r&d_newsbrief_22 oct, 2009
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R&D_NewsBrief_22 Oct, 2009TRANSCRIPT
R&D
Economic Research & Business Development
Date: 22nd Oct, 2009
Highlights
• Private banks in Nepalgunj, the main trade centre in the mid-west, are luring
customers with swift service and attractive savings and loan schemes.
• The Ministry of Labour and Transport Management (MoLTM) has intensified
the Japan International Training Cooperation Organisation (JITCO) process to
send Nepali workers to Japan soon.
• The Ministry of Labour and Transport Management (MoLTM) and the Human
Resource Department (HRD) of South Korea are preparing to extend the
Employment Permit System (EPS) contract for another three months.
• The government has said that it will not be able to release salaries of
parliamentarians and Maoists combatants after mid-November, if the
parliament fails to approve budget for running fiscal year soon.
• The dissonance between the Commerce and Supply Ministry and Forest
Ministry has hampered the timely completion of the SEZ project.
• Nepal Stock Exchange Limited(NEPSE) has decided to de-list some 19 of its
listed companies due to their failure to meet the requirement of paying annual
renewal charge within the first three months of the current fiscal year.
• After being on an upswing for three consecutive trading days, the Nepal Stock
Exchange (NEPSE) slipped 8.34 points on Wednesday. The NEPSE index
settled at 601.21 points when trading closed.
• This year’s PATA Travel Mart (PTM) in Hangzhou China has received
widespread praise from industry delegates, China-based sellers and the host
city’s organising body.
• Minister for Forest and Soil Conservation Deepak Bohara on Wednesday said
that the seven resorts and hotels inside Chitwan National Park (CNP) would
"re-open soon."
• Nepal and India are all set to ink their revised trade treaty on October 27.
• The National Human Rights Commission (NHRC) has urged the government
to revoke an agreement reached with the Office of the High Commissioner on
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Human Rights-Nepal (OHCHR-N) to provide human rights related training to
the personnel of all security bodies -- Nepal Army, Armed Police Force (APF)
and Nepal Police.
• The Supreme Court today served a three-month ultimatum to various
government authorities to clean the Bagmati River, which has been filled with
dirt, filth and refuse of astronomical proportions.
• It takes 73 days to fulfil six procedures to get an electricity connection in
Nepal, according to a World Bank pilot project. The same can be done in 22
days and four procedures in Iceland but takes 424 days in Afghanistan.
• Nepali Prime Minister Madhav Kumar Nepal Wednesday said the government
is in favor of maintaining good relations with neighboring countries of India
and China.
• A day after UCPN-Maoist Chairman claimed that major political parties
would find solution to the political impasse, a senior leader of the party said an
agreement among the parties was not possible now.
• Dogged by serious differences among the major political parties, the
Constituent Assembly (CA) Committee on the system of governance has
decided to take the issues to the top party leaderships for consensus.
• Prime Minister Madhav Kumar Nepal has urged all political parties to lay
more importance to national security guided by the principle of Panchsheel.
• UCPN (Maoist) senior leader Baburam Bhattarai has said there is a slim
chance of parties striking a deal to end the prevailing political deadlock
despite the ongoing efforts.
• Deputy Prime Minister and Minister for Foreign Affairs Sujata Koirala urged
the United Nations (UN) to continue its support in facilitating the peace
process in the country.
• While Nepali Congress (NC) President and former Prime Minister Girija
Prasad Koirala has adopted silence over the appointment of his daughter Ms.
Suajata Koirala as Nepal’s deputy prime minister in the current 22-party
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coalition government, some middle-ranking NC leaders have met secretly in a
corner of Kathmandu.
• Transportation services have been halted in far-western region, as the roads
damaged by the landslide have not been repaired yet. This has led to shortage
of daily commodities and medicines in the seven hilly districts of the region.
• Commissioners of the National Human Rights Commission (NHRC) have
increased their own salaries and allowances significantly, a decision only the
cabinet is authorized to take.
BANKING:
Nepalgunj banks lure customers
Private banks in Nepalgunj, the main trade centre in the mid-west, are luring
customers with swift service and attractive savings and loan schemes. The number of
new branches of these banks, which are of international standard, has been on the rise
for the past two years. Banking transactions in Nepalgunj have gone up due to the
environment for investment after peace was established in the country, said president
of the Nepalgunj Chamber of Commerce and Industry Damodar Acharya.
Similarly, commercial banks and development banks have expanded their services in
Karnali too. It is reported that 16 commercial banks, three development banks and six
finance companies are providing international standard service in Nepalgunj. Besides,
some other banks are planning to open new branches in the town soon.
According to manager of Nepal Investment Bank, Nepalgunj branch office, Mantri
Lal Gupta, an easy system of disbursing loans has also attracted the middle and low
class people in the mid-western districts. The banks have also increased plans like
providing foreign employment loans, education loans and home loans to their
customers, he added.
Source: The Kathmandu Post
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Date: 10/22/2009
ECONOMY:
MoLTM bid to jog JITCO process
The Ministry of Labour and Transport Management (MoLTM) has intensified the
Japan International Training Cooperation Organisation (JITCO) process to send
Nepali workers to Japan soon.
A high-level team of Labour Minister Mohammad Aftab Alam, secretary Babu Ram
Acharya and section officer Bhagabhan Thani will visit Japan’s JITCO office on
October 22-27. “JITCO is my priority project and I am working hard to finalise it
within this year,” said Alam. Getting more quota for Nepalis in industrial training
service (ITS) will be our major focus, he added. The team will explore other sectors
where Nepalis can be hired.
