One such is the destruction of some of the country’s centuries-old heritage structures that hold high significance locally and globally.

Though some of them are back to life as part of the government’s earthquake reconstruction activity, some of them are still facing lack of proper support.

Here are two of them, on similar lines, reported recently to have been facing similar situation!

Hari Bhawan & Ranipokhari
According to a recent update, the Kathmandu Metropolitan City (KMC) is reportedly planning to demolish the capital’s historical Haribhawan in Sundhara in a week’s time.

The department is planning for Haribhawan’s demolition and reconstruction of Ranipokhari in Ratnapark at once, says Nawaraj Dhakal, KMC Assistant Spokesperson.

In this regard, the department has already called for project quotation to expedite the reconstruction process.

The decision has been pending since a year as the country’s Department of Archeology (DoA) stopped the move.

Haribhawan has a historical background of more than 100 years and has been used for KMC’s operations since 2003.

Whereas, Ranipokhari holds a historical record of more than 400 years and has been pending for reconstruction after public protested over usage of modern material in the rebuild activity.

Bagh Durbar On the Other Side
Meanwhile, another iconic heritage site Baghdurbar is also facing a similar issue.

As per latest news, Kathmandu-based locals, culture experts and heritage conservationists have raised a serious opposition to DoA’s approval to demolish Baghdurbar.

Against KMC’s move towards call of tenders for demolishment, the city-based stakeholders have reportedly called for a protest outside the iconic site.

“We want to prevent this wrongful act. Baghdurbar is part of our heritage. A study has already concluded that the building could be retrofitted, but the metropolis and the archaeology department are after demolishing it,” says Chanda Rana, Coordinator of Save Heritage Campaign.

DoA took a decision to retrofit and restore the site after a two-year-long technical assessment post the 2015 earthquake that damaged the site.

KMC officials opine that the retrofitting costs are higher compared to that of the demolishing and rebuilding the
age-old structure from scratch.

The National Society for Technology denies the argument as its senior technical adviser says that the retrofitting needs only 35 percent of the total amount required for new construction.

Architect and Former Dean of the Institute of Engineering of Pulchowk Sudarshan Raj Tiwari also feels the same.

“If Gaddi Baithak of Basantapur can be restored through retrofitting, Baghdurbar can also be restored in a similar manner. After all, Baghdurbar had suffered less damage than Gaddi Baithak,” adds Tiwari.

Rana makes it very clear that they will not let the metropolis demolish the building. “We have already saved around three dozen quake-damaged palaces from getting demolished and we will be successful in saving Baghdurbar as well,” he adds.

The post Row Continues Over Restoration of Age-old Nepali Heritage Sites appeared first on Nepali Sansar.

Let’s have a glance at some of the key sectors that received major infrastructure push in the new budget:

Energy

With energy sector on top priority, the government allocated Rs 83.39 billion for enhancing the country’s energy infrastructure alone in the coming fiscal.

With a target of equipping all the households with modern energy within three years and further with sufficient energy supply within five years, the government plans to call 2019-2029 as the ‘Energy Decade’.

The budget also envisages construction of multipurpose hydropower projects across all provinces and begin construction of the same within two years period. The government is also planning to construct a 3,000-MW capacitive hydropower project with the combined investment of government, public and remittance funds.

There are also plans to develop a good number of micro-hydro projects and biogas plants to electrify the rural areas of the country.

Transport

Transport is another area that received a major boost in the present budget with an allocation of Rs 109.38 billion.

Some of the high-profile projects include cable car and monorail projects in Kathmandu, construction of the East-west railway line, Kathmandu-Nijgadh Expressway, Postal Highway, Pushpalal Mid-hill Highway and link roads connecting all the districts touching the southern border to the Pushpalal Mid-hill Highway, among others.

The new budget also envisages construction of new airports across the country.

The government has allocated a budget of Rs 1.43 billion for the transportation management system and is also developing relevant government agencies in all the provinces.

Tourism

Tourism is one sector that is of high significance for Nepal. The new budget has Rs 5.20 billion allocated for the overall development of Nepali tourism sector.

