Saturday, February 22, 2020

MCC taskforce submits reports, suggesting amendments to provisions


Kathmandu, Feb. 21
The task force on the Millennium Challenge Account (MCA) Nepal has concluded that the much-hyped grant agreement with the United States of America should not be implement as it was agreed upon.

It has found the Millennium Challenge Corporation (MCC) – a bilateral US foreign aid agency established by the US Congress during George Bush administration in 2004 – had links with the Indo-Pacific Strategy (IPS).

“The grant agreement must not be executed in Nepal without changing some of the provisions as it can be counterproductive in for the country,” said the leader of the task force and Former Prime Minister Jhala Nath Khanal.

The task force has submitted its report to the chairmen duo—KP Sharma Oli and Pushpa Kamal Dahal ‘Prachanda’ of the ruling Nepal Communist Party (NCP) on Friday.
It had Minister for Foreign Affairs Pradeep Kumar Gyawali and Nepal Communist Party (NCP) Standing Committee Member Bhim Rawal as the members.

However, Khanal did not disclose the provisions that needed to be amended in the agreement and said that the content of the report would be made public in three days.

Although the MCA agreement does not mention about the IPS and has no clear links with the latter, the task force has found it dubious as various US leaders and senior military officers had mentioned its links with the controversial US Policy called IPS which allegedly aims at containing China’s influence in the Indo-Pacific region.

“For the last three weeks, we went through multiple documents related to the agreement and execution procedures and found that there is no mention or link with the IPS,” said Khanal, “But when the people in the US authority said that the both were connected, we cannot ignore it. This has created confusion among the people and leaders”

Regarding the statement of the US Embassy in Kathmandu that the MCA agreement couldn’t be amended, leader Khanal said that the pact was not the Bible or Vedas which was beyond the modification.

The task force has also found that some of the provisions in the agreement were already amended through correspondences between Nepal government and MCC.
The report will soon be presented to the Secretariat Meeting of the NCP, following which the amendment will be finalised.

The ruling NCP had formed a task force about three weeks ago to look into the provisions of the MCA grant agreement after its own central committee members and ministers raised questions in the pact saying that it would undermine the sovereignty and interest of the country.

Signed in 2017 after many years’ effort and meeting the MCC criteria for democracy and development, the MCA is supposed to bring US$500 million which would be used in constructing the cross-border electricity transmission lines and upgrading the strategic roads.

Published in The Rising Nepal daily on 22 February 2020. 

FM Gyawali leaves for Geneva


Kathmandu, Feb. 21
Minister for Foreign Affairs Pradeep Kumar Gyawali Friday left for Geneva to participate in the 43rd session of the United Nations Human Right Council (UNHRC).
He is leading a Nepali delegation to the High-Level Segment of the event to be held from February 24.
He is scheduled to address the High-Level Segment of the Council on February 25. Nepal is a member of the UNHRC for 2018-2020. This is the first time the Himalayan nation was elected as the member of the global human rights body since its creation in 2006.
FM Gyawali will interact with the diplomatic community in Geneva in a reception being hosted in his honour by Permanent Representative of Nepal to the United Nations Office in Geneva Mani Prasad Bhattarai.
While in Geneva, Gyawali will have a meeting with the UN High Commissioner for Human Rights. Michelle Bachelet Jeria. On the sidelines of the session, he will also have bilateral meetings with his counterparts from various countries.
He will return home on February 28.
Published in The Rising Nepal daily on 22 February 2020. 

Friday, February 21, 2020

Khatiwada assures US congressmen of MCC approval


Kathmandu, Feb. 20
Finance Minister Dr. Yuba Raj Khatiwada has assured the congressmen from the USA that the Millennium Challenge Compact agreement would be ratified from the Parliament.
"There is no doubt that Nepal needs the US grant support, so it would get the legislature's approval," he said in a courtesy meeting with congressmen duo George Holding and Ami Bera at his office at Singhadurbar on Thursday.
The Finance Minister also said that Nepal needed additional support in institutionalising federalism. “We are working to make public service in federal setup more qualitative, effective and technology-friendly and we need more support for it,” he said to the congressmen.
He expressed gratitude for the long-lasting US support in education, health and agriculture.
Dr. Khatiwada also informed the guests about Nepal's development priority, economic status and efforts to create an investment-friendly environment.
"Nepal is an appropriate destination for investment as the products produced here will not have any problem of finding the markets since it lies between the two largest markets in the world," he said and thanked for the enthusiastic participation of the US investors in the Nepal Investment Summit organised last year.
The congressmen had inquired about the Nepali economy, role of the private sector, development priority and government's work in it.
Published in The Rising Nepal daily on 21 February 2020. 

