Friday, January 31, 2020

Nepal makes important progress in federalism implementation: FCNA


Kathmandu, Jan. 30
The FCNA has identified measurable progress since the adoption of the federal constitution in 2015 with the setup of key institutional structures, strengthening of the regulatory environment and strong initial progress in the adjustment of personnel in all levels of the government.

State and local governments account for about 34 per cent of total national expenditure, suggesting strong government acknowledgment of the importance of fiscal federalism.
However, gaps still exist between the needs and existing capacity at all levels of government to manage new functions, concluded the FCNA.
The assessment calls for a strategic approach to capacity building for federalism, including the need to prioritise measures to strengthen the foundations for intergovernmental and inter-ministerial coordination and monitoring of the implementation of federalism.
The FCNA recommends a roadmap essential to help improve Nepal’s capacity readiness for federalism.
Speaking at a FCNA briefing programme the other day, Finance Minister Dr. Yuba Raj Khatiwada said that Nepal’s transition to federalism significantly increased the need for developing capacity at all levels of the government and modernise the governance system.
“Nepal’s transition to federalism significantly increases the need to develop capacity at all levels of the government and to modernise the governance system and institutional framework as an ongoing process,” he said.
“This will help in taking on new service delivery responsibilities as required in the federal set-up, and meet growing demand for better public services,” he added.   
“Nepal has made a historic move from a unitary form of government to a federal system that builds accountability of three levels of the government,” stated Minister of Federal Affairs and General Administration Hridayesh Tripathi.
Chief Ministers of five states expressed appreciation of the process and agreement of the findings and recommendations of the FCNA.
The FCNA was first disseminated at the federal level in December 2019. The report dissemination process, which seeks to mainstream findings and recommendations in all three levels of the government, will be completed by disseminations organised for State and local government officials and other stakeholders within the first quarter of 2020, said the WB.
The FCNA is an assessment of Nepal’s capacity needs in the State and local governments to implement federalism, along with a roadmap of priorities for all three levels of governments over the short and medium terms.
Led by the government with the support of the WB and UNDP, the FCNA was jointly undertaken by the Georgia State University and Nepal Administrative Staff College which was initiated in September 2018 and completed in December 2019.
Published in The Rising Nepal daily on 31 January 2019. 

Thursday, January 30, 2020

Fixed interest for productive sector financing: FM


Kathmandu, Jan. 24
Finance Minister Dr. Yuba Raj Khatiwada Friday said that the government would support the entrepreneurs with fixed interest rates in bank financing if they invested in the productive industrial sectors.

"You should be no more worried about the interest rates that went up every other day. The Ministry of Finance (MoF) is discussing the issue with the central bank and banks and financial institutions," he said while speaking at the 40th Annual General Meeting of Nepal Foreign Trade Association (NFTA) in the capital.

According to him, interest rate is gradually improving and is stable for the last one year. There will be more liquidity in the banks and financial institutions in the next couple of months.

He said that the government was ready to implement the transaction cost in customs evaluation.
President of Nepal Chamber of Commerce Rajesh Kazi Shrestha had urged the Finance Minister to implement the transaction price of the imported goods. The NCC is long been lobbying for the same.
Dr. Khatiwada said that the government was not worried about the decreasing imports but about the lack of competitiveness of Nepali goods.
"The government is not worried about the decreased import since luxury and harmful goods are being discouraged from bringing in the country. The real problem now is the lack of competitiveness of Nepali goods, its due to our poor productivity," he said.

"Therefore, our focus should be to enhance the productivity. The MoF is holding discussions with the concerned ministries for the subsidised energy and other facilitie," he added.

Minister for State at the Ministry of Industry, Commerce and Supplies Moti Lal Dugar said that the ministry was ready to support every businessman that aims to run a fair business.

"We are clear about the fact that the confidence of the business community must be upheld for the positive results in business and economy," he said. We will lay red carpet to welcome you for investment, said Dugar.  

According to him, the government was ready to send a high-level team to India to talk about the palm oil export.

