MCA projects to start from June end next year

Kathmandu, Aug 8

The 630 million US Dollars (Rs. 71.19 billion) Millennium Challenge Compact (MCA) that aims to develop large transmission line and substation projects and rehabilitate strategic roads will enter into force from June 30, 2020. 


The ‘Entry into Force’ date for the implementation of the MCA has been set in an agreement between the government of Nepal and Millennium Challenge Corporation (MCC) – an agency of the United States of America. 


“The government took the decision about the date through the Ministry of Finance, after consultation with all relevant ministries and departments and the implementation agency, MCA-Nepal,” Khadga Bahadur Bisht, Executive Director of MCA-Nepal,  said at a press meet on Thursday. 


MCA-Nepal is a government agency formed by an executive order of the Cabinet as per the Development Board Act 1956 in order to manage the compact. 


The projects include 318 km long 400 kV transmission lines, three large capacity substations and rehabilitate 318 km of strategic roads.


The MCC and Nepal have pledged by 500 million US$ and 130 million US$ budget to the programme respectively.  


The Electricity Transmission Project includes programmes like increasing domestic electricity consumption by improving the availability and reliability of energy in the nation’s grid, construction of high voltage construction lines equivalent to one-third of the length of the country, construction of substations and power sector technical assistance. 


The substations will be built in Ratmate of Nuwakot, Damauli of Tanahun and Butwal of Rupandehi districts.  


Similarly, the Road Maintenance project will rehabilitate roads across the country. 


“Poor road maintenance makes travel and transport of goods further challenging and expensive,” said Bisht. “To address the high cost of transit, the 52.2 million RMP aims to maintain road quality across the strategic roads network, preventing further deterioration of Nepal’s road network.” 


Amaliya-Salyan Bazar road, Hetauda-Bhimphedi road, Kadmaha-Gaighat road, Dharan-Basantapur road and Charali-Phidim road are the part of the project. 


For the reliable maintenance of the roads, the project will transfer latest technology like full depth reclamation. 


According to Bisth, as the government was focusing on expanding the road network across the country, maintenance of the existing roads was neglected which had negative impact on the time and cost of transportation and road safety as well, so the MCA had given special attention to the road maintenance instead of creating new roads. 


He said that maintenance of roads was more cost effective than building the new roads. The compact had set a condition that the government should gradually increase the road maintenance budget over the years. 


It is estimated that about 23.5 million people would be benefitted from the ETP and 9 million people from the RMP. 


Bisht said that following the announcement of the entry into force date, all implementation activities must be completed within five-years, as there were no provisions for time extension or cost increase.

“Therefore, we have made sound preparations for the projects so that there wouldn’t be any hurdles after they are implemented,” he said. 


The failure to complete the projects by the deadline means the budget would go back to the MCC, USA. 


As per the condition set by the MCC, Nepal has declared the ETP as a National Pride Project and pledged a legislation to create an Electricity Regulatory Commission. 


The drafting and approval of the Environmental Impact Assessment and completion of proper land acquisition and forest clearance to finally obtain site access is currently progressing well, said Bisht. 


Economic constraints analysis completed prior to the design of the Compact’s projects showed lack of sufficient and reliable electricity and high cost of transportation based on low road maintenance as binding constraints to economic growth.

Nepal had signed the compact agreement with the MCC on September 14,  2017.



Published in The Rising Nepal daily on 9 August 2019. 

380 cultural heritages rebuilt

Kathmandu, Aug 7

About 380 cultural heritages damaged in the devastating 2015 Gorkha Earthquake have been rebuilt.

Of them, 96 are on the premises of the UNESCO World Heritage Sites while 284 are from other locations, said the National Reconstruction Authority (NRA).

Gaddi Baithak, Natyeshwar Temple, Krishna Temple, Nagara Ghar, Statue of Pratam Malla and Taleju Temple at the Hanumandhoka Durbar Square are the major cultural and historical heritages reconstructed.

Similarly, reconstruction of Khauma Gate, Siddhi Laxmi Temple, Narayan Temple, Shankar Narayan Temple of Bhaktapur Durbar Square has also completed.

Monuments at Changu Heritage Area – Changunarayan Temple and Kileshwar Temple, and Swayambhunath Area – Pratappur Temple, Annatpur Temple and Anandakuti Mahavihar have also been rebuilt.

