KATHMANDU, Oct. 4 -- Damak Clean Industrial Park, a China-invested company, has signed a Memorandum of Understanding with Nepal Investment Board (IBN) for the China-Nepal Friendship Industrial Park in Nepal's eastern Jhapa district.
Damak Clean Industrial Park President Govinda Thapa and IBN Chief Executive Officer Maha Prasad Adhikari signed the MoU at a function on Thursday evening in Kathmandu.
Lhasa Economic and Technological Development Zone Investment Development Company Limited is investing in the project which aims to develop a complete industrial infrastructure for industries to come in and operate there.
"Industries related to food products, home appliances, transport equipment electrical and communication equipment will be brought inside the park," Zhou Chengjie, chairman of Lhasa Economic and Technological Development Zone Investment Development Company Limited, said during the signing ceremony.
The location is the hometown of Nepali Prime Minister KP Sharma Oli.
The IBN, a government body focused on promoting large scale investment, approved Foreign Direct Investment (FDI) of 586 million U.S. dollar from the Chinese company in August.
"This investment is for the first phase of the works under which industrial park will be developed in 484.81 hectares of land out of planned development in 1,600 hectares," Zhou said.
According to him, the project will be developed in four phases and his company has aimed to invest 1 billion U.S. dollar for the entire development. It will be one of the largest FDI to Nepal from China in recent years.
IBN CEO Adhikari said the China-Nepal Friendship Park would be milestone for industrial infrastructure development in Nepal as industrial infrastructure in the Himalayan country has remained poor.
"This will also help Nepal to utilize the economic opportunity offered by the Belt and Road Initiative," he said.
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