“Care-givers can be a good sector for Nepalis,” said Acharya, “As the life expectancy
of Japanese is increasing, it will be a new
sector.” According to an estimate, the Japanese government
needs more than five million care-givers to support its aged population in 2010.
During the visit, the team will hold talks with Japan’s minister for labour, minister for
law, JITCO officials and Japan International Cooperation Agency (JICA). “Talks with
ministers and JITCO officials will be under the ITS process,” said Alam.
The Nepali team will focus on two major areas — signing new MoUs and getting
more quota for ITS. “My concern is to send more Nepalis to Japan,” said Alam
adding that more numbers of unemployed Nepali youth should benefit from it. The
meeting with Japanese officials will decide the policy guidelines for the JITCO
process in Nepal.
Nepal and Japan signed an MoU in December 2003 for JITCO but its sole agent
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) could not
succeed in sending workers till 2008. FNCCI has sent two groups of industrial
trainees in 2009.
After the failure of FNCCI, MoLTM decided to include foreign employment agencies
in the JITCO process. It selected 172 foreign employment agencies for JITCO this
May. “We don’t favour either FNCCI or outsourcing agencies. The new MoU will
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provide sufficient space for both,” said Alam.
The New MoU for JITCO will set the visa fee, service charges
and other prerequisites, said Acharya. According to him, Nepali workers going to
Japan under ITS must have knowledge
of Japanese language and culture along with good physical health. “Japan wants
physically fit people for ITS,” he said. JITCO officials are coming to Nepal in
February 2010 for the implementation
of the MoU.
Meanwhile, the government is also including the duties and responsibilities of
outsourcing agencies in the MoU. “They will be responsible for the behaviour of
Nepalis at work,” said Acharya. The Japanese are quite suspicious of the unionist
tendency of Nepalis, he added.
Talks with JICA officials will be for transport sector reform, said Acharya. JICA has
been supporting the Nepali transport sector since two decades. Also, MoLTM has
been running vehicle number plates and blue-book modernizing projects with the
support of Asian Development Bank.
Source: The Himalayan Times
Date: 10/22/2009
EPS contract to get three-month extension
The Ministry of Labour and Transport Management (MoLTM) and the Human
Resource Department (HRD) of South Korea are preparing to extend the Employment
Permit System (EPS) contract for another three months. Earlier on July 22, both
parties had decided to extend by three months the two-year contract ending on
October 22.
The political situation of South Korea compelled us to take this action again, said
MoLTM secretary Babu Ram Acharya. Although MoLTM has submitted a new draft
for contract it will not be possible to make a new contract due to the recent cabinet
reshuffle. “We want the new contract soon,” he said adding Nepal has asked South
Korea to increase the EPS quota for 2010.
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South Korea is a lucrative destination for Nepali blue-collar jobseekers where they
earn five times more than in other destinations like Gulf countries and Malaysia. The
monthly salary of EPS workers is $970 to $1,000, based on their work. Nepalis
working in South Korea are sending Rs two billion remittance every year.
Around 3,100 Nepalis are working in South Korea under the EPS system. Hiring
Nepalis under EPS has increased since September when the destination country
gradually started coming out of the global financial crisis. Seoul hired 201 Nepali in
September and 306 more this October. Around 6,500 Nepalis work in South Korea.
Source: The Himalayan Times
Date: 10/22/2009
No salary to lawmakers after mid-Nov: Govt
The government has said that it will not be able to release salaries of parliamentarians
and Maoists combatants after mid-November, if the parliament fails to approve
budget for running fiscal year soon.
Finance Minister Surendra Pandey told myrepublica that one-third of the proposed
recurrent budget, which the government is authorized to spend until the budget is
endorsed by the parliament, is fast depleting due to rise is various unplanned financial
liabilities.
The normal activities of parliament has been in stalemate for the last five months, as a
result of prolonged political dispute among major political players over the President
´s decision to nullify the then government´s decision to sack the then army chief.
The main opposition UCPN (Maoist) that has been obstructing the regular
parliamentary business, however, allowed the government to present budget for
current fiscal year, totaling Rs 285 billion.
The financial liabilities, particularly under the recurrent head, have increased
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remarkably after the budget was tabled in the parliament. As a result, available
recurrent budget is fast shrinking, Pandey said.
According to informal sources, the total demand for non-budgetary expenditure has
touched a record Rs 12 billion within the first three months of the running fiscal year.
As per the Interim Constitution, the government is authorized to spend one-third of
the proposed budget once it is tabled in the parliament. This means that the
government can spend up to Rs 95 billion before the budget is approved.
"The government is compelled to curtail expenses for headings that absorb huge
chunk of expenditure like salaries and allowances for parliamentarians and Maoists
combatants," he said.
As per the law, the government can spend up to Rs 53 billion for recurrent
expenditures whereas annual salary and allowances of over 400,000 government
employees sum up to Rs 60 billion.
Pandey also said that impacts have already started emerging as the government could
not clear salaries for a garrison of Nepal Army, which is mainly engaged in support
activities for the army personnel, due to lack of adequate funds. The Minister also said
he has already informed Maoists leader and former finance minister Dr Baburam
Bhattarai about the looming financial impacts of the lingering political deadlock.
Pandey, however, said the expenditure earmarked for development activities have not
been affected yet and added that the real expenditure have been less than expected due
to various problems.
"As of yet, the government is committed to the funds allocated for development
activities. However, if the development activities speed up, the available fund might
be used up by end of 2009, he said.
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Ministry of Finance has already stopped sanctioning salaries of benefits to the Prime
Minister and Ministers.