Likewise, statue of Yoga Narendra at the Patan Durbar Square is restored and Mani Mandap and Eastern Long of Sundari Chowk are reconstructed.

Historical Krishna Temple’s preservation has also been accomplished.

Junga Hiranya Hemnarayan Temple in Thapathali and Baudha Nath Stupa have also been rebuilt in their previous original shape.

Chief Executive Officer (CEO) of the NRA Sushil Gyawali said that the reconstruction body had accorded high priority to the restoration of the historical and cultural monuments.

“We will expedite the monitoring activities to speed up the reconstruction,” he said.

Director General of the Department of Archaeology (DoA) Damodar Gautam said that the agency had planned to reconstruct about 150 heritages in the next one and a half years.

Countries like China, India, the United States of America, Switzerland, Sri Lanka and Japan, and organisations like the UNESCO office in Kathmandu, Henkel Foundation Vienna and University of Applied Arts are supporting the country in heritage reconstruction.

The 2015 quake had damaged 891 heritages.

Published in The Rising Nepal daily on 8 August 2019. 

Artificial shape, colour damage Rudraksha market

Sankhuwasawa, Aug 21

The issue of artificial shape of Rudraksha has again surfaced in Sankhuwasabha and Bhojpur district.

Producers in these two eastern districts, known as the capital of Rudraksha, are changing the shape of the precious bead by using plastic clip and chemicals. They had done it so last year as well.

This year, Rudraksha farmers and traders in Panchkhapan, Kharang and Lohakot have also used various medicines and pesticides to create the desired shape and clolour.

But, such shape and colour does not stay for long. One trader said in terms of anonymity that farmers in Lohakot used medicines in Rudraksha worth Rs. 1.5 million. He said that the colour and shape of Rudraksha from Lohakot started to discoulour and shrunk, and he couldn’t sell it in the market.

As the district association of Rudraksha entrepreneurs had banned the use of such chemicals, and announced to punish the users of harmful pesticides, traders are using it secretly.

Local farmers and traders are worried that the plastic clip and chemical was destroying the market of locally produced Rudraksha and they were facing difficulties in finding the market.

According to the locals, about eight years ago Chinese traders had come to the districts to conduct the trade of smooth, Madane, Thepche and Kanthe Rudraksha.

Since, they couldn’t get the Rudraksha as per their desired size and shape, they applied artificial measures to change them in the tree before harvesting.

They have been doing so for the last few years in entire Rudraksha gardens in the two districts. But, they are finding it difficult to sell the product as it lacked the natural smoothness.

Chakra Bahadur Bisnukne, President of Rudraksha Entrepreneurs Association of Sankhuwasabha, said that the artificially shaped Rudraksha had tarnished the image of the country in the international markets. He also maintained that the Indian and Chinese traders themselves were facing the problems in the market.

He also pointed towards the risk of decreasing the quality of the Rudraksha tree due to the excessive use of chemicals which would have negative impact on the income of the farmers in the long run.

Nepal mustn't deter from non-aligned policy: Nepal

Kathmandu, Aug 6
Former Prime Minister and senior leader of the ruling Nepal Communist Party Madhav Kumar Nepal said on Tuesday that Nepal must not deter from its long cherished non-aligned policy and be neutral in global tensions.

“Non-aligned policy has become our characteristics and it has helped us in many internal forums,” Nepal said while speaking at the 74^th Hirosima-Nagasaki Memorial Day organised by the Afro-Asian People’s Solidarity Organisation of Nepal (AAPSO Nepal).

He said that Gautam Buddha presented a perfect example of sacrifice and peace which is guiding the world even after more than two and a half millennia.

Nepal said that late King Birendra had proposed to promote Nepal as a ‘Peace Zone’ which was also a timely call.

“The concept of ‘Peace Zone’ is still relevant and can be promoted even now although the king had proposed it in an attempt to increase the acceptance of his rule,” he said.

He maintained that one should not be a pro-monarchist while raising the ‘Peace Zone’ issue. “People do not want the monarchy, they want democracy, freedom and opportunities,” he said.

He also said that the world wanted to hear Nepal’s experience in establishing peace.
“We have set a unique example to the world in peace building. We can share our success story to the world,” Nepal said.