While the country reached 1 million target at the end of 2017, the new budget envisages a 2 million annual tourist arrival target by the end of 2020. Strengthening the domestic tourism to drive in more tourist inflow, the government is planning to develop 100 new tourist destinations and diversify tourist services across the country.

The government also has plans to develop the Meetings, Incentives, Conferences and Exhibitions (MICE) tourism by mobilizing the country’s foreign missions. To facilitate ways for tourist arrivals, more number of airports are also being planned at various tourist destinations of the country.

Towards getting academic support, the government is also aiming at the conversion of the Nepal Academy of Tourism and Hotel Management (NATHM) into a deemed university.

Other key areas that received due attention for overall infrastructure development include:

• Economic Affairs- Rs 483.14 billion
• General Public Service – Rs 396.74 billion
• Housing & Community Amenities – Rs 66.57 billion
• Public Order & Security – Rs 47.50 billion
• Social Protection – Rs 46.91 billion
• Defense – Rs 44.93 billion
• Environment Protection – Rs 22.72 billion
• Recreation, Culture & Religion – Rs 7.10 billion

Overall, the new budget paid due attention to the infrastructure development across the country as a key to achieve the economic growth.

Next: Budget Gets Mixed Response

Related Article:

• Nepal’s Maiden Federal Budget 2018-19
• Nepal Federal Budget FY 2019-20: Highlights & Announcements

The post Nepal Federal Budget FY 2018-19: Infrastructure Gets Major Push! appeared first on Nepali Sansar.

In a landmark step, the newly-formed Oli-led Nepali Government is unveiling the country’s first federal budget for FY 2018-19 or FY 2075-76 (Nepali year) on May 29, 2018.

Nepal’s Finance Minister Yubraj Khatiwada will reveal the budget at a joint meeting in the Nepali Parliament on the aforementioned date at around 4 p.m.

Speaker of the House of Representatives, the lower house of the Federal Parliament of Nepal Krishna Bahadur Mahara announced this officially on May 27, 2018.

As per the Nepali Constitutional mandate, the Nepali Government is supposed to unveil the budget in a joint parliamentary meeting on Jestha 15 (May 15-June 14 as per the Western calendar), the second month of Bikram Samwat in the official Nepali calendar.

Expenditure Up for Economic Growth

As per the available sources, the Government of Nepal is most likely to place a Rs 16 trillion budget for the
FY 2018-19.

“The economic growth of the previous decade has remained average at 4.3 percent. Now it is expected to reach 5.9 percent this year,” says Yubaraj Khatiwada in his parliamentary address.

However, experts feel that the presumed economic growth can be achieved only by increasing the tax levied on the public.

“The expenditure has increased, the source of income has decreased constantly for which the government’s major focus lies on collecting revenue, which will hike the import plumping the custom duty that will definitely result in dearth, constant increment in the price of petroleum in the upcoming fiscal year,” says an economic expert and a senior Nepali journalist.

Two days prior to the budget day, the Finance Minister also noted that the finance deficit is most likely to reach 10.4 percent.

Inflation is a key matter of concern for the country; inflation in Nepal increased to 6 percent in the last eight months of the current fiscal year from a previous value of 2.3 percent.

Development & Fiscal Discipline

Assuring development while balancing the fiscal discipline remains a key area of focus for the Oli-led Nepali Government.

Prior to the budget, programs and policies on top priority for the government were announced on May 27, 2018, in which, social and infrastructure development projects took the top place.

While the National Planning Commission (NPC) is projecting the relevant budget to be at around Rs 1.2 trillion for such projects, the finance minister is expected that to be above Rs 1.45 trillion.

When it comes to pooling revenues, the government is aiming at a collection of Rs 1 trillion in the coming fiscal while also raising Rs 300 billion as a foreign fund.

According to the Finance Ministry officials, the provincial and local governments are most likely to see a significant budgetary allocation of around Rs 400 billion for developmental activities.

Overall, the government is looking at an 8 percent economic growth rate to meet the targets set by the annual policies and programs such as two-fold rise in per capita income in five-year period, among others.

