. The current maximum country exposure for the IFC in Nepal is $260.6 million – leaving significant headroom if good projects can be identified and structured, with strong sponsors.
There is potential for IFC investments in the development of infrastructure (including hydro-power, telecoms, and water supply), financial markets, and industrial and tourism projects, subject to continued improvement in the political/security condition.
IFC are in final discussion with two banks to provide Trade Finance Guarantees. A due diligence on a potential investment in manufacturing (cement) sector will take place in early 2007. Some very early stage discussions have begun between CAS and the GoN on reforms in the telecoms and aviation sectors.
