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<p>DFID and the Foreign and Commonwealth Office (FCO) make regular assessments of
the economy of Nepal and its ability to attract Foreign Direct Investment (FDI), including
from the UK. Analysis suggests that there is potential for FDI in areas such as hydropower,
education and tourism. However, constraints to investment remain from poor transport,
energy and urban infrastructure, and aspects of the regulatory environment. The UK
is working with the Government of Nepal to address these barriers to growth.</p><p>
</p><p>DFID, through its funding of Investment Board Nepal, helped to secure $1.2bn
of investment for the new Arun 3 Hydropower project, which will double Nepal’s hydropower
generation and energy exports to neighbouring countries. DFID funding supported the
Nepal Tourism industry to recover following the 2015 earthquake, and has supported
the construction of and marketing for the Great Himalayan Trails. Support has also
been provided to approximately 250,000 small-scale entrepreneurs and farmers to significantly
improve their business practices, for example through better management of crop diseases,
and contributed to increased incomes.</p>
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