The Ethiopian Ambassador to Nepal Asfaw Dingamo Kame has reportedly proposed a deal with Nepal Tourism Minister Rabindra Adhikari to sign a strategic alliance with NAC, in a meeting in Kathmandu last week.

This deal with NAC comes as part of the African airlines’ strategy to set up multiple hubs beyond its region. As an owner of a fleet that accommodates 108 aircraft, Ethiopian Airlines is currently serving 125 international and domestic destinations.

The latest news also gains significance in view of Adhikari’s recent update to Nepal Parliament about government’s plans for a strategic alliance with a foreign aviation partner.

However, details about the deal are yet to be officially announced.

“We need to sign an air service agreement first to form a partnership to invest in Nepal Airlines. We can also start with a code share agreement,” Ambassador Kame said in a statement.

A Strategic Move
The latest proposal is Nepal Government decade-long wish to bring in a foreign aviation partner for NAC and is coming at a time when the Nepal Government is also planning to revamp NAC into a company before signing a deal with foreign partner.

On the other hand, the Finance Ministry has already recommended induction of the foreign strategic partner with maximum benefits to NAC under the partnership.

Tourism entrepreneur and a former member of NAC Ashok Pokhrel feels that the foreign alliance will add to the brand value of NAC and also supports it financially.

“We have been hearing for a long time that the government is inducting a foreign strategic partner at NAC. The plan, however, has remained on paper only. But it’s not too late. The government should act promptly before the airline is put into financial stress,” Ashok Pokhrel said in a statement.

“At a time when NAC has been facing criticism for its failure to assure quality and efficiency, a strategic partner, if it is a globally reputed company, can help the carrier to win business globally,” he adds.

Nepal-Ethiopia Ties Growing!
Kame also held discussions with Foreign Minister Pradeep Gyawali regarding Nepal-Ethiopia partnership in forming a bilateral consultative mechanism and carrying out a parliamentary exchange program, among other areas.

Speaking to local media, the Ethiopian official explained that the two countries haven’t exchanged much in partnership since they established diplomatic ties in 1964.

However, the bilateral partnership gained momentum with the establishment of Ethiopia’s honorary consul in Nepal in 2015.

Ethiopia has also urged Nepal to establish its residential mission in the capital Addis Ababa, the area that also hosts the Secretariat of the African Union.

The Background
Nepal Government initiated this plan to bring in a foreign partner in 2007 with an aim to handover NAC’s management to that strategic partner.

Prior to that, the then Royal Nepal Airlines Corporation (RNAC) had invited experts from Air France in 1970 as part of a program to improve NAC management. And, the partnership gave RNAC its first jet, Boeing 727.

Later in 2015, nearly 21 foreign firms applied Letter of Intents (LoIs) to offer world-class management consultancy services to NAC, but the plan didn’t work out.

Later in 2016, the government invited request for proposals from renowned carriers from US, UK, France, Germany and Australia, and only one carrier turned out with Rs688.67 million worth proposal.

Then the Finance Ministry turned it down and then decided to a set up a fresh committee, which again failed with the government pitching for ‘multiple modality options’ before sealing the deal.

While officials are of the view that the deal should be held on a global competition, Ethiopia proposed it under government-to-government procedure.

Now, its government’s turn to react in an appropriate way!

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Gyawali, who was in New York for the 73^rd UNGA Session, informed that the Nepali delegation led by PM KP Sharma Oli will utilize the platform to showcase Nepal’s hard-earned achievements to the world.

The UNGA session will help Nepal garner an additional global-level support by presenting its efforts, the Minister added.

Gyawali further informed that Nepal received goodwill from the international community, including UN, and the government is now striving to ensure that these improvements get reflected in local development.

In this regard, a set of new principles and approach have also been put forth towards effective participation of global organizations in achieving peace and sustainable development.

 “Health and education sectors see nominal spending compared to the public money spent in wars,” said Gyawali as he raised concerns over improper implementation of actions pertaining to Sustainable Development Goals (SDGs).