He stressed on developing new tourism products and promoting them in the international markets to support the Visit Nepal Year 2020.

“Nepal must be able to promote good things at the international level. We must find new products to offer if we had to meet the target of 2 million tourists,” he said.

According to him, Japan is also an ardent advocate of world peace like Nepal and supports non-proliferation.

“Both the countries have experienced war and peace. We have set an example of installing peace in the society,” he said.

He said that this day reminded the humankind that misuse of power unfolds unprecedented miseries and suffering. 

“Evil powers should​ not be allowed to influence the individual and society,” he said.


Dr. Moti Lal Sharma, Professor at the Central Department  of Chemistry, Tribhuvan University, said that the world should practice the nuclear non-proliferation strategy and that the nuclear power should be used for human benefit.

Hiranya Lal Shrestha, chairman of AAPSO Nepal said that the centre of nuclear study should be established in the country. “We will be innocent victim if there is any accident in our neighbourhood,” he said.

Published in The Rising Nepal daily on 7 August 2019. 

Govt ready to support the private sector in R&D

Lalitpur, Aug 4

Minister for Finance Dr. Yuba Raj Khatiwada said on Sunday that the government was ready to support the private sector in research and development.


"Private sector must investment in human resource development, capacity building, and must pay reasonable salary to the workers. Research and development is the shared responsibility of the government and business enterprise," he said at the inaugural programme of the two-day Management Meeting organised by the Inland Revenue Department (IRD).


According to him, the government wanted just and transparent competition among the business enterprises and to formalise the informal economy.


The situation where the government and the private sector afraid of each other should be ended, Dr. Khatiwada said.


He said that the government was not revenue-oriented and urged the private sector not to work just to fulfil their own self-interest but to benefit the society as well.


"The government will make safe, fair and transparent business environment to increase the confidence of the private sector. Latest information technology will be applied to install faceless revenue system," he said.


Finance Minister Dr. Khatiwada said that the government would communicate with the public in terms of Value Added Tax (VAT) rates and revenue collection.


"Business institutions are just a mean to pass the liability from the public to the government. Therefore, there will be dialogue between the government and the public, the ultimate tax-payer," he said.


He said that people should pay taxes even though they did not want to do so.

Dr. Khatiwada also said that the government would not deter from implementing the Permanent Account Number (PAN).


"PAN is just like a citizenship card. Everyone should have it as they have the citizenship. Having PAN does not mean that an individual has to pay the taxes by force, but it should be paid when there is an income," he said.


He said that that managerial, administrative and regulatory improvements would be continued for the second phase reform in tax administration.


Lal Shankar Ghimire, Secretary of Revenue at the Ministry of Finance, said that the government would increase the presence of tax office at the locations convenient for the taxpayers across the country, and would also promote online services.


He criticised the private sector for being informal and out of tax net.


"Economic Census 2018 had shown that 50 per cent of the economy is informal. I would like to urge the private sector to help the government in bringing the remaining 50 per cent economy in the formal business," Ghimire said.


He also said that the income tax does not respond to the 82 per cent of GDP that goes to consumption.


Rajesh Kazi Shrestha, President of Nepal Chamber of Commerce (NCC), said that there was a need to expand the tax base.


"Government is trying to reduce import and promote domestic industrialisation. However, lowering import might hit revenue collection which may force the government to increase tax on other topics. Therefore, there is a need to expand the tax base," he said.


He urged the IRD to implement the transaction price-based customs evaluation and said that it would reduce many complexities in tax administration as well.


Shrestha said that there was a need to organise training to the business community to educate them on various tax provisions and compliance measures.


Satish Kumar More, President of Confederation of Nepalese Industries (CNI), said that the taxpayers should be respected.


Bishnu Prasad Nepal, Director General of the IRD, said that the department had to meet the target of Rs. 506 billion revenue collection in the current fiscal year, 41 per cent up from the previous fiscal which demanded special strategy and planning.


There are 2.2 million taxpayers in the country, of them 348,162 were added in the last fiscal.

Published in The Rising Nepal daily on 5 August 2019. 

