Contractors siphoned off Rs. 24b from sick projects

Kathmandu, Jan. 29:

At least 1,032 infrastructure development projects managed by different eight government agencies are experiencing time overrun but their term extension has not been made.

According to a study of the Commission for the Investigation of Abuse of Authority (CIAA), about 1,848 tender agreements amounting Rs. 118 billion were not completed in their announced time-frame while about 55.8 per cent contracts weren’t extended.

 But the contractors have siphoned off about Rs. 24 billion as 20 per cent mobilisation cost.

“The contractors have got the payment of the initial 20 per cent of the contract amount but there has been zero or nominal progress in most of the projects which means the term of the advanced payment guarantee has been finished,” read the report.

People and the country are experiencing huge losses due to the incomplete infrastructure projects as the chances of infrastructure’s contribution to the society, economy and country have been killed.

According to the rules, if a contractor stops working for more than 30 consecutive days and does not follow the action plan approved by the managing agency, it would be a ‘fundamental breach of the contract’ and work should be expedited when there is poor progress.

“But the responsible agencies have turned blind eyes to the mismanagement and delay at the project. As the contracts had been tendered out without proper procurement plan, many of them are left in lurch,” said the CIAA.

There had been term extension for eight times in a project, which exhibits the negligence on the part of the government agencies and the officials in preparing the tender document, deciding the contract period and terms of reference.

Nepal Electricity Authority has extended the term of a project twice the time of its defined period while a project which was supposed to be completed in two years six months couldn’t be completed in seven years and six months.

All the rules of contract – time, quality and cost control and finishing– have been breached.

The study has also found that there was a trend of finding scapegoat and excuses when there was a poor performance in the project.

The Department of Roads (DoR) under the Ministry of Physical Infrastructure and Transport has 906 incomplete projects under its jurisdiction, Department of Urban Development and Building Construction (DUDBC) under the Ministry of Urban Development has 442 projects and Department of Water Resources and Irrigation (DoWRI) under the Ministry of Energy, Water Resources and Irrigation has 235 incomplete projects.

Similarly, the DoR, DUDBC and DoWRI have 623, 171 and 94 projects respectively without term extension as well.

Other agencies having large number of sick projects are the Department of Local Infrastructure under the Ministry of Federal Affairs and General Administration, NEA under the MoWRI, Civil Aviation Authority of Nepal (CAAN) under the Ministry of Culture, Tourism and Civil Aviation, Nepal Telecommunication Company under the Ministry of Communication and Information Technology and Department of Water Supply and Sewerage (MoWSS) under the Ministry of Water Supply.

Published in The Rising Nepal daily on 30 January 2019. 

ICAN to organise conference on accounting

Kathmandu, Jan. 29:

The Institute of Chartered Accountants of Nepal (ICAN) is organising a one-day ‘Conference on Accounting Profession and Way Forward’ on January 31.

The event is going to be organised on the occasion of ICAN’s 22^nd anniversary.

Minister for Finance Dr. Yuba Raj Khatiwada is scheduled to deliver his remark in the anniversary of the ICAN, the autonomous body to regulate chartered accountancy in Nepal.

In a press meet organised on Tuesday, the ICAN’s President Jagannath Upadhyay (Niraula) said that the conference would be held with an objective of discussing challenges and latest developments in accountancy profession and enhance the trust of public towards the work of chartered accountants. 

“We expect that the conference will help enhance the audit quality as well as confidence of public toward the works of chartered accountants,” he said.

According to the ICAN, the conference will feature four sessions where the experts and practitioners will present and comment on technical papers. Blockchain and financial market, corporate governance reporting and role of professional accountants, experience in implementation of Nepal Financial Reporting Standards in Nepal and enhancing quality of the audit are themes on which the conference will focus on, said Niraula. 

Published in The Rising Nepal daily on 30 January 2019. 

Renault launches Duster petrol version

Kathmandu, Jan. 29:

Renault Duster RXS petrol variant is launched in Nepal on Tuesday.

Renault’s authorised distributor in Nepal, Advanced Automobiles, has announced the launch of the new vehicle at its showroom in Naxal.

The French automobile maker had first launched Duster together with KWID in 2016 in Nepal.

Duster RXS features include a 7-inch touch screen infotainment system compatible with a Bluetooth, USB and Aux-In connectivity along with Smartphone Voice Recognition.

The Duster RXS variant is powered by a 1.5 dCi engine that churns out 85 hp of power and 200Nm of torque, said the company.

It has Air conditioner, heater, steering adjustment, rating mount audio, power supply port, rear armrest, electrically adjustable rear view mirror and many other additional features. It has average mileage of 13km and has disc break in forward part and drum break in the back part.

