As per the data, it transferred the said amount from miscellaneous category to delegation/foreign visit and reception expenditure category between April to June, this year.

Experts opine that the transfer of funds from one expense area to another could be justified during emergency. However, it could result in lack of financial discipline if otherwise.

Following are MoF expenditures provided for ministerial foreign visits during April-June 2019:

• A sum of NPR 21.9 million was spent on Nepal PM Oli’s visit to Vietnam and Cambodia between May 09-15, 2019
• NPR 30.96 million given for President Bidya Devi Bhandari’s China visit during the last week of April
• NPR 16.21 million spent on costs incurred during President Bhandari led delegation visit to the 63rd Session of the Commission of the Status of Women organized by the United Nations in March 2019
• NPR 1.52 million given to Nepal Law Commission (NLC) for expenditures of the three-member delegation attending the Commonwealth Association of Law Reform Agencies conference at Zambia
• NPR 5.82 million transferred to delegation/foreign visit and reception for daily allowance and fees to travel agency for air tickets given to delegates representing Nepal at various international conferences
• NPR 704,273 for Forest and Environment Minister-led delegation to Doha
• NPR 1.36 million for Chief Secretary-led delegation visit to Egypt and Israel
• NPR 955,245 million for Deputy Prime Minister and Defense Minister’s visit to New York for the UN Peacekeeping Defense Ministerial Meeting
• NPR 838,908 for Industry Minister Matrika Yadav’s visit to Dubai and Bahrain and many more..

Existing laws allow a transfer of only 10 percent for each ministry and their agencies.

Earlier Finance Ministry statistics also revealed that the Nepal Government had also spent NPR 10 million of taxpayers’ money on similar foreign trips.

The post Nepal Finance Ministry Transfers NPR 85 million for Foreign Visits appeared first on Nepali Sansar.

The South Asian Games Preparation and Management Committee has come up with a budget estimate of NPR 5.26 billion for the 13^th South Asian Games (SAG).

Committee and Vice President of National Sports Council Pitambar Timsina presented a report on the estimated budget to Minister for Youth and Sports Jagat Bahadur Sunar at a program on June 17, 2019.

As per the report, NPR 880 million has been allocated for preparation, NPR 714.6 million for event management, NPR 30 million for sports management and NPR 502.6 million for security management.

After grant and approval from the Finance Ministry, the Sports Ministry will prepare working procedures of the 16 committees for the 13^th SAG.

Taskforce Coordinator Timsina said the budget estimate was finalized after holding discussions with experts. He admitted that budget estimate was high and had amounted to NPR 5.26 billion only after including technical trainings and coaching sessions for the upcoming games.

He added that a flexible budget would help in the event’s smooth implementation.

Furthermore, the committee has estimated NPR 714.682 million for ceremony management, NPR 12.905 million for hospitality, NPR 20.297 million for volunteering mobilization, NPR 1.299 billion for sports materials, tools and kit management among others.

The 13^th South Asian Games are scheduled from December 1-10, 2019.

2019 South Asian Games – Participating Nations

• Afghanistan
• Bangladesh
• Bhutan
• India
• Maldives
• Nepal
• Pakistan
• Sri Lanka

The post South Asian Games Taskforce Presents NPR 5.26 billion Budget appeared first on Nepali Sansar.

In the process, the Federal Parliament has already begun its budget session for FY 2019-20 on April 29, 2019.

As a further step in this process, the government is preparing to present its policies and programs pertaining to the new fiscal on May 03, 2019.

President Bidya Devi Bhandari will present the policies and programs at a Federal Parliament joint meeting to be held at the International Convention Center in New Baneshwar at 4 PM.

In line with the discussions, the Ministry of Finance is expected to bring the budget in a match with the planned policies and programs.

Earlier at a session on April 29, 2019, the beginning day of the budget session, the government held discussions on annual policies and programs, besides the budget for FY 2019-20 and enactment of laws for the implementation of the Constitution.

Let’s wait and watch for the outcomes of today’s session!

Stay tuned to Nepali Sansar for more updates!

