CNI NIFRA Partner Industrial Zone Development
CNI NIFRA Partner Industrial
19th December 2025, Kathmandu
The Confederation of Nepalese Industries (CNI) and Nepal Infrastructure Bank Limited (NIFRA) have officially signed a landmark Memorandum of Understanding (MoU) to build and operate industrial zones.
CNI NIFRA Partner Industrial
This agreement marks a critical step towards realizing the government’s plan for industrial area development. The core concept is based on a CNI NIFRA Partner Industrial Zone Development under the Public-Private Partnership (PPP) model.
This is set to transform the industrial landscape of Nepal. The MoU aims to construct and operate industrial areas declared by the Government of Nepal using the PPP framework.
This strategic alignment between a major industry body and an infrastructure-focused financial institution signifies strong private sector commitment.
The signing ceremony saw key officials formalize the understanding. Dr. Ghanshyam Ojha, Director General of CNI, and Surya Bahadur Tamang, Assistant Chief Executive Officer of NIFRA, signed the document. Er. Padam Oli, General Manager of Industrial Zone Management Limited (IZML), witnessed the significant event.
Prioritizing Industrial Zones
The agreement places high priority on developing specific industrial zones. The Shaktikhor Industrial Zone in Chitwan, announced by the government, is the primary focus.
CNI and NIFRA will focus on its construction and operation using the PPP model. Beyond Shaktikhor, the two institutions also agreed to collaborate on the construction and operation of other key sites.
These include the Mayurdhap Industrial Zone in Hetauda and the Motipur Industrial Zone in Rupandehi. This widespread focus demonstrates a commitment to boosting industrial capacity across different regions of Nepal.
Alignment with Government Policy
This initiative directly aligns with the government’s announcement allowing the private sector to develop and operate industrial zones under the PPP concept.
CNI initiated the partnership with NIFRA to utilize this favorable policy environment. Following the MoU, CNI and NIFRA will jointly prepare and submit a proposal to the Government of Nepal.
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They will advocate for officially allowing the private sector to undertake the construction and operation of industrial zones under the PPP framework. This joint advocacy strengthens the case for private sector participation.
Vision from Leadership
Leaders from both organizations emphasized the importance of this collaboration.
Mr. Virendra Raj Pandey, President of CNI, stated that this understanding with NIFRA is the beginning of a crucial journey for industrial area development and operation. He stressed the immense importance of the CNI NIFRA Partner Industrial Zone Development agreement.
Mr. Krishna Bahadur Adhikari, Chief Executive Officer of NIFRA, viewed the MoU as a starting point for the bank. He expressed NIFRA’s readiness to move forward with the PPP concept in collaboration with CNI.
Er. Padam Oli, General Manager of IZML, provided the government’s perspective. He noted that the government’s plan to allow the private sector into industrial zone development via PPP makes this MoU a very positive development. This development sends a good signal to the entire industrial sector.
Moving Forward: The PPP Blueprint
The utilization of the PPP model is central to this initiative. This model is effective globally in financing and operating large-scale public infrastructure projects.
Shared Risk: The risks and rewards are distributed between the public and private sectors. Expertise Utilization: Private sector expertise in construction, technology, and management is leveraged.
Infrastructure Financing: NIFRA’s core mandate is to finance infrastructure projects, making it the ideal financial partner for this major undertaking. Several key stakeholders attended the signing ceremony to show their support.
Attendees included former CNI President Vishnu Kumar Agrawal, CNI Vice President Gokul Bhandari, Chitwan Industries Association President Madan Ghimire, and other industry leaders and committee heads from CNI and NIFRA.
The collective presence of these leaders underscores the broad support for this CNI NIFRA Partner Industrial Zone Development initiative.
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