FM Gyawali to leave for Geneva on Friday


 Kathmandu, Feb. 20
Minister for Foreign Affairs Pradeep Kumar Gyawali is leaving for Geneva on Friday leading a Nepali delegation to the High-Level Segment of the 43rd session of the United Nations Human Rights Council to be held from 24 February 2020.
He is scheduled to address the High-Level Segment of the Council on 25 February, said the Ministry of Foreign Affairs (MoFA) in a statement on Thursday.
The Foreign Minister will interact with the diplomatic community in Geneva in a reception being hosted in his honour by Permanent Representative of Nepal to the United Nations Office in Geneva Mani Prasad Bhattarai.
While in Geneva, Gyawali will have a meeting with the UN High Commissioner for Human Rights. On the sidelines of the session, he will also have bilateral meetings with his counterparts from various countries.
Nepali delegation comprises of the senior officials from the Prime Minister's Office, MoFA and the Permanent Representative and other officials from the Permanent Mission of Nepal to the United Nations in Geneva.
The Foreign Minister will return home on 28 February 2020.

Published in The Rising Nepal daily on 21 February 2020. 

Global Fund disburses 97.5% of its commitment


Kathmandu, Feb. 20
The Global Fund has disbursed 97.5 per cent of its total commitment of US$2.2 billion to Nepal since 2002, said the Delegation of the European Union (EU) to Nepal.
The money was disbursed in 19 different grants to accelerate the end of AIDS, tuberculosis and malaria.
"The support is in line with the Nepal Health Sector Strategy and the specific national strategies of the three diseases. The supported interventions include prevention programmes for key populations, improvement management of cases and strengthening the health system," read a statement of the delegation on Thursday.
It also said that the EU had supported EUR 2.1 billion to the Fund so far. "While on its own the European Commission accounts for approximately 5 per cent of Global Fund finances, the EU as a whole provides for on average approximately 50 per cent of total Global Fund resources."
The Global Fund is a partnership organization designed to accelerate the end of AIDS, tuberculosis and malaria as epidemics. Founded in 2002 and based in Geneva, the Fund is a partnership between governments, foundations, civil society, the private sector, professional bodies, and people affected by the diseases.
The Global Fund is the biggest global health initiative, spending USD 4 billion every year in more than 100 countries. The European Union supported the establishment of the Global Fund and is among the main donors, having disbursed EUR 2.1 billion between 2002 and 2019.
According to the delegation, the current strategic plan of the Fund has four objectives for the 2017-2022 period: maximize impact against HIV, TB and malaria; build resilient and sustainable systems for health; promote and protect human rights and gender equality; and mobilize increased resources.


Published in The Rising Nepal daily on 21 February 2020. 

Tap Bangladeshi Investment


Nepal and Bangladeshi are separated by just about 35-km Indian territory. Both the nations are members of two regional forums– SAARC and BIMSTEC. Bangladesh has graduated to the developing status some years ago while Nepal is set to upgrade in 2022.

Despite being smaller in size than Nepal, Bangladesh has progressed a lot in the last decade with the revival of its industrial sector and national economy and infrastructure development. The country has done well in social and economic development after reducing poverty. Until 1972, the national poverty rate of the coastal nation stood at 82 per cent. However, the nation was able to bring down poverty to 18.5 per cent and 9 per cent in 2010 and 2018, respectively. Bangladesh’s per capita income (nominal) was US$1,906 in 2019 while Nepal had just $1034.

Due to various reasons, there has been very less cooperation between the two countries in terms of trade, investment, tourism and other areas. Nepal is witnessing continuous trade deficit with Bangladesh for the last many years. Nepal had almost Rs. 3 billion trade deficit with Bangladesh as it imported goods worth Rs. 4.24 billion from the latter and exported goods or Rs. 1.29 billion in 2018/19. In 2017/18, such deficit was Rs. 3.7 billion.

Nepal needs to revive its export trade with Bangladesh and attract more investments and tourists. Foreign Minister Pradeep Kumar Gyawali’s recent visit to Bangladesh has tried to strike the chords for the same. During his visit, Nepal and Bangladesh signed a memorandum of understanding to develop waterways in the river that connect Nepal and Bangladesh and enhance road, rail and air connectivity networks. 

Minister Gyawali also said that the visit was successful in creating understanding in the areas of trade, investment and connectivity. The two neighbours have agreed to find additional potential in promoting the bilateral trade, removing the trade barriers, lowering the tariff and increasing the production of exportable goods. Bangladesh also pledged simple and easy transit facility for Nepal to utilise the facility provided by the former.

Nepal has much to learn from Bangladesh such as focusing on a few exportable goods. Bangladesh has given major attention to the development of the garment industry. With cheap labour and technological expertise in this sector, the country has created a formidable garment business which has not only employed the largest number of people but also supported in its economic development and improved the living standard of people. Likewise, development of manufacturing industry is another lesson that needs to be learnt from it.

Bangladesh has shown interest in investing in hydropower project in Nepal. It has pledged Rs. 100 billion investment in any project in Nepal and recently agreed to import electricity from the Upper Karnali Hydel Project. But Nepal has so far failed to tap that investment potential. Bangladesh will require 34,000 MW of power by 2030 to sustain its current 7.8 per cent growth. Nepal could reduce its trade deficit with Bangladesh if the former focuses on hydropower development.  

Published in The Rising Nepal daily on 21 February 2020. 

