Model ballot paper is biggest challenge to ECN

 Kathmandu, Feb. 10

Chief Election Commissioner, Dinesh Kumar Thapaliya has said that the single largest challenge for the Election Commission of Nepal (ECN) in the upcoming local elections is to create a model ballot paper to educate the voters.

"The largest challenge for us is to educate the voters through the model ballot paper with the list of symbols for the total candidates in each local body so that they could be sensitised on casting their votes properly," he said in an interview with The Rising Nepal and Gorkhapatra dailies. The model ballot paper can't be designed and published until the names of the candidates and parties are finalized for the polls.

According to him, there is a need to create 6743 specific ballot papers for the total number of wards across the country and send them to all local levels. It can be done in the final 15 days before the election day. So, we are highly sensitive on this matter, said Thapaliya.

In the previous election, the ECN had printed 70 ballot papers in six different designs and sent them to the local levels.

Published in The Rising Nepal daily on 11 February 2022. 

ECN begins feasibility study for EVM application in local polls

Kathmandu, Feb. 9

The Election Commission of Nepal (ECN) has started the feasibility study for the use of Electronic Voting Machines (EVMs) in the upcoming local level elections slated for 13 May 2022.

The commission is for the use of EVM to reduce the cost and complexity in the polls, said Chief Election Commissioner, Dinesh Kumar Thapaliya.

It will use the machines developed by youth scientists Ram and Laxman after assessing the accuracy and authenticity of the machine. According to Thapaliya, if the economic resources allowed and voters could be made ready to use the machine, the ECN is planning to use EVMs in six metropolitan cities and municipalities in the Kathmandu Valley in the upcoming local elections.

A committee is formed under the leadership of Anil Kumar Dutta, Joint Secretary of the Ministry of Communication and Information Technology, to study the prospects of EVM at least at the cities. A meeting of the commission on Wednesday decided to form the committee, said Shaligram Sharma Poudel, Spokesperson of the ECN.

The committee has the representations of the Department of Industry, Nepal Bureau of Standard and Metrology and other concerned agencies. It has the mandate to study the issues like the availability and authenticity of EVMs and submit report within seven days. The ECN will use the EVMs as per the recommendations of the committee with the consensus among the political parties participating in the polls.

Meanwhile, to reduce number of vote cancellation, the ECN is planning to launch digital communication campaign. Notices and reminders would be sent to the mobile numbers of voters on the day of polls while social media and online media will be used extensively.

"We are mulling a new concept on voters' awareness, to educate them at the polling station before casting their votes by establishing a help desk and mobilizing two educators at each station. Such education will be conducted in local language, if needed. It is cost-effective and will have full coverage," said Thapaliya.

The ECN conducted a 'demo voting' in an EVM at its office on Wednesday. 

Published in The Rising Nepal daily on 10 February 2022. 

IBN allows India's CEL to conduct feasibility of 350MW solar projects

Kathmandu, Feb. 9

The Investment Board of Nepal (IBN) has decided to permit the Central Electronics Limited (CEL) of India to conduct the feasibility study for 350 MW solar energy projects in Doti and Dadeldhura districts in Sudurpaschim Province.

A meeting of the IBN chaired by Prime Minister Sher Bahadur Deuba on Tuesday approved the feasibility study of the project with an estimated cost of Rs. 23 billion. The CEL is an Indian government-owned enterprise under the Ministry of Science and Technology.

The project will be developed in Silgadhi Municipality of Doti and Amargadhi Municipality of Dadheldhura districts by installing about 125 MW and 225 MW solar energy fields, said the IBN.

According to Ramesh Adhikari, Deputy Spokesperson for the IBN, the approval is the first step to the project development and timeline for the study would be set while signing a Memorandum of Understanding with the CEL later. It is expected that the feasibility study would  complete in 12-15 months.

