Jun 7, 2007

Govt. seeks new relation with ADB for Melamchi

Nepal is to write official letter to Asian Development Bank (ADB) requesting not to pull out from Melamchi Drinking Water Project (MDWP). Minister for Physical Planning and Works Hisila Yami on Thursday informed that the government was sending a letter to ADB for the continuation of Melamchi as per the cabinet decision to proceed MDWP in cooperation between the government and ADB.

At a press conference, Minister Yami said the government agreed to the proposal of handing over responsibility of distributing water in Kathmandu valley to Kathmandu Valley Drinking Water Company. She also urged ADB to give continuity to MDWP. Minister Yami also expressed her hope that ADB would respond the request of Nepal government till Thursday evening stating that she thought ADB would not pull out from MDWP.

Minister Yami had decided to review the earlier agreement of awarding the contract of managing valley's drinking water to UK's Severn Trent company stating that the company was internationally discredited. In response to Minster Yami’s move, the ADB had announced that it would pull out from Mlamchi.

ADB is a leading donor of the project and had agreed to provide loan of US$ 140 million for the purpose.

Melamchi project is designed to supply 170 million liters of water daily from Melamchi River in Sindhupalchowk district to Kathmandu where supply is currently less than half the demand of 250 million liters daily.

Jun 6, 2007

Govt. welcomes NRN's investment in hydropower: Minister Karki

Minister of State for Water Resources Gyanendra Bahadur Karki on Tuesday said the government welcomes proposals forwarded by the Non-Resident Nepali Association (NRN) to invest in the hydro-power sector in Nepal.

"The government welcomes your investment in power sector but you will have to take licences for that purpose," Karki said after the NRN team forwarded their demand in on Tuesday's meeting of the Parliamentary Natural Resources Committee.

He also underscored the need to make an environment favourable for investment and said everyone should work for that.

The NRN representatives on Tuesday submitted a proposal to the parliamentary committee expressing their interest in investing in hydro-power sector.

"We are interested to invest in the 300 MW Upper Karnali, 400MW Arun-III and 600 MW Budhi Gandaki hydro-electricity projects," the proposal submitted by NRN chairman Upendra Mahato said.

The NRN proposal has also requested the government to create an environment conducive for NRN investment here by promulgating an Act to simplify processes.

Jun 5, 2007

Minister Yami confused by the stance of Dr Mahat on Seven Trent

Minister for Physical Planning and Works Hisila Yami on Monday said she does not understand why Finance Minister Dr Ram Sharan Mahat does not want the proposed contract with the Severn Trent Water International Limited reviewed.

"I wonder why minister Mahat is not happy when I want to have the proposed contract reviewed," she said, addressing a ceremony organised to lay the foundation stone of a water storage tank at Kumbheshwor on Monday.

Mahat has been insisting that the proposed contract be passed in its present form, while Yami has been demanding that the contract with the controversial party be reviewed.

The ministers have had several rounds of meeting on the issue, but the issue has not yet reached the cabinet. Yami has said she will take the issue to the cabinet for review.

She also claimed that minister Mahat is speaking the donor's language.

"As the country is all set to establish a federal political system, leaders should lobby for launch of projects in other cities of the country," she said, adding that this will ultimately ease pressure of population on the over-populated capital.

" We cannot address the scarcity of water with one Melamchi. Even 10 such projects will not be enough to meet the demand for water if people continue to pour into Kathmandu. We should develop other cities and ease population pressure here," she said.

Chairman of the Lumanti Support Group for Shelter Lajana Manandhar, who is also a member of the newly-formed Kathmandu Valley Water Management Board, said that the issue is not concerned with whether or not to go ahead with the Melamchi project.

"There is no alternative to the Melamchi project. There is nothing wrong with the project. But we have to think whether the project is going to a wrong hand or is being handled in wrong way," she said, adding that the proposed contract is not in favour of consumers.

Jun 4, 2007

Maoist supremo says they are facing difficulty not accepting commission

Chairman of the Communist Party of Nepal - Maoist (CPN-M) Prachanda has said that “we are facing difficulty as we have declined to accept commission from various international commission agents and brokers”.

Prachanda informed that some handful national and international agents and brokers were not happy with the Maoist joining the government as his party is taking nationalistic agenda for the economic development of the country.