Shekhar Golchha, Senior Vice-President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the country should give a fresh start to increasing export of Nepali goods with robust infrastructure development, reform in administrative process, as well as easy financing and business modality.

"Countries like Cambodia, Sri Lanka, Rwanda and Ethiopia have done much better in export trade but Nepal has long failed for it. Therefore, we need to prepare from the beginning," he said.
"We must not discourage import but increase export. Decrease in import might create price escalation in the domestic market which will affect the consumers," said Golchha.

Satish Kumar More, President of Confederation of Nepalese Industries (CNI) also urged the government to resolve the palm oil issue at the earliest. He also said that the export house concept must be implemented at the earliest and port facilities should be used for the trade with the third countries.
The AGM has unanimously elected Sunil Kumar Bansal as the president of NFTA.


Published in The Rising Nepal daily on 25 January 2020. 

PM for increasing productivity using IT


Kathmandu, Jan. 24
Prime Minister KP Sharma Oli has said that the government aims at increasing the productivity using modern information technology.

"The economy can witness positive results only when we increase the productivity of the industry and people, and it can be possible only through the optimum use of the IT," PM Oli said while interacting with a delegation of the Computer Association Nepal Federation (CAN-Federation) at his residence in Baluwatar on Friday.

He said that IT was an indispensable element for the rapid development and high economic growth.

"We must think ahead and for long-term growth and enough attention should be paid to the development of information technology and innovation to achieve the target. The government has formulated the Digital Nepal Framework, 2019 with the same vision," said PM Oli.
According to him, there is no alternative to the development of the information technology to fulfil the national aspiration of 'Prosperous Nepal, Happy Nepali'.

Likewise, artificial intelligence and digitalisation of various services are necessary to meet the aspirations of national and human aspiration and CAN Federation should take the lead to it, said PM Oli.

He urged the CAN Federation to take a lead in expediting the development of information and communication technology sector.

President of CAN Federation Nawaraj Kunwar said that government should support the private sector in the transfer and development of constructive and disruptive technology, artificial intelligence and internet of things.

The delegation drew the attention of the PM towards the institutional development of IT, Information and Communication Technology Bill, Digital Nepal Framework, Information and Communication Technology Policy, import and export of IT equipment, development of software industry and promotion of digital education.


Published in The Rising Nepal daily on 25 January 2020. 

IMF projects Nepal’s economic growth by 6 per cent


Kathmandu, Jan. 17
The International Monetary Fund (IMF) has projected Nepal’s economy would grow by around 6 per cent in the current fiscal year 2019/20.
The estimate is down by 2.5 per cent from the 8.5 per cent projection made by the government.
“Economic growth is expected to remain healthy but moderate to around 6 per cent in FY 19/20 amid slower growth in India, sluggish remittances, and weaker agricultural production. However, there has been a welcome narrowing of the current account deficit, stabilisation of gross official reserves, and slower credit growth,” said Laura Jaramillo, Deputy Division Chief of Asia and Pacific Department at the IMF.
Speaking at a press conference organised at the Nepal Rastra Bank to share the conclusion of the consultation, she said that there were signs of moderation in the current fiscal year. The IMF mission also expected 6 per cent inflation driven mainly by food inflation.
Jaramillo is leading an IMF team to Nepal to hold discussions for the 2020 Article IV consultation. The team held discussion with Minister of Finance Dr. Yuba Raj Khatiwada, Nepal Rastra Bank Governor Dr. Chiranjibi Nepal and other high-level government officials, as well as representatives from the private sector and development partners from January 5 to 17.
She said that the country’s economy has been growing well above its long-term average in the last few years supported by greater political stability, improved electricity supply, and reconstruction activity following the devastating earthquake in 2015.
However, additional policies are needed to continue to support inclusive growth, while safeguarding macroeconomic and financial stability, she said.
According to Jaramillo, fiscal policy should remain prudent, and the transition to fiscal federalism carefully managed. Macro-prudential measures should remain in place to limit the buildup of financial sector risk and recent reforms to boost foreign investment need a supportive implementation environment.
The mission has appreciated the recent upgrades to tax administration and efforts in public financial management, and recommended for further steps from the government to ensure that spending was of high quality and executed in a timely manner.
“To protect fiscal sustainability, the overall expenditure envelope of subnational governments needs to be aligned with available funding, with tight limits on any subnational borrowing,” said Jaramillo.
She also appreciated NRB’s implementation of macro-prudential measures to limit the buildup of systemic risk in the financial sector.
The recent regulatory requirement for banks to cross-check corporate borrowers’ financial information against the recently launched Integrated Tax System is expected to facilitate more prudent risk assessment by banks, she said.
She also said that the NRB’s policy of activating the countercyclical capital buffer that will require banks to increase their level of capital by July 2020 was appropriate.
“The NRB should continue to closely monitor asset quality of banks and improve monitoring of concentration risk,” she said.
She suggested that the central bank should put in place a well-functioning interest rate framework that reduces volatility in short-term interest rates.
“This would allow the NRB to improve financial market development as well as policy signaling and transmission,” said Jaramillo.
‘Nepal capable for risk management’
Meanwhile, Finance Minister Dr. Yuba Raj Khaiwada has said that Nepal was capable of managing the potential risk to the economy.
“Before reaching to any conclusion, the regional scenario and economic downturn in the south Asian countries, and its impact on Nepal should be taken into consideration,” he said while speaking at the IMF Article IV consultation meeting earlier on Friday.
He said that the most of the indicators were positive. “We have signed agreements for projects worth US$ 1 billion, some of them are ready for implementation. Similarly, some large projects will be completed by the end of this fiscal and some large projects are ready to take off,” he said to the mission.