Likewise, the meeting approved Rs. 9.68 billion investment to be made by Dabur Nepal Pvt. Ltd., an Indian investment enterprise running manufacturing business in herbs and medicine sector in Nepal, for its capacity enhancement and product diversification.

It also approved the inception report of the SJVN Limited India for the development of the Lower Arun Hydroelectricity Project in the BOOT (Build, Own, Operate and Transfer) model.

SJVN India is the company selected for the development of the project under this modality, said the IBN, a one-door agency established to attract and facilitate foreign and domestic investments in large projects.

The meeting also allowed the IBN to be the member of the Geneva-based World Association of PPP Units and Professionals (WAPPP) and decided to publish the comparative study report for the establishment of chemical fertiliser plant. It was prepared by the IBN itself.

Speaking at the meeting, PM Deuba, who is the Chairman of the board, said that the government was committed to make policy and legal reforms and create investment-friendly environment to attract investors in various projects in Nepal.

He directed the Office of the IBN and other bodies concerned with development to expedite the works related to feasibility study by diversifying the infrastructure and give emphasis to the development of the projects.

Chief Executive Officer of the board Sushil Bhatta said that the IBN was focused on project implementation, facilitating investment and institutional reforms. 

Published in The Rising Nepal daily on 10 February 2022. 

Cash margin on LoC beneficial to banks only: NCC

Kathmandu, Feb. 8

Nepal Chamber of Commerce said on Tuesday that the policy to manage 100 per cent cash margin while opening the Letter of Credit (LoC) is against the spirit of the liberal economy.

Stating that its attention was drawn to the complexities created by the policy in import business, it said that the policy would hit on the confidence of the private sector while it is struggling for the business revival.

“Provision to maintain cash margin for imports will create new challenges, increase the cost of goods, and in the long run will decrease the competitiveness of Nepali goods.

Likewise, the NCC objected to the policy to charge high customs duty in goods import. This is against the norms of liberal economy and World Trade Organisation’s policy, it said in a statement. 

“We have already drawn the attention of the Nepal Rastra Bank regarding the drawbacks of the cash margin on LoC. It will only support the banks and financial institutions but not the entrepreneurs,” read the statement.

Published in The Rising Nepal daily on 9 February 2022. 

Kurtha-Bijalpura rail link completed, operation date not in scene

Kathmandu, Feb. 6

 India has completed the second phase of Nepal-India Railway Project connecting Bijalpura with Kurtha and is in the process to hand it over to the Government of Nepal in a couple of weeks but it is uncertain when the rail will come into regular operation.

The 18-km stretch from Kurtha to Bijalpura, a section of the Nepal-India cross-border rail link, has three stations - Kurtha, Pipradi and Bijalpura, and two halts – small stations without staff and facilities – at Loharpati and Singyahi.

The Department of Railways (DoR) said that the infrastructure is ready for the operation of trains but the service would take some time since human resources are being managed.

Spokesperson of the DoR Aman Chitrakar said that the timeline for the train operation is not finalised yet, however, preparations are being expedited.

According to him, training for the human resources recruited from the Nepal Railway Company has concluded and soon they will be deployed to operate the rail service.

But core technical manpower such as loco pilots and assistant loco pilots will be supplied by the Konkan Rail Corporation Limited, the supplier of the trains to Nepal.

The DoR had planned to operate railway service in the Janakpur-Jayanagar section from October 2018 but delay in procuring the locomotives failed the plan.

The Konkan Rail Corporation could deliver two sets of DEMU trains only in September 2020. However, the trains procured at the cost of Rs. 846.5 million are rusting at Janakpur station since then.

The first cross-border railway connectivity project covers about 69.8 km from Jayanagar in Bihar to Bardibas in Mahottari district in Nepal. However, the third phase of the project – Bijalpura to Bardibas – is yet to be completed. The project is funded by India and it has invested about INR 5.5 billion till now.

Till 2014, Nepal had narrow gauge train service which is being converted to broad gauge passenger rail service.

Published in The Rising Nepal daily on 7 February 2022. 

