Nepal’s Investment Board (IBN) has signed a project investment agreement with Huaxin Cement Narayani to establish a US$140m cement plant in Nepal. Following the deal signed by IBN’s CEO, Maha Prasad Adkhikari, and Xu Gang, vice-president of Huaxin Cement Co, in the presence of Prime Minister, KP Sharma Oli, the joint venture company will build a 3000tpd cement works in Dhading, Nepal.

The agreement includes protection for the foreign investor in Nepal and the provision that, despite the considerable foreign interest, the enterprise will be treated as a domestic company in Nepal, according to reports in The Kathmandu Post. IBN is required to assist investors to get the required government approvals while establishing the factory.

According to the agreement, the board will also link the project site with a transmission line and access road. A 132kV transmission line to supply 18MW of power will be built as well as an access road to connect the site with Prithvi Highway.

Huaxin Cement Narayani has already acquired a limestone mine at Panikharkha in Dhading.

The project is the second agreement by IBN with a private company. Last September the first such deal was signed with Hongshi Shivam Cement. Hongshi Shivam Cement’s US$359.2m plant at Sardi, Nawalparasi, has started trial production.