Source: www.myrepublica.com
Date: 10/22/2009
Lack of coordination between ministries delays SEZ construction
It has been almost one and a half year since the announcement was made to establish
Special Economic Zones (SEZ) in Jhapa. However, the proposal, forwarded by the
previous Maoist-led government, is yet to see the light of the day thanks to
dillydallying and lack of coordination between concerned government authorities.
The then government had come up with the concept of SEZ in order to expand
economic development at regional level.
The feasibility study vis-à-vis the establishment of SEZs in Jhapa and Kailiali has
been accomplished. However, the lack of inter-ministerial coordination is stifling the
establishment of SEZ.
The dissonance between the Commerce and Supply Ministry and Forest Ministry has
hampered the timely completion of the project. During the course of the feasibility
assessment, the former has recommended Kerkha area of Jhapa district as a viable
place to construct SEZ.
However, the latter rejected this proposal as some 300 bighas of land,that fall under
Ratuwamai Plantation Project, has to be acquired for establishing SEZ in Kerkha.
The proposed area is said to be apt for SEZ from the viewpoints of its proximity with
the Mechi custom point and security. According to entrepreneurs, if the SEZ
established in Kerkha, it will be easy to export Nepali goods to third countries as the
Mechi custom is just 50 km east from the area.
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It is provisioned that no organisation can stage any kind of protest and bandh in the
SEZ.
Similarly, the industries established in the SEZ can enjoy tax holiday during the
period of the first 5 years of their commencement.
Similarly, they are exempted from the provision of paying custom duty and Value
Added Tax (VAT) forever.
However, such manufacturers have to pay a 50 percent income tax after five years as
per the prevailing provision. Moreover, they will also be officially bound to export 85
percent of their products to third countries.
Source: www.nepalnews.com
Date: 10/22/2009
MARKET:
NEPSE bans 19 companies
Nepal Stock Exchange Limited(NEPSE) has decided to de-list some 19 of its listed
companies due to their failure to meet the requirement of paying annual renewal
charge within the first three months of the current fiscal year.
"As these companies violated the concerned provision of the Stock Listing
Regulation, 2053 (Second Amendment), we have decided to prohibit them from
carrying out stock transaction by way of delisting," read a press release issued by
NEPSE on Wednesday.
The releases further stated that the de-listed companies will again be allowed to
operate in the capital market if they adhere themselves to the related provision by
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paying annual renewal charge.
The de-listed companies include Nepal Electricity Authority (Bond-2069), Nabil
Bank Limited (Bond 2075), Raghupati Jute Mills, Jyoti Spinning Mill, Nepal Finance
Limited, Yak and Yeti Hotels Ltd and Nepal Welfare Company Limited, among
others.
Source: www.nepalnews.com
Date: 10/22/2009
NEPSE slides 8.34pts
After being on an upswing for three consecutive trading days, the Nepal Stock
Exchange (NEPSE) slipped 8.34 points on Wednesday. The NEPSE index settled at
601.21 points when trading closed.
A majority of the sub-indices on NEPSE except the development bank sector
witnessed a fall. The development bank sector gained 2.36 points while banking,
finance and insurance lost 9.3 points, 0.84 points and 0.03 points respectively.
The share market witnessed a total turnover of Rs. 36.94 million with 63,813 shares
being traded. Shares of 53 companies changed hands on NEPSE.
Among the 19 commercial banks present on the trading floor, Nepal Industrial and
Co. Bank posted the biggest growth with its stock rising by 15 points while Everest
Bank lost the most by shedding 368 points.
Similarly, among the 14 development banks whose shares were traded on NEPSE on
Wednesday, Infrastructure Development Bank witnessed the highest increase of 18
points while Pashupati Development Bank dropped 15 points.
Among the 16 finance companies on NEPSE, Shree Investment Finance Co. and
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Standard Finance were the highest gainers with an increase of 10 points each in their
share prices. Kuber Merchant Finance lost 25 points.
The top five winners on NEPSE were Infrastructure Development Bank with a 4.06
percent rise in its stock price followed by Standard Finance, Gandaki Bikas Bank,
Birat Laxmi Bikas Bank and Business Development Bank.
Nepal Doorsanchar Company topped the chart in terms of turnover with Rs. 8.46
million.
Source: The Kathmandu Post
Date: 10/22/2009
BUSINESS:
Stakeholders sing PATA Travel Mart 2009’s hosannas; hail opportunity
This year’s PATA Travel Mart (PTM) in Hangzhou China has received widespread
praise from industry delegates, China-based sellers and the host city’s organising
body.
Local sellers expressed great satisfaction with the pre-matched appointments system
and seemed very impressed with the outcome of the appointments. Many companies
are reporting firm commitments or the concluding of actual business agreements,
according to PATA’s Beijing-based regional director Kate Chang.
Hosting PATA Travel Mart may be regarded as an excellent and successful case study
for promoting Hangzhou as a leisure and MICE destination. It is a very good
opportunity for service improvement and product enhancement, said the Hangzhou
Tourism Commission.
A seller from Nepal, Pawan Tuladhar, who is president and CEO of Dharma
Adventures in Kathmandu, said,”I have been participating in PATA Travel Mart for
the past six years and I am pleased to say that it gets better every year.”
A survey of delegates, conducted by PATA, showed that 80 per cent of buyers
attending PTM 2009 were satisfied with the results of pre-matched business
appointments and 87 per cent were satisfied with the quality of sellers at the Mart.
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Some 76 percent of sellers stated that buyers’ attendance at PTM 2009 met their
expectations. Around the same number plan to attend PTM 2010 in Macau.
