National Innovation Center - The Most Important Needs for the Economic Development of Nepal
Brief Concept Note:
Need and Opportunity-
Major political, economic and social overhauls are required to make Nepal a developed country in the 21st century. For economic development to accelerate, Nepal must give highest priority to science, technology-creation and innovation in order to ensure a sustainable base for Nepal’s much-needed growth engines. Considerable attention is needed to nurturing home grown innovators and scientists for this economic development to happen. However, because of the lack of such an initiative from government level, many talented, innovative and creative Nepalis are leaving Nepal every year in search of better careers and opportunities abroad. This is a huge and shameful loss for a poor country like Nepal. Unless and until Nepal stops losing her gifted human resources at such an alarming rate, it will always remain an underdeveloped country. This is the bitter but irrefutable fact. Our wish is to help those talented and creative people in Nepal.
Therefore a unique National Innovation Centre (NIC) has been formally established from private level to find ways to keep talented and creative Nepalese in Nepal. NIC will help retain, nurture and promote Nepal’s top human capital and leverage their considerable intellect, creativity, and talent in fostering the country’s social and economic growth. It will also afford donor communities and friends of Nepal with a unique and powerful opportunity to help Nepal become a prosperous nation.
Vision
The vision of the National Innovation Centre is to foster creativity and innovation across Nepal and to focus solely on contributing to the socio- economic development of Nepal. It will identify and nurture the talent and creativity of high potential Nepali inventors, innovators and research scientists. The innovation center will help them financially and technically in their efforts to accelerate the design, development and launching of innovative products and services aimed at impacting the economic and social development. Moreover, the vision includes creating an environment conducive to persuading talented Nepali citizens researchers and scientists currently working abroad to engage and contribute in various ways to help nurture the creativity of young and talented fellow Nepali citizens back home.
Modality
A company by the name of “Rashtriya Awishkar Kendra” (National Innovation Center) has been registered as a not-for-profit sharing company according to Nepal Company Act 2006. NIC will register a hydropower company separately as a major stakeholder and will develop a 10 MW to 15 MW hydropower station. The power will be sold to the government to generate cash income for sustaining the center. The hydro power station was chosen to make the innovation center sustainable because it is the most reliable, stable, and steady source of revenue than any others. Four potential sites for the construction of the run-off-the-river hydro power stations have been selected for detail study. NIC will get necessary permission from the government of Nepal to build the power station and sell the power. Although the initial goal was to build the 10 MW hydro power as a not for profit sharing company, NIC is open to developing the hydro power company into a public company on PPP model with Nepal government and angel donors/investors providing some initial funding either as share or grant to establish it.
For now Dr. Mahabir Pun (Well know social entrepreneur in Nepal) leads the project as Chairman with Mr. Rameshwor Khanal (Well known Economist and former Secretary of Ministry of Finance, Nepal), Dr. Dambar Nepali (Well known hydro power expert in Nepal), Dr. Pramod Dhakal (Senior Scientist in Canada now returned to Nepal), and Dr. Dinesh Bhuju (Scientist, National Academy of Science and Technology, Nepal) are taking initial leadership role. More board members will be inducted as the project will develop and grow in future. The Board Members are not entitled to any financial incentive from the center.
Requests to the Government of Nepal, Donor Communities and Angel Investors
NIC has already requested to the government of Nepal for some seed funding for the development of 10 MW hydropower station. The government is positive to the proposal. National Planning Commission of Nepal Government has already put the agenda of establishing an innovation center in its topmost priority list. NIC would also like to request donor communities and angel investors for some financial support in the form of grant or soft loan for the project. Such support will have long lasting positive impact for the economic and social development of Nepal.
The estimated cost of building a 10 MW hydropower station is US$20 million. NIC is seeking a one time full or partial grant of US$6 million (30% of the total project cost) for equity from the Government of Nepal, donor communities and angel investors to build the 10 MW hydropower station. 70% of the project cost will be taken as loan from the commercial banks and about 15% cost will be collected as share from local people in Nepal. Once we get the fund for the equity, commercial banks will be ready to provide 70% of the project cost as long term loan. The estimated loan payback period is 8 years.
It is estimated that a 10 MW hydropower station will generate a net income of about US$ 3.5 t0 US$4 million by selling the power to government. The 75% ($3 million) of the net income will be used every year to pay back interest and loan, and pay for the operating cost. 25% (US$ 1 million) of the net income will be used to run the innovation center.
In conclusion, this will be the most meaningful investments Nepal government, donor communities and angel investors will ever make for helping Nepal become an economically developed country in less than half a century of time. On behalf of the young generation of Nepal, I appreciate very much for your involvement and support to make the dream come true.