Gyawali further expressed hope that the discussions, Nepali delegation will hold with heads of various nations as part of UNGA, will enhance Nepal’s diplomatic ties on a global scale.

As a sensational comment, Gyawali said some world nations are choosing protection policies as a move to revert globalization. He raised concern that efforts are being made to weaken global multilateral bodies like Human Rights Council, World Trade Organization and Climate Change Paris Pact.

Trade and human rights are among key aspects that Gyawali raised on the side-lines of the UNGA session.

Nepal delegation led by PM KP Sharma Oli has left to New York on September 22, 2018 to take part in the 73^rd UNGA Session, which includes address to UNGA main conference and a special meeting with the UN Secretary-General Antonio Guterres on September 27, 2018.

Read More:

• 73rd UNGA Session: A Glance at Nepal’s Bilateral Discussions
• 72nd UNGA Session: Nepal Voices Key Concerns for Development

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With Israel
In a move enhancing the domestic energy sector, Nepal took another step that would foster its energy cooperation with Israel.

In a recent discussion, Nepal and Israel discussed ways to boost bilateral ties between the two nations, especially in the energy sector.

In a discussion with the Israeli Ambassador to Nepal Benny Omer, Nepal Minister for Energy, Water Resources and Irrigation Barshaman Pun urged the former to push for Israeli investment in Nepal’s energy sector, informed Pun’s Secretariat.

“There’s demand of 10,000MW of electricity for Nepal in 10 years. We have a favorable investment climate in Nepal for investors in the energy sector. Thus, I urge the Israeli investors to consider investment in this sector,” Pun reportedly said in a statement.

In response, the Israeli Ambassador expressed Israeli Government’s willingness to invest in Nepali energy and irrigation sectors.

Reiterating his support in this regard, Omar informed that Israel has already begun quest to find interested stakeholders who could invest in the Nepali energy sector.

With Bangladesh
Meanwhile, Nepal is also gearing up for a similar cooperation with Bangladesh.

According to a recent update, Nepali Ministry for Energy, Water Resources and Irrigation is planning to conclude an energy pact with Bangladesh during Bangla’s Power Minister Nasrul Hamid’s upcoming visit to Nepal.

The Bangladeshi minister is scheduled to embark on a three-day state visit to Nepal from August 9, 2018.

As the sources say, both the sides are expected to sign a MoU in this regard to form a high-level bilateral mechanism for electricity trade between the two countries and for inviting Bangladeshi investment in Nepali hydropower projects. 

It has been some time since a high-level discussion was held between the two countries regarding energy trade and investment. If the joint mechanism is formed, it will be a wonderful platform to turn the discussion into reality, reads a statement.

Both the sides have also agreed to establish secretary and joint secretary-level mechanisms in this regard.

With Myanmar
Very recently on July 31, 2018, Nepal signed another deal with Myanmar that would enhance Nepal-Myanmar bilateral ties.

At the Foreign Ministry level, both the sides signed a MoU for the establishment of the Bilateral Consultation Mechanism and exemption of visa requirements for the holders of diplomatic and official (special) passports.

Nepal Joint Secretary at the Foreign Ministry Tapas Adhikari and Myanmar Ambassador to Nepal Thiri Pyanchi U Tun Nay signed an agreement in this regard on behalf of both the nations.

During the meeting, Nepali Foreign Secretary Shanker Das Bairagi and his counterpart U Myint Thu
also reviewed other key matters pertaining to bilateral relations and ways to take them further, reads an official statement.

Also Read: 

• Oli India Visit 2018: India, Nepal Strengthen Ties, Target Next-level Development
• Nepal-Uzbekistan Diplomatic Ties Established
• Nepal, Benin Establish Diplomatic Ties
• Nepal 2017 Highlights: Politics and Bilateral Relations

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In this regard, the concerned officials of both the countries have recently signed a Joint Communiqué in New York on behalf of their Heads of States and government departments, said a statement by the Nepali mission in UN.

With this, the number of Nepal’s external outreach with world nations as part of diplomatic relations reached 160.