Published in The Rising Nepal daily on 30 January 2019. 

Venezuela can take its own decisions: Govt

Kathmandu, Jan. 29:

The government on Tuesday said that Venezuela should resolve its political problems within its constitutional parameters and without any external interference.

 “In line with its principled position, Nepal believes that internal political problems of a country need to be resolved within its constitutional parameters in a democratic manner, free from external interferences,” the Ministry of Foreign Affairs said in a statement.

The people of Venezuela have the ultimate authority to take a decision on the country’s political and constitutional course, it said.

The MoFA said that the government had been closely following the recent political developments in the Bolivarian Republic of Venezuela.

“We stand for peace, stability and unity of Venezuela and call for resolution of differences through peaceful means,” read the statement.

Published in The Rising Nepal daily on 30 January 2019. 

Melamchi to be pushed for another year

Kathmandu, Jan. 28: The Melamchi Water Supply Project (WSP) is set to go on for yet another year following the departure of the CMC, Italian contractor of the project.

Headwork construction, tunnel finishing and some minor tasks, like fitting the ventilation shaft, hydromechanical gates and monitoring equipment, are yet to be completed.

As per the estimates of the Melamchi Water Supply Development Board (MWSDB) – the implementing agency of the water transmission part of the project, it will take about nine months to construct the headwork, which means it will take about a year to supply the water of the Melamchi River to Kathmandu households despite about 95 per cent physical progress of the project.

It will take a couple of weeks to settle the case with the CMC and probably a couple of months in tendering the remaining work and the delay in the commencement of the construction of diversion in the Melamchi River means additional disturbance due to flood in the rainy season.

Three governments in a row in the past had promised to complete the national pride project within a year and bring the fresh water in the valley, but the project continued to lag despite multiple directions from the Water Supply Ministry, Development Committee of the Parliament and the prime ministers.

The Asian Development Bank (ADB)-funded project commenced in 2002 and was supposed to be completed in five years.

"CMC suddenly left the work and fled the country and has not returned to the project or communicated with it though the latter has issued a public notice warning that the contract would be terminated if the contractor failed to communicate with the MWSP," Executive Director of the MWSDB Surya Raj Kandel said at a meeting of the Development and Technology Committee of the Parliament on Monday.  

Although the project consultant Engineer eptisa BETs JV has recommended contract termination as the contractor has left the site without any information and the board had issued the 'Notice to Contract Termination' against the CMC last week, the MWSP has to wait till February 6 because, as per the existing law, the contractor has 14 days to contact the board if it wants to continue the project construction.

In case of its return, the contractor will have the responsibilities back.

"However, the contractor is out of communication since 15 December 2018. We are not informed about the reasons behind the contractor's inability to work further though we have been informed unofficially that the company has filed an insolvency case at a court in Italy," said Kandel.

He said that the board was making an assessment of the payments due on the part of the contractor to various companies in the country. The company hasn't paid more than Rs. 1 billion for the wages of labourers and contract money to the sub-contractors.

Kandel said that it would cost about Rs. 2.90 billion of which Rs. 1.30 billion would be needed for the construction of headwork and about Rs. 800 million for tunnel finishing.

The Melamchi Board said that if the regular procurement process was applied, it would take at least 2 to 3 years to complete the project, which might damage the completed work.

Another option is to use the existing suppliers and vendors and bringing water to Kathmandu, creating a diversion and completing the headwork and other remaining works on a fast-track basis.

Meanwhile, lawmakers suggested the government should intervene in the project development and the water should be brought to Kathmandu by the end of the current fiscal year.

The DTC has directed the Ministry of Water Supply to apply the 'Extraordinary Situation' measures in the Public Procurement Act and create a plan to complete the project at the earliest if the CMC fails to communicate with the project by February 6.

It also directed the Prime Minister's Office to ensure that the work moves smoothly ahead as per the 'Extraordinary Situation' according to the MoWS new action plan. 

Published in The Rising Nepal daily on 29 January 2018. 

Pilot's mental stress responsible for US-Bangla plane crash: report

Kathmandu, Jan. 27: The US Bangla Airlines that crashed at the Tribhuvan International Airport (TIA) on 12 March 2018 had met with the accident due to disorientation and complete loss of situational awareness by crew members, concluded the Aircraft Accident Investigation Commission (AAIC).

“Contributing to this, the aircraft was offset to the proper approach path that led to maneuvers in a very dangerous and unsafe attitude to align with the runway,” concluded the AAIC led by Yajna Prasad Gautam, former government secretary.

