By Our reporter
Nepal Infrastructure Bank, the first bank established for infrastructural investment in the country under the public-private partnership model, has formally started its operation. Finance Minister Dr. Yuvaraj Khatiwada inaugurated the bank amidst a function held last week in the capital.
The bank is a joint-venture of the Nepal government, commercial banks, insurance companies, microfinance companies and private companies. The government and public limited companies hold 10 percent and 40 percent shares respectively in the bank while the private investors and the general public have 10 percent and 40 percent shares respectively.
The bank has an authorized capital of Rs 40 billion, issued capital of Rs 20 billion and paid-up capital of Rs 12 billion. It plans to invest in infrastructure development, particularly in construction, transportation, agriculture, energy, tourism, exclusive economic zone, urban development, and information technology.
The Bank will issue long-term loans to construct infrastructure projects apart from offering credit to large projects via a public-private partnership model under which government agencies and the private sector will stand guarantee for the loans.