National Laghubitta begins joint-operation

 Lalitpur, July 15

National Laghubitta Bittiya Sanstha Limited, a company created after the merger of National Microfinance Laghubitta Bittiya Sanstha Limited and Summit Laghubitta Bittiya Sanstha Limited, has started joint transaction from Saturday, Juy 15.

Dr. Gunakar Bhatta, Executive Director of the Nepal Rastra Bank (NRB), launched the joint operation of the new microfinance institution (MFI) at a programme organised in Lalitpur on Saturday.

Speaking on the occasion, Dr. Bhatta said that there is a need to address the challenges recently seen in microfinance sector and stronger institutions would help in this drive.

He maintained that the MFIs must not shed off their social characteristics. "Likewise, adoption of the latest technology and financial instrument should also be the priority. The central bank will extend necessary help to the MF sector should there be a need in terms of technological advancement and policy facilitation," he said.

Stating that the MFIs have the potential to mobilise resources to agriculture and uplift the rural population economically, he urged them to be proactive in livelihood support programmes.

Dr. Prakash Kumar Shrestha, Executive Director of the NRB, also emphasized on adhering to the basic principles of microfinance and suggested to do business from the clients' perspective.

Highlighting the contributions of the MFIs in employment generation and poverty alleviation, he expressed his hopes that the merger would help the company to pursue sustainable business model.

Chief Executive Officer of the company, Ram Bahadur Yadav, said that following the merger, cultural and human resources integration as well as transaction and strategy integration would still remain as challenges. "Few strong institution can create reliable market and provide quality services," he said.

According to him, microfinance is a unique financial sector so the MFIs should be able to face the current challenges troubling them and move ahead with new strategy and vigour.

Rabin Sijapati, Member of the Board of Director, informed that the paid up capital of the new company has reached Rs. 1.8 billion which is the third largest in the industry. Capital fund of National has reached Rs. 2.32 billion. It has 840 employees, and has expanded services to 210,000 households in 74 districts of the country.

   Published in The Rising Nepal daily on 16 July 2023.   

Lu discusses progress of MCC-Compact, calls on PM, Foreign Minister, leaders

Kathmandu, July 14

Assistant Secretary of State of the United States of America for South and Central Asian Affairs Donald Lu has expressed concerns over the implementation and progress of the MCC Nepal Compact, a grant project of the Millennium Challenge Corporation (MCC) of the US government.

During a meeting with Foreign Affairs Minister of Nepal, NP Saud, at the latter's office in the Singha Durbar on Friday afternoon, Lu discussed the implementation of the project.

Lu was in Nepal for a one-day visit as a part of his South Asia entourage.

According to the spokesperson for the US Embassy in Nepal, Lu discussed the progress of the MCC-Compact to date with Foreign Minister Saud.

The project will commence implementation in August and within the next five years provide essential electrical infrastructure, improve capacity for road maintenance, and create thousands of jobs, said the embassy.

Nepal signed an agreement with the MCC in September 2017 for a USD 630 million project to construct large transmission lines, including 312 km of 500 kV Butwal-Gorakhpur cross-border transmission facility and three sub-stations, and rehabilitate strategic roads.

Likewise, the Road Maintenance Project aims to enhance current practices in the maintenance of Nepal’s strategic road network and will provide technical assistance to the Department of Roads (DoR) and Roads Board Nepal.

The project must be completed within five years from the commencement date, and if it is not completed, the remaining fund would be routed back to the MCC. A controversy whether the pact should be ratified by the parliament in Nepal and if it was a part of the controversial Indo-Pacific Strategy caused the delay in the implementation of the project which was supposed to be kicked off on 30 June 2020.

 

Post-graduation support

According to the secretariat of FM Saud, the two talked about Nepal's upgrading to the 'developing nation' from the Least Developed Countries (LDC) in 2026 and the continuation and increase of assistance from the US to Nepal and the bilateral interests between the two countries.

Nepal's private sector is apprehensive about losing favourable policies like the 'Generalised System of Preference (GSP)' in the USA. Likewise, the US had allowed duty-free entry of 77 Nepali goods as trade support in the aftermath of the 2015 earthquake. The facility will also expire in 2025. Nepal wants it to be continued and has been lobbying with the USA for the same.

Assistant Foreign Minister Lu pledged the continued support of the United States to Nepal as an old development partner in fulfilling development aspirations.

During the meeting, he praised the contribution made by the Nepali community in America and the progress achieved in the American economy.

Meanwhile, Lu called on Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to express his condolences on the demise of the latter's spouse Sita Dahal.