Published in The Rising Nepal daily on 18 January 2020. 

Anti-Farud training for MCA staff concludes


Kathmandu, Jan. 17
An Anti-Fraud and Corruption training was organised in Kathmandu from 15-17 January to equip Millennium Challenge Account Nepal (MCA-Nepal) staff with the knowledge and skills to prevent, detect and remediate the risk of fraud and corruption in the execution of the US Government’s Millennium Challenge Corporation (MCC) Compact.
MCC Compact is a USD 630 million programme that aims at developing large Nepal-India cross-border transmission lines and rehabilitate strategic roads. The programme is financed by the United States and Nepal with $500 million and $130 million respectively.
US Ambassador to Nepal Randy Berry had inaugurated the programme where he highlighted the progress Nepal has made in the control of corruption and recalled this as one of the indicators that helped the country qualify for the Compact.
He also expressed his belief that the projects under the US grant would be delivered in an environment free from corruption and fraud.
Shree Krishna Nepal, Joint Secretary at the Ministry of Finance, reiterated the commitment of the government towards good governance, and emphasized the importance of a corruption free working environment to foster economic growth in the country.
Richard Messick, Senior Anti-Fraud and Corruption Advisor to the MCC, and Christopher P. Williams, Senior Director for Anti-Fraud and Corruption at the MC were the resource persons in the three-day comprehensive training.
Khadga Bahadur Bisht, the Executive Director at MCA-Nepal and Troy E. Kofroth, the Resident Country Director at MCC, were also present in the training.
The Nepal Compact will be implemented in line with Nepal's anti-corruption and fraud related regulations, and additionally, MCA-Nepal will also follow MCC’s Policy on Preventing, Detecting and Remediating Fraud and Corruption in MCC Operations.
The policy prohibits any fraud and corruption, which include acts of coercion, collusion, corruption, fraud, and obstruction of investigation into allegations of fraudulent or corrupt practices, in the solicitation and use of MCC funds.
Published in The Rising Nepal daily on 18 January 2020. 

Wednesday, January 1, 2020

India positive for talks on border issue


Kathmandu, Dec. 31

Minister for Foreign Affairs Pradeep Kumar Gyawali on Tuesday said that India was positive for dialogue on border problems.


"Authorities of Nepal and India are holding a meeting of the bilateral mechanism. They are discussing the possible date of the meeting," he said while speaking at the meeting of the Directive Principles and Responsibilities of the State of the Constitution Implementation and Monitoring Committee of the Federal Parliament.


