Pre-Feasibility Study of Special Economic Zones (SEZs) in Western, Mid-Western and Far-Western Nepal including Lumbini, Nepalgunj, Kailali and Kanchanpur

Project Description

The present study concentrates on the identification of possible physical areas and conducting pre feasibility studies in three development regions of Nepal specifically, the western, mid-western and far-western region. In addition it also emphasizes on possible recreational/touristic SEZ in Lumbini in the case of western region and if not feasible look for an alternative. The specific objectives are as follows:
• Identify possible locations for SEZ in three development regions namely; western, mid-western and far-western regions
• Identify technically suitable and economically viable sites for SEZ in the Western, Mid-western and Far-western Nepal including Lumbini, Nepalgunj, Kailali and Kanchanpur
• Identify economically viable types of industry in line with the concept of SEZ
• Preparation of general design and cost estimates of required infrastructures

Assignment Description

Review the basic principles of SEZ as practiced world over, specially in successful neighboring countries as well that have been in place within Nepal • Review application of special laws or exemption from existing laws related to taxation, foreign exchanges, incentives and facilities etc. and in the context of WTO and other local forums like SAARC, BIMSTEC and bi-lateral and multi-lateral agreements of trade and commerce • Identification of areas within western, mid-western, and far-western region suitable for setting up of SEZ, identify types and volumes of industries, markets, volume and sources of possible foreign investment • Examine possible options and select best site for SEZ within the given location based on concept of SEZ, available information and field inspection • Identify viable industries and business activities to be undertaken in each SEZ depending upon the regional development strategy of the particular region • Prepare a list of prospective industries, their extent and market including that are presently in operation • Identify size, exact location and demarcation of required land • Prepare proposals for site planning, required land improvement • Evaluate existing air-cargo, land route and ware house facilities, and prepare specific recommendations to improve them to SEZ requirements • Identify type, quality, and quantity of required infrastructure with assessment of existing ones (Civil, Electrical and Mechanical, Telecommunication, Water Supply) • Prepare required engineering design and layout of infrastructures • Prepare cost estimates for land and all types of infrastructures • Examine related administrative services such as post, customs, immigration, labor, insurance, banking etc • Suggest administrative and organizational arrangements • List manpower requirements and training • Suggest viable implementation schedule • Prepare financial and economic analysis • Assess impact of SEZ in terms of socio-economic, environment and other cross-cutting areas of the particular region and their inter-linkages