It submitted the report to the government on Sunday.

According to the report, there was clear evidence that the pilot was harboring severe mental stress. He was irritable, tensed, moody and aggressive at times. He exhibited undue aggressive behaviour and anger at the ATC personnel as well as operation staff.

The pilot had also used foul language and abusive words in conversation with a junior female first officer. He seemed very unsecure about his future as he had submitted resignation from the company verbally. He said he did not have any job and did not know what he was going to do for living, read the report.

The Cockpit Voice Recorder (CVR) and passengers confirmed that the pilot was smoking in the cockpit.

The report said that landing of the aircraft was completed in a sheer desperation after sighting the runway, at a very close proximity and very low attitude. Similarly, the pilot did not attempt to carry out go-around when a go-around seemed possible until the last instant before the touchdown on the runway.

The loss of situational awareness forced the pilot to make some dangerous moves of aircraft at a very low altitude in the hilly and mountainous terrain around TIA.

After impact on the ground the uncontrolled aircraft ran out of the runway, hit the runwayperimeter fence and rolled down the slope into the grass field and caught fire which engulfed theaircraft, read the report.

“It is evident that there were a number of procedural violations during the flight by the cockpit crew,” read the report. “The pilot seemed to be under stress due to behaviour of a particular female colleague in the company and lack of sleep the preceding night.”

The investigation committee also concluded that the pre-flight briefing and commencement of flight departure was made at improper timing – operational pre-flight briefing was given early morning but the flight departure time was around noon and there were four domestic short flights scheduled in between.

The aircraft was performing its scheduled flight from Dhaka, Bangladesh to Kathmandu.

According to the report, there was no evidence of any defect or malfunction in the aircraft that could have contributedto the accident. There was no evidence of system malfunction prior to the accident.

“ATC at the TIA tried their best to assist the pilot providing landing opportunity at any runway in convenience of the pilot and ensuring the airspace clear to avoid further conflict with other aircrafts.”

The accident killed 51 passengers including 4 crew members – 28 Bangladeshis, 22 Nepali and 1 Chinese, and injured 20. The aircraft was completely destroyed in the accident.

 Published in The Rising Nepal daily on 28 January 2019. 

Dev. Committee directs the MOCIT to scrap license of idle firms

Kathmandu, Jan. 27:

The Development and Technology Committee of the Parliament on Sunday directed the Ministry of Communication and Information Technology (MoCIT) and Nepal Telecommunication Authority (NTA) to scrap the licenses of the telecommunication companies that failed to start operation as per the terms of reference.

The committee directed the ministry and NTA to start the process to recover the dues from the telecommunication service providers at the earliest.

United Telecom Limited (UTL), Nepal Satellite Telecom (STM), CG Communication and Smart Telecom have a huge amount to pay to the government against their license. These companies have a very poor customer base and haven’t operated services as per the license.

The house-panel also asked the ministry to make timely amendment in the telecommunication policy, act and bylaws.

It expressed serious concerns to the delay in the backbone network and broadband access network project being run with the money from the Rural Telecommunication Development Fund (RTDF) and directed the ministry to ensure the quality in the work and timely completion of the projects, and submit the details to the committee.

 Published in The Rising Nepal daily on 28 January 2019. 

SEBON fails to fully implement the PAN in the secondary market

Kathmandu, Jan. 27: The Securities Board of Nepal (SEBON) is still confused about the implementation of the Personal Account Number (PAN) in the capital market.

Although the government, in the budget of the Fiscal Year 2018/19, had announced that the investors buying shares in the secondary market must have PAN, the SEBON is yet to implement it fully.

On Sunday it said that considering the infrastructure of the market and financial literacy among the investors, it would inform the Inland Revenue Department – the government agency responsible to implement the PAN, about the ‘situation’.

It urged the investors not to go after the rumours and make investment decisions wisely.

The capital market regulator has directed the Nepal Stock Exchange and CDS and Clearing Limited to make the required preparations for the execution of the PAN provision announced in the budget.

The SEBON came soft on the execution of the provision and said that it was conscious to apply the measure after discussion with the capital market stakeholders and preparation.

The investors on Sunday blamed the PAN provision for the bearish trend of the stock market. They have submitted a memorandum on the issue to the SEBON.

Published in The Rising Nepal daily on 28 January 2019. 

FNCCI welcomes ECTS

Kathmandu, Jan. 25:

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Friday welcomed the Electronic Cargo Tracking System (ECTS) at the Kolkata/Haldia port in India which the governments of Nepal and India are preparing to launch from February 15.