He said that although India had responded Nepal's letter in December 2019, further consultation about the date was going on.


"India is ready to settle the issue through dialogue. We are hopeful of resolving it through diplomatic channels," he said.


He reiterated that the border marking between the two countries would be made as per the Sugauli Treaty, and as per the treaty, there was no dispute that the Kalapani region, including Limpiyadhura belongs to Nepal. We have the evidences about it, he said.


Minister Gyawali said that the bilateral relations between the two countries and development cooperation would not be affected due to the border issue or while the talks were held.

According to him, a secretary-level mechanism will soon start working soon.


Minister for Home Affairs Ram Bahadur Thapa 'Badal' said that the government had started the process to establish border outposts at the disputed border areas. He said that the Cabinet had decided to make foot trail to link Limpiyadhura.


Similarly, Minister for Forest and Environment Shakti Bahadur Basnet said that the ministry had started the process to establish the BOP at three different locations. As the area is the public forest, the government need clearance from the environment ministry.


Likewise, Minister for Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal said that the ministry was working in collaboration with the Ministry of Foreign Affairs in mapping the border area. However, mapping work at Susta and Kapapani was halted due to Indian dissatisfaction, she said.



Published in The Rising Nepal daily on 1 January 2020. 

Govt law to split CAAN


Kathmandu, Dec. 31

The government is at the threshold of splitting the Civil Aviation Authority of Nepal (CAAN).

The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has completed its preparations to unbundle the aviation sector regulator. A new bill that facilitates the split will be sent to the parliament soon.


Two separate institutions – regulator and service provider – will be created after unbundling the CAAN.


Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said that in order to save the regulator from the conflict of interest and fulfil the nation's commitments to the international bodies, the organisation was being split.


"We have to be accountable to those international conventions and agreements of which the country is a signatory," he said while addressing the 21st Anniversary Programme of Civil Aviation Authority of Nepal (CAAN) on Tuesday.


He said that the transformation of organisation would boost the confidence of the staff, develop sectoral expertise and enhance service quality.


"The new move is also expected to help in transferring the latest technological disruptions which the civil aviation industry had witnessed in recent years in order to improve the quality of operation and services," said Minister Bhattarai.


Responding to the threat of the trade union leader Sravan Kumar Yadav to halt the aviation services at the very beginning of the Visit Nepal Year 2020 if the government did not withdraw its decision to split the CAAN, he said that the government was set to make reforms in the aviation sector. "Come, convince me about your demand. The ministry will listen to you," he said.


However, he warned the trade union not to make any activities against the decision taken in good faith. "Protests, strikes, vandalism and padlocking have become the things of the past. We won't spare those who resort to such activities," he stated.


He also said that when the government decides something and the parliament formulates a new law, the civil servants had to follow the rules.


Secretary of MoCTCA Kedar Bahadur Adhikar said that the government's major focus now was to get the country delisted from the EU Air Safety List. "Things are moving in positive direction. This year's air safety audit has given us 66 marks which is above the international average," he said.


He said that CAAN has developed itself as a matured organisation and splitting it would make the sector more competitive. "We don't want conflict of interest. On the other hand, we are obliged by international aviation requirements set by the ICAO," he said.


TIA will handle 4.1 m passengers this year

The Tribhuvan International Airport (TIA) handled about 3.76 million international and 2.73 million domestic passengers by November in 2019 and it is estimated that the numbers will reach 4.1 million and 3.3 million respectively.


The numbers have gone down compared to the previous year as 4.34 international air passengers had used the airport last year. However, only about 2.84 million domestic passengers used the services of the airport last year.


"Number of international air passengers has gone down due to the service closure by some large airlines, problems in foreign employment in Malaysia and impact of runway and taxiway in flight operation in 2019," said Rajan Pokharel, Director General of CAAN.


He said that the total number of passengers this year is projected to increase by 200,000.

