General Insurance starts operation

Kathmandu, June 20: A new insurance company, General Insurance Company Nepal Limited, has started its service from Wednesday.

Company chairman Kunal Kyal inaugurated the corporate office of the company at Hattisar, Kathmandu, amidst a programme.

With the inauguration of the corporate office, we have formally shown our presence in the insurance market, said Kyal.

The company has a Rs. 1 billion paid-up capital, which consists of 70 per cent investment from the promoters and 30 per cent from the public.

According to  Managing Director of the company S. K. Tamot, the company will soon issue the Initial Public Offering (IPO) to raise money from the public.

 He said that the company had planned to introduce new insurance products and expand its branch network all over the country.

The non-life insurance company is the 18^th of its type in the country.

Published in The Rising Nepal daily on 21 June 2018. 

IBN concludes PDA negotiations with Nepwaste

Kathmandu, June 19: The Investment Board of Nepal (IBN) secretariat has completed the negotiations with the Nepwaste for the first package of solid waste management project of the Kathmandu Valley and set to take the agenda to the Boards’ next meeting.

The meeting chaired by the Prime Minister takes the final decision about the large infrastructure projects handled by the IBN, one stop service provider agency for such projects.

Following the board’s decision, the IBN and Nepwaste will move ahead to finalise the Project Development Agreement (PDA) negotiations, after that the private sector company will start the project formally, said Maha Prasad Adhikari, Chief Executive Officer of the IBN.

“We have concluded negotiations for the Project Development Agreement (PDA) with the company more than three months ago. We have asked for feedback from the municipalities and metropolitan cities in the valley. All local bodies except Kathmandu Metropolitan City (KMC) have sent their opinion about the project,” he said.

The solid waste management of the valley will be implemented in three packages – package I covers KMC and other municipalities except Kirtipur in Kathmandu district, Package II and III cover Lalitpur Metropolitan City, and Kirtipur, bhaktapur, madhyapur and other municipalities in Lalitpur and Bhaktapur districts.

Nepwaste, a Finnis and Nepali joint venture of Compunication OY and Organic Village, was selected to implement Package I. They have 49 per cent and 51 per cent stake in the company respectively.

Similarly, Clean Valley, Indian and Nepal joint venture, was selected for Package II and III.

IBN has said that the negotiations were underway with the Clean Valley, and the talks were delayed as the two sided were struggling to forge agreement with the amount of fee to be charged to the households.

The Rs. 8.2 billion project is divided into Rs. 6.3 billion for the Package I and Rs. 1.9 billion for the Package II.

According to IBN, the project envisions replacing the present practice of solid waste management – street sweeping, collection and disposal by a resource oriented and sustainable practice of reduce, reuse and recycle.

About 1000 metric tons of waste is generated in the valley every day of which 76 per cent is household waste, 11 per cent street and drainage waste, 11 per cent commercial and 2 per cent medical waste.

Published in The Rising Nepal daily on 20 June 2018. 

Bhairahawa SEZ fails to welcome entrepreneurs

Kathmandu, June 17: As the private sector entrepreneurs did not show up at the Special Economic Zone (SEZ) in Bhairahawa even after showing their interest and applying for the establishment of export-oriented industries at the sole SEZ of the country, the SEZ Authority has warned to scrap their application and initiate a new process to invite new companies there.

The government has established the SEZ to promote export-oriented industries and reduce trade deficit through export promotion.

But it has been more than a couple of years the special zone is waiting for the establishment of any industry. Although the government had announced one-window service and various tax exemption incentives, the SEZ has failed to attract any industry so far.

There is 100 per cent income tax exemption for the first five years from the starting product transaction, and 50 per cent tax exemption for another five years.

Industries using more than 60 per cent Nepali raw materials will get 50 per cent tax waiver for the following 10 years.

Industries operating inside the SEZ also get Value Added Tax (VAT) waiver and discount on customs duty on importing required machineries, raw materials and packaging materials, said Dr. Chandika Prasad Bhatta, Executive Director of SEZ Authority of Nepal while speaking at a discussion programme organised by the SEZ Authority and Society of Economic Journalists-Nepal.

Similarly, foreign investors can repatriate the income they made from share transaction, dividend and capital and interest of foreign loan.