"The FNCCI welcomes the move to replace the paper-based documentation system with the ECTS while clearing the third country goods bound to Nepal and carried via railway from the Kolkata Port," said the business body at a press conference organised at its secretariat.

It appreciated the efforts of the governments of Nepal and India in implementing the new system.

According to the FNCCI, it will play an important role in the import-export trade and the railway transportation of the goods from Kolkata to Birgunj will be reduced to four to five days instead of more than a month as of now.

FNCCI senior vice-president Shekhar Golchha said that the new provision was necessary for the national pride as well.

Nepali importers have to submit about 10 documents and move to two dozen tables to clear their cargo at the Kolkata Port.

"The new system will bring tremendous changes in the country's import-export trade and cost of doing business will also go down significantly. The goods will directly come to Birgunj Dry Port from Kolkata," said Golchha.

Nepali importers will get relief from the delay in transportation, detention and demurrage with the implementation of electronic tracking. They will save at least Rs. 40,000 per container.

FNCCI's Land, Transport and Transit Committee chairperson Ashok Kumar Temani termed the ECTS as a happy thing happened to Nepali economy.

He claimed that about Rs. 3 billion would be saved which Nepali traders were paying for the clearing, detention and demurrage.

According to a study, the transportation cost in China and the USA is 5-6 per cent of the goods' price, in India 18-20 per cent and in Nepal 38-40 per cent.

Chairperson of FNCCI's Export Promotion Committee Prakash Singh Karki said that the new system will have positive impact on Nepal's export business.

Published in The Rising Nepal daily on 26 January 2019. 

No need to interfare in Nepal's affairs, says Oli

Kathmandu, Jan. 25: Prime Minister K. P. Sharma Oli on Friday objected to the joint-statement of the United Nations and Kathmandu-based diplomats as a product of an unnecessary alliance and asked them not to do so.

"Nepal has completed the peace process, but I was surprised to see the haste of some of the missions and diplomats in Kathmandu. There is no such need to issue a joint-statement on our internal issue," he said, while speaking at a reception organised in Zurich, Switzerland, by the Embassy of Nepal in Geneva.

"Why should any other country make comments about it? Is the conflict management a bad job?" he asked and advised the ambassadors need not form any alliance against Nepal.

Prime Minister Oli said that the war had ended and the conflict was managed. “There could be some wounds yet to be healed, and Nepal was capable to resolve its internal matter.”

He urged all to side with peace and not to scratch the wounds of the conflict but to administer ointment on the bruises. "We expect the same from our friends as well," he said.

The Prime Minister said that the international community had exhibited an ideological bias against the government as it was formed by a communist party that achieved a landslide victory in the elections.

"I would like to tell our foreign friends that some trends come to notice due to their ideological bias. If you put off the ideological lens, you will see that we have achieved extraordinary results. The world can learn from our unique management of the peace process. The country is on the positive path of development," said Prime Minister Oli.

He said that Nepal successfully resolved issues such as the management of Bhutanese refugees and armed conflict.

Likewise, he said that the country had started a new practice, which has its reflections in international forums as well and wanted to tell the world about the government policies, the successes and the roadmap.

The United Nations in Nepal and diplomatic missions of Australia, Germany, European Union, Finland, France, Norway, Switzerland, the United Kingdom and the United States of America in Kathmandu had issued a joint statement on Thursday asking the government to clarify its plans in public to take the transitional justice process forward in 2019.

"Noting the looming expiration of the mandates of the Truth and Reconciliation Commission and the Commission for the Investigation of the Enforced Disappearances, as well as the upcoming fourth anniversary of the 2015 Supreme Court ruling that affirmed certain requirements for transitional justice processes, we encourage the government to clarify to the public its plans to take the transitional justice process forward in 2019," read the statement.

They also said that they 'encourage' the government to engage in broad-based, meaningful consultation with conflict victims, civil society and wider stakeholders that allows space and time to discuss and address issues raised before action is taken and helps shape a course of further action that reflects the will of the people.

The statement came at a time when the tenure of the two commissions was expiring in a couple of weeks.

Earlier on Thursday, Minister for Communication and Information Technology Gokul Prasad Baskota said that the management of the peace process was Nepal's own agenda and no one needed to make any recommendation on it.

"Issues of armed-conflict will be resolved with due attention. The government will follow the rules and procedures to make any decision regarding the peace process management," Baskota said while speaking at the press meet organised to make the cabinet decision public.  He also said that Nepal had succeeded to manage conflict and establish peace in a unique way.

Prime Minister Oli also appreciated the role of the Nepalis and the Swiss community in strengthening the relations between the two countries.