He said that the number of airports with blacktopped runway has reached 34. The CAAN has recently finished blacktopping of airports in Doti, Sanphebgar, Dolpa, Lamidanda and Thamkharka while work is underway at Baitadi, Bajhang, Ilam, Resunga and Kalikot airports.


Captain Rameshwor Thapa, President of Airlines Operators Association of Nepal, said that splitting the CAAN was good for private sector and enhancing the quality of business in aviation industry.

"You just worry about providing us good business environment. We will not compromise in air safety and are ready to work with the regulator and government to raise the standards of Nepali aviation industry," he said to the CAAN.

Published in The Rising Nepal daily on 1 January 2020. 

MoFA will have final say on foreign affairs: Gyawali


Kathmandu, Dec. 30

Ministry of Foreign Affairs (MoFA) on Monday said that it would have the 'final say' on every matter related to diplomacy and foreign affairs.


There might be occasions when some diplomatic issues were discussed in the public domain and political circles, but the MoFA is the authority to make the decision or strike any deal, said Minister for Foreign Affairs Pradeep Kumar Gyawali at a programme organised to launch the Annual Report of the Ministry at Singhadurbar.


"There may arise some doubt about the government activities or policies related to foreign affairs. The leaders as well as common people can question the government about the issue, but the MoFA will have the final say on it," he said.


Responding to the questions of journalists on multiple and sometimes opposing views even inside the ruling party on the critical diplomatic issues like the Millennium Challenge Account (MCA) programme, he said that it was good to have criticism on the matter.


"It might have happened so because of poor communication with the political leaders. They will understand it gradually," he said. "However, we have objection on cynicism exhibited by some political leaders on some critical issues related to foreign affairs."


FM Gyawali said that there was no dilemma about ratifying the MCA programme, and it would be endorsed by the parliament at the earliest.


The MCA – a US$500 million programme of the United States of America extended to Nepal to develop a powerful cross-border electricity transmission line and rehabilitation of strategic roads – became controversial when a few leaders of the ruling Nepal Communist Party (NCP) spoke publicly against it.


Efforts to change country's image

In another context Minister Gyawali said that the government wanted to change the image of the country from the poor and weak economy to rising power. 


"We have set multiple examples of success and progress in resolving the decade long conflict, concluding the peace process, creating an inclusive democracy, post-quake reconstruction and high growth trajectory," he said. "We want to share the experience and success with the world."


He said that the initiation of 'Sagarmatha Sambad' was a step towards that aim. The government is launching 'Sagarmatha Sambad', a permanent platform to discuss regional and global issues, in April next year. 


Border dispute won't harm relations with India

The Foreign Affairs Minister also said that the border disputes between Nepal and India wouldn't damage the relations between the two neighbours. 


"Border problem is not a present-day issue. Governments of both the countries are working to resolve it. A meeting of the bilateral mechanism between the two countries will be held soon. We are proposing a date for the meeting to India," said Gyawali. 


He said that the Ministry was reviewing the bilateral relations with the friendly countries and foreign policy of the country. The policy will be developed in a way that it would promote favourable international relations to fulfil the national aspiration 'Prosperous Nepal, Happy Nepali'. 


According to him, the geopolitical status of Nepal is an opportunity for Nepal as it is between the two rising economic powerhouses. "We must not take it as a threat but an opportunity. Developed neighbourhood can have spillover impact which will have positive impact in Nepal as well," he said. 


27 high-level visits were made last year

As per the annual report of the ministry, there were 27 high level visits in Nepal, including 20 from Nepal and seven to Nepal in Fiscal Year 2018/19. 


The country forged bilateral diplomatic relationship with six more countries making it 166.

Chief of South Asia Division at the MoFA Yagya Bahadur Hamal said that special celebrations were made on the occasions of the 70th anniversary of bilateral relationship with France, 60th with Pakistan and 50th with Romania. 


"We also held 4th BIMSTEC summit successfully, launched Brain Gain Centre and announced the Sagarmatha Sambad," he said. The ministry had also held a national dialogue on foreign policy last year.


Published in The Rising Nepal daily on 31 December 2019. 