Ambassadors and Permanent Representatives to UN Nepal and Burundi, Durga Prasad Bhattarai and Albert Shingiro joined the signing ceremony.

On the occasion, the two officials held bilateral discussions on the ways to make their bilateral ties instrumental across national and global platforms.

They also discussed the scope of taking ahead the relations further on a bilateral basis and also through the frameworks such as South-south and Trilateral co-operations.

Nepal and Burundi are already the active members in various groups such as Least Developed Countries (LDC), Land-Locked Developing Countries (LLDC), Group of 77, Non-Aligned Movement and Human Rights Council of Geneva.

Besides, the two countries also served as the non-permanent members of the UN Security Council and members of the Economic and Social Council (ECOSOC) in 2002 and 2003 as a representing their respective regions.

A Step Ahead!

Meanwhile, in another update regarding Nepal-Saudi bilateral ties, the Kingdom of Saudi Arabia has pledged its support to Nepal in its infrastructure projects through financial aid and loans.

“The state-owned Saudi Fund for Development (SFD) has pledged to extend a SR 30 million loan facility for infrastructure projects in Nepal,” Nepal’s newly-appointed Ambassador to the Kingdom of Saudi Arabia Mahendra Prasad Singh Rajput said in a statement.

The envoy further informed that Nepal is currently studying the clauses of a draft agreement, which will facilitate deployment of Nepalese domestic workers in this country.

“We will submit some project proposals to SFD shortly in this regard,” he added.

Speaking further on the deal, Rajput explained that Nepal is going through the proposal pertaining to labor agreement between the two countries and is keen on proceeding positively considering Saudi’s position as the top destination for Nepali migrant labor.

Hope the new deal will address the employment concerns of more number of Nepali migrant labor looking out for job in the Saudi market.

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Nepal and Uzbekistan agreed and signed for the establishment of their diplomatic ties on January 26, 2018.

With Uzbekistan, the number of diplomatic ties Nepal has established with the world nations, so far, reached 158.

An agreement in this regard was signed at a ceremony held in New York that was also attended by Permanent Representative of Nepal to the United Nations Ambassador Durga Prasad Bhattarai and Permanent Representative of Uzbekistan to the United Nations Bakhtiyor Ibragimov.

Ambassadors of both the nations also jointly informed Secretary-General of the United Nations António Guterres about the signing of Nepal-Uzbekistan bilateral ties.

Nepal and Uzbekistan are currently working in collaboration across various forums such as non-aligned movement, among others.

It is noteworthy that Nepal has recently begun its diplomatic relations with a West-African nation Benin.

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In this regard, Nepal promised relaxation in infrastructure, tax structure, redressal of single window grievances, special rights and exemptions to facilitate ways for the Indian business community.

“It’s an opportune time to invest in Nepal with bilateral trade on the upswing and we assure the Indian industry that our government would provide all possible support to investors,” Embassy of Nepal Charge d’Affairs Bharat Kumar Regmi.

Regmi said this in his address at the Indo-Nepal Trade and Investment Opportunities seminar organized by the Federation of Indian Chamber of Commerce and Industry (FICCI) in Mumbai on December 21, 2017, with an aim to encourage economic and business cooperation between the two countries.

Krishna Hari Pushkar, Minister(Economic), Government of Nepal, highlighted Nepal’s potential in infrastructure, hydro-power, tourism, agro-based industries, mining and minerals, education, health, manufacturing, IT and construction sectors.

Cultural counsellor from the Nepal Embassy Krishna Prasad Pantha called on stressed on the need for strengthening of people-to-people and cultural ties between the two countries.

India Should Rethink

Meanwhile, in another statement, the Communist Party of India (CPI)-Marxist General Secretary Sitaram Yechury felt that India need to rethink on its bilateral relations with Nepal following the victory of Communist Alliance in the recently-concluded Nepali parliamentary and provincial polls.

“The important political development in Nepal should lead to a re-thinking and change in India’s attitude to Nepal. The Modi-led Indian Government should strive to establish close relations of cooperation based on equality and non-interference in the internal affairs of Nepal.” said the Indian CPI-M leader.

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