Corona Insurance claims to be cleared by mid-July, IB assures all for the payment

Kathmandu, Feb. 5

Insured of Corona Insurance scheme are likely to get their claims reimbursed by mid-July this year – end of current Fiscal Year 2021/22 – approximately a year after the validity of the term-insurance expired.

The Ministry of Finance (MoF) is currently mulling over two alternatives for the payment suggested by the Insurance Board (IB). “Discussions are underway to resolve the issue of Corona Insurance. Since we need to manage a large sum of money to clear all the claims, other options are also being studied,” said Ritesh Kumar Shakya, Spokesperson of the MoF.

According to him, the ministry will make budgetary adjustment to manage resources for the Corona Insurance payment after the end of the second quarter of this fiscal, i.e. March 14.

The government makes budget transfers only after the second quarter of the running fiscal year.

According to the statistics provided by the Nepal Insurers Association (NIA), non-life insurance companies have issued about 1.758 million policies under Corona Insurance while 958,198 policies were issued under the government insurance grant.

By 31 December 2021, approximately 161,549 claims were made which need Rs. 15.32 billion to meet the demand. About Rs. 3.5 billion was paid from the insurance pool created with the contribution from 19 non-life insurance companies. The companies had collected just Rs. 1.95 billion by selling the policies, and they are yet to get Rs. 211.2 million from the government for the grant offered to the Corona Insurance.

“We have paid about Rs. 5 billion for Corona Insurance making additional Rs. 1.5 billion payment. We had made the payment with a hope that the government would provide financial support,” said Chunky Chhetry, President of NIA. The MoF had directed the companies to make the payment pledging for the reimbursement of the paid amount.

As per the Corona Insurance Rules, if the claims on the Corona Insurance exceed Rs. 3 billion, the government will bear the cost. Insurance companies have the liability of up to Rs. 1 billion. If the claims exceed Rs. 1 billion, Nepal Re should cover up to Rs. 2 billion, insurance pool up to Rs. 2.5 billion and IB up to Rs. 3 billion.

Chhetry said that the insurance companies have made enough contribution, more than what they could manage.

 

Two alternatives

Earlier in October 2021, the IB had suggested two methods for the payment. The first alternative recommends clearing the insurance claims of the government employees from the Rastriya Beema Sansthan within the period specified by the government. Sansthan is a state-owned insurance company.

Rest of the claims should be considered 100 per cent and half of it should be borne by the government. The remaining half will divided to IB, Nepal Reinsurance Company and non-life insurance companies – with 10 per cent each by the former two and 30 per cent by the latter. The 30 per cent contribution from the non-life insurance companies should be paid in a proportionate manner by all institutions.

The second alternative suggests 55 per cent contribution from the government in making the payment of claims amounting about Rs. 11.44 billion. Likewise, Nepal Re should contribute 12 per cent, insurance companies 25 per cent and IB 8 per cent.

However, Chhetry said that it would be challenging for the insurance companies to make additional contribution.

 

Loss of credibility

Insurers said that the delay in clearing the claims of the Corona Insurance had eroded credibility on the part of insurance companies while it is now a pure liability of the government.

Inability to make the payment against the insurance claims has sent a negative message to people about the insurance industry itself. Likewise, staff and agents of the insurance companies are receiving threats. “Our staff and agents outside the valley are receiving threats to clear the claims immediately,” a CEO of a non-life insurance company said.

Chhetry said that the damage was not only on the part of the companies, it was the trust issue in the government as well. “Leadership at the MoF has been changed thrice but the problem is not resolved. Clearing the remaining claims is not a big deal for the government. It's about ‘earning goodwill’ as well,” he said.

 

‘Insured will get their money’

While the IB and insurance companies are waiting for a positive step from the Finance Ministry, Executive Director of the board, Raju Raman Adhikari, assured that the insured would get their claims cleared even though it would take a while.