Nepal is safe destination: Bhattarai


Kathmandu, Dec. 29

Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai said on Sunday that the government has ensured safety to the tourists round the clock.


"Tourists are safe in Nepal. The government has set-up 24-hour facility that will respond to the tourists' call," he said during the 'Gorkhapatra Sambad', a weekly dialogue of the Gorkhapatra Corporation.


He said that although the MoCTCA was the leading agency in executing the VNY2020, Ministry of Physical Infrastructure and Transport, Ministry of Home Affairs and Ministry of Communication and Information Technology were putting their efforts to make the tourists' stay pleasant.


"The government had given a written direction to all the ministries in terms of making the VNY a success. Concerned ministries have ToRs as well," said Bhattarai.


Besides, the successful visit of Chinese President Xi Jinping, Bangladeshi President Abdul Hamid and Indian Prime Minister Narendra Modi and organisation of South Asian Games have sent a strong message that Nepal is safe, and our security agencies are competent enough to protect our guest.


The national campaign aims at developing hundreds of new tourism destinations during and after the VNY, bringing in 2 million foreign tourists, enhancing the tourism sector contribution to the economy to 10 per cent from present 3 per cent and increasing the share of tourism in employment.


"We aim to increase the tourism sector contribution to the economy to 10 per cent from current 3 per cent. Per day expenditure average of a tourist in Nepal is US$44 now which should be increased to $80,"said Bhattarai. "Our aim is to draw about 3.5 million tourists annually after five years.  New products and destinations will be developed, and more promotional activities would be implemented for Nepal's branding at the international level in order to achieve the goal," he added.


Stating that the capacity of the Tribhuvan International Airport would reach a saturation point, he urged all concerned stakeholders to support in developing the Nijgadh Airport at the earliest.


He said that some people had imagined a disastrous situation if the airport in Nijgadh was built. "It is just their fantasy. We will cut as few trees as possible at Nijgadh and create even bigger forest somewhere else as well," he said.


He also said that felling of 2.5 million trees was just a rumour. The government has initiated a study which will give the exact number of trees needed to be cut down.


Published in The Rising Nepal daily on 30 December 2019. 

VNY2020 is starting of a long, continuous process


Yogesh Bhattarai

Minister for Culture, Tourism and Civil Aviation

To tap the immense tourism potential and promote the country as a multi-purpose tourism destination, Nepal is set to celebrate the Visit Nepal Year 2020. The national campaign will be inaugurated by President Bidya Devi Bhandari on January 1. The country aims at developing hundreds of new tourism destinations during and after the VNY, bringing in 2 million foreign tourists, enhancing the tourism sector’s contribution to the Gross Domestic Product (GDP) to 10 per cent from present 3 per cent and increasing the share of tourism in employment.

We discussed these issues as well as the partnership of the private sector and involvement of the local governments in the VNY2020 with the Minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai at the weekly 'Gorkhapatra Sambad' on Sunday. Excerpts:



How will be the VNY2020 launched?

There was a misconception in the past that Nepal could not organise major national and international events. But after the visit of Chinese President Xi Jinping to Nepal in October this year, and three visits of Indian Prime Minister Narendra Modi to Nepal had proved that Nepali security agencies can handle sensitive security situation efficiently and successfully. The successful organisation of the South Asian Games (SAG) this month has sent a very strong message to the neighbourhood and the world. Nepal earned appreciation simultaneously for winning the medals and organising the event successfully.

On the same foundation we are inaugurating the Visit Nepal Year 2020. President Bidya Devi Bhandari will launch the campaign on Wednesday, January 1. Thousands of people from various walks of life, the national and international media, tourism minister of various countries will participate in the event. At least five tourism ministers, including from India and China, have confirmed their participation in the inauguration ceremony being held at the Dasharath Stadium. It will help us in the promotion of the VNY at regional and international level.



Tourism infrastructure except hotel industry is not at par the required standard. How can the country offer efficient and timely services to the tourist in such a situation?