Nepal, Bangladesh to develop waterways


Kathmandu, Feb. 19
Nepal and Bangladesh have signed a Memorandum of Understanding to develop waterways in the rivers that connect Nepal and Bangladesh.
The two neighbours have agreed to develop new connectivity network during the visit of Nepal's Minister for Foreign Affairs Pradeep Kumar Gyawali from February 17-19.
He made his maiden Bangladesh visit as the foreign minister at the invitation of his Bangladeshi counterpart Dr. A.K. Abdul Momen.
The visit of FM Gyawali was also successful in forging understanding in further enhancing connectivity network by making direct air services between the nearest cities in the two countries, upgrading roads and railways.
He said that his Bangladesh visit was successful in strengthening the bilateral relations between the two countries and creating understanding in the areas of trade, investment and connectivity.
"We have made key agreements in terms of bilateral trade and investment, infrastructure, waterways, agriculture and education," he said while talking with the media upon his arrival at the Tribhuvan International Airport Wednesday after concluding his three-day official visit.
He said that Nepal and Bangladesh had agreed to find additional potential in promoting the bilateral trade, removing the trade barriers, lowering the tariff and increasing the exportable goods.
There were discussions in promoting the trade and creating balance in trade between the delegations of the two countries.
FM Gyawali said that Bangladesh was positive in providing simple and easy transit facility to allow Nepal in utilising the facility to the optimum provided by the former.
Similarly, the two countries agreed to enhance Bangladeshi investment in Nepal's energy, agriculture and tourism sector.
"The two countries signed memorandum of understanding (MoU) to harness the tourism potentials in both nations through bilateral cooperation. I also have urged the Bangladeshi government to support Nepal in making the Visit Nepal Year 2020 a success by sending more tourists to Nepal on the occasion" said the Minister.
Bangladesh has also given a positive nod in helping Nepali students pursuing medicine and engineering education in Bangladesh.
FM Gyawali and his Bangladesh counterpart Dr. Momen held delegation-level bilateral talks on Tuesday.
Both the Ministers made a comprehensive review of all aspects of bilateral relations and exchanged substantive views on further expanding and strengthening cooperation between the two countries, said the Embassy of Nepal in Dhaka in a statement.

Expansion of two-way trade through removal of tariff and non-tariff barriers, simplifications of administrative procedures, facilitating measures at border point, development of multimodal connectivity networks, improved transit facilities and promotion of investment; collaboration in promoting tourism, enhancement of cooperation in energy sector, promotion of cultural cooperation, furthering cooperation in education sector were the main subjects of discussions between the two sides.

The two Ministers also exchanged views on cooperation on regional and global issues of common interests.

The two sides underlined the importance of revitalising all mechanisms to advance   bilateral cooperation and partnership.  The meeting also underscored the importance of the exchanging high-level visits. The Bangladeshi side expressed hope that high level visit from Nepal would take place in near future, read the statement.

Bangladesh has expressed interest and pledged support in developing and trading hydroelectricity resources.

FM Gyawali met Bangladeshi Commerce Minister Tipu Munshi on Tuesday afternoon. He also made courtesy calls to Bangladeshi President Mohammad Abdul Hamid and Prime Minister Sheikh Hasina where he emphasised on strengthening bilateral relations in the interest of the people of both the neighbours.

"I have extended invitation to President Hamid and PM Hasina for high-level participation in the Sagarmatha Sambad from Bangladesh," said Gyawali.

The government has initiated a dialogue platform to discuss various regional and international issues and the first edition of it will be held from April 2-4 and will deliberate on climate change.
During his visit, FM Gyawali delivered a lecture at the Bangladesh Institute of International Strategic Studies and visited Bangabandhu Memorial Museum where he paid tribute to Sheikh Mujibur Rahman, Father of Bangladesh.


Published in The Rising Nepal daily on 20 February 2020. 