He invited the Swiss business community to invest in Nepal and be a part of Nepal's inclusive and transformative development agenda.

He complained about France and European Union's restrictions on Nepali airlines to fly to Europe.

"Nepali air service is better and more reliable than that of India. International Civil Aviation Organisation (ICAO) report has said that Indian condition in terms of aviation service is poorer than that of Nepal, but India is flying its aircraft to Europe, but Nepal is barred from doing the same," he said.

Prime Minister Oli said that Nepal bought two airbuses from France and the same country did not allow Nepali aircraft to make flights there.

He said that the government would soon talk about the issue with the European countries and the EU. "We should not hesitate to discuss our agenda with any country in the world," he said.

Published in The Rising Nepal daily on 26 January 2019. 

KL launches maize starch

Kathmandu, Jan. 25: KL Dugar Group has launched Gyan Maize Starch (Corn Flour) in the market.

The product is available in 800g, 500g and 100g packs. Corn starch is used to add flavours in various food items – to thicken soup, sauce and juice, and to add taste to fried food items and bakeries.

The company had launched multigrain flour, corn flakes and corn flour last year. It also produces various rice and pulses products.

 Published in The Rising Nepal daily on 26 January 2019. 

GC, KU agree to collaborate

Kathmandu, Jan. 25

Gorkhapatra Corporation and Kathmandu University (KU) have agreed to collaborate in the fields of management, information technology, journalism and printing technology.

Executive Chairman of GC Krishna Murari Bhandari and Vice-Chancellor of KU Dr. Ram Kantha Makaju agreed for the collaboration at a meeting held at GC on Friday.

Dr. Makaju said that the agreement would benefit both the institutions.

Expert Advisor of GC Tika Ram Rai, Consultant Editor Gopal Khanal, editors of Gorkhapatra daily and The Rising Nepal daily Shree Om Shrestha and Jagadish Pokhrel, and Acting Managing Editor of Gorkhapatra Shreedhar Acharya were also present at the meeting.

Published in The Rising Nepal daily on 26 January 2019. 

FNJ Gorkhapatra welcomes minimum wage implementation

Kathmandu, Jan. 25: Federation of Nepali Journalists (FNJ) Gorkhapatra chapter has welcomed the decision of the Gorkhapatra Corporation management to implement the minimum wage provision for the journalists and thanked its Executive Chairman Krishna Murari Bhandari and members of the Board of Directors for their positive role in implementing the new perks provision.

The Gorkhapatra management on January 13 had decided to implement the government announced provision to increase the minimum wages for journalists.

The journalists will get the increased salary from October-November last year.

Published in The Rising Nepal daily on 26 January 2019. 

Dr. Lohani suggest resisting cultural invasion

Lalitpur, Jan. 24:

Former Foreign Minister Dr. Prakash Chandra Lohani has said that Nepal should resist cultural invasions which have been manifested in the rapid conversion drive in the support of different missions.

"Nepal must resist cultural invasion, but it has failed to do so," he said while speaking at an interaction on 'Nepal's diplomacy in present context' organised by Nepal Council of World Affairs (NCWA) on Thursday.

He said that certain European countries' thrust of diplomacy with Nepal has long been the expansion of Christianity and the latter should consider this fact while creating and practising diplomacy in the changing cultural context as well along with the dynamic international dealings.

Dr. Lohani said that rebalance was needed in Nepal's relations with India and China.

"If we failed to rebalance our diplomatic and economic relations with India, then China will search for ways to enhance its influence in Nepal. We should go for co-existence," he said.

Dr. Lohani, who had been the Finance Minister in the past, said that India still wanted to impose umbrella doctrine, as propagated by Jawaharlal Nehru after India's independence, on Nepal.

"India is in anxiety now. It applied every instrument of diplomacy and blackmailing like the blockade three years ago but couldn't bend Nepal," he said. "Same is happening with the relations between China and the United States as the latter is perplexed with the rise of China which it has long been denying."

Former Foreign Affairs Minister Mahendra Bahadur Pandey said that Nepal should create strategy for track-two diplomacy and orientation should be provided to all the stakeholders, including the private sector and media.

He said that the Institute of Foreign Affairs should be upgraded and strengthened in order to produce qualified and capable diplomats who can push national interest in the international context.

"Diplomacy should be used to attain economic prosperity. Economic diplomacy needs to be promoted to attract more Foreign Direct Investment and tourists in Nepal," he said.

Former Foreign Affairs Minister Dr. Prakash Sharan Mahat recommended developing diplomatic policy with Nepal's national, economic, strategic and security interests at the centre.

