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1. Concept Briefing Kavre ICT Center - KICTCA Consortium of KU, ITPF, IT Industries and Individual Investors Suresh K Regmi, skregmi@pcs.com.np Immediate Past President ShashiBhattarai, shashibhattarai@yahoo.com General Secretary IT Professional Forum, Nepal w ww . i t p f n e p a l . o r g 18 May 2008

2. Background • IT Professional Forum (ITPF), long term associates of HLCIT • Vigilant on proper utilization of IT Park, Kavre • Earlier effort of partial utilization of IT Park was not materialized (Kavre Business Incubation Center) • A new concept is developed for full utilization of IT Park in various ways • ITPF has signed MoU with Kathmandu University (KU) which includes utilization of IT Park w ww . i t p f n e p a l . o r g

3. IT Park – Kavre (Highlights) • Location The park is located along Banepa- Panauti road in KavrePalanchowk district. It is 30 km east of kathmandu and 1.5 km south of Banepa. Connected by all weather black topped roads. • AreaThe total area of the park is 234 Ropani ( About 12 Ha) on an eastern hill slope of Dhaneshwor Mahadevsthan. • Roads 200 m double lane + 300m single lane

4. Administrative Block IT Park – Kavre (Highlights) • Buildings • Business Block- 1812.54 Sq. m (144 working stations) • Administrative Block - 585.60 Sq. m (With Library & meeting hall) • Residential Block- 706.42 Sq. m ( 3-studio type rooms. 2 - bed room flat, 2-two bedroom flat, 2 duplex of chief administrator and guest.) • Electricity • External electricity supply with stand by diesel generator of 300 KVA • Telecommunication: World-class fiber optic cables & VSAT. • Other Accessories • Like PABX-Intercom, server networking. Software, etc. for immediate plug and play. • Twenty-four hour water supply.

5. IT Park – Kavre (Highlights) Residential Block • Other salient features of the park: • Modern Infrastructures. • Seismic resistance structures. • Twenty four hour working environment. • Provision of Individual workstation as office unit with privacy among the offices. • Provision of land for future expansion, for business and recreation purpose. • High Speed Data Communication Facilities that include internet and other related services. • http://www.hlcit.gov.np/itpark.php

6. Objective of KICTC To create winning situation to all the stakeholders associated with the consortium of KICTC for the operation of IT Park w ww . i t p f n e p a l . o r g

7. Usage Categories • Non-commercial: Academic Research and Development, Innovation Promotion • Semi-commercial: Business Incubation, Career Camp, IT Business Development Services • Commercial: Running Commercial IT Companies, High-end Training w ww . i t p f n e p a l . o r g

8. Institutional Modality Government • HLCIT: Facility Provider for utilizing IT Park for Academic, Professional and Business purposes • Other GON Agencies: As a guardian of the concept • Ministry of Industry, Commerce and Supplies (MoICS) • Ministry of Environment, Science and Technology (MoEST) w ww . i t p f n e p a l . o r g

9. Institutional Modality … … Academia • Kathmandu University: Academia and other related user of the facility in close association with Professionals and Industries Professional Societies • ITPF: Professional society to bridge business, industry and academia Private Parties (Profit Making Entities) • Other private enterprises / individuals interested to invest / participate; at least 25 ICT professionals and NRNs to meet operational expenses for initial years of operation. w ww . i t p f n e p a l . o r g

10. Strategic Analysis of Use Options Commercial Use w ww . i t p f n e p a l . o r g

11. Strategic Analysis of Use Options … … Semi-commercial Use w ww . i t p f n e p a l . o r g

12. Strategic Analysis of Use Options … … Non-commercial Use w ww . i t p f n e p a l . o r g

13. Strategic Analysis of Use Options … … Mixed Use (All three categories of above) w ww . i t p f n e p a l . o r g

14. Mixed Use Diversified Agencies Profit Making Industries IT Companies Semi-Profit Making IT Professionals ITPF Non-Profit Making Academia Kathmandu University Sustained Operation KICTC Government Facilitation – The Solid Foundation

15. Institutional Arrangement • The Initial Promoters of the center are HLCIT, KU & ITPF • KICTC will be run as a business venture • A cooperative model is perceived to share risk and return (with individual ICT professionals both in the country & NRNs and other ICT companies & ventures) • A Board for the institution will provide general guidelines • KICTC board will be chaired by GoN representative, HLCIT (Chief Executive Officer of KICTC will serve as Member Secretary of the board) • KICTC will be run by professional managers and companies as decided by the board w ww . i t p f n e p a l . o r g