“All insured persons will get their insurance money. The process for it would be initiated after the ministry makes decision about the modality of contribution,” he said.

However, all stakeholders are looking up to the government for the resolution of the problem. MoF Spokesperson, Shakya said that the ministry would make a decision on the issue at the earliest. 

Published in The Rising Nepal daily on 6 February 2022.

MCC will do no harm to Nepal: Experts

Kathmandu, Feb. 4

While wrangling over the grant support of US$ 500 million is creating a wide political divide, experts have said that the squabble could incur a serious damage to the inflow of foreign support in Nepal and its foreign relations.

Nepal and the Millennium Challenge Corporation (MCC), an agency of the United States' government, signed an agreement on September 14, 2017 for a US$630 million project, with $130 million investment from Nepal, to develop cross-border transmission lines and rehabilitate the strategic roads.

Project implementation agreement for the programme was signed on September 29, 2019 with a decision to launch the project on June 30, 2020.

But the largest grant support was pushed into controversy before the commencement of its execution. While on the one hand, MCC – named as Millennium Challenge Account – Nepal Compact – became a contentious issue in the political, development and diplomatic circles, on the other hand, there were targeted communication including trolls and fake news about the project.

The country recently saw a clear political division on the issue with the erstwhile ruling Nepal Communist Party’s leaders taking sides or going against the project.

While the agreement with the MCC clearly mentions that no military or quasi-military activities could be allowed under the pact, some political leaders are propagating fake information, said the experts.

"Some of the leaders are giving their statements without going through the pact. It also needs a qualification to understand the issue," said senior advocate Prof. Dr. Gandhi Pandit, an expert of contract law.

He said there was no provision in the agreement to force Nepal to abide by the US laws, rather if the former felt that the project was not in our national interest, Nepal can scrap the agreement giving a 30-day deadline.

Prof. Pandit also said that while there was no strict provision to present the agreements like the MCA in the parliament, it would do no harm if it is tabled in the House of Representatives.

Udaya Shumsher Rana, who was the Minister of State for Finance at the time the grant agreement was signed, said that the current dispute surrounding MCC was a product of political infighting in the former Nepal Communist Party (NCP) rather than any genuine objection to the aid.

Nepali Congress leader Rana shed light on the timeline of events. “The MCC agreement was signed in September 2017 and for nine months, no one raised any objections. But when relationship between the various factions within the NCP soured, this issue was thrust into the spotlight to put pressure on the then government of Prime Minister KP Sharma Oli.”

Rana regretted the amount of misinformation that has been spread about the American grant, which in his words is “essentially free money” and asked people to understand that it would help the country develop

“The grant will support Nepal’s hydropower and road infrastructure, both crucial sectors for Nepal’s development, and will put money into projects that Nepal itself has prioritised and recommended,” Rana said.

“We are okay with taking out loans to construct Pokhara International Airport but are not okay with using free money for our infrastructures?” Rana questioned.

With regard to the controversy surrounding MCC, Rana urged all parties to favour the national interests. “Let us do what is best for our country.”

Expert in hydroelectricity and former Vice President of Independent Power Producers Association of Nepal (IPPAN), Kumar Pandy, said that it was unfortunate that the project that Nepal wanted to develop with the grant is pushed into controversy.

He said that Nepal needs the transmission line project at any cost and if it was not developed with the MCC grant, the country immediately need to find another source of funding.

"Rejecting a grant support extended by a friendly country at the stage of implementation will do much harm than good to Nepal. It will surely affect the grant support from the USA and other countries and institutions in future," said Pandey.

According to him, if the project was not in Nepal's interest, six governments, prime ministers and finance ministers would not have supported it and signed the compact.

Similarly, Dr. Nishchal Nath Pandey, director of the think-tank Centre for South Asian Studies, opined that the ongoing debate around MCC had raised questions about Nepal’s ability to take                    decision on crucial issues.

Published in The Rising Nepal daily on 5 February 2022. (prepared jointly with Aashish Mishra)