"We should create equilibrium in our relations with India and China. We have made the diplomacy an issue of the streets which should be immediately stopped," he said.

He said that the present government must be serious about exercising the rights of the landlocked country.

He criticised the government for patronising the controversial Asia Pacific Summit which was against the spirits of the Constitution.

Former Ambassador of Nepal to Geneva Dr. Shambhu Ram Simkhada said that the diplomacy in the present context should be for prosperity.

According to him, the mismanagement of transition has serious repercussions on the foreign policy and diplomacy.

They said that Nepal-India border should be regulated in order to curtail undesired activities like drugs and goods smuggling and human trafficking as well as cross-border crime and terrorism.

Published in The Rising Nepal daily on 25 January 2019. 

Development works should not have adverse impact on environment: Prez

Makwanpur, Jan. 24:

President Bidya Devi Bhandari said on Thursday that development work should not have negative impact on environment.

Addressing a special programme on the occasion of the 256^th Victory Day of the historical Makwanpurgadhi at Makwanpur Palace premises, she said that the climate change had severe repercussions on environment and recommended applying environment-friendly measures in development and construction works.

She expressed concerns about the deteriorating status of Chure Area and said that its conservation was necessary for the development of the hills and the Terai region.

"Conservation of forests results in the conservation of herbs, land and environment," she said.

She suggested creating a ring road around the Makwanpurgadhi connecting historical, archaeological, cultural and natural attractions around the historic fort where  the brave Gorkhalis had defeated the army of Bengal led by Nawab Mir Kassim Khan in 1763.

Gorkhali Army troops led by Nahar Singh Basnet, Sardar Banshi Raj Pandey and Gadhi-based troop led by Nandu Shah had fought with Khan's army.

Before the battle, Khan's army had occupied Gorkhali Army's post at Harnamadi and came up to Shikhar Katteri.

The day marks the Gorkhali Army's victory over Bengali Army. It was the first victory of Nepali Army over foreign invaders in Nepali land.

Stating that the fort has an important role in the victory of Nepali army and should be preserved for the future generations, President Bhandari said that as the heritage had high tourism potential, infrastructure should be developed at the earliest.

Chief Minister of State 3 Dor Mani Poudel pointed towards the need  for preserving the heritages like Makwanpurgadhi. He urged for greater cooperation and collaboration among the three levels of governments in preserving the historical, religious and cultural heritages in the State.

President Bhandari facilitated Badra Prasad Khatiwada and Kedar Neupane for their contribution in the promotion and publicity of the Gadhi.

The President also honoured the winners of half marathon organised to commemorate the victory of the Gorkhali army.

Likewise, she unveiled the stone scripture of flag that reflects all seven States of Nepal.

The President also performed worship at the Shri Krishna temple located in the palace premises.

Published in The Rising Nepal daily on 25 January 2019. 

Private sector welcomes SEZ Act amendment

Kathmandu, Jan. 24:

Industrial sector stakeholders have said that the recent amendments to the SEZ Act will encourage investors towards injecting investments in the Special Economic Zones (SEZs).

They said that the government’s decision to reduce the compulsory export provision for industries inside SEZs to 60 per cent from existing 75 per cent was investment-friendly and would encourage the private sector towards investing in such protected zones.

They made the comments at a roundtable discussion on ‘Problems faced by industries inside the Bhairahawa SEZ' organised by the Society of Economic Journalists of Nepal in the capital on Thursday.

With various amendments intended to lighten up the export provisions for industries inside SEZs and assure further tax incentives, the Cabinet had endorsed the SEZ Bill last week. As of present, the SEZ Bill has been tabled at the Parliament for the final nod.

Along with reducing the mandatory export provision for industries operating within the SEZ to 60 per cent of their production, the new SEZ Bill also assures 100 per cent income tax waiver for such industries for the first five years and 50 per cent income tax waiver thereafter. Similarly, the Bill has also reduced the rental fee for industries within SEZ to Rs. 20 per square meter per month from Rs. 150 per square meter month.

Furthermore, the SEZ Bill has also reduced the minimum investment ceiling for industries inside SEZs to Rs 20 million from Rs 50 million.  

“The SEZ Act has been amended keeping in priority to boost the morale of investors inside the SEZs. If necessary, we can be further flexible in the export provision for such industries in future,” said Dr. Chandika Prasad Bhatta, executive director of SEZ Authority Nepal.

He said that the new SEZ Bill has also incorporated a provision whereby industries inside SEZs would get all assured tax waiver facilities under the recommendation of SEZ Authority itself.   

