Thank you for visiting the official website of Nepal Infrastructure bank Ltd. (NIFRA). Being the first and only 'National Level Infrastructure Development Bank' in Nepal, NIFRA shoulders a big responsibility of accelerating development of the nation’s infrastructure and creating an ecosystem where NIFRA can play a nodal role of promoting private sector participation and bridging the gap of financial resources that is projected to be required in the sector to achieve the country’s aim to become a middle-income economy by 2030.
Unlike in several developing countries in Asia, such as India, Vietnam and Taiwan, wherein private investors play an active role in developing infrastructure projects, the role of private sector has been limited in various infrastructure segments in Nepal. Infrastructure projects have been traditionally funded through either budgetary allocations of GoN or bilateral and multilateral funding agencies. As a result of over reliance on public sector, infrastructure investments take a toll on government’s Debt to GDP indicators. Experience from developed and developing markets around the world and hydropower sector in Nepal shows that the private sector can be more efficient to build, finance and deliver infrastructure projects.
Another key limitation in Nepal has been the concentration of private investors and commercial banks in hydropower and tourism sectors, understandably due to favorable policies, central bank’s mandates and ease of entry. This is slowly changing as few large corporate houses and startups have started to invest in other infrastructure sub-sectors, such as solar powers and cable cars. As provincial governments take charge of local infrastructure requirements, the demand for capital for infrastructure projects is set to rise and this cannot be fulfilled through government funds alone.
Infrastructure is a prerequisite of sustainable economic growth of a country. We believe, a balance between adequate financial return motivating private developers and justified long term economic return as desired by the nation is pivotal to run an infrastructure project successfully. Our team is equipped with the capability to properly assess the financial as well as economic return of the respective infrastructure project and to provide input for working out the required concessional arrangement if necessary, through various mechanisms like viability gap funding, annuity financing, asset securitization, commercial blending etc.
While doing business, a robust risk management culture is at the heart of everything we do. In line with our risk culture embedded in our day to day business activities, understanding, evaluating, accepting and monitoring manageable risks are at the center of our business processes and decision making at every level, as we understand such a risk culture shall be of paramount importance for growth and sustainability of an organization like ours. Our robust risk culture helps us always to ensure the check and balance to be maintained from technical, financial, social and other environmental risks perspectives.
We are set to play a nodal and pivotal role in assisting GoN and bringing all the stakeholders like Private Sector Investors, Multilateral/ Bilateral Development Agencies, Local Banks and Fund Managers, Foreign Banks and Financiers, Technical Experts and Consultants together to make a significant difference in the country’s infrastructure. The entire team of NIFRA is focused to work efficiently to meet the expectations of all its stakeholders as we embark together on the journey of being a catalyst for the infrastructure development of Nepal and we welcome you all in this tremendous journey !
Ram Krishna Khatiwada,
CEO, Nepal Infrastructure Bank Limited