Presenting a paper on the status of Bhairahawa SEZ Dr. Bhatta said that 26 industries have applied for the locations there. Those industries have pledged to invest about Rs. 7.76 billion and create 5,452 jobs.

According to him, political instability, delay in the enactment of required laws, fragile economy, weak institutional capacity of SEZ, lack of confidence between the government and investors and poor access to the international markets are the reasons behind low attraction to the SEZ.

President of Confederation of Nepalese Industries (CNI) Hari Bhakta Sharma said that the government should charge the rent of only Rs. 5 per square feet at the SEZ instead of prevailing rate of Rs. 20 per sq. feet.

Initially, the government had proposed the rent of Rs. 150 per sq. feet.

“The government should work to promote industries and must not focus on the income from rent,” he said.

Former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Pradeep Kumar Shrestha urged the government to win the confidence of the private sector.

The entrepreneurs who had applied for the industry establishment in the SEZ have urged the government to reduce the rent and amend the provision of mandatory export of 75 per cent to 60 per cent.

However, former vice chairman of the National Planning Commission Dr. Shankar Sharma said that the prevailing provision of mandatory 75 per cent export was appropriate.

Executive Director of the Nepal Electricity Authority (NEA) Kulman Ghishing pledged to provide necessary energy to the SEZ at the earliest.

“For the time being the NEA can provide 4-5 megawatt electricity to the industries at the SEZ, and if more energy is needed, it can be managed from the 33 KV transmission line that passes through the SEZ,” he said.

He also said that no entrepreneur had requested for additional energy.

Secretary at the Ministry of Industry Dinesh Bhattarai said that the government was mulling over reducing the rent and increasing the incentives for the industries in the SEZ.

Published in The Rising Nepal daily on 18 June 2018. 

India agrees to provide additional cross-border air route

Kathmandu, June 16: The joint meeting of high level aviation delegation between Nepal and India has agreed to develop new cross-border air-routes from Janakpur and Biratnagar and Mahendranagar.

The meeting between Civil Aviation Authority of Nepal (CAAN) and Airport Authority of India (AAI) that concluded on Saturday has agreed to make the Kathmandu-Biratnagar and Kathmandu-Janakpur air routes two-way. Both the parties also agreed to make Janakpur-Patna air-route two-way.

Similarly, the existing Kathmandu-Mahendranagar-New Delhi air-route would be made two way for lower flight service operations.

Technical teams will conduct aviation safety evaluation in order to confirm the technical feasibility of the proposed air routes, said Birendra Prasad Shrestha, Spokesperson of CAAN.

It will open up new air entry point which will facilitate the flights to and fro the Gautam Buddha International Airport, Bhairahawa, proposed Second International Airport, Nijgadh and Pokhara International Airport, and the Tribhuvan International Airport (TIA), Kathmandu.

The agreement will also be a milestone in strengthening regional-level airspace cooperation. Ministry of Culture, Tourism and Civil Aviation has said that the new routes were instrumental for the new international airport operations and increasing number of tourist arrival.

Nepal is preparing for the Visit Nepal Year 2020 with an aim of welcoming 2 million tourists, for which it needs to increase the number of long haul flights which couldn’t be managed at the TIA which is already facing severe traffic congestion.

Shrestha said that India will complete the detailed technical evaluation of the entry-points from Nepalgunj and Mahendranagar for flight operation at higher altitude, by September this year. Following the technical evaluation, India will provide the facility to Nepal.

Currently, all aircrafts flying to and fro the only international airport in the country – TIA, are authorised to use the Simara route to make an entry to Nepal.

According to Shrestha, the two sides have also agreed that there was a need of high-level technical cooperation agreement between the two neighbours in order to exchange cooperation on various technical subjects pertaining to Air Navigation Service.

Deputy Director General of Air Navigation Services Directorate at CAAN Narendra Bahadur Thapa and Member of Air Navigation Services and Board Member of AAI Anil Kumar Dutta led the delegation of the respective countries.

Nepal has long been asking India to provide additional cross-border air routes but the issue was formally raised during the visit of the Indian Prime Minister Narendra Modi in 2014.

The issue was included in the joint-statement issued by PM Oli and PM Modi during the former’s India visit in May this year.  The 2-day meeting was organised as mentioned in the statement.

Governments of Nepal and India, in 2016, had agreed to hold technical delegation-level meeting in order to make decision about the new cross-border air routes.