Sagarmatha Sambad appropriate platform to discuss vital issues


Kathmandu, Feb. 18
The diplomatic community in Kathmandu has appreciated the government's initiative to organise the 'Sagarmatha Sambad' as a platform to discuss regional and global issues from April 2 to 4 this year.
Talking to The Rising Nepal, Ambassador of the European Union to Nepal Veronica Cody,  Qatar to Nepal, Yousif Bin Mohamed Al-Hail and Republic of Korea to Nepal Park Young-sik said that the dialogue would benefit the region as well as the world and offered their support to make it happen. Former Indian ambassador to Nepal Manjeev Singh Puri also offered similar support.
The government is organising the programme as a permanent global dialogue forum and is said to draw international leaders and high-level delegates from South Asia and other countries.
According to Minister for Foreign Affairs Pradeep Kumar Gyawali, Nepal aimed at changing Nepal's image of the country from the poor and weak economy to a rising power.
The country wants to share the success and progress in resolving the decade-long conflict, concluding the peace process, creating an inclusive democracy, post-quake reconstruction and high growth trajectory. The maiden edition of the programme will be on 'climate change, mountains and future of humanity'.
Ambassador of the EU to Nepal Veronica Cody termed the programme 'of international importance' and 'timely'.
"Climate change is a direct and existential threat, it spares no country and requires a collective response. The topic is also very timely, given the urgency for nations to tackle the negative impacts of climate change," she said.
She said that the Sagarmatha Sambad would be complementary to other many discussions on climate change and draw attention of the world towards Nepal and other nations which had started bearing the brunt of this environmental phenomenon.
Ambassador Cody said that since the promulgation of the constitution and the establishment of a stable government, Nepal had become more confident of its place in the region and the world beyond. 
"This is an opportunity for Nepal to take the lead, on an issue of global concern, in a domain on which it has extensive knowledge and experience, and where it can help to create wider awareness and, most critically, action, to counter the impact of climate change on mountainous countries and regions," she said.
According to her, in future editions of the dialogue, Nepal could address other issues of regional or global interest, drawing on its own experience, tradition and political heritage – which could be of immense value to the international debate.
She pledged the EU's support in making the programme a success.
Ambassador of Qatar to Nepal, Yousif Bin Mohamed Al-Hail said that Nepal's unique geographic location and the existence of the highest summit on earth was one of the best places to discuss climate agenda to confirm international commitments and to have a thorough discussion among stakeholders and experts for solutions to the existing problems.
"Regular annual organization of the Sagarmata Sambad in Nepal would reveal the stability and progress of the country to the global and regional perspective and the positive role towards the urgent issues which in turn will be positively reflected in tourism promotion, more FDI, improved bilateral trade and better foreign relations," he said.
Ambassador Al-Hail suggested the government also to focus on local stakeholders' views and find out workable solutions.
Ambassador of the Republic of Korea to Nepal Park Young-sik termed the event of high importance that might create network as well as find solutions in addressing the climate-related problems.
"A high-level delegation from Korea is likely to be here in Nepal to attend the dialogue. There is also a possibility for a similar type of Nepali delegation to take part in a climate conference being held in Korea in June next year," he said.
Manjeev Singh Puri, Ambassador of India to Nepal who has recently concluded his tenure in Kathmandu, said that India was also interested to work with Nepal in the areas of climate change.
"India is always ready to protect the Himalayan region which is the largest source of the freshwater. We support Nepal's genuine demand to save the people from the brunt of climate change," he said in a talk with The Rising Nepal before leaving Nepal.
He hoped that the dialogue would be established as a multilateral forum to discuss common agenda.
Published in The Rising Nepal daily on 19 February 2020. 

Disbursement, contract award poor, says ADB


Kathmandu, Feb. 17
The Asian Development Bank (ADB) has said that both the disbursement and contract award for development projects in Nepal remained poor in 2019.

“While we achieved great achievement of exceeding the disbursement over $300 million, the disbursement ratio did not improved, and, in fact, decreased due to the new loan commitments added to the portfolio in 2019,” said ADB Country Director for Nepal Mukhtor Khamudkhanov in the Country Portfolio Review Meeting jointly organised by ADB and the Ministry of Finance in the Capital on Monday.

He said that in terms of disbursement ratio, Nepal’s portfolio was lagging behind most other countries in South Asia.

While disbursement has picked up pace, challenges remain and the overall performance of ADB operations in Nepal could be much better, he expressed concerns over the poor project performance.
“The disbursement needs to substantially increase to be close to $400 million per year for ADB to consider further increasing or even maintaining ADB’s commitment level,” he said.

At the moment, 61 per cent of the total portfolio – $2.9 billion - remains undisbursed, which was very high.

The multilateral donor has disbursed US$323.7 million for development projects in Nepal in 2019.
It is the record disbursement with 76.5 per cent against the annual target of $423.2 million, said the multilateral donor. Likewise, of the $381 million awards, only $256 could be awarded last year, said Rudi Van Dael, Unit of Portfolio Management of the ADB Nepal Resident Mission.

However, ADB’s support to Nepal in the infrastructure sector has increased in the recent years with larger but fewer projects.

Difficult terrain and remoteness of project sites, addressing safeguard issues, and the country’s ongoing transition to federalism that takes time have also posed challenges to the effective implementation of development programmes, said Khamudkhanov.

According to him, strengthening the teamwork, ensuring sufficient human resources, inter-agency coordination, timely reporting and continuous capacity enhancement are needed to address the poor project performance.

Secretary at the MoF Sishir Kumar Dhungana said that since the results were significantly lower, the ADB and the government needed to reassess their own targets.

He said that there was a need to accelerate the progress and the high level project coordination mechanisms and the MoF and Prime Minister’s Office could help in it.

“The shortage of human resource was created due to the readjustment of the civil servants in federal structure. The government is committed to filling the gap of qualified human resource,” said Dhungana.
He also said that the development projects were suffering from the weaker capacity of contractors and consultants.
The ADB portfolio in Nepal has reached $2.9 billion by 2019 with urban and water sector receiving the highest share of $900 million or 31 per cent. Energy covers 19 per cent, transport 23 per cent, education 16 per cent and agriculture and natural resource 8 per cent.

The best ADB-supported projects were awarded on the occasion.
The Third Small Towns Water Supply and Sanitation Sector Project and Community Managed Irrigated Agriculture Sector (Additional Financing) won the outstanding project management team awards.
The Urban Water Supply and Sanitation Sector Project was awarded the best team for procurement management prize.

