Third Investment Conference: The government's project failed to draw in investors.

Despite the government's claims that the third investment conference was a success, the project it offered to both domestic and foreign investors was met with disinterest. Investment Board Nepal has requested two Letters of Intent (EOI) in an attempt to recruit investors for twelve projects, as investors, with the exception of two, did not apply.

On May 16 and 17, 2081, the government hosted the third investment conference. On May 28, 11 days after the meeting ended, the board published a notice and for the first time asked for an EOI in order to look for funding for 12 of the initiatives that had been presented. On May 19, EOI was requested again because the initial proposal was not received. 45 days were allotted for EOI for energy-related projects and 35 days for non-energy-related projects.

In two of the twelve projects, domestic investors have sent in their letters of intent, according to the board. Foreigners have not submitted a letter of intent. When the EOI was called for a second time, the investment board's prediction that it would draw in international investors similarly came up empty.

 The board stated that of the 12 projects, letters of intent for the Janaki Heritage Hotel and Cultural Village and Babarmahal Administrative Plaza have been submitted by Solti Shivkrim Pvt. Ltd. Kathmandu and Gansu-SS-Landmark Bluebird Mall Kathmandu. According to board spokeswoman Pradyumna Prasad Upadhyay, both of these letters of intent are still being evaluated. "Among the EOI called for, Nepali private sector has been proposed in those two projects," according to him, "currently there is no Chief Executive Officer (CEO) on the board, after the new CEO comes, a review will be conducted as to why foreign and domestic investors did not come in the remaining 10 projects." The Board was left without a CEO on July 18 following the resignation of Sushil Bhatt, who served as CEO at the time.

According to spokeswoman Upadhyay, the board will research if modifying the current rules can draw in investors. He says that once the current issue has been reviewed and assessed, the EOI can be issued once more.

There are rumors that staff members have completed their homework about the assessment and review of the situation. An officer of the board stated that the board merely considered broad questions, such as the project's viability and whether or not a thorough project report had been completed, when soliciting EOIs and proposals for the projects that were presented at the conference. "The board's understanding is that the investors could not be reassured by that information alone," stated the person.

The board representative claims that it is imperative to look into things like whether the price was too high and why and how many people did not show up when the proposal was invited. "Investors can come when EOIs are issued if everything is disclosed, including profit and loss and cost analysis," the official stated. "Investors are unaware of prepared documents such as feasibility and detailed project reports (DPRs), so now retain the details." or a review ought to be conducted.

According to Radhesh Pant, the former CEO of the board, the board might not have been able to provide potential investors with sufficient information on the project. "Investors are not going to come just because they see the information," Pant added. "It also depends on whether investors are waiting to see if the government changes."

A administration made up of the Maoist Center and the Nepali Congress was in charge of organizing the investment conference. The CPN (UML) and Maoists formed the government at the time the summit was planned. Congress and UML comprise the current government. One of the main challenges to Nepal's economic development, according to a report done for the Millennium Challenge Corporation (MCC) by the American Cooperation Mission, is political instability brought on by frequent changes in the administration.

Pant contends that since it takes years to plan large-scale initiatives, investors cannot be drawn in by vague information alone. He contends that initiatives that omit information about land, electricity, government taxes, and dividends would fail to draw in investors.

The government requested a letter of intent for twelve projects, including conference centers, industrial zones, maternity hospitals, expressways, and hydropower projects with reservoirs, in order to acquire capital for these projects by holding the third investment conference. There was no dedication to the government's project, not even during the conference that drew over 2,500 attendees, including over 800 foreign delegates. A total of 154 initiatives were presented during the conference, 19 of which included requests for letters of intent and 9 projects intended for market sounding (gathering input from potential investors).