This is a relevant question, but we also should understand that infrastructure development is a process which will go for years. We have to create an infrastructure and continuously work to improve it. It is a never-ending process. Since we spent last many decades in resolving the political issues and create stability, less attention was given to infrastructure creation. But within the next five years, we will have substantial infrastructure including tourism, and aviation. Tourism sector development is constrained due to the single Tribhuvan International Airport. About 7.2 million passengers annually come to this airport. Nepal has 13 per cent yearly growth of air passengers against the global average of 7 per cent.  

The TIA need to cater its services to 9 million passengers in the next two years which is the saturation point for it. Therefore, the government has given priority to the development of new regional and international airports in Bhairahawa and Pokhara. Bhairahawa airport will come into operation from May 2020 and Pokhara will start flight operation from 2021. However, our focus is Nijgadh Airport as it is near to the capital and has the potential to be the regional air hub. At the same time, regional airports are also created in the provinces. Road infrastructure is gradually expanding and reaching important tourism sites in the country.

We aim to increase the tourism sector contribution to the economy to 10 per cent from current 3 per cent. Per day expenditure average of a tourist in Nepal is US$44 now which should be increased to $80. Our aim is to draw about 3.5 million tourists annually after five years.  New products and destinations will be developed, and more promotional activities will be implemented for Nepal's branding at the international level in order to achieve the goal.



You have said you have a plan to attract 10 million tourists in the next 10 years. Don't you think that it's a bit ambitious?

I am an ambitious man otherwise I would not have reached where I am now from a remote village in the eastern hills. We must be ambitious in setting the national goals. After the completion of some of the critical infrastructure like airports, cable cars and roads, it would not be difficult to attract more tourists. But we need to work tirelessly for a decade to materialise the dream. We will create basic tourism infrastructure in the next 10 years. If we don't aim to have 10 million tourists, building Nijgadh airport by spending about Rs. 150 billion, will be useless.



Why has the Nijgadh airport continuously been the issue of controversy? Even the court recently issued a stay order to the government.

Some people have imagined a disastrous situation if the airport was built. It is just their fantasy. The government has taken initiations to conserve the nature and forest. Holding Cabinet meeting at Kalapatthar, tiger and rhino conservation and other activities show the sensitivity of the government towards that direction. We will cut as few trees as possible at Nijgadh and create even bigger forest somewhere else as well. Felling of 2.5 million trees is just a rumour. The government has initiated a study which will give the exact number of trees needed to be cut down.

About 2.4 million trees were cut down while building the Istanbul Airport which is now a regional air-hub and is making Turkish people happy. We have not forgotten that the environment and development should be taken simultaneously.



Why is VNY in 2020? Do we have enough products to offer to the tourists?

We have 753 local governments which are also working to promote tourism attractions at the local level. Every province will develop its own producst and promote on its own. We have said that in the Policy and Programmes of the coming fiscal year, all three levels of government will come together in creating some national, regional and local tourism attractions across the country. This is the beginning of a campaign. It is the starting point. VNY will not start by January 1 and end with December 31, it will go for years in the future as well. The VNY 2020 will give us the foundation, confidence and strategy to move ahead.



What will be the immediate economic benefit of the VNY 2020?

The main foundation for the sustainable development in Nepal is tourism as it offers never-ending employment opportunities. In other many areas, the number of human resources is rapidly going down due to the use of the technology and modern practices. For example, Home Stay will involve many people from the concerned area and promote the local agricultural as well as industrial products. Tourism sector development will stop the internal migration as well as hold the youth in the country. It will increase investment both domestic and international across the country.



Where are the provinces and the private sector in VNY 2020?

The main organising committee of the VNY is primarily a group of private sector representatives. Every State has a State organising committee and local bodies will also have such committees. All seven States will inaugurate the campaign on first January as well. The VNY2020 campaign is for the private sector since it creates new business opportunities for them in multiple sectors in tourism. Private sector will make the business strategy and design the implementation.

Meanwhile, we have mobilised the Nepali missions abroad in promoting the national campaign. We gathered all ambassadors in Europe in Italy, Middle East in Oman and East Asia in Bangkok to brief them about the VNY and direct to make it a success. Similarly, the Non-Resident Nepali Association will be working in close coordination with the government. They have launched 'One Nepali, One Foreign' campaign to support it which will play an important role in sending tourists to Nepal.



