A Chinese joint venture today signed a special multi-million dollar agreement with the Nepal government to set up a cement factory in the country.
Investment Board of Nepal and Hongshi-Shivam Cement P Ltd signed Project Investment Agreement (PIA) in Kathmandu.
The agreement, called Project Investment Agreement (PIA), is the first of its kind in the country for private sector investments. The contract provides protection to the firm's investment.
As per the agreement, the company will make an investment of USD 359.18 million (NRs 36.75 billion) to build the factory in Nawalparasi district, in South-West Nepal.
The project, a joint partnership between Hong Kong Red Lion Cement Ltd, a subsidiary unit of Hongshi Group from China and Shivam Holdings, consisting representatives from various business groups in Nepal, plans to produce 6,000 tons of cement per day.
The company will start production by 2018 and it has a target to produce 12,000 tons of cement per day in the near future.
The project will provide high quality cement to the local market s demand and also create competition for quality of cement production in Nepal. The company has been employing over 1000 people during its construction period.
"With this agreement today, we open endless doors of investment opportunity for foreign companies to confidently invest in Nepal and become a partner in its journey towards economic prosperity," the Chief Executive Officer (CEO) of the Investment Board of Nepal, Maha Prasad Adhikari, said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)