Speaking at the discussion programme, Dr. Shankar Sharma, former vice-chairman of the National Planning Commission (NPC), said that although the SEZ Bill had attempted to promote investment inside the SEZs, the government should now focus on effective implementation of the SEZ Bill.

“The new SEZ Bill has addressed some of the key issues raised by investors inside the SEZs. However, it is crucial that the government implements the law properly through enhanced cooperation between the government agencies,” said Sharma.

Similarly, Toyam Raya, Director General at the Department of Customs, said that available laws of the government were contradictory resulting to difficulty in their effective implementation. “Therefore, the government should ensure that no law should contradict with one another while bringing them,” said Raya.

Hara Raj Neupane, Deputy Managing Director at the Nepal Electricity Authority (NEA), assured that the authority was serious in providing necessary power supply in the industrial sector, including the Bhairahawa SEZ.

Published in The Rising Nepal daily on 25 January 2019. 

Good governance, economic development major concerns: PM Oli

Kathmandu, Jan. 23:

Prime Minister KP Sharma Oli on Wednesday said that his government did not have the luxury to pretend or make an excuse other than bringing change and development in the lives of Nepali people.

"Good governance and economic development are the prime concerns of the government," he said while speaking at the panel discussion on 'Shaping the future of democracy' organised during the World Economic Forum (WEF)'s Annual Meeting 2019.

Responding to the doubts of the moderator of the talk, Martin Wolf, Chief Economic Editor of Financial Times, that the communist government in Nepal was adhering to the tenets of autocratic regime, PM Oli said that the present government was elected by people in a free, fair and impartial election which was held by the government led by another party.

"I have fought for the democracy for about half a century, so I don't want to be a ruler but a servant of the people. My government is working to bring changes int eh lives of people and establish rule of law," he said.

He made it clear that Nepal has prime ministerial system and the executive powers are in the Cabinet and the PM.

The premier, who is the first head of the government from Nepal to be invited at the WEF Annual Meeting, said that the present government in Nepal had normal relations with the press like other democracies.

"Press is free and it has the right to criticise the government. It plays an instrumental role in developing and strengthening democracy by informing the truth to the people," he said. "But what we need is a responsible press, misleading people is not good."

According to him, some disappointment in the part of people is normal as the expectations were high and the government is trying to meet them with limited resources.

"Press and people have developmental aspirations, but it does not happen magically, it takes time. However, press wants the government to be transparent which is good," said PM Oli.

He said that the government in Nepal believed in democracy and constitutional supremacy and there were no actions or intentions to bring the press under control or restriction. Press is completely free.

He refuted Publisher of the New York Times Arthur Gregg Sulzberg's statement that Nepal has introduced some laws against the sprit of the freedom of the press.

Other discussants in the talks were Chief Executive Officer of Leadership Now Project Daniella ballou-Aares, President of Colombia Ivan Duque, Prime Minister of Armenia Nikol Pashinyan.

Duque said that the three major issues that needed to underpin democracy in Colombia's context were legality, entrepreneurship and enabling free markets that were socially responsible, and fairness – primarily closing the gap between rich and poor.

"People should be taught to fight against their own poverty," he said.

Ballou-Aares said that the trust in governments is at historic low in many democracies including the developed countries like the United States and next generation political leaders are supposed to solve the challenges that people were facing.

Sulzberg said that a free press was essential to democracy. "Truth, accountability and understanding are the elements that a society needs in order to self-govern," he said.

Pashinyan said that though many oppositions disagree, the press in Armenia was free.

Published in The Rising Nepal daily on 24 January 2019. 

Call to create mechanism to trace the price of imported goods

Kathmandu, Jan. 23:

Director General of the Department of Customs (DoC) Toyam Raya on Wednesday said that a mechanism was needed to trace the price of the imported goods declared by the importers at the custom points and their price in the local market.

"Under-invoicing has become a menace since long which has been troubling the business community as well as the government which needs to be addressed permanently. Both the government and customers are losing due to under-invoicing," he said while speaking at an interaction on 'Customs facilitation: Current status and challenges' organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on the occasion of 67^th Customs Day.

He asked the FNCCI to jointly conduct a research of the transaction price of the imported goods in Nepali market.

Raya pointed towards the need of a code of conduct and greater transparency in the part of the traders.

"When an importer imports skin, we found tons of pepper and a container of vegetables also carries meat without declaration at the customs office. How can trust be developed between the customs administration and the private sector?" he asked the business community who complained that trust was lacking between the businessmen and the DoC.

The private sector suggested that the tax rates and customs duties should be directed towards protecting the domestic industries and businesses.

They also said that the customs offices should be service-oriented and play a central role in trade facilitation.

