Buildcon Expo from today

Kathmandu, Feb. 19

The 10^th Nepal Buildcon International Exhibition is set to take place from 20 to 23 February at the Bhrikutimandap Exhibition Centre in Kathmandu.

This exhibition will feature over 150 stalls showcasing more than 300 renowned brands from various countries. The event will bring together industries, companies, dealers, sub-dealers, and suppliers, offering insights into the latest developments in the construction sector. 

"Over the past nine years, this exhibition has proven to be a milestone in introducing new and emerging technologies in the field," said the organisers Media Space Solutions Pvt. Ltd. and Futurex Trade Fair and Events Pvt. Ltd.

The products and services that will be on display include construction materials, chemicals, construction machinery, pre-fabricated structures, UPVC windows machinery, UPVC profiles, doors and windows, architectural hardware, bathroom fittings, pipes, tiles and sanitary ware, roofing, pre-engineered buildings, power tools, windows, concrete block machinery, aluminium composite panels, and adhesives.

"The exhibition will highlight innovative products and the latest technologies, which we believe will significantly contribute to promoting Nepali-made materials and technology in the international market," the organisers said in a statement on Wednesday.

Leading architects, engineers, contractors, builders, and interior designers from Nepal’s construction industry will participate in the event. 

Published in The Rising Nepal daily on 20 February 2025.  

IPPAN urges for facilitating in the IPO of hydel companies

 Kathmandu, Feb. 18

Policymakers and private stakeholders have said that the issuance of primary and rights shares of hydropower companies should not be halted.

Speaking at an interaction organised by the Nepal Association of Financial Journalists (NAFIJ) in Kathmandu on Tuesday, they urged the government to facilitate the Initial Public Offering (IPO) process for hydropower companies.

The government has set a target of generating 28,500 megawatts of electricity by 2035. To achieve this goal, including the necessary infrastructure development, requires an estimated investment of US$ 46.5 billion.

However, despite this ambitious target, the government has not facilitated one of the key investment avenues—public issuance of shares by hydropower companies. Currently, 42 hydropower companies have pending applications at the Securities Board of Nepal (SEBON) for the IPO.

Collectively, these companies have sought approval for the issuance of 179.06 million shares, worth Rs. 18.31 billion. Hydropower companies have been unable to secure IPO approval for the past 18 months, significantly impacting hydropower development,  said Ganesh Karki, President of the Independent Power Producers’ Association Nepal (IPPAN).

Challenge to manage funds

Suman Joshi, a member of the IPPAN said that despite the legal provision requiring hydropower companies to allocate 10 per cent of their shares to affected local communities, the delay in IPO approvals has led to growing dissatisfaction among the locals. Promoter companies are unable to distribute shares to locals despite their willingness to do so, she added.

According to Joshi, the IPO approval process has been stalled due to a directive issued by the Public Accounts Committee (PAC) of the House of Representatives (HoR) on December 28, 2023, which stipulated that hydropower companies issuing IPOs must have a minimum ‘real net worth’ of Rs. 90 per share.

As a result, many hydropower companies have been unable to obtain IPO approval. Hydropower projects typically issue IPOs during their construction phase, during which their net worth is naturally lower. Hence, there is a pressing need for regulatory flexibility, the investors said.

“The inability to issue IPOs has also led banks and financial institutions to halt loan disbursements, affecting project construction,” Joshi stated. “If IPO issuance remains stalled, shareholders may also be discouraged from investing.”

She further highlighted that project delays result in increased costs while the Nepal Electricity Authority (NEA) imposes penalties for missed deadlines.

Rs. 1.5 trillion in limbo

Karki criticised the government for restricting hydropower producers, arguing that the sector, with an investment of Rs. 1.5 trillion, is now in limbo.

Stating that the capacity of Nepali private sector companies has gone up significantly in terms of project development, he urged authorities to facilitate the share issuance process for hydropower companies.