Mahabir Pun
Chairman, National Innovation Center, Nepal
Need and Opportunity-
Major political, economic and social overhauls are required to make Nepal a developed country in the 21st century. For economic development to accelerate, Nepal must give highest priority to science, technology-creation and innovation in order to ensure a sustainable base for Nepal’s much-needed growth engines. Considerable attention is needed to nurturing home grown innovators and scientists for this economic development to happen. However, because of the lack of such an initiative from government level, many talented, innovative and creative Nepalis are leaving Nepal every year in search of better careers and opportunities abroad. This is a huge and shameful loss for a poor country like Nepal. Unless and until Nepal stops losing her gifted human resources at such an alarming rate, it will always remain an underdeveloped country. This is the bitter but irrefutable fact. Our wish is to help those talented and creative people in Nepal.
Therefore a unique National Innovation Centre (NIC) has been formally established from private level to find ways to keep talented and creative Nepalese in Nepal. NIC will help retain, nurture and promote Nepal’s top human capital and leverage their considerable intellect, creativity, and talent in fostering the country’s social and economic growth. It will also afford donor communities and friends of Nepal with a unique and powerful opportunity to help Nepal become a prosperous nation.
Vision
The vision of the National Innovation Centre is to foster creativity and innovation across Nepal and to focus solely on contributing to the socio- economic development of Nepal. It will identify and nurture the talent and creativity of high potential Nepali inventors, innovators and research scientists. The innovation center will help them financially and technically in their efforts to accelerate the design, development and launching of innovative products and services aimed at impacting the economic and social development. Moreover, the vision includes creating an environment conducive to persuading talented Nepali citizens researchers and scientists currently working abroad to engage and contribute in various ways to help nurture the creativity of young and talented fellow Nepali citizens back home.
Modality
A company by the name of “Rashtriya Awishkar Kendra” (National Innovation Center) has been registered as a not-for-profit sharing company according to Nepal Company Act 2006. NIC will register a hydropower company separately as a major stakeholder and will develop a 10 MW to 15 MW hydropower station. The power will be sold to the government to generate cash income for sustaining the center. The hydro power station was chosen to make the innovation center sustainable because it is the most reliable, stable, and steady source of revenue than any others. Four potential sites for the construction of the run-off-the-river hydro power stations have been selected for detail study. NIC will get necessary permission from the government of Nepal to build the power station and sell the power. Although the initial goal was to build the 10 MW hydro power as a not for profit sharing company, NIC is open to developing the hydro power company into a public company on PPP model with Nepal government and angel donors/investors providing some initial funding either as share or grant to establish it.
For now Dr. Mahabir Pun (Well know social entrepreneur in Nepal) leads the project as Chairman with Mr. Rameshwor Khanal (Well known Economist and former Secretary of Ministry of Finance, Nepal), Dr. Dambar Nepali (Well known hydro power expert in Nepal), Dr. Pramod Dhakal (Senior Scientist in Canada now returned to Nepal), and Dr. Dinesh Bhuju (Scientist, National Academy of Science and Technology, Nepal) are taking initial leadership role. More board members will be inducted as the project will develop and grow in future. The Board Members are not entitled to any financial incentive from the center.
Requests to the Government of Nepal, Donor Communities and Angel Investors
NIC has already requested to the government of Nepal for some seed funding for the development of 10 MW hydropower station. The government is positive to the proposal. National Planning Commission of Nepal Government has already put the agenda of establishing an innovation center in its topmost priority list. NIC would also like to request donor communities and angel investors for some financial support in the form of grant or soft loan for the project. Such support will have long lasting positive impact for the economic and social development of Nepal.
The estimated cost of building a 10 MW hydropower station is US$20 million. NIC is seeking a one time full or partial grant of US$6 million (30% of the total project cost) for equity from the Government of Nepal, donor communities and angel investors to build the 10 MW hydropower station. 70% of the project cost will be taken as loan from the commercial banks and about 15% cost will be collected as share from local people in Nepal. Once we get the fund for the equity, commercial banks will be ready to provide 70% of the project cost as long term loan. The estimated loan payback period is 8 years.
It is estimated that a 10 MW hydropower station will generate a net income of about US$ 3.5 t0 US$4 million by selling the power to government. The 75% ($3 million) of the net income will be used every year to pay back interest and loan, and pay for the operating cost. 25% (US$ 1 million) of the net income will be used to run the innovation center.
In conclusion, this will be the most meaningful investments Nepal government, donor communities and angel investors will ever make for helping Nepal become an economically developed country in less than half a century of time. On behalf of the young generation of Nepal, I appreciate very much for your involvement and support to make the dream come true.
Mahabir Pun
Chairman, National Innovation Center, Nepal
0 comments:
Post a Comment