The post Nepal Budget Discussions 2019: Policies and Programs Today appeared first on Nepali Sansar.

As the reports say, the PMO Secretary is going to head the National Committee on anti-money laundering and terrorism financing if a proposed provision in some Nepal Acts Amendment Bill 2018 is approved by the parliament.

If the bill is endorsed as planned, the Finance Secretary (the current head of the committee) will just be the member, while the decision-making lies with the PMO Secretary.

Surprisingly, the proposed bill was registered in the Parliament without the consent of the Finance Secretary.

MoF Not Happy About Decision

Doing so goes against the general practice of taking opinion of the concerned parties’ while formulating a law, say the Ministry of Finance (MoF) officials.

MoF Officials opine that the law will be effective under MoF and the PMO Secretary-led committee is less effective compared to the Finance Secretary.

“There was a kind of accepted notion that having the Finance Minister as the head of the committee shall make its functions more effective,” an MoF official reportedly said.

“PMO Secretary makes the committee weaker than the Finance Secretary,” says another MoF official.

The Finance Ministry also complains about challenges they have been facing in issuing directives to high-level officials under different regulators such as Nepal Rastra Bank.

Whereas, PMO states that their proposed bill has been prepared considering the Department of Anti Money Laundering (DMLI) presence under PMO.

The Prime Minister Oli had brought DMLI from MoF to PMO to have more authority on issues related to money laundering.

However, officials argue that there was not any remarkable change since the shift took place.

Even the agencies feel that majority of the financial issues investigated need intervention of MoF officials in the investigation.

MoF was preparing a new draft for amending the Money Laundering Prevention Act 2008 with the addition of new provisions such as designating the Finance Minister to head the committee to make it more powerful.

But with the latest announcement, MoF has to hand-over its draft to PMO without any further discussion!

The Background

All this started with Lawmaker Nawaraj Silwal, former head of the Central Investigation Bureau, registering an amendment motion in the Parliament pitching for political leadership to head the high-level committee instead of civil servants.

On the other side, the Finance Minister also met with officials of government units associated with money laundering investigations, following the Nepal Leaks that disclosed 55 Nepalis’ illegal transactions in Swiss accounts.

What could be the government’s next move in the decision?

The post Nepal Leaks Trigger Discussion on Anti-Money Laundering Act appeared first on Nepali Sansar.

The Development Cooperation Report 2018 released by the Finance Ministry on January 16, 2019 showed a 16 percent rise in foreign aid disbursement to Nepal (USD 1.62 billion) in the ended fiscal.

World Bank topped the list of aiding agencies with USD 533.51 million support, showing a 54 percent year-on-year rise in funding.

Asian Development Bank (ADB), United Kingdom, USAID and European Union stand as the major contributors.

Majority of the funding was focused on economic reforms, education sector, health, urban development and local infrastructure development.

It is noteworthy that the World Bank’s funding to the nation has increased during and after the 2015 earthquake. Even the other agencies also showed a growing trend with regard to offering financial support post the earthquake incident.

Top-5 Disbursements from Global Funding Agencies Aid to Nepal- A Glance at Comparison (in NPR)

Of the total disbursed amount, 50.5 percent of the fund came in the form of loan, 35.1 percent in grant and 14.4 percent as technical assistance.

It is notable that 78 percent of the foreign aid has come under in line with the budgeted requirements, reflecting in the government’s annual budget book.

Country-wise

The United Kingdom emerged as the top-3 donor after the world’s leading funding agencies, while Nepal’s closest neighbors did not appear in the list and were at 8^th and 9^th positions, respectively.

India’s contribution to Nepal during the year was USD 56.76 billion, down 4.2 percent year-on-year.

Sector-wise

Economic sector topped the list with regard to sector-wise receiving of funds, followed by education sector, urban development, health, local development, energy and housing.

“The increase in disbursement was due mainly to the implementation of ‘First Programmatic Fiscal and Public Finance Management Development Policy Credit’ funded by the World Bank,” said the report.

Bagging on Capacity Development

Finance Minister Yubaraj Khatiwada is hopeful that the donations would further go down as Nepal is moving on the path of development with good number of institutional reforms and enhancing its capacity to pay-back loans.