Published in The Rising Nepal daily on 17 June 2018. 

PM urges developers to build modern cities in remote areas

Property Expo 2018 kicks off

Kathmandu, June 15: Prime Minister KP Sharma Oli has urged the land and housing developers and entrepreneurs to support in developing modern cities in the remote areas as well.

Highlighting the role of land and housing developers, while speaking at the inaugural of the 7^th Property Expo at the Bhrikutimandap Exhibition Centre on Friday, PM Oli said that modern cities would provide better facilities to the denizens.

The expo is being organised by the Nepal Housing and Land Developers' Association (NHLDA) and will run for five days.

“The government has planned to develop 10 modern cities with necessary amenities at 10 different locations along the Pushpa Lal Highway in the mid-hill region. Additional modern cities will also be developed in Surkhet, Dang and Lumbini. The government will formulate better policy, but you should develop them,” he said to the developers.

He said that fertile land should not be sliced into small pieces to build homes on it but should be cultivated, and only barren and infertile land should be used for housing purposes.

“We should grow food or vegetables on the large plots of land and should stop fragmentation such land,” he said.

The PM said that the houses that were at risk would be relocated to safer locations.

According to him, the construction of settlements should be changed according to the need of the modern society, and well managed cities should be developed.

He urged the private sector property entrepreneurs to update the government about their problems and expressed his commitment to address the genuine ones.

The organiser said that the expo was a one-stop solution to the entire eco-system of the housing and land development sector of Nepal.

While the core focus of the expo is on the real estate market and home buyers in Nepal, the event covers the entire gamut of the housing sector, such as commercial and business property, architecture, construction, building, engineering and habitat environment, said Bipin Chitrakar, coordinator of the Expo Organising Committee.

The expo is hosting about 100 exhibitors, including apartment and town-house complex, commercial and building premises, interior design services, engineering firms, building and landscape architect firms, real estate agents, property developers and builders, building material suppliers and distributors, construction tools, banks and financial institutions, furniture and furnishing, ceramics, glass, wood, stone, iron and steel, cement, lighting, paint, solar energy and waste management.

The expo will also be twinned with the second Housing Summit 218 being held on June 18 and 19. The summit is being jointly organised by the Department of Urban Development and Building Construction, Kathmandu Valley Development Authority, and NLHDA in cooperation with the Institute of Engineering, Tribhuvan University.

Former prime minister Pushpa Kamal Dahal Prachanda will inaugurate the summit.

The summit will focus on the theme 'The new urban agenda in housing', a document adopted by the Habitat III Conference that provides global standards for the implementation and achievement of sustainable urban development over the next 20 years.

Published in The Rising Nepal daily on 16 June 2018. 

President unveils 3-year strategic plan of PSC

Kathmandu, June 15: President Bidya Devi Bhandari has said that the confidence and credibility the Public Service Commission (PSC) had earned over the years were remarkable and commendable.

Addressing a ceremony organised to mark the 68^th anniversary of the PSC here on Friday, she expressed her confidence that the organisation would continue to uphold the prestige it had earned so far in the days to come, and there would not be any intrusion to prevent it from carrying out its duties and responsibilities.

She said that the strategic plan prepared by the PSC would support in achieving the organisation’s objectives.

“The PSC has the responsibility to supply capable and skilled human resources to various public organisations. Therefore, it should put its endeavours to maintain impartiality, transparency and credibility of the PSC,” said the President.

President Bhandari also unveiled the three-year strategic plan of the PSC.

The strategic plan of the PSC has a vision to manage human resources capable of facing the challenges in the governance system and ensuring better public service to the people.

 It includes strategies and activities required to improve public service, promote the involvement of the public and experts, and strengthen the institutional capacity of the Commission. It also has parameters for work performance as well.

The strategic plan envisions step-wise implementation of the capacity-based selection system and ‘assessment centre for methodology’ while selecting candidates, and performance-based selection system while choosing candidates for the managerial posts.

Chairman of the Commission Umesh Prasad Mainali said that ‘meritocracy’ should be the main motto of the PSC.

“We are working hard to attract and supply human resource capable of facing the challenges and managing the changes the country has experienced in recent years,” he said.

He said that the Commission was facing difficulties in its operations in absence of the Public Service Commission Act and urged the government to table the bill in the parliament as soon as possible.