Citing the much-controversial issue of Melamchi, Prachanda said that his party is facing tremendous pressure from such forces as they took the agenda of national interest in the Melamchi issue.

Addressing the 41st annual general meeting of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) in Kathmandu Monday, Maoist supremo said, “Existing economy is feudalistic and dominated by foreign powers so we have to face the challenge raising a even a small issue like of Melamchi”.

“We always welcome foreign investment and aid but we can’t bear the terms and conditions of the foreigners to run this country. Brazil and Mexico went bankrupt as they followed the prescription of foreigners”, Prachanda added.

He also said that Nepali people themselves are capable of running this country and “being slave to white skin attitude” is main hurdle for economic development of the country.

Responding to a query of the businessmen on the issue of extortion, Prachanda said it is unjustifiable to blame the Maoists party for extortion just for asking some rupees with people while international commission agents and feudalists are piling up billions of rupees in foreign countries extorting from Nepal.

Defending the activities of Young Communist League (YCL), he also claimed “Business and industries are not flourishing in Nepal due to the rent seeking and commission seeking feudalistic structure of the state” adding “it is not because of the activities of YCL”.

Addressing the programme, Maoist second –in-command Dr. Baburam Bhattarai said it is unacceptable the terms and conditions of Asian Development Bank (ADB) to reward “defamed” Seven Trent International to manage the water system of Nepal.

“We say Melamchi is necessary for Nepal, foreign aid is necessary for Nepal but it is unacceptable to bear the unwanted conditions. Agents and brokers of ADB have threatened us but we should not bow down to any kind of threatening.”

Dr. Bhattarai also said that his party welcomes foreign direct investment (FDI) with some terms and conditions based on national interest. “FDI that creates employment and transfers technology in this country would be acceptable. We are always committed to protect national industries, why we should not protect national industries while highly developed economies like America and France battle over the issue of protecting their national industries”, Dr. Bhattarai added.

Jun 3, 2007

US stance on the Maoists not changed: US Assistant Secy

Barry F Lowenkron, US Assistant Secretary of State for Democracy, Human Rights and Labour, Sunday said that the US stance on the Maoists has not changed yet.

“One cannot have ballots and bullets in a democratic process,” he said, adding: “Intimidation and violence have no role whatsoever in the democratic process of any country. Nothing justifies the use of violence as a legitimate political tool.”

“The peace agreement contains clear commitments that are yet to be honoured by the Maoists,” he said, addressing a press briefing.

“The US strongly supports Nepal’s peace process and democratic development,” he said, adding, “We will do what we can to help ensure the success of the peace process.”

He urged the government to listen to the people before taking major political decisions. “We hope that the political parties and the government will find ways to listen to the voices of all of Nepal’s people and bring them into an inclusive, peaceful and democratic society.”

Responding to a query, he said that the US will support the Nepali people’s decision on monarchy. “The US has nothing special to say about the monarchy. It is up to the Nepali people to decide whether they want to keep the king or not.”

Praising Prime Minister Girija Prasad Koirala for his role in securing an agreement among the parties on the date for the constituent assembly elections, he said, “We now urge the interim government to draft and pass necessary election laws and ensure security across the country.

Elections are the heart of democracy, and the Nepali people deserve the opportunity to have their voices heard through free and fair elections later this year,” he said.

Lowenkron said he also called for the appointment of commissioners in the National Human Rights Commission. “Like all commissions in democracies, the NHRC must be truly independent,” he said.

The US is ready to support Nepal over Bhutanese refugees, he said, but refused to comment on India’s possible role on repatriation.

Lowenkron has met government officials, leaders of political parties, human rights activists, and representatives of civil society with the objective of reviewing the ongoing developments in Nepal.

Jun 2, 2007

Understanding reached to fulfill one half of MPRF’s demands

In the first phase of talks, the government and the Madhesi People’s Rights Forum (MPRF) Friday reached in an agreement to fulfill one half of the 26-point demands put forth by the Forum.

The demands that have been met by the government team include forming State Restructuring Commission; declaring those killed during Madhes agitation as martyrs; providing compensation to families of the dead; and providing relief and treatment to those injured during the agitation.