According to him, in some cases, frustrated residents have resorted to vandalising company vehicles. "How can the companies be blamed for this? Until IPOs are approved, shares cannot be distributed. The concerned authorities must address this issue,” he maintained.

Karki further said that there is a contradiction between the PAC and the Finance Committee of the Federal Parliament, and at a time when entrepreneurs should be focusing on projects, they are compelled to navigate bureaucratic hurdles, hampering the development of the sector.

Assuring that efforts would be made to facilitate the private sector in the energy business, PAC Chairman, Rishikesh Pokhrel, stressed the need for solutions rather than disputes over the IPO halt. He suggested revisiting the previous PAC decision.

“We ruled that founding investors should not exit until loans are repaid,” Pokhrel explained. “However, we must clarify whether allocating 10 per cent shares to locals and the public constitutes a financial burden or a profit-sharing mechanism."

Chief Whip of the Nepali Congress, Shyam Kumar Ghimire, acknowledged the difficulties faced by hydropower companies due to the IPO halt and indicated that the PAC decision would be reconsidered.

“Share issuance must not be driven by fraudulent intent—it must be regulated. IPO issuance is a good concept as it allows public investment and facilitates more projects. Therefore, IPOs should be approved, but their misuse must be prevented,” said Ghimire.

 

NEA plans to issue IPO

Kulman Ghising, Executive Director of the NEA, acknowledged the risks associated with IPO investments and argued that necessary regulations should be put in place rather than halting the process altogether.

Ghising reiterated NEA’s commitment to facilitating power purchase agreements (PPAs) as required to meet the government’s 28,500-megawatt target. “Not all projects with signed PPAs proceed to construction. The private sector must take this issue seriously and avoid merely holding onto PPA approvals without implementation,” he said.

He informed that the NEA is preparing to issue its IPO, with all necessary formalities completed. “We have submitted the proposal to the Ministry of Finance, and once approved by the Cabinet, we will proceed with issuing shares,” he said.

According to Ghising, the NEA plans to issue IPOs at a premium price, representing 20 per cent of its capital.

 

Need for efficient process

Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission (ERC), said the regulatory framework was being streamlined to ease IPO approvals. “Hydropower companies must submit documentation to the SEBON, the Company Registrar’s Office, and ERC. We are working towards making this process more efficient,” he said.

Similarly, Joint Secretary of the Finance Ministry, Shyam Prasad Bhandari pointed to the lack of coordination among government agencies and stressed the need for policy stability to foster investment.

According to him, while Nepal’s hydropower sector faces investment challenges, the primary issue lies in management rather than funding.

Rupesh KC, Deputy Director of the SEBON, said that 37 per cent of IPOs awaiting approval belong to hydropower projects. He reaffirmed the Board’s responsibility to balance capital mobilisation for economic growth while protecting investor interests.  

Published in The Rising Nepal daily on 19 February 2025.  

Stakeholders stress greater Nepal-UK business, trade ties

Kathmandu, Feb. 18

Stakeholders have stressed on greater business and trade ties between Nepal and the United Kingdom.

Speaking at the UK-Nepal Business Forum organised by the UK's Department for Business and Trade (DBT) in collaboration with the British Embassy in Kathmandu, they said that as Nepal has implemented significant policy reforms in the past couple of years, it now has predictable trade environment conducive to attract more Foreign Direct Investment (FDI).

Speaking at the first-ever UK-Nepal Business Forum, British Ambassador to Nepal, Rob Fenn, said that the UK has been a trusted and stable partner in Nepal's economic development. "We have been working with the private sector stakeholders in their development through various programmes including Nepal in Business, Green Growth and Sahakarya," he said.

Ambassador Fenn also said that UK wants to be a preferred trade and investment partner at a time when Nepal is graduating to the 'developing country status'.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, stated that the Government of Nepal has amended over 30 laws to make investment easier. 

These reforms provide a stable and welcoming climate for businesses to start, grow, and succeed, he said.