It’s clear. Drop in grant means our loan will grow,” he told a press conference on Wednesday. “As Nepal aims to graduate to the league of developing nations by 2022, we will have to focus on mobilizing the loans received under the low interest rate more prudently and in a transparent manner,” says the Minister.

The post Foreign Aid to Nepal: World Bank Tops, Govt Eyes Capacity Development appeared first on Nepali Sansar.

The Nepal Communist Party (NCP) Chair and Nepal Prime Minister KP Sharma Oli was received amidst opposition parties’ critical uproar in the Parliament on January 06, 2019.

This was the first time Oli addressed a parliamentary session ever since the winter session began on December 26, 2018.

PM Oli’s speech focusing on his government’s efforts for Nepal’s progress throughout the first year of his regime spanned higher growth, curbed-corruption, and improved law and order situation.

However, Oli’s presentation of Nepal’s progress path didn’t seem to satisfy its main opposition Nepali Congress (NC), whose lawmakers were quick to sought clarifications.

NC lawmakers Dilendra Prasad Badu and Minendra Rijal were first to seek permission from Speaker Krishna Bahadur Mahara to speak to Oli. But the Speaker refused their request after Oli clearly stated that he did not want to take any questions from the opposition.

A number of lawmakers from Oli’s own NCP opined that his parliamentary address was ill-timed and could have waited until his party completed its first term in office.

PM Oli emphasized seven indicators of the budget implementation and their status during the parliament including the balance of payment, capital expenditure, economic growth, employment revenue collection & financial situation, implementation of flagship program and progress made in the implementation of national pride projects.

Following are the major points presented by Oli at the Parliament:

• Nepal’s revenue collection increased by 32% in the first five months of the current fiscal Y-o-Y
• Capital expenditure increased by 25.33 percent in the first five months of the review period while government expenditure reduced to 14 percent from 34 percent last year
• Inflation rate decreased to 3.7 percent from 4.2 percent in the previous year
• Foreign aid increased by 162.72 percent compared to last year, whereas the total pledged foreign aid and loan stands at NPR 112.13 billion
• Nepal exports in the first five months of FY 2018-19 increased by 12.3 percent

The government decided to grant five percent concession on 15 exportable goods and three percent on 11 exportable items to promote export

• National Pride Project Gautam Buddha Airport in Lumbini has been fast-tracked to conduct a test flight by June 2019 with a deadline of six months for the apron and runway construction
• Works on the Upper Tamakoshi project for test production to be conducted by August 2019 are being carried out
• A detailed project on the EastWest Railway has been completed and resources are being arranged for railway construction in the Kakadvitta-Butwal section

Energy:

• Oli said that since this government’s formation, electricity meters have been installed in 30,000 houses and electricity theft was reduced by 3 percent
• In terms of clean energy, biogas plants were installed in 10,561 households including 80,990 solar plants and 40,362 improved stores
• With the Nepal government’s initiative, India amended its energy trade directives enabling Nepal to provide surplus electricity to third countries through India
• The government forged an agreement between Bangladesh and Nepal on electricity trade
• As part of its initiatives, the Oli-led government is working on war-footing to finish the laying of petroleum pipeline between Nepal and India before the deadline

Railway:

Providing the status on railway achievements he said:

• The prefeasibility study on Kerung-Kathmandu railway has been completed and works are underway to prepare a detailed project report
• Preparations for a prefeasibility study of Kathmandu-Pokhara-Lumbini railway are underway, with support from China
• Nepal government has signed an agreement to prepare a Detailed Project Report for Raxaul-Kathmandu railway with India’s support
• Preparations are underway for establishing Nepal Sheep Office and appointing a Sheep Registrar

The Prime Minister also added that a Public Transportation Authority will be formed to manage post-syndicate turmoil in the transportation system. He hailed his administration’s efforts to control crime stating that the Police Administration achieved 96 percent success in curbing crimes.

However, Oli’s report failed to discuss some of Nepal’s major concerns, for which, he received severe criticism from opposition parties and raised questions on his role.