Allocation Across Sectors

According to the Finance Ministry, a significant amount of budget will be allocated for flagship projects in infrastructure, energy, agriculture, tourism, among other sectors and on PM’s dream projects such as railways and waterways.

Energy and irrigation projects such as the Sunkoshi-Marine Diversion Program and Butwal-Sunauli cross-border transmission line are set to receive a due attention in the upcoming budget.

Some of the projects that are likely to receive budgetary attention include the Madan Bhandari Highway, railway expansion covering metro rail in Kathmandu, Kathmandu-Tarai Expressway and a feasibility study on Nepal-India waterways.

Taxation is another area that is going to see some significant changes in this budget. Along with a significant revisal of tax regime, the new budget is more likely for increased tax on import on luxury products such as liquor and cigarettes.

The government is also looking at royalties, land registration and fees as the additional sources of income for the treasury.

When it comes to the government sector, the civil servants’ salaries are not going to see any significant changes other than little adjustments in indirect benefits and allowances.

Allocation for social security allowance is also likely to take a back-step because of the increased allocation to the local and provincial bodies.

Overall, domestic industries are more likely to get the due support in this budget with those using local raw material on top priority.

Special Schemes

As part of schemes, a special program called ‘Sustainable Energy for All’ is going to be implemented with focus on renewable and hydropower sources. “We’ve focused on reservoir projects as well as expansion of transmission lines under this program,” says an NPC member.

Towards ensuring clean environment, another scheme called ‘Nepal Clean Environment Campaign’ also likely to be announced towards curbing air pollution and encourage the usage of electric vehicles.

Current Challenges, Ways Forward

Two of the key current challenges for Nepal are with regard to foreign exchange reserve and food deficit.

According to the Nepal Rastra Bank (NRB), Nepal’s foreign exchange reserves have come down over the last three months affecting the country’s ability to finance imports.

In its third quarterly review of the country’s monetary release on May 26, 2018, NRB reported a massive expansion of imports, outflow of dividends by foreign investors and slow growth of remittance contribution to decreased foreign exchange reserves.

NRB statistics show a decline in the country’s foreign exchange reserves from USD 10.31 billion in mid-July 2017 to USD 10.16 billion by mid-April of 2018, a decline over the previous fiscal.

After a consistent rise driven by rising remittances over the years, foreign exchange reserves of Nepal started dropping down since the mid of January 2018.

“We are not worried about current drop in foreign exchange reserves as our target is to keep such reserves to sustain the imports of goods and services for at least eight months. But, the situation may worsen provided the import continues to surge and remittance growth continues to slow and export does not grow as required,” says Nara Bahadur Thapa, Executive Director of NRB.

Meanwhile, the country is also currently facing a food deficit despite the surplus harvest in the current fiscal year. The Economic Survey 2017-18 released on May 27, 2018 has reported a food deficit of 71,400 tons in the current fiscal despite the presence of 898,115 tons surplus from the previous fiscal.

In another development with regard to trade, Nepal is hoping high on trade activity through India’s Vizag port. A Nepali delegation that visited Vizag (India) expressed confidence over controlling overall end-to-end logistics costs and improving trade supplies to Nepal through Vizag port’s infrastructure.

On an End Note

The new budget is definitely going to be a path-breaker for Nepal in its new path of development led by the newly-formed government. Besides internal functioning, the Oli-led government is also focusing high on external relations by expanding Nepal’s bilateral and business ties with other countries.

Let’s hope the new budget will create a needed scope for the country’s overall development while also balancing the nation’s external growth on a global scale!

Related Article:

• Nepal Federal Budget FY 2019-20: Highlights & Announcements

The post Nepal’s Maiden Federal Budget 2018-19 appeared first on Nepali Sansar.

Towards this end, Nepal Rastra Bank issued a Letter of Intent (LoI) to the country’s renowned public-private equity platform Emerging Nepal directing the latter to set up the Infrastructure Development Bank (IDB).

IDB, Nepal’s first such bank, with nearly 40 promoters is set to focus on financing mega infrastructure projects of the country and will begin its operations officially in the next six months.