“I have been attending PATA Travel Mart for the past five years, evolving new
relationships with agents, hotels, resorts and attractions year after year. Every PTM
that I attended has contributed to our endeavours to add new destinations and, of
course, each year brings us closer to our existing suppliers and gives us an
opportunity to know what is new,” said Guldeep Singh Sahni, managing director of
Weldon Tours and Travels Pvt Ltd in India.
The set-up and choice of city for this year’s PATA Travel Mart has elicited praise
from many quarters. “It was a well-organised event and the Buyer/Seller online
meeting arrangements worked very well, giving us ample opportunity to increase our
meeting base — even at the last minute. The venue was suited for PATA 2009 and the
hospitality in Hangzhou was warm and welcoming,” said Nilufer Mama, president
and CEO of Millenium International Travel, Canada.
Over 1,000 delegates, including local and world media, attended the 32nd annual
PATA Travel Mart.
Source: The Himalayan Times
Date: 10/22/2009
CNP resorts to reopen soon:Forest Minister
Minister for Forest and Soil Conservation Deepak Bohara on Wednesday said that the
seven resorts and hotels inside Chitwan National Park (CNP) would "re-open soon."
Speaking to myrepublica, Minister Bohara said that the cabinet committee headed by
finance minister and comprising the forest, tourism, and law and justice ministers, the
vice-chairman of National Planning Commission and secretaries of all the ministries
concerned is all set to take a decision on reopening the resorts.
"We will give the resorts an exit plan and as per the decision of the Public Accounts
Committee (PAC). Keeping in view the upcoming Nepal Tourism Year, they will be
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allowed to operate till 2012," said Minister Bohara. He added that the decision to this
effect would be taken within "few days" by the cabinet committee.
Stating that the Natural Resources and Means Committee (NRMC) had delayed the
decision in this regard, Minister Bohara said, "My Ministry is positive about the
decision taken by the Public Accounts Committee and we are working towards
reopening the resorts."
As per the exit plan, the seven resorts -- Tiger Tops Jungle Lodge, Machan Wildlife
Camp, Chitwan Jungle Lodge, Gaida Wildlife Camp, Island Jungle Resort, Hotel
Narayani Safari and Temple Tiger Hotel -- will be asked to close down latest by June
2012. As per the PAC decision, those resorts that willingly close before the stipulated
time will be provided incentives as well.
This initiative comes at a time when the NRMC has directed the government not to
take any decision unless the PAC gives a clear directive. The NRMC also claimed
that PAC has no jurisdiction over the matter. Also, the decision is against the
recommendation jointly presented by the Department of Wildlife and Nature
Conservation, Nepal Army, WWF and other conservation experts early this month.
The hoteliers along with the Hotel Association of Nepal and the Nepal Tourism Board
are now in the forefront advocating such an exit plan. While the seven resort owners,
who were earlier adamant on not leaving the CNP, have now agreed to the Committee
recommendation to close down, 63 other hotel operators outside the conservation area
too have joined hands with them to echo a "common voice" before the government.
Claiming that the government is positive about reopening the seven resorts, Prasiddha
Pandey, President of HAN said, "It is a welcome decision as the closure has already
hit the tourism industry hard," adding, "We have urged the concerned authorities to
arrive at a decision within this month."
Source: www.myrepublica.com
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Date: 10/22/2009
Nepal, India to sign revised trade pact soon
Nepal and India are all set to ink their revised trade treaty on October 27. It is learnt
that the treaty will be signed between Nepali Commerce and Supplies Minister
Rajendra Mahato and his Indian counterpart Ananda Sharma on the sidelines of
ministerial level meeting of fourth South Asian Free Trade Agreement (SAFTA),
slated to take place on October 28.
The revision of the pact came as a corollary of two-year consultation between the two
countries. It entitles Nepal to enjoy more facilities apart from solving non-tariff
barriers, additional duty and standards related problems the country has been facing
for quite a while.
Likewise, as per the new treaty, India will avert itself from imposing extra-customs
duty and non-tariff barriers on Nepali goods. The treaty also makes it mandatory for
India to waive off special additional duty and other duties that are in place. Some of
the major highlights of the treaty, that features 14 new points, include establishment
of five new trade points, repairing of old machines in India and scrapping of duty-
refund procedures.
As per the treaty, India should also recognize the quality certification of Nepali labs
after an upgrade. This move is expected to give a boost to Nepal's agro-exporters.
The enforcement of the treaty is widely believed to insert a new momentum to Nepal's
export to its largest trading partner as it can safely be predicted to remove various
export related hurdles the country has been suffering for long.
Source: www.nepalnews.com
Date: 10/22/2009
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POLICY:
NHRC keen on training security personnel
The National Human Rights Commission (NHRC) has urged the government to
revoke an agreement reached with the Office of the High Commissioner on Human
Rights-Nepal (OHCHR-N) to provide human rights related training to the personnel
of all security bodies -- Nepal Army, Armed Police Force (APF) and Nepal Police.
NHRC officials had also drawn attention of Chief of Army Staff Chhatra Man Singh
Gurung on the issue at a meeting with the latter a week ago.
Talking to myrepublica, NHRC Chief Kedar Nath Updhaya said the commission has
urged the government to nullify the agreement with OHCHR-N and instead give
NHRC the authority to conduct such training.
“We have asked the government to review its agreement with OHCHR on providing
trainings for security agencies,” Upadhaya said, adding, “NHCR should be given full
responsibility of conducting such trainings and other necessary programs to the
country´s security bodies.” He also claimed that the government had turned a deaf ear
to similar request NHRC made in the past.