Recognition to the transaction price, cancellation of the reference book, acceptance of the importers invoice if the difference between the bill and customs evaluation is up to 10 per cent, and implementation of the provision that the DoC should buy the goods if it had doubts of under-invoicing - were the major demands of the business community.

They also pointed towards the need to accept the GST bill in terms of goods imported from India and using Indian HS codes as the reference since the largest share of Nepal's international trade is with the southern neighbour.

"Nepal should learn from Indian states like Gujrat which has implemented a fast track business registration and profit expatriation system," said Vice-President of the FNCCI.

Another VP of the business body Umesh Lal Shrestha said that the customs offices should have laboratory, quarantine facility and banks in its premises.

President of Nepal Feed Industries Association Rabin Puri urged the DoC to increase the duty of finished good as the domestic feed industries had been suffering due to low duty on feed and high on raw materials. "The customs duty for cattle feed is only 5 per cent against 10 per cent for raw material for the same product," he said.

The programme was attended by senior officials from the Doc, FNCCI office bearers, chairmen of various commodity associations in the FNCCI, importer and other private sector representatives.

Published in The Rising Nepal daily on 24 January 2019. 

South Asia has great potential for economic prosperity: PM Oli

Kathmandu, Jan. 22: Prime Minister KP Sharma Oli has given emphasis on the greater regional political and business cooperation in the South Asian region.

Speaking at a panel discussion on 'Strategic Outlook on South Asia' organised at the at the World Economic Forum (WEF)'s Annual Meeting 2019 in Davos, Switzerland, he said that Nepal had tried its best to develop political understanding, develop connectivity and resolve trade barriers among the SAARC (South Asian Association for Regional Cooperation) member countries.

"We are trying our best to develop understanding between SAARC member nations. Building trust among us is important," he said.

According to him, South Asia has great potential for economic prosperity. It is the region of learned people and great civilisations, and people in the region have genetic memories of their learned ancestors.

The region has excellent diversity, from the top of the world, Mt. Everest to the Bay of Bengal in the Indian Ocean. Within this diversity we have very fertile land and young population, said PM Oli.

He equally gave importance to the regional organisations like SAARC and BIMSTEC (Bay of Bengal Initiative for the Multi-Sectoral Technical and Economic Cooperation). "We now have to think about regional trade and cooperation, and win-win situation for all countries so that no nation or people would fall behind," he said.

According to him, Nepal is trying to invite investment and promote the use and transfer of technology as well as develop connectivity with neighbouring countries.

He said that after decades of political instability, Nepal had got stable government with clear vision which is creating stable business and investment policies. "Our entire efforts are focused on economic development. The government has launched a national campaign 'Prosperous Nepal, Happy Nepali' and to materialise it focus will be given to justice, equality, empowerment of women and bringing backward communities to the mainstream," he said.

The PM assured the international community that Nepal is creating policies to create reform in every field of economic development. "We have given equal importance to the private sector and cooperatives in order to create more jobs for the people. There are chance that we will be among the fastest growing economies," he said.

PM Oli also drew the attention of the world to the deteriorating condition of the Himalayas, the water towers of the world.

"Nepal has devoted about 60 per cent land – 15 per cent with snow and 45 per cent with forest – for the sake of climate protection and environment management," he said.

Former Governor of the Reserve Bank of India Raghuram Rajan pointed towards the need of predictability and harmonisation of trade and business in South Asia.

"We can work to crate better business environment in the region but we need to build trust in some areas like shared infrastructure such as energy and water," he said.

He said that there should be enough trust to allow the movement of containers from Afghanistan to Nepal without being open in between.

Chief Executive of Afghanistan Abdulla Abdulla said that cooperation among the regional nations in the advancement of technology should be increased. "However, trade barriers – both the tariff and non-tariff – should be addressed first," he said.

President and Chief Executive officer of Telenor Group, a Norway-based international telecommunications company that also operates services in South Asia, Sigve Brekke urged the countries in South Asia to create predictable policy and ensure business-friendly protection measures.

The panel talk was moderated by Mari Elka pangestu, Professor of International Economics, University of Indonesia.

WEF Annual Meeting 2019 is being held on 22 to 25 January on the theme of 'Globalisation 4.0: Shaping a global architecture in the age of Fourth Industrial Revolution'.

PM Oli is accompanied by his spouse Radhika Shakya, Minister for Foreign Affairs Pradeep Kumar Gyawali, Minister for Finance Dr. Yuba Raj Khatiwada and other high government officials.

This is the first time Nepal's head of government is participating in the WEF meeting.

Published in The Rising Nepal daily on 23 January 2019.