The SASEC Power System Expansion Project received the best team award in the categories of environmental and social safeguard monitoring; the Third Small Towns Water Supply and Sanitation Sector Project won the gender equality and social inclusion award; and the SASEC Road Connectivity Project bagged the financial management and disbursement accolade.


Published in The Rising Nepal daily 18 February 2020. 

Exemplary Progress In Reconstruction


As the tenure of the National Reconstruction Authority (NRA) is going to be over by January 2021, there are discussions about the progress made in the rebuilding drive in the last four and a half years, disaster preparedness and extension of the reconstruction body. 
Nepal has made a remarkable progress in the post-quake reconstruction and achieved more than 62 per cent progress in the rebuilding of private houses damaged in the 2015 earthquake. About 24 per cent houses are under construction. Likewise, 71 per cent schools and 56 per cent health facilities have been restored so far.
The NRA was formally launched on December 26, 2015, eight months after the quake of 7.6 on Richter scale devastated the central and eastern hills in the country, killing about 9,000 people and damaging about a million houses, schools, hospitals and other infrastructures in 32 districts. 
What Nepal witnessed in terms of reconstruction in the last four year was something which was not common in the country like ours. Despite multiple political wrangling in substituting the chef of the reconstruction body and various challenges in carrying out the rebuilding task in the hills and mountains and fear of the looming shortage of construction materials during the initial years, the country moved smoothly ahead with the rebuilding with the theme 'build back better'.
Setting example
Although the entire system for the reconstruction was novel for Nepal, it not only successfully advanced with the 'build back better', but also set an example for the same. Nepal has taught a lesson to the world that a Least Developed Country (LDC) can also be a leader in terms of post-disaster management and rebuilding.
Therefore, the NRA is planning to organise an international conference on the post-quake reconstruction in November this year to share the knowledge, skills and experiences gained from the rescue, relief and reconstruction. It also plans multiple national and international workshops throughout the year to hand over the skills and knowledge to future generations.
In the last four and a half years, the government had conducted at least three surveys to locate the beneficiaries, surveyed more than 1 million houses completely or partially damaged in the tremors and re-surveyed about 306,963 grievances and addressed 209,571 of them. 
Similarly, 575 landless beneficiaries were approved for rebuilding their houses in the same place while 165 households have been provided funds to purchase land in another locations.  
Many of the cultural and historical monuments in the Kathmandu Valley and outside it are being restored with the support from international partners like China, India, Japan, the USA and Sri Lanka. 
Most of the structures in the Kathmandu, Bhaktapur and Patan Durbar Squares are being rebuilt while China is rebuilding the Nuwakot Durbar. A new Dharahara (tower) is being constructed beside the original one that was damaged in the 2015 quake. The damaged piece will be kept as it is in the museum while a new 22-storey tower will be erected on its premises.
The governments were successful in finding the support from the neighbouring and friendly countries as well as multilateral development partners such the World Bank and Asian Development Bank for the reconstruction. 
The World Bank has offered multiple supports both in grants and loans while China has supported in house as well as heritage reconstruction. Chinese President Xi Jinping, during his state visit to Nepal in October last year, pledged additional support to the post-quake reconstruction.
India, China, the USA, the UK and many other friendly countries had pledged their support and offered their assistance to Nepal in post-quake rebuilding during the International Conference on Nepal's Reconstruction organised in 2015 in the immediate aftermath of the devastating quake.

Remaining one year
The NRA and the Ministry of Finance (MoF) are finalising the budget and development plan for the remaining work. Although the Chief Executive Officer of the NRA Sushil Gyawali said that the reconstruction body had started the exit plan from now, the final decision about the extension would be made after holding discussions with the MoF.
However, the NRA is likely to get a year's extension and might remain till January 2021. The NRA sources express their intention to keep it alive for another year. A group of donors, government as well as the National Planning Commission (NPC) are positive about the extension. Since almost half of the total reconstruction budget – Rs. 630 billion, comes from the donors, the government has to listen to their demands.
Donors' desire to keep the NRA alive is not an unfounded idea. The post-quake reconstruction was implemented effectively only after the establishment of the reconstruction body. The same had happened in case of the victims of the other disasters like floods, landslides and fire in the past. 
Many victims of floods in the Terai six years ago have not got a shelter that the government had promised. So, the stakeholders are apprehensive of the reconstruction progress in the absence of institutions like the NRA. The NPC also want to keep NRA for at least one year further and going to include it in the revision of the five-year plan.
According to the NRA, the reconstruction of the private houses will be completed within 2020 and the responsibility will be handed over to the local bodies in case the work remains incomplete.
Transferring responsibility
While the NRA has already involved the local bodies in distributing the grants and making decisions about the reconstruction of the private houses, schools and health posts, it has started a process to pass the existing information system to the federal, state and local governments to enhance their capacity with reliable and effective disaster information system. 
Likewise, the government plans for the risk mapping of every local unit which will be used in land use planning as well as periodic planning and building house standards.
The remaining work of heritage reconstruction will be transferred to the Department of Archaeology and respective local bodies. Of the damaged 891 heritages, 387 have already been rebuilt and 123 are under construction while the reconstruction of 381 is yet to begin. Monastery rebuilding has witnessed the poorest progress in comparison to other cultural and historical monuments.
Meanwhile, the government has established the National Disaster Risk Reduction and Management Authority to work in the area. According to the NRA, there have been enhanced cooperation and coordination between the two authorities to institutionalise the exercise of the NRA, statistics, and organisational memory.