Currently OHCHR-N has been providing human rights related trainings to security
personnel. It has been providing such trainings since its establishment six years ago.
“OHCHR should be given the responsibility of assisting our activities. It shouldn´t be
given full authority to organize trainings and other programs,” Updhaya said.
He added that Army Chief Gurung was positive toward NHRC´s proposal. “General
Gurung gave a positive response,” Updhaya said.
During the meeting, Updhaya argued that OHCHR-N could only contribute experts
for trainings. “I strongly oppose the practice of providing trainings under direct
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initiation of OHCHR,” he said.
Meanwhile, the Nepal Army has said that no course under the direct initiation of the
OHCHR is run in the institution. “The only institution that runs a course on the Law
of Armed Conflict is the ICRC,” said Brigadier General Ramindra Chettri.
He informed that the ICRC has been running a course (attended by officers of all
levels) on Human Rights and Humanitarian Law since 2002. The course is designed
as a two-week advance course.
“We have only requested human rights experts from OHCHR to deliver a few guest
lectures so far on related subject matter,” Chettri said adding, “OHCHR does not run a
separate course in NA.” In January, the Directorate of Human Rights of NA was
given full authority to run independent advance course.
Source: www.myrepublica.com
Date: 10/22/2009
Clean Bagmati in 3 months: SC
The Supreme Court today served a three-month ultimatum to various government
authorities to clean the Bagmati River, which has been filled with dirt, filth and refuse
of astronomical proportions.
A division bench comprising Chief Justice Min Bahadur Rayamajhi and Kalyan
Shrestha issued the ultimatum to the government to clean the Bagmati within three
months. The apex court was responding to a contempt of court case against the
government authorities. Meanwhile, Dr Trilochan Uprety, Secretary, Prime Minister's
Office and the Cabinet, Udaya Raj Sharma, Secretary, Ministry of Environment and
Science, and Mohan Bahadur Basnet, the Chair of the High Level Commission on
Bagmati who attended the bench, have assured that they would clean the Bagmati
within the given timeframe.
They assured before the court that they would bring palpable changes to Bagmati
within three months.
The bench, in reply, told them to submit a progress report after accomplishing the
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task.
The officials were brought before the bench as per the apex court's order to defend the
case on the contempt of court pending before them.
The bench has been considering charges of disobedience of apex court's verdict that
was issued to clean the river eight years ago.
Charging the government authorities of not abiding by the court ruling, advocate Bhoj
Raj Air filed the contempt of court against government authorities three years ago. In
2001, the apex court had issued a mandamus order to the government to clean the
Bagmati.
Meanwhile, responding to a separate PIL filed by Pro Public, an NGO, the bench told
the government authorities to ban indirect promotion of advertisement of cigarettes
through organising concerts, or games.
The bench was responding to a petition filed by one Hom Lal Shrestha who
challenged such concerts and games of indirectly promoting advertisements of
cigarette despite a prohibitory order.
Source: The Himalayan Times
Date: 10/22/2009
WB sheds light on power woes
It takes 73 days to fulfil six procedures to get an electricity connection in Nepal,
according to a World Bank pilot project. The same can be done in 22 days and four
procedures in Iceland but takes 424 days in Afghanistan.
Getting Electricity — the two-and-a-half-year project — presents findings on the
constraints entrepreneurs around the world face in getting access to electricity and
illustrates patterns in connection processes. The study also tracks all the procedures,
the time, and the cost required to obtain an electricity connection for a newly
constructed building.
However, in Nepal the cost of not having electricity is higher than the cost of
connection, as the country reels under long hours of power outage. World Bank
surveys in 89 economies of the world show that electricity tops infrastructure needs of
the business entities.
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Many businesses lack access to power connections and are prevented from moving
into higher-value-added activities that rely on electricity-based technologies.
According to International Energy Agency, in 2005 more than a quarter of the world’s
population lacked access to electricity. Businesses also care about the cost of both the
electricity connection and the electricity supply-because electricity-related
expenditure eats up a significant share of their revenue.
Managers responding to World Bank Enterprise Surveys estimated that on average
their spending on electricity amounts to four per cent of their annual sales, while
combined spending on other infrastructure services like fuel, communication services
and water accounts for 6.4 per cent.
Among the 140 economies surveyed for Getting Electricity, Ukraine ranks at the
bottom, with 10 procedures required to get new power connection. It’s much easier to
do the same in Denmark, Germany, Japan and Mauritius. The survey details the
efficiency and cost of the services provided to commercial customers by distribution
utilities, the complexity of procedures, and the resources expended by businesses in
obtaining a connection.
“In the 10 economies with fewest procedures, the process of obtaining an electricity
connection takes only 56 days on an average, while in 10 economies with most
procedures, it takes 215 days,” the report adds.
Source: The Himalayan Times
Date: 10/22/2009
Nepal favors for good relations with China, India: PM
Nepali Prime Minister Madhav Kumar Nepal Wednesday said the government is in
favor of maintaining good relations with neighboring countries of India and China.
He said "Nepal has consistently emphasized its policy of not allowing our territory
against the interest of any country."
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"This is the only viable way for a country of such strategic location, irrespective of
any government in power in Nepal," he said while addressing the inaugural session of
a one-day conference on "Nepal's National Interest: Policies and Recommendations".
The conference was jointly organized in the capital Kathmandu by the Center for
South Asian Studies and the Konrad Adenauer Foundation.
He clarified that Nepal has no desire to play any card or to use relationship with
one against the other neighboring country.