Likewise, the government side also agreed to carry on dialogue to seek help of UN technical team in their further talks; drop charges against MPRF leaders; ensure access of Madhesis, Dalits, women, Janjatis and backward people to all organs and levels of the state; and proportionate distribution of resources. They also agreed on demands like returning seized properties by the Maoists; ensuring industrial security and declaring date for Constituent Assembly elections soon.

After the talks, MPRF president Upendra Yadav expressed happiness over the manner in which the negotiations were proceeding. He said the talks were very positive.

Yadav added that political issues will be raised in next round of talks. "Issues like autonomous Madhes province, right to self determination and census will be taken up on next round of talks," he said.

The talks had continued from 2 pm till 9:30 pm on Friday at the meeting hall of Nepal Rastra Bank (NRB) in Janakpur amid tight security. Future talks are expected to be held in Birgunj and Biratnagar.

The government talks team was led by Peace and Reconstruction Minister Ram Chandra Poudel and the MPRF team was led by its chairman Upendra Yadav. Poudel's team also comprised two state ministers, Gyanendra Karki and Ram Chandra Yadav. The MPRF talks team comprised its coordinator Sitanandan Raya, Mohammed Nasir Siddiqui and Kishor Biswas.

Jun 1, 2007

NOC pays Rs 1 billion to IOC

The Nepal Oil Corporation (NOC) Thursday paid Rs 1 billion to Indian Oil Corporation (IOC), following which the Indian supplier said it would resume normal supplies immediately.

The state-run petroleum supply monopolist, NOC made the payment to the sole supplier of fuel after the Ministry of Finance (MoF) released the said amount on Thursday.

Ichha Bikram Thapa, spokesperson of NOC, confirmed that the corporation on Thursday cleared IOC dues for the months of April and May and made advance payment of Rs 240 million each for June and July, as per the bilateral agreement of paying additional Rs 240 million each month to settle the previous outstanding.

According to Thapa, NOC on Thursday deposited the amount at the IOC's account with the Standard Chartered Bank. "With this payment, petroleum supply is expected to become normal to some extent," he said. He, however, said that this is not a permanent solution, as NOC is still incurring a loss of over Rs 254.8 million every month.

Last week NOC had also disclosed that IOC has tightened the supply of petroleum products following its failure to clear the outstanding dues as well as monthly import bills for the last two months. Earlier, NOC had committed to paying an additional Rs 240 million every month along with monthly import bills to settle past dues.

As of mid-May, the NOC's total liabilities have crossed Rs 10 billion, the largest chunk being with IOC which accounts for Rs 5.955 billion and Rs 4.44 billion for domestic financial institutions.

Last week, the corporation also stated that the government is now left with two options, either to provide Rs 500 million support to NOC to ensure regular supply or immediately adjust petroleum prices.

According to figures provided by NOC, the corporation is incurring monthly losses of Rs 55.7 million on petrol, Rs 120.5 million on diesel, Rs 144.3 million on LP Gas and Rs 47 million on kerosene. The only profit making product is air turbine fuel (ATF) that stands at Rs 112.8 million a month.

NFIN called bandh cripples life across the nation

Life across the nation has been crippled due to a bandh (general strike) called by various ethnic groups led by Nepal Federation of Indigenous Nationalities (NFIN) to observe June 1 as ‘Black Day’ in memory of a ruling by the Supreme Court nine years ago to ban the use of local language as formal language in local bodies.

They have announced a nationwide bandh Friday in protest of the high court’s decision.

Market places, education institutions and industries remained closed all over the country.

All public transportation remained off the road in the Valley, while press vehicles, ambulances and blue plated vehicles could be seen in the roads. Only a few shops in some inner places of the Valley were open. Many people could be seen walking in the roads heading towards their destinations.

Eastern districts like Jhapa, Morang, Sunsari, Dhankuta, Saptari, Dhanusha, Illam, Taplejung, Paanchthar, Sankhwasabha, Ramechap and Sinduli remain completely shut.

Western districts like Butwal, Pokhara, Birgunj, Narayangarh, Nepalgunj and Dhangadi are also affected by the bandh.

All vehicular movement has also been restricted by the agitators in the capital.

Meanwhile, the police have informed that no untoward incident has occurred anywhere in the country due to the strike.