MCA-Nepal signs contract for 18-km cross border transmission line

MCA-Nepal signed a contract for the critical 18-km cross-border electricity transmission line, a critical component of the broader Electricity Transmission Project under the Millennium Challenge Corporation (MCC) Nepal Compact funded by the Government of Nepal and the US government.

As MCA-Nepal marks the one-year anniversary of the Compact’s Entry-Into-Force, this new milestone reflects the unwavering commitment from all stakeholders to enhancing regional energy trade between Nepal and India, states a press note issued by the MCA-Nepal office.

The contract, valued at $12.36 million, has been awarded to Transrail Lighting Ltd, which will construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardhaghat Susta West to the Nepal-India border within the contract duration of 21 months. 

The contract was signed by executive director of MCA-Nepal Khadga Bahadur Bisht and representative of Transrail Lighting Ltd Amol Wankhede, in the presence of officials from the Finance Ministry, National Electricity Authority (NEA), MCC and MCA-Nepal, 

“Along with the signings of the three substation contracts worth $126 million, this 18-km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal's position in the regional energy market," finance secretary and MCA-Nepal Board chair Dr. Ram Prasad Ghimire said after signing the contract.  

"This 18-km segment is not just a construction project; it’s a critical link that will enhance Nepal's energy infrastructure and deepen our cross-border energy cooperation with India," managing director of NEA Kul Man Ghising said, adding that the accomplishment is a testament to the strategic foresight and dedication of all involved.

"The successful contracting of the 18-km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future," MCC Resident country director Ms Diane L Francisco said addressing the signing ceremony. "This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297-km transmission line project." 

“As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making," executive director of MCA-Nepal Khadga Bahadur Bisht said, adding that the 18-km cross-border segment, separated from the larger project to expedite its completion, shows the government of Nepal’s commitment to meeting the project goals of this National Pride Project, and reaffirms that collaborative effort from all stakeholders leads to a successful outcome.

For the remaining 297-km of transmission line, MCA-Nepal’s preparations are on track to launch the bid before the end of this year.

Concerted efforts required to mobilise finance for sustainable development

The government, private sector, and the UN in Nepal jointly emphasised on mobilising sufficient development finance to achieve Nepal’s key development targets including the Sustainable Development Goals (SDGs).

During 'The Financing for Development Dialogue: Nepal’s Road to the Summit of the Future' organised by the United Nations Nepal (UN Nepal) in partnership with the Finance Ministry and Federation of Nepalese Chambers of Commerce and Industry (FNCCI), here today the stakeholders in finance and development highlighted the requirement of additional investment to achieve sustainable development and accelerate structural transformation of the economy.

Speaking at the inauguration session, the deputy prime minister and finance minister Bishnu Prashad Poudel pointed out that in developing countries, a significant portion of revenue is spent on debt servicing, leaving little for development investment. He emphasised that Nepal is no exception and called for collaboration between the government, private sector, and development partners to mobilise resources. Poudel also stressed the importance of formulating a common position for the upcoming Summit for the Future at the UN and noted that this dialogue would contribute to that effort.

Four years after a series of global shocks – including the Covid-19 pandemic, geopolitical conflicts and economic instability – the SDG financing gap for developing countries like Nepal has ballooned to $4 trillion annually. The financing gap and accompanying debt challenges have worsened poverty and inequality, putting the world off track to meet international targets set in 2015.

The UN Resident Coordinator in Nepal Hanaa Singer-Hamdy, on the occasion, underlined that as Nepal spearheads towards graduation from its Least Developed Country (LDC) status, bold and decisive actions to strengthen economic foundations is needed by focusing on domestic reforms, advancing financial inclusion and gender equality, embracing digital transformation, and advocating for international cooperation.

Like FNCCI president Chandra Prasad Dhakal highlighted the need for efforts at all levels to mobilise investment for development, particularly in the context of declining foreign direct investment, revenue, and foreign aid. He also mentioned that the federation has been organizing special programmes to promote investment in Nepal and abroad and that a facilitation desk has been established to assist with foreign investment.

In the dialogue, participants dived deep into the most pressing issues for accelerating progress towards SDGs — financing or lack of it — at the time of rising geopolitical tension, post-pandemic weaker economic recovery, more frequent and intense climate-related crisis, existing inequalities and disparities including those related to gender and social marginalisation, and a new trade dynamic driven by protectionism and disengaged multilateralism, among others.

India to import additional 251 MW of power from 12 Nepali hydropower projects

India’s designated authority for cross border trade has approved an additional 251 MW of power exports from 12 hydropower projects in Nepal.

"For the first time Nepal would be exporting power to Bihar through a medium term power sales agreement," according to a press note issued by the Indian Embassy in Kathmandu.

This takes the total allowed quantum from 690 MW from 16 projects to 941 MW from 28 projects, it reads, adding that even before this 251 MW approval, Nepal had already become a net exporter of electricity and net revenue generator in the last fiscal year selling Rs 16.93 billion worth of electricity. "In October 2021, India had approved 39 MW power exports from Nepal to India for the first time."

In less than 3 years, this figure has grown by more than 24 times.

Nepal first began its power exports by selling in the Day Ahead Market of the Indian Energy Exchange (IEX). Since then, India has also granted access to the Real Time Market (RTM).