The Prime Minister reiterated that the government has put the peace, the
constitution drafting processes and social and economic transformation as the top
tasks
Source: http://news.xinhuanet.com
Date: 10/22/2009
POLITICS:
Consensus unlikely, says Kiran
A day after UCPN-Maoist Chairman claimed that major political parties would find
solution to the political impasse, a senior leader of the party said an agreement among
the parties was not possible now.
Chairman Pushpa Kamal Dahal had said yesterday at a gathering of party leaders that
the parties would come up with a solution within a few days.
“Both Nepali Congress and CPN UML are sticking to their stance and therefore we
don’t see any possibility of consensus soon. We will now begin a movement
following our standing committee meeting,” said Mohan Baidhya ‘Kiran’ at a face-to-
face programme organised by Jana Sanchar Abhiyan here today. He claimed that the
government had no intention to draft the new constitution.
“This government was formed to thwart the peace process and derail the constitution-
making process,” he added.
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“We have been tolerating for long. Now it’s time to act,” he said. Baidhya also said
his party, however, would not close the door on dialogue. “Our struggle intends to
forge consensus among the parties.” He said the government had not responded to his
party agitation from the parliament and the streets and even the talks teams had failed
to find any solution.
“If they are really serious on a political way out of the crisis they must show
flexibility on the President’s issue.”
He said tripartite meeting held yesterday was not encouraging. “We don’t see any
progress in the near future.” Baidhya, who was a member of the Prachanda-led four-
member team visiting China, claimed that China had given importance to their visit.
“Hu Jintao managed time to meet our team,” he said.
Baidhya claimed that his team had made a verbal agreement with the Chinese leaders.
“We agreed not to allow our land against China and Chinese leaders agreed to support
us for Nepal’s economic development,” he said. He added the Chinese leaders
respected our sovereignty.
Source: The Himalayan Times
Date: 10/22/2009
Differences dog CA panel on system of governance
Dogged by serious differences among the major political parties, the Constituent
Assembly (CA) Committee on the system of governance has decided to take the
issues to the top party leaderships for consensus.
The CA Committee had fixed up an appointment with Maoist Chairman Pushpa
Kamal Dahal, NC president Girija Prasad Koirala and CPN Chairman Jhala Nath
Khanal at Koirala’s residence in Maharajgunj at 5 p.m. on Thursday, but the meeting
was cancelled as Koirala was not in sound health.”
“We decided to take the issue to the top party leadership as we could not reach
consensus on electoral and governance system,” said NC CA member Shambhu
Hajara Dusad, who is also the chairman of the committee.
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“The issue can be resolved only after the leaders of three top parties sit together. We
shall fix up another appointment with them after Koirala recuperates,” he added.
The CA committee has held over 70 meetings, but has failed to reach any decision on
the government and electoral systems.
The NC has proposed the Westminstrial model of governance. The party has opted for
bicameral legislature and election of executive prime minister from the lower house
elected on first-past-the-post basis.
“But the party will have to pick up the candidates in such a way that the House
becomes proportional and inclusive,” said NC leader Govinda Raj Joshi. Similarly,
the members of upper house would be elected from the provinces. Similarly, the party
has proposed that the ceremonial president be elected from the members of the upper
house, lower house and local bodies.
On the other hand, the Maoists have proposed direct election of the executive
president and unicameral legislature, the members of which would be elected from
multi-member constituencies. The directly elected president will form an inclusive
cabinet on the basis of seats the political parties have in the parliament.
The Maoists have also proposed a multi-member electoral system in which more than
one candidate would be elected from each constituency on proportional basis. “We
have proposed direct election of executive president and electoral system based on
multi-member constituency, but there was no consensus,” said Maoist CA member
Pampha Busal, a member of the committee.
Similarly, the CPM-UML has proposed direct election of executive PM and indirect
election of ceremonial president from the upper house, lower house and local bodies.
The party has proposed mixed member proportional representative (MMPR) electoral
system in which each party would have representation in parliament in proportion to
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the popular votes they garner.
“There is compulsion that one party has to accept the proposal of another should there
be any agreement,” said Yadav Raj Pokharel, advisor on constitutional law to the CA
Committee.
Owing to serious differences, the committee also formed an informal subcommittee
comprising senior leaders, but failed to reach any conclusion even after month-long
discussions.
Source: www.myrepublica.com
Date: 10/22/2009
PM Nepal swears by 'Panchsheel principle' to maintain cordial ties with China,
India
Prime Minister Madhav Kumar Nepal has urged all political parties to lay more
importance to national security guided by the principle of Panchsheel.
Addressing a one-day conference on 'Nepal's National Interest: Policies and
Recommendation' organised by Centre for South Asian Studies, in Kathmandu,
Wednesday, PM Nepal said that only after the main political parties forge a consensus
to end the current political deadlock will the country have a new constitution and the
ongoing peace process would reach to a logical conclusion.
National security can be ensured only in a developed and affluent Nepal, he opined.
Referring to neighboring countries China and India whose relationship had hit an all-
time low following some disputes regarding their border, the prime minister said
Nepal must maintain cordial relationships with all its neighboring countries.
Panchsheel or the Five Principles of Peaceful Coexistence are a series of agreements
People's Republic of China and India had reached in 1954 to ensure that newly
independent nations of Asia and Africa would not have the same aggressive
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relationship they once had with colonizers.
Nepal's foreign policy is also guided by the principle of Panchasheel. The prime
minister, who has visited India but is yet to tour China, invoked the Panchasheel
principle in the context of "highly successful" China visit of UCPN (Maoist) chairman
Pushpa Kamal Dahal, which critics have said was done to antagonize India.