"There are several sectors where the UK businesses can find exciting opportunities. Nepal’s hydropower potential remains largely untapped, offering thousands of megawatts of energy possibilities. With its expertise in renewable energy, the UK is well-positioned to partner in this sector," Dhakal said while also highlighting immense opportunities in tourism and IT sectors.

Birendra Raj Pandey, Senior Vice-President of the Confederation of Nepalese Industries (CNI), stated that the two countries must work towards further enhancing our bilateral investment framework.

"The Double Taxation Avoidance Agreement (DTAA) between Nepal and the UK has been revised twice, yet it remains unsigned. Finalizing this agreement at the earliest will provide greater confidence to British investors and ensure Nepal remains competitive as an investment destination," he said.

According to him, expanding the DTAA beyond the 11 existing countries is vital to attract greater foreign investment and boost investor confidence. 

Likewise, Petra Lenihan, Head of Team for International Strategy and Trade Relations South Asia of the DBT, called for that open and predictable trade environment to attract FDI. According to her, the UK is supporting Nepal in its new industrial strategy, and regulatory reforms especially the targeted reform approaches

Pauline Seenan, Head of Green Growth Group at the FCDO, said the forum aimed at fostering business partnership between the two countries.

"We have been collaborating in democratising access to capital especially of the small and medium enterprises (SMEs) and helping them export their products to the UK," she said.

Dr. Yuba Raj Khatiwada, Economic/Development Advisor to the Prime Minister to Nepal, suggested more activities to promote trade, investment and tourism in the UK and urged for more financial support and investment in infrastructure development and other priority areas.

UK launches SMEs Support Project in Nepal

The UK International Development has launched a new project to support 40 Small and Medium Enterprises (SMEs) in priority sectors to create about 2,700 jobs in three provinces of Nepal. Dhangadhi-Attariya, Pokhara-Bhairahawa and Itahari-Biratnagar industrial corridors are the target areas of the projects.

The GBP 4.5 million (about Rs. 786 million) project is launched at the UK-Nepal Business Forum held in Kathmandu on Tuesday. Application for the grant has also been open along with the launch of the project.

Nepal in Business (NiB) project launched in Madhes, Lumbini and Karnali will support the selected SMEs from agro-processing, light manufacturing, tourism and Information and Communication Technology (ICT). Products included in the priority sectors are MAPs and essential oils, spices, natural fibres, wellness and spiritual tourism, and Information Technology and IT-enabled services export.

"Each selected SME will be eligible to receive result-based matching grants and technical assistance, as informed by individual growth plans," informed the project.

Medium-sized enterprises with 50-250 employees having at least two years of operational experience – backed up by audited documents, and having a solid concept to expand and create 60-70 new jobs are eligible to apply for the grant fund. On the basis of expansion plan and potential job creation, an enterprise could get up to GBP 100,000 in grant support.

However, such enterprise should agree to co-finance to ensure shared ownership and risk.

The NiB is a five-year programme funded by the UK International Development and implemented by DAI Global UK. According to the project, it aims at enhancing productivity and competitiveness of SMEs to create productive jobs through grants and technical assistance, and advancing reforms to address sectoral, trade and business environment barriers through private-sector led and government-engaged approach. 

Published in The Rising Nepal daily on 19 February 2025.  

CAN Federation submits recommendations for AI Policy

Kathmandu, Feb. 18

The Computer Association of Nepal Federation (CAN Federation) submitted a concept paper to the government containing crucial recommendations for the forthcoming National Artificial Intelligence (AI) Policy.

 On Sunday, a delegation from the federation handed over the document containing the suggestions to the Minister for Communications and Information Technology, Prithvi Subba Gurung.

The recommendations include defining AI clearly in the Nepali context, incorporating a glossary of AI-related terms, and promoting AI applications in key sectors such as healthcare, agriculture, and disaster risk management.

Likewise, fostering multi-sector collaboration among academic institutions, government agencies, private enterprises, and local authorities has also been included as a recommendation.