According to NRB spokesperson Narayan Prasad Paudel, the process followed IDB’s deposit of 50 percent of its paid-up capital (45 percent in six commercial banks and 5 percent in the application phase) for setting up the needed infrastructure.

Why IDB?

With the prime objective of offering financial assistance, IDB will support the infrastructure projects by making the required equity investment and opening letters of credit to facilitate the import of equipment required for the projects.

Besides, IDB mobilizes long-term deposits and also issues currency bonds (domestic & foreign) and debentures to facilitate the required financial resources.

Process Ahead

According to NRB spokesperson Narayan Prasad Paudel, the process followed IDB’s deposit of 50 percent of its paid-up capital (45 percent in six commercial banks and 5 percent in the application phase) for setting up the needed infrastructure.

Post LoI from NRB, IDB will be registered as the public limited company within the next six months.

“In addition, the bank needs to manage the logistics besides developing the necessary software and appointing senior officials. NRB will then carry out an inspection of the financial institution before issuing the operating license,” says Paudel.

Background

IDB is part of the Government of Nepal’s plan to set up a mega bank to support and was envisaged to set up as an entity under public-private partnership.

“The establishment of IDB, which was initiated in the current fiscal year with the participation of national and international banks in order to increase private and foreign investment in the infrastructure sector, will be completed in the coming fiscal year,” reads the budget statement for FY 2017-18.

Following the government’s decision, NRB issued the relevant Licensing Policy for IDB in 2017 calling on the interested parties for their participation and Emerging Nepal was finalized for the deal.

Emerging Nepal has a joint investment of 40 Nepali promoters including insurance firms, five commercial banks and corporate bodies.

When it comes to public-private partnership, government and promoters hold 10 percent and 50 percent shares, respectively, and the remaining 40 percent capital will be raised through Initial Public Offering (IPO).

IDB will be operating according to the Banks and Financial Institutions Act (BAFIA) under the chairmanship of the former Chief Secretary Bimal Koirala.

According to Paudel, NRB is open to welcome more such IDBs provided the necessary requirements are met, and these banks also allow foreign investment.

Let’s hope the new initiative will drive Nepal’s infrastructure development to the next level!

The post Nepal Welcomes its First Infra Development Bank! appeared first on Nepali Sansar.

With this decision, India’s financial aid to Nepal for the new financial year steps up to Rs 650 crore, a 73 percent rise over the previous year, wherein, the allocation was Rs 375 crore.

Besides Nepal, India has also decided to give financial aid of Rs 1,813 crore to Bhutan for the coming financial year, the highest among other recipient nations receiving aid from India for FY 2018-19.

“India and Nepal have close civilizational and cultural ties, and a wide-ranging and expanding partnership across diverse sectors, which stand firmly on their own. The Indian Government is committed to advancing its development partnership to Nepal as per their priorities,” said the Indian Parliamentary Committee report on External Affairs.

The report further noted that the allocation of funds to both the countries also reflects India’s commitment to support both the countries towards expediting the development of ongoing projects, among other activities in coordination with the respective governments.

This news gains significance in the light of Nepali Prime Minister KP Sharma Oli’s likely visit to India in the first week of April 2018.

Though a formal announcement in this regard is yet to be made, Oli’s three-day maiden trip to India after assuming office is being considered key to the foreign relations between the two countries in view of the formation of Communist-led government in Nepal.

India For a Lifeline Project with Nepal

Meanwhile, in another update indicating strong Indo-Nepal diplomatic ties, India is seeking Nepal’s help for the revival of its Yamuna River to address water concerns in the Indian capital Delhi.

This move is part of Indian PM Narendra Modi’s trans-country river-linking project that is aimed at interlinking 31 rivers and divert the excess water quantity to the arid areas.

Through this project, India is looking at bringing in water from Sharda River or Mahakali River on the Indo-Nepal border to Yamuna near Delhi.

“The proposal has been cleared by a committee of secretaries and a request has been sent to the MEA (ministry of external affairs) to initiate a dialogue with Nepal,” said Indian Secretary for Water Resources UP Singh.