Nepal and India are also holding crucial security related talks early next month.
Speaking at the same programme, Bam Dev Gautam, who is the vice chairman of PM
Nepal's party CPN-UML, said it was "highly unfortunate" to have a government
without the UCPN (Maoist), whom he said is the largest single party with 1/3rd seats
in the Constituent Assembly.
The nation would not have a new constitution without the help of the Maoists,
Gautam said.
The UML leader, who was a home minister during the short-lived Maoist-led
government, stressed on the need to do away with partisan politics and form a new
government with Maoists on board.
Gautam said that the monarchy might come back from the dead if the new
constitution is not prepared by the stipulated time.
The nation will face a grave crisis if that happens, he warned.
Source: www.nepalnews.com
Date: 10/22/2009
Bhattarai: Deadlock to stay on
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UCPN (Maoist) senior leader Baburam Bhattarai has said there is a slim chance of
parties striking a deal to end the prevailing political deadlock despite the ongoing
efforts.
"Although the big parties are in the process of drafting a common resolution motion
to forge a political consensus, their chances of reaching an accord are slim," he said.
Bhattarai was addressing a programme organised by Samyukta Rastriya Janandolan
Nepal, an organisation consisting of the Maoist supporters reportedly formed to
institutionalise republic order in the country, at Banepa in Kavre district on
Wednesday.
The UCPN (Maoist) would launch a stir if the parties failed to reach an agreement, he
said. "The preparations for the agitation have completed. If the parties fail to forge a
consensus in the next two days, we will announce the struggle after Chhath festival."
Bhattarai said the agitation would be peaceful, and its objective would be to exert
pressure on the government to correct President Dr. Ram Baran Yadav’s move of
reinstating the then Army Chief Rookmangud Katawal.
"If this government tries to repress our struggle, there will be retaliation," he said.
Once the president’s move is rectified, Bhattarai said, a new government should be
formed under the Maoist leadership.
Source: The Kathmandu Post
Date: 10/22/2009
Sujata: UN support a must
Deputy Prime Minister and Minister for Foreign Affairs Sujata Koirala urged the
United Nations (UN) to continue its support in facilitating the peace process in the
country. She stated that this would aid the process of writing of the new constitution
within the stipulated time.
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“The United Nations Mission in Nepal (UNMIN) has set an example by facilitating
the peace process in the country. We hope this ongoing support will continue until we
are able to draft a new constitution,” said Koirala, speaking at a programme organised
to commemorate the 64th UN Day in Kathmandu on Wednesday.
Robert Piper, UN Resident Representative and Humanitarian Coordinator, said there
is a need for the Ministry of Foreign Affairs to have better coordination and
cooperation with other ministries.
Former Assistant Secretary General of the UN Kul Chandra Gautam said that the
government should encourage competitive and qualified candidates to seek candidacy
for senior positions in the United Nations in order to put Nepal’s agenda on the world
map.
Source: The Kathmandu Post
Date: 10/22/2009
Middle-ranking Nepali Congress leaders hold secret meeting
While Nepali Congress (NC) President and former Prime Minister Girija Prasad
Koirala has adopted silence over the appointment of his daughter Ms. Suajata Koirala
as Nepal’s deputy prime minister in the current 22-party coalition government, some
middle-ranking NC leaders have met secretly in a corner of Kathmandu.
According to political sources, some of the leaders who met to forge out their tactics
to cope with any possible blows from Mr. Koirala include Dr. Ram Sharan Mahat,
Chiranjivi Wagle, Dr. Narayan Khadka, Purna Bahadur Khadka, Bimalendra Nidhi,
Prakashman Singh, Ram Chandra Poudel, Bala Bahadur KC, Sushil Koirala and Nara
Hari Akcharya. They are understood to have discussed over possible tactics to cope
with the dictatorship and Maoists’ advancement in the country.
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Among those who met, Ram Chandra Poudel and Sushil Koirala are reported to have
stressed on institutionalizing Ms. Sujata Koirala’s appointment as the country’s
deputy prime minister at the personal request of her father and NC President Girija
Prasad Koirala. Mr. Ram Chandra Poudel said, “We are not against the appointment
of any NC leader as deputy prime minister. We are against the personal approach
involved in it, which undermines democratic practices,” sources quoted.
However, another NC leader Mr. Nara Hari Acharya is understood to have stood for
the replacement of Ms. Koirala by somebody better qualified for the post.
Most of the participants in the discussion are reported to have pledged to fight against
hereditary rule within the NC.
The sources further state that NC leaders participating in this secret meeting also
discussed on the tactics to cope with the growing influence of Maoists throughout the
nation. They are understood to have seen Maoists’ entry into the mainstream peace
process as a major threat to the existence to their party politics. They put blame on
Mr. Koirala for the progress of Maoists. Dr. Ram Sharan Mahat, who is also believed
to have been associated with CIA, stressed on the NC stand against the integration of
Maoist People’s Liberation Army (PLA) men into the Nepal Army, sources stated.
However, he was not against the rehabilitation of the PLA men.
The Comprehensive Peace Accord signed between Maoist rebels and the then Seven
Party Alliance (SPA) in 2006 was a major milestone in Nepal’s peace process, still
undergoing. Following the emergence of former Maoist rebels as the largest political
force with its commitment to pluralist and peaceful politics in the Constituent
Assembly elections held on 10 April 2008, Maoist agenda of republic mandated by
the 2006 mass uprising against the feudal monarchy was formally implemented
through a declaration in the first meeting of the elected Constituent Assembly. Since
then the NC has returned to its regressive mood.