Housing grant (as of 11 February 2020)
Total beneficiaries: 828,288
Grant agreement signed: 777,775
First instalment receivers: 772,034
Second instalment receivers: 633,656
Third instalment receivers: 540,269
Source: NRA
Retrofitting grant (till December 2019)
Total beneficiaries: 69,620
Beneficiaries signing grant agreement: 36,546
Beneficiaries receiving first instalment: 36,907
Beneficiaries’ second instalment: 29
Source: NRA

Challenges ahead
Managing the budget for reconstruction works is the biggest challenge for this year. The government has allocated Rs. 141 billion in the current fiscal year, but the source of Rs. 38 billion is unknown so far, especially the money of the Indian Exim Bank's line of credit comes with too many conditions that are difficult for the NRA to meet.
Enabling the local governments in taking the responsibility of the remaining reconstruction works and create preparedness plan for disasters is another challenge. However, the National Disaster Risk Reduction and Management Authority can be instrumental in this regard. 
The newly established agency might face difficulties in coordinating with the local bodies that lack knowledge as well as expertise in the areas.
Carrying out land-pooling at the core city areas of Kathmandu, Lalitpur and Bhaktapur also poses a great challenge. This might be the reason that the work in the old city area in Kathmandu is not started yet. Just to illustrate the situation: of 47,665 families in Kathmandu eligible for the rebuilding aid, only 15,500 have received the entire instalments of the housing grants.
About 15 per cent of the beneficiaries have obtained only the first instalment of the housing grant but never turned in to apply for the second one. It is challenging to find them and facilitate them in the reconstruction process. 
However, the NRA officials say that the remaining households that obtained the first instalment and never started the house rebuilding were not the actual beneficiaries as either they had house in another location or their house was not completely damaged in the tremors.
The reconstruction body had also asked those families, who are not in the beneficiaries' list but obtained the first tranche of the grant, Rs. 50,000, to return the money else be ready to face the music. Some of them have returned the money.
@ModDhakal


Published in The Rising Nepal daily. 

Monday, February 17, 2020

Nepal, India in communication to resolve Kalapani issue


Kathmandu, Feb. 16
Minister for Foreign Affairs Pradeep Kumar Gyawali said Sunday that the governments of Nepal and India were trying to find suitable date to hold discussion to solve the Kalapani issue.
“Nepal is in communication with the Indian government for a dialogue and settlement of the border issue of Kalapani through diplomatic means,” he said while addressing the 72nd Anniversary Programme of Nepal Council of World Affairs (NCWA) in the capital.
According to him, the governments of both the countries were anticipating mutually convenient dates for the meeting.
Minister Gyawali said that the leaders on both sides had displayed clear vision, commitment and required political will to take the relationship to a higher plane of trust, cooperation and friendship.
He also expressed the government’s intention to work closely with the labour destination countries.
“Labour migration has become an important aspect of Nepal’s foreign relations and a large number of Nepali nationals are engaged in foreign employment and remittances they send home make a sizable share of our economy,” he said. “Therefore, it becomes government’s priority to work closely with the countries of destination for safety, security and wellbeing of our migrant workers,” he added.
In recent years, Nepal’s engagements with the labour destination countries have been more intensive and enriched by exchange of high level visits, and growing trade and investment.
We look forward to expanding and diversify the scope of cooperation with these countries so as to encompass the broader areas of economic partnership involving trade, investment, tourism and civil aviation, among others, Gyawali stated.
According to him, Nepal maintains friendly and cooperative relations with both of the immediate neighbours, India and China.
“Maintaining close and cordial relationship with them is our priority. Our relations have expanded manifold in the sphere of political, economic, cultural, trade, tourism, investment, and people-to-people exchanges,” he said while maintaining that Nepal’s neighbourhood provided opportunities for expanding economic linkages.
Minister Gyawali also said that as the Chair of SAARC, Nepal had done its best for the revival of the stalled SAARC process.
“We have been actively working at BIMSTEC to promote economic cooperation, connectivity and prosperity. Nepal plays its due role in Asian Cooperation Dialogue (ACD) as its member and in Shanghai Cooperation Organisation (SCO) as a dialogue partner,” he said.
He stated that Nepal accorded high priority to the issue of climate change and supported effective implementation of the Paris Agreement and calls for enhanced level of climate finance and technology transfer for the adaptation and mitigation.
President of NCWA Hemanta Kharel said that Nepal has to work proactively while exercising its foreign policy as the powerful nations were undermining the rule-based international order.
“We need to create and change the foreign policy on the basis of research. Building trust and confidence with the friendly nation should be the first priority,” he said.
NCWA had felicitated former vice-chairman of the National Planning Commission and former Nepali Ambassador to the USA Dr. Shankar Sharma. Vice-President Nanda Bahadur Pun honoured Dr. Sharma with a shawl and plaque.
Published in The Rising Nepal daily on 17 February 2020. 