Downsides of PM Oli’s Rule

Following are the discrepancies observed in Oli’s presentation:

• Indifference to Business Community: Finance Minister Khatiwada and Industry Minister Matrika Prasad Yadav failed to be empathetic towards the business community’s problems despite three leading private sector’s umbrella bodies’ attempts to pressurize the incumbent government for creating favorable investment climate.
• Nepal Aviation Scam: Oli irked many when he didn’t comment or speak anything about the NPR 4.35 billion aviation scam. The case stands as one of the biggest corruption scams in Nepal at a time when Oli advocates his government’s attempts to restore good governance and eradicate corruption.
• Rising Trade Deficit: Nepal’s growing trade deficit has been a matter of concern for quite some time. However, PM Oli made no mention about the alarming trade deficit and declining foreign direct investments. The two concerns were one of the commitments that two-thirds of the government pledge to improve during its budget speech. Nepal’s trade deficit stands at NPR 458.48 billion in the first four months of FY 2018-19 and has tipped off the country’s Balance of Payment (BoP).
• According to Nepal Rastra Bank’s Current Macroeconomic and Financial Situation of Nepal report, the country’s export-import ratio dropped to 6.1 percent from 7.4 percent in the last fiscal year.Oli advocated that the trade deficit increased by only 1.5 percent in the first three months of the current fiscal but without any supporting statistics.
• According to the NRB report, the country’s overall BoP in the first four months stood at a difference of NPR 57.33 billion compared to the surplus of NPR 2.40 billion in the same period last year.

“Import of industrial goods and construction material has increased by 40.6 percent and this has hit the balance of payment. But this is a positive indicator for the country’s production and development,” reads an excerpt from Oli’s speech.

• Capital Expenditure Progress: Nepal’s capital expenditure made slight progress but attested that the government failed to deliver its promises of ensuring higher growth and employment. The capital expenditure remained at NPR 26.01 billion compared to NPR 17.86 billion in the previous year. Statistics until Sunday projected a 15 percent progress in the capital spending plan of NPR 313 billion even though more than half the review period has passed by.
• Drop in Foreign Direct Investment: Nepali witnessed a decline of over 50 percent in the first four months of the fiscal despite government claims about improving the FDI flow in Nepal by clearing legal and policy hassles. Nepal’s FDI flow trickled to NPR 4.95 billion from NPR 10.17 billion during first four months of the previous year. PM was quick to defend this claim with a sharp remark stating that the number of foreign investments increased by 25 percent. However, Oli 14-page document failed to attest related numbers.

• National Pride Projects: Most of the national pride projects works remain unsatisfactory. However, Oli pointed the progress in several projects including Babai Irrigation Project, Bheri Babai Diversion Project, Gautham Buddha International Airport, Pokhara International Airport, and the Upper Tamakoshi project.Despite Oli’s attempts to fast-track the project’s final works on his trip to Dolakha in April 2019, the project has failed to make headway. Oli claims that 97.5 percent of the project work is complete however, he did not provide any progress figures when he assumed office. Nepali Congress leader Gagan Thapa said that the information presented by PM Oli was similar to Finance Minister Khatiwada’s White Paper presentation of Nepal’s Economic status.
  

“The White Paper had tweaked economic information to fit Khatiwada’s approach to show the economy in a bad shape, and Oli has now done the same. Oli has manipulated information in his speech. He has also tried to threaten his critics about the procurement of project war room in his office,” said Thapa.

• Nepal Migrant Workers to Malaysia: Thapa further pointed out at the situation of Nepal Migrant workers to Malaysia which is still at standstill despite a MoU being signed by both nations.

“Oli remains silent why the outflow of migrant workers to Malaysia has not yet started but claims that the remittance collection has grown due to administrative reforms,” adds Thapa.

PM Oli states that the number of migrant workers declined by 41 percent but the remittance inflow increased by 36 percent.

Besides, while Oli presented a good picture of Nepal’s economy at the beginning of his speech, it’s a well-known fact that just nine months before this statement, Finance Minister Yubaraj Khatiwada introduced a white paper which depicted a shoddy state of the country’s economy.