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Analysts doubt the success of the peace process while almost all parties have united to
project the former armed rebels into the brink of violence. Maoists, however, have re-
affirmed their indomitable attachment to the current peace process.
Source: www.groundreport.com
Date: 10/22/2009
GENERAL:
Food crisis worsened in FWest
Transportation services have been halted in far-western region, as the roads damaged
by the landslide have not been repaired yet. This has led to shortage of daily
commodities and medicines in the seven hilly districts of the region.
Roads linking Sanphebagar-Bajura, Sanphebagar-Mangalsen, Satbajh-Darchula and
Khdape-Bajhang were damaged in the landslide this monsoon. Chetman Kadayat of
Malika Transportation said goods meant for Binayak, Kamalbazar, Bayalpata,
Jayagadh, Darna and Mujabazar have been stored in Sanphebagar. Even the
medicines meant for Accham District Hospital are stored in Sanphebazar, he added.
Foodstuff has not reached the Kolti area of Bajura district. Kadayat added, ‘’About 10
trucks of daily commodities meant for Bajura are stuck in Sanphebagar.’’
Talking over phone, a businessman of Kolti, Lal Bahadur Bohara, said there was
scarcity of essential items in the area, as the transportation has been halted for more
than five months. Though mules are being used to ferry goods, the supply is not
sufficient to meet the huge demand. Bohara added, “Ferrying stuff on mules costs a
lot. A kilo of salt costs Rs 45 in Martadi.’’
Pushpa Kunwar of Malika Distributors said, “The businessmen are paying Rs 35 to
ferry a kg of goods from Sanphebagar to Kolti on mules.’’
Bishnu Buda, a resident of Kolti area, said, “We do not even have salt.’’ More than 10
link roads of the district have been obstructed due to the landslide.
Khopade-Bajhang stretch on Jayaprithivi Bahadur Singh Highway in Baitadi district
has also been halted for long. Local businessmen said there was shortage of essential
items in the rural areas of the district. Businessmen blamed the road division offices
for the crisis.
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Manoj Shrestha, chief of Road Division Office, Doti, who was on Dashain leave, is
yet to rejoin duty. There is only a peon in the office.
Source: The Himalayan Times
Date: 10/22/2009
NHRC in pay hike row
Commissioners of the National Human Rights Commission (NHRC) have increased
their own salaries and allowances significantly, a decision only the cabinet is
authorized to take.
Four of the commissioners, including NHRC chief Kedar Nath Upadhyay, took the
decision recently despite vehement opposition by Commissioner Dr Leela Pathak, the
only woman commissioner. She maintained in minutes on the pay-hike decision which
became effective from the last Nepali month, that NHRC could not assume the powers
of the cabinet and decide the pay of its members.
"We took the decision invoking the National Human Rights Act that says that salary
and other allowances will be at par with that of justices of the Supreme Court. The
commissioners´ salaries have not been increased since the last salary hike for Supreme
Court judges [in 2008]," said Commissioner Gauri Pradhan, NHRC spokesperson,
defending the controversial decision.
Pradhan said that the commissioners consulted legal experts and held discussions for
two months before taking the decision. "We finally concluded that the decision on the
pay hike confirms to the Interim Constitution," Pradhan told myrepublica.
But senior bureaucrats, who are in a position to comment on the decision, told
myrepublica that a constitutional body cannot on its own increase the salaries of its
office bearers.
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"The decision violates provisions relating to financial laws. Only the cabinet can take a
decision on pay hike," a knowledgeable bureaucrat said, commenting on the NHRC
decision on condition of anonymity. "They have committed an offence subject to
impeachment. It shows impunity at the NHRC."
According to existing financial laws, the Finance Ministry should be consulted before
the cabinet takes any decision that creates an additional financial liability. But the
NHRC commissioners did not consult the ministry.
With this decision, the NHRC chief draws Rs 63,803 per month including all
allowances, Rs 22,216 up from the previous salary. However, there is discrepancy in
the total salaries of the commissioners.
The telephone allowance has been increased four-fold. Commissioners will get Rs
4,800 each per month to pay their telephone bills as against the Rs 1,200 they used to
get. Similarly, the house rent allowance for Commissioner Ram Nagina Singh has been
increased more than three-fold. He will now get Rs 24,700. He is the only
commissioner who draws a house rent allowance.
Source: www.myrepublica.com
Date: 10/22/2009
International Financial and Economical NewsBrief:
TOP STORIES
• Barofsky says TARP has increased moral hazard in markets
• Volcker's advice on fixing U.S. banks is ignored at the White House
• Senate, House leaders move toward health care public option
• Russia's gas pipeline to Western Europe gets final go-ahead
• OPEC says speculators are causing oil-price jump
• Analysis: Business-to-business spending will be up in 2010
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• Bonuses at U.K. banks could hit $9.9 billion
MARKET ACTIVITY
• Asian markets mostly lower
• Mexico sells first World Bank-backed catastrophe bonds
ECONOMICS
• Asian stimulus rollback requires great care, IMF warns
• China to open financial markets to ASEAN partners
GEOPOLITICAL/REGULATORY
• Slovakia may join Czech Republic in blocking Lisbon Treaty
• BoE's King says fundamental rethink is needed on banking
• CESR proposes better protection for money-market investors
• Sources: SEC is set to severely restrict dark-pool trading
• U.K. causes delay in EU plan for financial watchdogs
FINANCIAL PRODUCTS
• Bank of Montreal to offer Canadian equal-weight ETFs
ETHICS
• California sues State Street, alleging $56.6M fraud
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