Finance Committee approves alternative development finance bill

KATHMANDU: The Finance Committee of the House of Representatives continued deliberations on the Alternative Development Finance Bill, passing sections 10 through 20 on Tuesday.

The committee approved the establishment of a governing board chaired by the Secretary of the Government of Nepal.

Detailed discussions were held regarding the qualifications of independent experts to be included in the board.

Key provisions passed include the roles and responsibilities of the board, which are to approve and implement fund policies, programs, and plans; provide policy guidance; approve necessary investments and financial instruments; and determine operational procedures for various funds established under the act.

The board, led by the Secretary of the Ministry of Finance, will monitor and evaluate the financial and investment instruments operated by the fund. It will also ensure transparency in resource allocation, financial accountability, and institutional governance.

Further responsibilities include adopting and enforcing environmental protection measures, sustainable development goals, and social impact standards when investing in projects.

Risk identification and mitigation measures, such as insurance, will be applied during investments. Coordination and cooperation with national and international financial institutions will be maintained.

The board must also ensure compliance with the act, related regulations, prevailing laws, fund assembly decisions, and established investment practices.

Additionally, the committee approved the inclusion of a Chief Executive Officer (CEO) position within the fund’s organizational structure.

The CEO will be the principal administrative officer responsible for the daily administration, operation, management, and performance of the fund.

The CEO is expected to work full-time and will have their salary, service conditions, and other benefits determined by the board in consultation with the Ministry of Finance.

Regarding eligibility criteria, the CEO must be a Nepali citizen with at least a master’s degree from a recognized educational institution in fields such as Economics, Management, Commerce, Development Studies, Financial Analysis, Law, Engineering, or Development Administration.

Furthermore, the candidate must have at least fifteen years of managerial experience in infrastructure, project development and construction, public-private partnerships, investment promotion, development administration, banking, finance, industrial management, or international financial institutions.