The federation has stressed the need for a robust legal framework for AI and data security, clear data management policies, cross-border data-sharing mechanisms, establishment of independent data centres, and investment in AI ecosystems, including human resources and scholarships.

The concept paper also advocates for AI tools tailored to the Nepali language and local need, the CAN Federation informed in a statement issued on Tuesday.

Titled 'Use and Practice of AI in Nepal', the concept paper was prepared under the review and recommendations of CAN Federation’s AI Coordinator and Vice-President Chiranjibi Adhikari, Professor Sudan Jha, Advocate Diksha Raut, and Ganga Bhandari. The document primarily focuses on technological innovation, AI research, ethical AI development, data security, and regulation, while offering key recommendations.

"The CAN Federation believes that Nepal can achieve self-reliance in AI and compete globally if it promotes the development and research of new technologies. The concept paper underscores the importance of prioritising ethical values, ensuring digital inclusion, and safeguarding human rights while developing AI technologies," CAN Federation said in the statement.

Furthermore, the CAN Federation has emphasised that AI development should be guided by strong ethical principles, ensuring that its application does not cause harm. The federation has also stressed the necessity of a robust system for data security to prevent misuse and called for stringent regulations to safeguard data privacy.

President of CAN Federation, Sunaina Ghimire Pandey, said that Nepal requires a well-structured policy and institutional initiatives for sustainable AI development. She noted that AI holds the potential to revolutionise education, healthcare, agriculture, infrastructure, and administration.

Dr. Shaligram Parajuli, IT expert at the Ministry of Communications and Information Technology, said that the role and support of stakeholders, including the CAN Federation, would be crucial in making the AI policy effective. He emphasised that the policy should be implemented in an open and transparent environment and assured that the government would incorporate collective opinions and recommendations while drafting the policy for swift implementation.

According to CAN Federation General Secretary Chandra Bilash Bhurtel, the primary objective of the recommendations is to create an AI-friendly environment in Nepal and enhance its global competitiveness in AI advancements.

Published in The Rising Nepal daily on 19 February 2025.  

MCC halts funds to Nepal Compact

 Kathmandu, Feb. 18

The Millennium Challenge Corporation (MCC) has informed the Government of Nepal that fund payments for activities under the MCC Compact have been suspended in compliance with a 90-day funding freeze issued by US President Donald Trump on 20 January 2025.

The MCC has written a letter on Friday, February 14 to the Ministry of Finance (MoF) of Nepal to notify the disbursements linked to ongoing projects in Nepal will be halted in line with the executive order.

The Nepal government and MCC had signed the Compact on 15 September 2017 (Bhadra 29, 2074), which primarily funds infrastructure development, including electricity transmission and road maintenance projects.

President Trum had issued an executive order to halt aid release with an objective for Reevaluating and Realigning United States Foreign Aid for the next 90 days.

This follows a previous decision by the United States Agency for International Development (USAID) to pause certain funds for Nepal. The suspension of MCC funds is expected to impact the implementation timeline of key development projects. However, the MoF didn't inform further details about the project activities under the MCC Nepal Compact.

Earlier on January 28, the USAID had written to the MoF that grant assistance for four projects was suspended. They included Health Direct Financing Project, Agricultural Direct Financing Project, Education Direct Financing Project and Inclusive Policy Direct Financing Project.

The MoF had directed all concerned agencies not to create any liabilities towards USAID resources under the suspended projects for the said 90-day period. 

Published in The Rising Nepal daily on 19 February 2025.  

FM Dr. Rana urges for Pokhara-Dubai direct flight

Kathmandu, Feb. 15

Foreign Minister Dr. Arzu Rana Deuba has requested the Minister of State for Foreign Affairs, Economy and Trade of the United Arab Emirates (UAE), Ahmad Ali Al Sayegh for direct flights between Dubai and Pokhara.