16. The Perceived Cooperative Institutional Model • An appropriate Institutional Model for the Mixed Use • Sharing benefits not the profit • Modality of benefit sharing can be decided by Cooperative members • Benefits may be in the form of financial as well as  non-financial terms • Quick entry and sustained occupancy • Transition to transform into full-fledged business operations • Building blocks for local support services

17. Objectives of KICTC • To receive a portion or a whole of IT Park facility from HLCIT in agreed condition with deferred lease fee for certain period • To co-ordinate with prospective stakeholders • To distribute facility for the following purposes • Non-commercial: Academic research and development, Innovation promotion • Semi-commercial: Business Incubation, Career Camp • Commercial: Running Commercial IT Companies, High-end Training w ww . i t p f n e p a l . o r g

18. Objectives of KICTC … … • To run some portion or the whole of IT Park as a business venture with GON & other funding agencies partial support in semi-commercial and full support in non-commercial activities as stated above. • HLCIT, KU & ITPF as an initial promoter of KICTC, followed by at least 25 ICT Institutions, Companies and Professionals (including convention, meeting, workshop operators and resort owners of Dhulikhel) from Nepal and NRNs in ICT sector abroad could participate in utilizing KICTC. • Promoters may have special advantage to use the facility in Knowledge based activities in a wider sense. w ww . i t p f n e p a l . o r g

19. Key factors to operate KICTC • One complete floor (consisting of two studios/wings) is to be leased by KICTC from IT Park/HLCIT for 1 year on experimental basis and may be later extended for 5 - 10 years after the evaluation of its effective use during the experimental basis. • One wing will be dedicated for IT Business Incubation and another wing will be dedicated for IT Career Camp with the goal of exporting highly skilled professionals and High-end training center with training services export goal. • KICTC may sub-lease the facility to any other party to work only with the objectives of KICTC as stated above. • Some of the residential blocks will also be leased for the purpose of hosting KICTC personnel (Manager, permanent mentors or trainers etc). w ww . i t p f n e p a l . o r g

20. Key factors to operate KICTC … • Some of the residential blocks may be turned into hostels for residential trainees. The training center is supposed to conduct full time training. Hence for e.g. OCP course may be conducted in 3 weeks, full time. • Initial establishment & operating expenses will be met by : • Contributions from KICTC business operation members (say 1 Lakh Rs each). If we can assemble 25 members including KU, ITPF; we will have Rs 25 Lakh as operating expenses. • Funds from GON or any other funding agencies for initial establishment costs and operating expenses of non-commercial activities • Estimated cost of establishment and initial operating cost: Rs 1 Crore • HLCIT will not have to pay anything in cash but their inputs for space rentals, computers & other infrastructure may be taken as loan to KICTC without a need to pay for the interest. w ww . i t p f n e p a l . o r g

21. Proposed Partners of The Concept • Different Ministries of GON & HLCIT http://www.hlcit.gov.np • Kathmandu University (KU) http://ww.ku.edu.np • IT Professional Forum (ITPF) http://www.itpfnepal.org • Members of Computer Association of Nepal (CAN) http://www.can.org.np • Professional Computer System P. Ltd. (PCS) http://www.pcs.com.np • Venture Cookies Pvt. Ltd. (VCPL) http://www.fortunecookieventures.com • Alternative Technologies Pvt. Ltd. (ATPL) http://www.rugalaxy.com • Hitech Valley iNet Pvt. Ltd. http://www.hitechvalley.com • Individual ICT Professionals in Nepal • Non Resident Nepalese (NRN) & ICT Professionals abroad

22. IT Professional Forum (ITPF) • ICT professionals organization of Nepal • Non-profit making • Non-governmental organization • Motto: ICT Led Development of Nepal • Past Activities: ICT Advocacy, Professional Training, ICT Consultation, Micro-enterprise Development, E-procurement Portal, Martus System (HRW) Installation & Support • Incubation Initiative in Nepal:www.incubation.org.np • Public Procurement Portal: www.bolpatra.gov.np • E-Payment Initiative w ww . i t p f n e p a l . o r g

23. Conclusion • Mixed-use model is most attractive from strategic operational modality of IT Park for immediate startups paving way for long term sustained operation • The initial operation in the form of more non-commercial is perceived to be semi-commercial in short term and commercial in the longer term (may be after five years) w ww . i t p f n e p a l . o r g

24. Thank You !!! Please send your feedback to itpf@info.org.np w ww . i t p f n e p a l . o r g