Party unification was not to become prime minister: Prachanda


Kathmandu, Feb. 16
Nepal Communist Party (NCP) has launched a country-wide three-month campaign to strengthen the party unification and enhance public relations.

This is the first time the ruling party has launched a campaign after the unification between the then CPN (UML) and the Maoist Centre.

The first programme of the campaign was organised in Kohalpur of Banke district on Sunday where party chair Pushpa Kamal Dahal Prachanda trained the cadres.

Speaking on the occasion, he said that the chair of the erstwhile CPN (MC) did not work to unite the two leftist parties to become the prime minister or elevate to the power.

“I never thought of becoming the prime minister or exercise the power while merging the two largest communist parties of the country. The parties were united to promote the national and public interest and establish socialism in the country,” he said.

He said that the unification had given a stop to the political instability and anarchism in the country as well.

According to him, the three-month long campaign has been launched to expand the party’s public relations. He also maintained that the reactionary forces were trying to disturb the party unification process and create fractions in the party.

Chair Prachanda said that the two parties were in communication since the armed-conflict period regarding the party unification.

General Secretary of the party Bishnu Poudel said that the campaign was launched to take the good jobs of the federal, State and local governments to the people.

Minister for Home Affairs Ram Bahadur Thapa Badal said that the government had launched an action against the corrupt officials, smugglers and other criminals.

He also urged the party cadres to support the government in the drive against corruption, black marketing, smuggling and illegal works.
Chief Minister of State 5 Shankar Pokharel said that his government had the best performance compared to the other States.

Published in The Rising Nepal Daily on 17 February 2020. 


Sunday, February 16, 2020

Weak performance of pride projects leads to poor capital expenditure


Kathmandu, Feb. 14
Poor performance of the national-pride projects was the major contributor to the poor capital expenditure in the first six months of the current fiscal year 2019/20.

The government could spend only 19 per cent – Rs. 20.4 billion from Rs. 102.08 billion allocation to the pride projects – by mid-January, according to the Finance Ministry's report of the mid-term review of the budget.

Given the size of the total capital expenditure, pride projects have got a significant chunk, almost 33 per cent, of the total budget.

The total recurrent and capital expenditure for this year is Rs. 309.6 billion and Rs. 62.7 billion and financial provision is Rs. 50.1 billion – 32.4 per cent, 15.4 per cent and 29.9 per cent respectively.
Finance Minister Dr. Yuba Raj Khatiwada had announced the budget of Rs. 1.53 trillion. The government had mobilised Rs. 422.5 billion in the first six months of the current fiscal year (mid-July to mid-January). This is 27.6 per cent of the total budget.
Of the 22 pride projects across the country, six could spend less than 10 per cent of the total allocation, with zero progress in Pashupati Area Development Trust and Nijgadh International Airport.

Kathmandu Terai Expressway project has utilised only 2 per cent of the Rs. 15 billion. The shortest road to connect the capital city with the Terai that will have Asian Highway Standards was supposed to be completed in the next couple of years. But the Detailed Project Report of the expressway project is recently developed. According to the experts, the road project will be delayed by at least two years.

Likewise, Millennium Challenge Account Nepal – a project established with the United States' pledge of US$ 500 million to construct the cross-border transmission line and rehabilitation of the strategic roads – has spent only 4.4 per cent of the total budget of Rs. 10 billion.

The project has to be launched by June end this year, but it is stuck due to the delay in ratifying the programme from the Parliament as per the agreement reached between Nepal and the USA.
A section of society has been rallying against the project for the very reason of getting it approved from the legislature.

Another large project Budhigandaki Hydroelectricity Project has witnessed just 7.5 per cent progress in the first half of the current fiscal. The would-be the largest reservoir-based hydel project in the country is still stuck at the stage of acquiring land and distributing compensation. In recent years, the project has been ping-ponged to Indian and Chinese companies, but its fate is still uncertain.

Another disappointment has been the Melamchi Water Supply Project. The project that remained idle and witnessed a brief controversy as well following the exit of Italian contractor CMC, has witnessed progress of only 8.9 per cent in the first six months of the current fiscal.

Upper Tamakoshi Hydroelectricity Project, Gautam Buddha International Airport (GBIA), Galchhi-Rasuwagadhi Road and Sikta Irrigation Project are the top performers with 66.7 per cent, 50.4 per cent, 40.1 per cent and 33.6 per cent progress.

Likewise, Bheri Babai Diversion Multipurpose Project has met 28 per cent and Mid-Hill Highway 20.4 per cent progress.

 Published in The Rising Nepal daily on 15 February 2020. 