The committee of secretaries has actually met Nepal to negotiate with Nepal on the 540-MW capacity Pancheshwar multi-purpose hydropower project. 

The proposed Shard-Yamuna project is being considered as a lifeline project for Yamuna and is expected to benefit four Indian States: UP, Haryana, Punjab and Rajasthan.

The post India Mulls 73% Hike in Financial Aid to Nepal, Seeks Nepal’s Support appeared first on Nepali Sansar.

ADB Nepal Director Mukhtor Khamudkhanov and the Secretary at Nepali Ministry of Finance Shankar Prasad Adhikari signed a loan agreement in this regard on behalf of Government of Nepal and ADB, on February 12, 2018.

This project involving ADB loan is aimed at enhancing infrastructure facilities in road, agriculture, among other sectors across rural areas of Nepal.

The projects to be covered include upgrading of roads across 388 kilometers to all-weather conditions, adding to the development of the country’s agriculture sector and ensuring ease of access to around 7.5 million people in 16 districts.

The project intends to boost transport connectivity through improved road connectivity across the selected rural communities and areas with good agriculture production.

This program is part of the government’s Agriculture Development Strategy signed in 2015 towards encouraging commercial agriculture, enhancing agriculture productivity, job creation for rural public and ensuring overall development.

Besides, in another project to be completed by January 31, 2023, ADB has also agreed to provide a USD 1 million aid for transforming the Department of Local Infrastructure Development and Agricultural Roads into a state-of-the-art rural road agency.

On the occasion, Finance Secretary Adhikari appreciated ADB for its continued support for the overall development of Nepal.

The post New ADB Loan To Enhance Nepal’s Rural Infrastructure appeared first on Nepali Sansar.

Interview by Sai Nikesh D

Nepal has come a long way in development. As a nation sharing borders with the world’s two major economies, Nepal has been striving to become a developing country and grow further to achieve the developed country status.  As a process, the Government of Nepal has been actively participating in various global and local level platforms promoting country’s strengths and potential to development, and is sincerely aiming to see the benefits as part of its UN 2030 Agenda.

Continuing with a wide coverage on Nepal and its developments over a period, Nepali Sansar, as a Nepal-focused media house, got a chance to get in touch with Dr.Ek Raj Ojha, Senior Sustainable Development Consultant from Nepal, for a better understanding of the country’s progress towards its set goals.

Dr. Ojha, with his sound expertise in working with national and international level organizations like ADB, UN and government departments in sustainable development and planning, policy framework, among other key aspects of development and planning, shared a valuable information in this regard, helping us portray a complete picture of Nepal and its developmental path over a period and towards future.

Following are a few excerpts of Nepali Sansar Bureau’s detailed interaction with Dr. Ojha:

The post Dr Ek Raj Ojha appeared first on Nepali Sansar.

To build this modern satellite city equipped with all basic facilities, the government is currently in the process of hiring a consultant to prepare a Detailed Project Report (DPR) of the project.

According to the Bhaikaji Tiwari, deputy development commissioner at the Kathmandu Valley Development Authority (KVDA), the contract will be handed over by the next week.

The first phase of the project estimated at a cost of Rs 160 million is expected to be completed in the next five years.

“We are in the final phase of handing over the contract to carry out the DPR. We have already short-listed a company among eight applicants,” informed Tiwari.

KVDA has so far allocated 10,000 ropanis of land from Gundu to Balkot and Changu Narayan areas in Bhaktapur for a smart city project.

Besides, another 10,000 ropanis of land in Lalitpur and Kathmandu (covering Saibu, Bhaisepati to Khokana, Bungamati and a few areas in Shampi) have also been allocated to develop a ‘modern city’.

The government is also in the process of allocating 100,000 ropanis in northern Bhaktapur and southern part of the main road that leads to Sankhu. This area can accommodate 700,000 population.

For land allocation in the capital city, the government is adopting a land-pooling mechanism, under which, 5 percent of the total land will be allotted for the construction of public infrastructure.

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