Nepal’s rapid development hinges on railway connectivity

Kathmandu, Aug 3

Nepal is waiting to use multiple cargo entry points with railway connectivity to ease its international trade and get alternative routes to other Indian sea ports like Dhamra in Odisha and Mundra in Gujrat which are the facilities the country had asked the southern neighbour to provide. Nepal is allowed to use Kolkata, Haldia and Bishakhapattanam ports in India so far. 

Indian Special Secretary (Logistics) at the Ministry of Commerce and Industry N. Sivasailam last week said that India was positive for allowing Nepali importers to change the freight destination points at the Nepal-India border. 

While the country eyes large railway projects as one of the key elements for the rapid industrial and economic development, its aspirations are connected with the cross-border railways with India and China. 

Since Nepal's two-third trade happens with India which is also the largest export market, and more than 95 per cent goods move through the southern border points, the government wants to expedite the development of cross-border railways which seems to be reciprocated by the southern neighbour.

Indian Ambassador to Nepal Manjeev Singh Puri has recently said that Nepal-India cross-border railway and inland waterway projects were in the priority and they would witness progress soon.

Jayanagar-Janakpur-Bardibas, Jogbani-Biratnagar, Jalpaigudi-Kakarbhitta, Nautanawa-Bhairahawa and Rupaidiha-Nepalgunj are the five cross-border railway projects. Nepal and India had signed a Memorandum of Understanding (MoU) for these projects in 2010. 

The Ministry of Physical Infrastructure and Transport (MoPIT) said that the Jayanagar-Janakpur-Kurtha railway line (35 km) was completed and would come into operation by October this year while train service would be started at the 17 km long Kurtha-Bijalpura extension of the same track by March 2020.

The Jayanagar-Janakpur-Bijalpura railway will be expanded up to Nijgadh of Bara via Bardibas of Mahottari district. The construction is completed at Bardibas-Lalbandi section (30 km) and 40 km long Lalbandi-Nijgadh will be completed in 2.5 years from now. 

 Likewise, Bathnaha-Birathagar Railway has witnessed more than 50 per cent progress with 10 km of the total 18 km long track completed. The DoR is set to operate railway service in this track in the current fiscal year 2019/20. 

Feasibility of Raxaul-Kathmandu Railway completed

The Ministry has also completed the feasibility report of the Raxaul-Kathmandu Railway (135 km) and Kathmandu-Rasuwagadhi (72 km). The Raxaul-Kathmandu Railway line will come up to Chobhar Dry Port – under construction now – and will connect Birgunj, Jitpur and Nijgadh. The 140 km long track will have 50 km long tunnel. 

Similarly, Kathmandu-Rasuwagadhi Railway will be 72.25 km long and about 98 per cent of the track would either be in bridges or tunnels. The estimated cost of this ambitious project is Rs. 257 billion. 

"The government has completed the Detailed Project Report (DPR) of different projects with 421 km length," said Balram Mishra, Director General of the Department of Railways (DoR). 

He said that the study for the DPR of Rasuwagadhi-Kathmandu Railway and Birgunj-Kathmandu Railway would be initiated in the near future with the support from the India government.

Land Procurement Challenge

Mishra said that the land acquisition for the railway line and station was meeting multiple glitches at various locations. Likewise, there is delay in getting approval to cut down trees in the forest area, and to manage river-based construction materials. 

"We have been directed to procure land at the government-set rate but it is impossible to buy land at that price. However, we have proposed the average of bank transaction of the land, its selling rate and rate of land revenue as the procurement price," said Mishra.

Train in three months

The DoR is in the process of procuring two DEMU (Diesel Electric Multiple Unit) train sets from the Konkan Railway Corporation Limited, an Indian government enterprise, at the cost of Rs. 846.5 million. 

However, it had missed the deadlines to bring the trains in Nepal. Earlier the DoR had said that the locomotives would arrive in Nepal by mid-May but due to delay in communication and other technical requirements, they will come after about 3 months. 

The trains will have 5 to 10 bogies with an engine at the front and back. 

According to Mishra, the DoR is undergoing through human resources shortage. 

While most of the officials and technicians at the DoR were transferred from the Department of Roads, the former is planning to revive the erstwhile Nepal Railway Company (NRC) and use it as the human resource development centre. 

NRC was a government agency that operated Janakpur-Jayanagar Railway service in the past and is unfunctional since 2014. 