Unethical business goes unabated, vegetables sold taking 300% profit


Kathmandu, Feb. 13
Scene 1
About 4:15 AM on Thursday.
A truck crept into the Kalimati Vegetable and Fruits Market inching ahead with dozens other trucks queued along the road outside the largest vegetable market in the country.
It was loaded with radish produced in Chitwan. The wholesaler at the market had bought the root vegetable at Rs. 6 per kg which he was selling at Rs. 10 per kg. But the retailers inside the Kalimati market were selling it at Rs. 16-20 per kg. The retailers somewhere in the Kathmandu Valley were charging as much as Rs. 40 for the same.

Though an old analogy, the scene tells a story of unethical business rampant in the vegetable sectors which is benefitting the middlemen – collectors, wholesalers and retailers – only while the stakeholders at both the ends, farmers and consumers, are being cheated.

Despite tall claims of the Ministry of Agriculture and Livestock Development (MoALD), concerned departments and Kalimati Vegetable and Fruits Market Development Committee (KVFMDC) for the last many years, there is no checking of this practice which could have benefitted at least the consumers.

“I sell radish at Rs. 10 per kg. If anyone buys all my stock, I clear it at Rs. 8 per kg. But the price outside the market is not my concern,” said Bhimsen Shahi Thakuri, a wholesaler of shop no. a/c 11 in Kalimati. “Retailers in the valley sometimes charge five-time high price. It is the government’s responsibility to keep the things in order,” he added.
Scene 2
Consumers in the valley believe that the KVFMDC regularly conducts the pesticides test in the vegetables that come to the market. It does conduct sample tests of the vegetables every day but on Thursday morning no vegetables were sampled for the testing. Most of it was directly sent to the wholesalers and retailers instantly after unloading from the trucks and pick-ups. However, there were no Indian trucks carrying vegetables and fruits from the southern neighbour, which is the largest supplier of the green vegetables to Nepal.

Many wholesalers said that the pesticide testing was occasional.

Black-marketing
The government has failed so far in controlling the exorbitant retail price of vegetables in the valley. While the Black Marketing law has provision to punish those who charge more than 20 per cent of the maximum retail price of any goods, vegetables are being sold at a price that is as high as 300 per cent.
However, Suman Tandukar, a vegetable retailer from Kupondole, said that he did not charge the consumers more than 20 per cent than the purchased price of the goods.
A jackfruit vendor said that the vegetable available at Rs. 100 per kg in Kalimati was being sold above Rs. 150 per kilo outside the Kalimati market.

Cauliflower that was sold at Rs. 36 per kg inside Kalimati was bought at Rs. 20 to 22 from farmers.
Sudarshan Bidari, a wholesaler in the market has a strong belief that the government should not set the price of the vegetables. “The rate of vegetables is different according to t size, quality and age. The price fluctuates multiple times even in a day,” he said.

Thakuri also said that he had sold vegetables at a price less than the one set by the KVFMDC.
Legal officer at the Committee Ek Narayan Aryal also said that setting the price of the perishable goods was against the international standards. But the practice goes on in Kalimati.
“Vegetable and fruit market runs on the principle of ‘either sell it or smell it’. Since no one is sure about the loss factor, no one is sure about the price, too,” he said.

Likewise, Khom Prasad Ghimire, President of Federation of Fruits and Vegetables Entrepreneurs Nepal blamed the weak market information system for the increasing price gaps among the supply-side actors.
“This is the reason for farmers destroying their vegetable products in the frustration of not getting the fair price. It happens every year,” he said.

 Indian veggies are expensive
Contrary to the popular belief, Indian vegetables are more expensive than Nepali products. It’s a surprise since flooding of Indian vegetables used to slash the price of Nepali vegetables in the past while this time all the Indian items are more expensive.

Nepali products like cabbage and cauliflower come at about Rs. 30 to 40 while Indian products ladies finger and bitter gourd are priced at Rs. 120 – 130. Indian tomato is also expensive.

Gauri Gupta, a mobile vegetable vendor from Raxaul, India, who was leaving the market with loads of potato, onion and other vegetables on his bicycle at 5:30, said that Indian vegetables were expensive than the domestic products. However, Indian garlic is cheaper than the Chinese with Rs. 500 and Rs. 800 per kilo respectively.

No farmer
There is no presence of farmers in the entire Kalimati vegetable market. All the vendors – wholesalers and retailers – were traders. Even the small vendors in the farmers’ zone were traders. They just collect the vegetables from the farmers and sell it at the market.

The Market Development Committee is aware of the situation. It is mulling to give away the empty 35 stalls to the farmers to that they can bring their products to the market and sell it at a price of their choice.
“Middlemen had obstructed in the farmers access to the market in Kalimati. But we are set to bring some farmers to the market,” said Ram Mani Acharya, who represents the MoALD in the Committee.

The vibrant vegetable market has witnessed multiple reforms in terms of parking, sanitation, pesticides checking and slot arrangement in the last couple of years, it is still struggling to manage parking space. About 600 vehicles, except two-wheelers, enter the market each day.
It should be the model market in the country. The government had announced so for multiple times but it is still a far-fetched dream.


Published in The Rising Nepal daily on 14 February 2020. 

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