Nepal's tourism is more concentrated on Himalayas and forest. Have there been any efforts to diversify it?

We have enough attractions in the Terai, including national parks, temples, cultural heritages, where foreign tourists can enjoy in winter. In summer, Nepal has attractions in the hills and mountains. However, we have to put extra efforts to promote off-season tourist destinations and products. I am holding a meeting with the operators and doctors of all major hospitals in Kathmandu to develop the country as the health tourism destinations. Why not to promote Dr. Sanduk Ruit like experts who are the national treasures and have powers to attract many foreigners for health purposes?  

We are running short of skilled human resources. I found a handful expert sin tourism marketing at the international level. We must make immediate interventions in 10 major markets. More focus will be given to China, India, Sri Lanka, Myanmar, Japan, USA, UK and other European countries. I have proposed to send a tourism attaché to all Nepali missions abroad. If we are to believe that tourism is the strong pillar of Nepali economy, we must act immediately.



How is the diplomatic community in Kathmandu supporting the VNY?

We had called a meeting of all the representatives of the diplomatic agencies in Kathmandu. We asked them to support in developing Nepali tourism including their help in planning and strategies. Diplomats have given positive reviews. They expressed happiness about the chance to discuss a sectoral issue like tourism with the government and pledged their support in making the national campaign a success.



What is the progress about removing Nepal from the European Union's Air Safety List and splitting CAAN?

I don't see any reasons that EU should keep Nepal in the list. Air accidents have come down significantly here. Aircraft and helicopters operating in Nepal are safe. Audit of Nepali civil aviation last year gave the country 66.5 per cent marks which might has reached 70 per cent now which is much above the world average. But still we are in the air safety list. They have demanded the split of the CAAN. One organisation can't be a regulator and service provider at the same time. We should adopt check and balance principle in the aviation sector which is also the international practice. We have been continuously updating the EU and International Civil Aviation Organisation about the recent positive development in Nepali aviation sector while Nepali missions in the EU are continuously working for the same.



There are rumours that the construction of Gautam Buddha International Airport needs another extension of deadline?

We have reorganised the GBIA construction. In the past, contractor, vendors, locals and other stakeholders had become hostile to the project. As a result, the project that should have been completed in 2018 is still running. But now it is moving as per the given schedule. Chinese contractor failed to supply the required materials in time which slightly delayed the construction work. The government, Asian Development Bank – financer of the project, and contractor had sit together and resolved all the issues.



Local bodies have committees for tourism promotion, but they don't have strategy for it. Do you think they will support in making the VNY2020 a success in such a scenario?

A large share of budget from the federal government goes to the local level. They should be utilising the budget. Many central agencies have been handed over to the local bodies or shifted to the district or provinces. They need to understand the new set-up and work on their own. The federal government will stop sending money for small projects but support in developing large infrastructure.

They have to work as the partner of the federal government in allocating resources, implementing and monitoring the projects. Ultimately, they have to manage the products themselves.

Have you taken any steps to address the discriminatory air charges to the tourists?

Higher air charges to foreign tourists have discouraged them to go out of the valley which has impacted the development and promotion of tourism destinations in far flung areas. We are in discussion with the Association of Airlines Operators of Nepal to make the air fare identical for both the domestic as well as foreign air travellers.



What is the status of coordination among the ministries like home affairs and communication?

MoCTCA is the leading agency to execute the VNY2020 but we are continuously coordinating with the Ministry of Physical Infrastructure and Transport, Ministry of Home Affairs and Ministry of Communication and Information Technology. The government had given a written direction to all the ministries in terms of making the VNY a success. Concerned ministries have ToRs as well. Tourists are safe in Nepal and when there is a safety issue, there is 24-hour service available.

(Prepared by Modnath Dhakal, photo by Kabita Thapa)



 Published in The Rising Nepal daily on 30 December 2019. 

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