Other untouched/less discussed issues include 13-year old Nirmala Pant’s case and President Buda Devi’s purchase of expensive means of transport including a helicopter.

The meeting portrayed Oli’s contributions to Nepal’s progress in very poor light. Many have begun to raise questions on his ability as Nepal’s Prime Minister.

“The thumping of desks by NCP lawmakers was muted today, which indicated Oli’s performance had deteriorated,” remarked Thapa.

The post Nepal’s Oli Govt in 2018 – Achievements, Failures and Questions Unanswered! appeared first on Nepali Sansar.

The ADB fund will be used for two projects including a USD 130 million concessional loan for Urban Water Supply and Sanitation Project and USD 20 million additional loan financing for SASEC Power System Expansion Project.

Urban Water Supply and Sanitation Project
This project will improve water supply and sanitation infrastructure for increased access to the aforementioned resources in 20 municipalities.

SASEC Power System Expansion Project

On the other hand, the SASEC Power System Expansion Project seeks to address Nepal’s electricity sector concerns by:

• Raising Nepal’s power transmission capacity
• Improving its distribution network
• Increasing mini-grid renewable energy systems in off-grid areas
• Enhancing Nepal Electricity Authority (NEA) and Alternative Energy Promotion Center’s (AEPC) capacity
• Developing a utility-scale photovoltaic project

Nepal Finance Ministry Secretary Dr. Rajan Khanal and Nepal Resident Mission Country Director Mukhtor Khamudkhanov signed the agreement on behalf of the Nepal Government & ADB, respectively.

Girl-Friendly Toilets
Meanwhile, Nepal is already beginning to witness a revolution in the form of ‘girl-friendly’ sanitation infrastructure. Lately, a lot of schools are becoming particular about maintaining proper hygiene and sanitation during menstruation informed Bardevi Basic School Teacher Debaki Timalsina Dotel.

“When we were sharing the toilet with boys, we had to stay in queue for long time for our turn. It used to be troublesome especially during periods. “Going home was the only option for changing pads and cleaning ourselves,” said Binita Regmi, Niranjana Secondary School 11th Grader.

But ever since the school constructed gender-friendly toilets, girls don’t have to skip classes during periods. Furthermore, the mental stress is also reduced. 

“We have been provided with the sanitary pads from the school and there is a proper place for disposal also,” Regmi added.

Bardevi Basic School set such example back in 2017. “In lack of proper toilet, we earlier had to defecate in the open. We were always in fear of being caught, but now we feel safe,” said Asmita Gajurel, Bardevi Basic School Eight Grader. This has also benefited female teachers.

“Sanitary pads are not easily available in rural areas. That is why we have arranged pads for the students in the school. We have also trained the students on making sanitary pads at home,” Dotel added.

BBS Principal Kedarnath Dotel informed that the facilities have been constructed with support from Korea International Cooperation Agency (KOICA), Good Neighbors International and District Public Health Office (DPHO).

Girls have become regular to school from the time separate toilets were constructed.

Read More:

• Asian Development Bank (ADB) Funds Nepal’s Big ‘Road’ Project
• FY 2018-19: Nepal Poised for Healthy, But Slow Economic Growth

The post ADB Support to Fulfil Nepal Sanitation, Alternative Energy Plans appeared first on Nepali Sansar.

The meeting is being held to evaluate his own government’s performance and will continue until November 23, 2018, as revealed by officials familiar with this process.

It will give Oli the time needed to weigh his ministers works who will be under the scanner for alleged financial irregularities, accusations of being responsible for the administration’s growing unpopularity and poor performance.

Oli’s Row of Questions
When the meeting started on November 21, 2018, Oli said that his ministers work culture has not improved at the top level and that he will not listen to any ‘ifs’ and ‘buts’ from the cabinet ministers, a secretary present at the meeting shared.

“Why does it take months to shift one file from one government entity to another? I urge you all to work for visible change and results,” Oli further questioned.

As part of the Wednesday meeting, Oli evaluated Agriculture, Energy, Industry and Urban Development Ministries and the National Reconstruction Authority based on the progress reports they presented.