According to the US Embassy, Lu's visit was a part of his regular diplomatic engagement in the region. "High-level diplomatic engagements are a routine part of strengthening both US-Nepal and regional partnerships in furtherance of a more secure, sovereign, prosperous, and democratic world,” it said.

 

Meeting with Oli, Deuba

Lu also met the leader of the main opposition party, CPN (UML), KP Sharma Oli and President of the Nepali Congress, Sher Bahadur Deuba.

Former Prime Minister Deuba said in a tweet that he had a productive meeting with Lu. "We had constructive discussions on further strengthening Nepal-US ties. Grateful for the US Government and Secretary Lu’s unwavering support to promote peace, democracy and development in Nepal," he said.

Likewise, the Embassy spokesperson said that Lu discussed Nepal’s achievements on its Summit for Democracy commitments, and the recent bolstering of human rights protections in Nepal with the leaders.

During his regional tour, Assistant Secretary Lu also visited Bangladesh and India as well. He returned to the USA on Friday evening.

   Published in The Rising Nepal daily on 15 July 2023.   

Contractors up in arms against government

Kathmandu, July 14

Stating that they haven't received their payments even at the end of the fiscal year, construction entrepreneurs staged a sit-in against the government at Maitighar on Friday.

The protest is led by the Federation of Contractors Associations Nepal (FCAN). Issuing a statement, it said that more than 24,000 construction entrepreneurs have agitated across the country demanding the payment of their dues and 'real deadline extension' of the project.

It has been saying that the government order issued to extend the deadline of the projects that crossed the stipulated time due to COVID-19 pandemic and supply chain disruptions including the shut-down of crusher industries earlier this year would cause distortion in the industry.

In a press conference organised on Sunday, Rabi Singh, President of the FCAN, said that the notification of the order issued by the government couldn't be used for an actual extension of deadline.

There are issues that could be the subjects and grounds for compensating the contractors, but the order has remained silent on this matter, instead it has been designed to save the government agencies from their basic responsibility, he had said.

Meanwhile, speaking at the sit-in protest, Singh said that they were forced to come to the street as the government didn't respond to their demands.

According to him, families of hundreds of thousands of workers have been affected as they couldn't be paid on time due to the government's delay in clearing the dues. 

  Published in The Rising Nepal daily on 15 July 2023.   

Norway, UNDP to support in food security in Karnali

 Kathmandu, July 14

The Royal Norwegian Embassy in Kathmandu and the United Nations Development Programme (UNDP) in Nepal have signed an $8.2 million (Rs. 1.07 billion as per Friday's exchange rate) partnership agreement to enhance food and nutrition security in eleven local governments of Karnali and Sudurpaschim provinces.

The new project, titled 'Energy to Food', aims to promote renewable energy solutions to support the agriculture-value chain, particularly for indigenous crop varieties, through mechanisation, conservation farming practices, and capacity building for farmers, read a joint statement issued by the partners.

Kristine Hauge Storholt, Chargé d'affaires a.i and Deputy Head of Mission from the Royal Norwegian Embassy in Kathmandu, and Ayshanie Medagangoda-Labé, Resident Representative of UNDP Nepal, signed the agreement to receive Norwegian support for the project implementation until 2027 on Friday.

As per the agreement, Norway has provided 75 million Norwegian Kroner (equivalent to $6.97 million) to UNDP, while UNDP will contribute an additional $0.9 million for project execution. "The project aims to help over 150,000 people gain access to renewable and clean energy solutions for improved food security, aligning with UNDP's Global Strategy to alleviate multidimensional poverty," read the statement.

According to Medagangoda-Labé, the purpose of this partnership is to engage with men and women equally, use research, indigenous knowledge, practices, technology and behaviours that promote transformation in the current and future food systems.

"To this end, we will be working with the Government of Nepal, including the provincial and local government, partners and other UN agencies in the selected localities. The project will help Nepal accelerate the achievement of several sustainable development goals in an integrated manner,” she said.

Likewise, Storholt said, "Involving other UN agencies and key partners in this project is a significant initiative contributing to the achievement of sustainable development goals."

The project will enhance the use of reliable and affordable energy solutions for production, irrigation, processing, storing, packaging, and marketing of locally grown farm products. It will also support the establishment of dedicated funds at the local level to assist farmers in adopting modern technology for production and processing.

The project will collaborate with local and provincial governments, cooperatives, traders, and service providers to enhance their knowledge of modern technology in food production and sustainable food system management through capacity building. Nepal is categorised as a 'low-income food-deficit country' and ranks 73^rd out of 117 food-importing nations in terms of food security by the Global Hunger Report. 

  Published in The Rising Nepal daily on 15 July 2023.   