“The PSC is hopeful that the government will table the bill of the Public Service Commission Act in the parliament at the earliest,” he said.

According to him, the PSC has successfully implemented new technologies such as online system and mobile apps, which have facilitated the candidates appearing in the interview and in checking the marks they obtained. Similarly, the answer sheets are also being checked by two different examiners.

Member of the Commission Shree Purush Dhakal expressed gratitude to all the stakeholders for their continuous support.

Secretary of the Commission Mahendra Prasad Guragain said that a new curriculum was being implemented to enhance the quality and capacity of human resources.

The PSC has been conducting exams and interviews to select the required civil servants, and manpower in the Nepal Army, Nepal Police, Armed Police Force and other government service and organisations.

President Bhandari also awarded the best employees – Section Officer Shanta Kadaria, clerk Balaram Khatri, and Office Assistant Krishna Prasad Chaulagain each with a purse of Rs. 25,000 and a recitation letter.

Supervisor at the central office of the PSC Ramesh Shakya was also felicitated on the occasion.

The PSC had organised an inter-divisional quiz completion as a part of its anniversary celebration. The President also presented prizes to the winning teams.

Published in The Rising Nepal daily on 16 June 2018.

Tatopani to open from May 2019

Kathmandu, June 14: Minister for Foreign Affairs Pradeep Kumar Gyawali has said that the Tatopani border would come into operation from May 2019.

The major trade point between Nepal and China has remained shut following the devastating earthquake of 2015, although there were multiple diplomatic efforts from Nepal to reopen the border.

The quake had destroyed the road, which is yet to be rebuilt.

China is constructing the damaged bridge at the border point while Nepal will reconstruct the highway.

“According to China, the bridge will be completed before May next year, but the operation of the border will depend on the completion of the road,” said minister Gyawali at an interaction with journalists at his office at Singha Durbar on Thursday.

The northern neighbour is also constructing a dry port in Larcha.

Meanwhile, Nepal and China are preparing to sign various Memorandums of Understanding (MoUs) and agreements on forming a Foreign Ministry level mechanism for the Keyung-Kathmandu Railway project, constructing bridges, transit transportation, cross border transmission line, energy and disaster management support during the upcoming visit of Prime Minister KP Sharma Oli to the northern neighbour.

Prime Minister Oli is scheduled to embark on his six-day official visit to China on June 19.

Foreign Minister Gyawali said that a MoU would be signed for a 960-megawatt capacity cascade project in Marsyandi River in western Nepal. The MoU will be signed between SCIG China and Butwal Power Company, Nepal.

Chinese and Nepali private sector companies will also sign MoUs for cooperation in agriculture, pashmina, cement and energy sectors.

Nepal has also urged China for support in human resource development for the railway project, and China is positive to provide short-term training and long-term study on the topic. It will also support Nepal in capacity enhancement in shipping business, Foreign Minister Gyawali said.

During PM Oli's visit to China, the Embassy of Nepal will organise a luncheon in the honour of the PM on the first day.

There will be discussion with the Chinese business community on the second day. The programme will be organised by the Chinese Council for Promotion of International Trade. The MoU will be signed between private sector companies on the same day.

The PM will also meet high level leaders on that day.

On the third day, PM Oli will inaugurate a Nepal-China Friendly Run to promote a Visit Nepal Year 2020 campaign in Beijing.

He will also hold delegation-level bilateral talks with his Chinese counterpart, Li Keqiang, in the afternoon.

The chief of the Asian Infrastructure Investment Bank (AIIB) will also call on Oli.

On the fourth day, PM Oli will visit Tibet to observe the development in the autonomous region.

According to Gyawali, the visit will strengthen the traditional and friendly bilateral relations with China and will give a new height to it in the changing scenario.

He said that the visit of Oli to China as the PM in 2016 was highly important as the country had signed historic agreements on connectivity, transit and trade.

Both the governments are exchanging high level delegations to make preparations for the visit.

BIMSTEC meeting fixed

Foreign Affairs Minister Gyawali said that the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) meeting would be held in Nepal by the end of August this year.

“All the member states have agreed on the date and sent their consent for the participation. It will be an important multilateral meeting in Kathmandu,” he said.

According to him, connectivity would be a major agenda at the BIMSTEC meeting.

Published in The Rising Nepal on 15 June 2018.