PM Oli has been going through each ministry’s report card and rating them based on their performance.

He continued to review budget expenditure, large infrastructure projects progress and if these ministers met policy and budget targets.

Ministers pointed at lack of inter-ministerial coordination and internal hiccups for failure of meeting budget expenditures in the previous four months.

Clearly displeased, Oli urged ministers to ensure the fulfillment of outstanding policy, program and budget targets along with increasing speed of work, Finance Minister Yuba Raj Khatiwada informed.

“I do not see any budgetary problems in carrying out and implementing projects,” Oli angrily questioned according to one of the secretaries.

He further asked the concerned ministers to inform him if the cabinet, ministers, secretaries or any laws and regulations were causing any delays.

“Why has there been no progress? Whatever the reasons are, we need results. I urge you not to be satisfied with the work you have done so far,” he asked.

The Prime Minister’s Office developed an app that monitors and evaluates various ministries projects.

As per the app, Ministries with above 80 percent progress rating get a green signal, 80-50 percent get a yellow signal and below 50 percent- red signal indicating their failure to achieve progress.

“I do not expect any red signals,” Prime Minister Oli said.

Poor Capital Expenditure
The government expressed displeasure with Nepal’s capital expenditure status in the first four months of FY 2018-19 after it was criticized for poor performance.

According to Finance Minister Yubaraj Khatiwada, about 19 percent of the capital budget was spent in the given period, which was close to 39 percent in the same period, last year.

“Although capital expenditure has increased, we are still not satisfied,” he said after a meeting with ministers and secretaries of development-related ministries today at the Office of Prime Minister and Council of Ministers.

“Since the capital expenditure in the first four months of the last fiscal was poor due to elections, the 39 per cent increase in expenditure this year was not satisfactory,” Khatiwada added.

To address this, Khatiwada said that the government is planning to address all obstacles capital expenditure by mid-December and achieve the targeted expenditure by the end of FY 2018-19.

Khatiwada added that his ministry would not entertain funds demands from various sectors. “We shall only address rational demands,” Khatiwada said.

Nepal lawmakers and political leaders were depending on funds from the finance ministry to implement their pet projects in their respective constituencies.

Khatiwada shared, ministries also seek additional budget despite being unable to spend the allocated budget. “This should be discouraged, we should not allocate funds to programs that have not been included in the annual budget announcement. It will not be fair to taxpayers and donors,” he said.

The post Oli Turns Firms to Ministers, Evaluates Sector-wise Progress appeared first on Nepali Sansar.

FNCCI President Bhawani Rana and Revenue Secretary Shishir Kumar Dhungana inaugurated the center on November 20, 2018. This unit will receive & address the business community’s tax-related complaints.

In case of inability to solve issues on its own, TTC will forward them to related government agencies including Inland Revenue Department and Nepal Finance Ministry.

“The unit will address complaints on its own or will forward them to the government agencies. This is our effort to make tax administration more practical, effective and friendly,” read FNCCI’s press statement post TTC’s inauguration.

Additionally, the center will offer all its services at ‘no cost’ and will have a lead legal advisor, charter accountants and other staff.

FNCCI Officiating Director General Gopal Prasad Tiwari informed that the government will soon recruit a tax officer for settling tax-related concerns.

“The unit is of great significance considering the worsening doing business environment on the country,” added Tiwari.

According to the World Bank’s Doing Business Report for 2019, Nepal slipped five points down to the 110^th rank compared to last year. Nepal’s time-consuming tax filing process was attributed to the low rank.

“There is a pressing need to ease the process of filing taxes,” said Rana at the inauguration ceremony while adding that the tax-process should be business friendly.

FNCCI Senior President Shekhar Golchha added that the Nepal business community has been suffering at the hands of contradictory legal provisions on tax matters.

The post Nepal Establishes Tax Consultation Centre to Address Tax Concerns appeared first on Nepali Sansar.

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!

The post Africa’s Largest Air Carrier Proposes Deal with Nepal Airlines appeared first on Nepali Sansar.