The two ministers met on the sidelines of the Indian Ocean Conference on Sunday where Minister Sayegh assured that a technical study would be initiated immediately, with a plan to launch flights soon, informed the Ministry of Foreign Affairs (MoFA) in its statement on Sunday.

Their discussions also covered bilateral relations, including labour, tourism, and economic development, as well as collaborative efforts in tackling climate change. Minister Sayegh acknowledged Nepali workers’ significant contributions to the UAE’s socio-economic development.

The two ministers further explored future cooperation in trade, investment and tourism. On the occasion, FM Dr. Rana invited the UAE to participate in the upcoming Sagarmatha Dialogue to be held in Kathmandu.

Meanwhile, on the sidelines of the conference, FM Dr. Rana held a meeting with Qatar's Minister of State for Foreign Affairs, Sultan bin Saad bin Sultan Al Muraikhi and requested Qatar’s assistance in facilitating safe release of Bipin Joshi, a Nepali national abducted by Hamas in October 2023 during an attack in Israel.

Their discussions also covered bilateral relations, including Qatar’s scholarships for Nepali students and the deployment of skilled technical manpower.

FM Dr. Rana commended Qatar’s role in mediating ceasefires and peace talks between Israel and Hamas and urged them to intensify efforts for Joshi’s release.

Previously, Minister Deuba had also raised this issue in a phone conversation with Qatar’s Minister of State for Foreign Affairs, Dr Mohammed bin Abdulaziz Al-Khulaifi, a key mediator in Israel-Hamas negotiations.

Published in The Rising Nepal daily on 16 February 2025.  

FM Dr. Rana stresses greater connectivity, cooperation among Global South nations

Kathmandu, Feb. 15

Foreign Minister Dr. Arzu Rana Deuba has emphasised the need for greater connectivity and cooperation among Global South nations, as they represent the majority of humanity.

Speaking at the 8^th Indian Ocean Conference in Muscat, Oman, on Sunday, she said that maritime partnerships are important for landlocked nations like Nepal. She noted that such collaborations could enhance connectivity and contribute to inclusive and sustainable development, the Ministry of Foreign Affairs (MoFA) said in a statement on Sunday.

In a session focused on amplifying the voice of the Global South, Minister Dr. Rana stressed that without the advancement of the Indian Ocean region, the achievements of the developed world could also be at risk.

“The roadmap for the future is clear. The world agrees on the way forward for humanity, and strategies have already been identified. The Global South represents the majority of the world’s population, and we will leave no one behind,” said  Dr. Rana. She called for collective action and commitment to achieving the shared goals.

To unlock the full potential of the Global South, she suggested reviewing South-South cooperation policies, strengthening regional integration and promoting mutual collaboration.

According to the MoFA, Minister Dr. Rana also underscored the need for equal access to financial resources and reforms in global governance and financial institutions to ensure the Global South is adequately represented. She called for joint advocacy to ensure developed countries meet their commitments.

She highlighted the importance of enhancing regional connectivity through land, air and sea networks and facilitating knowledge, skills and technology transfers to strengthen capacity-building efforts.

"Addressing global challenges such as inequality, poverty, rising debt crises, conflicts, digital divides and climate change, she emphasised the urgency of regional cooperation and South-South collaboration to address these pressing issues," read the statement.

According to her, least developed, landlocked and small island nations face resource constraints, necessitating stronger collective efforts to build a resilient future.

Referencing the UN Summit of the Future held in September, Minister Deuba reiterated the recognition of South-South and triangular cooperation as effective strategies for achieving the Sustainable Development Goals (SDGs). She expressed hope that international forums would provide much-needed strategic direction and synergy in utilising the abundant natural and human resources within the Global South.

She also informed the participating delegations about Sagarmatha Dialogue, a global forum for discussing critical regional and global issues, set to be held in Kathmandu in May this year.

The first edition of this dialogue will focus on climate change, mountains, and the future of humanity, bringing together scientists, policymakers, mountaineers and world leaders to foster discussions and commitments.

Published in The Rising Nepal daily on 16 February 2025.