Railway Timeline

1927: British built first railway in the country to connect Amlekhgunj of Nepal with Raxaul in India

1937: Jayanagar-Janakpur Railways constructed

1965: Raxaul-Amlekhgunj Railway closed

2001: Janakpur-Bijalpura Railway service closed

2005: Indian Railways was connected to Sirsiya Inland Container Depot (ICD) in Birgunj

2008: Establishment of East-West Electrified Railway Project

2009: Feasibility of Mechi-Mahakali Railway (945 km), Kathmandu-Pokhara Railway (187 km) and Bharatpur-Aanbukhaireni Railway (72.7 km)

2010: MoU signed with India for cross-border railway development

2011: Establishment of Department of Railway

2018: MoU signed with China on cooperation in railway projects.

            MoU signed with India on preliminary survey of Kathmandu-Raxaul Railway

            Janakpur-Jayanagar-Kurtha Railway line constructed

2019: Government decides to buy 2 DEMU train from India

Published in The Rising Nepal daily on 4 August 2019. 

Mega park, logistics and hydel projects get IBN go ahead

Kathmandu, Aug 2

The Investment Board of Nepal (IBN) has approved the investment of Rs. 64 billion in China-Nepal Friendship Industrial Park in Damak of Jhapa.

Lhasa Economic and Technology Development Zone, Jing-Ping Joint Creating Construction Project Development Company Limited is investing to develop the facility.

The 39^th meeting of the board held at Singhadurbar on Friday also gave permission to Damak Clean Industrial Park Pvt. Ltd. to prepare the Detailed Project Report (DPR) of the industrial infrastructure.

Likewise, the meeting led by Prime Minister KP Sharma Oli approved the Multi Model Logistics Park proposed to be developed in Biratnagar and assigned CG Logistics Pvt. Ltd. to conduct the feasibility study of the park. CG Logistics and Sharaf Group of the United Arab Emirates (UAE) had signed a Memorandum of Understanding, at the Nepal Investment Summit 2019 in March, to build the park.

Similarly, Railway Linked Private Freight Terminal project in Janakpur has also got approval. Green Infrastructure Pvt. Ltd. will conduct the feasibility study of the project.

The meeting has decided to ask sealed proposal from the two companies which had shown interest in developing 756 MW reservoir-based Tamor Hydroelectricity Project.

Among many companies that had expressed their intent to invest in the project, two joint-venture companies of the Hydroelectricity Investment and Development Company Limited (HIDCL) and Power Construction of China Limited, and Power Qatar Holding LLC and Fuju Electric Company Limited, Japan.

All the projects that got IBN approval were showcased at the Investment Summit earlier this year.

PM Oli directed the IBN and line ministries to expedite the process of project selection and implementation process.

“The responsible ministries and agencies must put their efforts to make the process faster and facilitate the foreign and domestic investors,” he said.

Chief Executive Officer of the IBN Maha Prasad Adhikari had updated the meeting about the projects the board had been facilitating.

He said that the IBN would continue to give approval to other projects screened by a technical evaluation committee.

A project evaluation committee comprising of technical team from the IBN and representatives from the concerned ministries has recently concluded the screening of the proposals for the projects showcased in the summit submitted by the investors during and afterwards the summit.

Of the 50 government projects presented at the summit, investors have applied for 31 projects. The IBN has received the investment commitment of Rs. 3.1 trillion in those projects from the investors of about 21 countries around the globe. 22 projects from the private sector were also displayed at the summit.

It received 71 applications for the 31 projects. Some projects like Tamor Hydroelectricity had witnessed multiple investment applications with a couple of them having up to seven proposals.
The projects were screened on the basis of the financial capability of the applicant company and their past experience.

Earlier, the IBN had approved investment in Freight Station Bulk Handling Terminal in Butwal and Birgunj, World Buddhist Exhibition Park in Lumbini and 550 MW solar projects in seven provinces where Indian-Nepali joint venture, Chinese and Philipino companies are investing. These projects were proposed by the private sector.

Following the investment summit, the government had set April 20 as the deadline for investors to apply for their choice of project among the 77 ventures showcased at the mega convergence. The date was later extended to March 20.

Published in The Rising Nepal daily on 3 August 2019.