Prabhu, Mahalaxmi Life Insurances merge

Kathmandu, July 14

Prabhu Mahalakshmi Life Insurance Limited has started its joint operation following the merger of two companies from Friday.

The company was created after the merger of Prabhu Life Insurance Limited and Mahalaxmi Life Insurance Limited. Raju Raman Paudel, Executive Director of Nepal Insurance Authority (NIA), inaugurated the joint operation in the newly relocated central office building amid a brief ceremony.

Following the NIA's directives to increase the paid up of capital life insurance company to Rs. 5 billion, the two companies have decided to go for a merger in mid-July last year.

The merger was completed today with the approval of the NIA, Company Registrar Office and Securities Board of Nepal after the decision of the general assembly last month. A couple of days earlier, the board of directors of the company had appointed Ramesh Kumar Bhattarai as the Chief Executive Officer of the company.

Speaking on the occasion, Paudel congratulated them for completing the merger despite facing long-term problems. He expressed his hope that the company will do business amid healthy competition by introducing new insurance policies as per the market demands.

Umesh Lal Shrestha, Director of the company, said that the insurance market is becoming highly competitive. Paid up capital of the new company is Rs. 4.29 billion. It has 442 employees and 115 permanent branch and sub-branches.

  Published in The Rising Nepal daily on 15 July 2023.   

NCC urges SKorean envoy to help bring Korean investment

Kathmandu, July 14

Nepal Chamber of Commerce (NCC) has requested South Korea to support in attracting Korean investment in Nepal.

President of the NCC, Rajendra Malla, while welcoming the South Korean Ambassador to Nepal, Park Tae-Young, at the Chamber Building in Kathmandu, requested him to enhance industrial and commercial cooperation.

"Diplomatic relations between the two countries are about to reach 50 years. So, it is necessary to further strengthen mutual cooperation through increased investment and business partnership," he said, according to a statement issued by the Chamber on Thursday.

He urged the newly appointed Ambassador Park to create an investment environment in Nepal's hydropower, infrastructure, tourism and technology. He also said that the return on investment could be ensured since there is a high demand for Nepal's electricity in countries like India and Bangladesh.

Malla drew Ambassador Park's attention to the need to expand air connection between the two countries. He said, "By expanding the air network, tourism activities can be increased in both countries, Nepali workers in Korea will also benefit more." '

President Malla also asked Ambassador Park to invest in small and medium industries including household goods, handicrafts. Currently, South Korea has invested Rs. 12.81 billion in various projects in Nepal including service sector, tourism and agriculture. This investment has created more than 12,000 jobs. Similarly, 11,000 tourists have come to Nepal from South Korea this year.

In response, Ambassador Park promised to further strengthen diplomatic and economic relations with Nepal during his tenure.

He said that he would play a role in making the relationship between citizens more sustainable. Stating that all the products produced in Nepal are environment-friendly, the ambassador also said that he would take initiatives to send the products produced here to his country.

Ambassador Park said that he would take initiative to hold a joint cultural programme on the occasion of the 50^th anniversary of the two countries. 

 Published in The Rising Nepal daily on 15 July 2023.   

MoU signed for feasibility study of fertiliser plant

Kathmandu, July 13

Investment Board Nepal (IBN) signed a Memorandum of Understanding (MoU) with German-based DIAG Industries GmbH for the preparation of Detailed Feasibility Study Report (DFSR) for the establishment of chemical fertiliser plant (urea) in Nepal.

Chief Executive Officer of IBN, Sushil Bhatta, and Managing Director of DIAG, Benjamin Becker, signed the MoU.

A board meeting of the IBN on March 31 last year decided to issue a survey licence to DIAG based on the unsolicited proposal obtained from the latter as per the provision of the Public Private Partnership (PPP) and Investment Regulation, 2020.

Another IBN board meeting on April 13 this year endorsed the MoU to be signed between the two parties.

According to the MoU, DIAG Industries will have to submit the DFSR within 24 months following the issuance of the survey licence, the IBN informed in a statement on Thursday.

DIAG has the responsibility to select the appropriate technology from among natural gas, electrolysis (with carbon capture storage) or hybrid (both natural gas and carbon capture) during the study for production of at least 700,000 tonnes of urea per annum at a total initial estimated cost of USD 714 million.

The budget of the next Fiscal Year 2023/24 has announced to prepare a detailed project report (DPR) to establish a chemical fertiliser factory in the country, and the work will be carried out through PPP facilitated by the IBN.

CEO Bhatta underscored that a credible study is the key to de-risking the project and providing a sustainable implementation roadmap and urged the DIAG to submit a credible study with proper viability checks within the stipulated timeframe as prescribed in the MoU.

 Published in The Rising Nepal daily on 14 July 2023.