Nepal Electricity Authority (NEA) has also entered into medium term power sales agreements with discoms in Haryana and Bihar, the press note adds. 

India has also opened the provision of counting hydropower imports from Nepal as a part of Hydropower Purchase Obligation (HPO) for buyers in India, which further incentivises buyers to purchase power from Nepal.

The Agreement for Long Term Power between India and Nepal envisages the sale of up to 10,000 MW power from Nepal to India in the next 10 years. This is the first year of the agreement and around 1000 MW exports have already been reached.

With the new development, Nepal is on track to become the leading hydropower exporter of the South Asia region. An agreement for sale of 40 MW power to Bangladesh has also been finalised and was planned to be signed on 28 July 2024 but got postponed due to recent political developments in Bangladesh.

FNCCI hails formation of 'Economic Reform Commission'

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the Finance Ministry's inclusion of the formation of a high-level economic reform commission in its 100-day programme.

The FNCCI had been demanding a high-level commission to coordinate reforms.

Given the lack of coordination among economic sectors, limited access of the private sector to policy-making levels, and the current need to revitalise the economy in the short- and long-term and achieve sustainable economic development, the FNCCI had proposed the commission to the government.

"I would like to thank the government for prioritising the commission as per the FNCCI's proposal," said president of the FNCCI Chandra Prasad Dhakal.

The FNCCI expresses its gratitude to deputy Prime Minister and finance minister Bishnu Paudel and the Finance Ministry for including this in the 100-day priority. "The FNCCI has also proposed a framework for operating the commission in a cost-effective manner," according to a press note issued by the FNCCI.

GLOF from Thyanbo glacial lake sweeps away Thame Village

The devastating flood which struck Thame, a village in the Khumbu region yesterday was due to an outburst flood from Thyanbo glacial lake.

An initial assessment of damage by the local authorities shows 14 properties have been destroyed, including one school, one health post, five hotels and seven homes, according to 

Thame is a village in Namche region of Solukhumbu, home to renowned Mt Everest mountaineers and current record holder Kami Rita Sherpa.

Several glacial lakes lie upstream of Thame. Satellite images of the area dating back to 2017 from the European Space Agency’s Copernicus earth observation programme show these lakes constantly changing in size. "Researchers at ICIMOD confirm that some of them frequently expand and contract, making them susceptible to breaches," according to a press note issued by the ICIMOD.

Sentinel satellite imagery show the constant change in lake size located in upstream of Thame River. These lakes lie near the popular trekking destination of Tashi Lapcha Pass. The neighbouring valley holds one of the region's most potentially dangerous glacial lakes, Tsho Rolpa.

ICIMOD scientists are further investigating the causes of GLOF and its impact downstream, including seeking pre- and post-satellite images, in order to complement the efforts of national and local agencies, including Department of Hydrology and Meteorology, the press note adds.

ICIMOD’s 2023 assessment, Water, Ice, Society, and Ecosystems in the Hindu Kush Himalaya, stated that the glaciers, snow, and permafrost of the Hindu Kush Himalaya are 'undergoing unprecedented and largely irreversible changes over human timescales, primarily driven by climate change” and “are some of the most vulnerable to these changes in the world.'

Some 260 million people live in the mountains of the Hindu Kush Himalayas (HKH), and these mountain communities, the report continues, “are already living with the impacts of the accelerated melting of glaciers, changing snowfall patterns, growing variability in water availability, and increasing incidences of cryosphere-related hazards (posing) a direct impact on their lives and livelihoods.”

It warns floods and landslides are projected to increase, with climate the key driver in many of the water- and cryosphere-related disasters already recorded in recent years, through meltwater, larger and more potentially dangerous lakes, unstable slopes from thawing permafrost, and increasing sediment loads in rivers.

The retreat of mountain glaciers has increased the size and number of glacial lakes, and a three-fold increase in glacial lake outburst flood risk across the HKH is projected by the end of the twenty-first century, and it’s predicted we’ll reach ‘peak GLOF risk’ by 2050.

There are 25,000+ glacial lakes in the Hindu Kush Himalaya region, of which 47 potentially dangerous glacial lakes (PDGLs) lie within the Koshi, Gandaki, and Karnali river basins of Nepal, the Tibet Autonomous Region of China, and India. High Mountain Asia is a global hotspot for risk of GLOFs, with approximately one million people living within 10km of a glacial lake according to a new glacial lake inventory report . The growth in the number and size of glacial lakes is set to continue.

The lake’s size was approximately 0.05 km² on August 16, 2024, at 10:46 AM, before it was breached. "We estimate the breach occurred around 1:25 PM on the same day," The press note adds.

“This flood swept away parts of a village I know intimately well, where friends, neighbours and relatives live, with ancestral ties going back generations,” said ICIMOD Cryosphere analyst and founder of the #SaveOurSnow campaign Tenzing Chogyal Sherpa, who is from the Solukhumbu region where the floods hit. 

"It is a painfully personal reminder of the devastating impacts of temperature rise on mountain communities," he said, adding that millions of people in the mountains have contributed literally nothing to greenhouse gas emissions, but face the catastrophic impacts of these emissions with ever-increasing frequency and severity.

“The science is clear: G20 economies must cut their ties with fossil fuels, and accelerate the use of renewables, and to ensure adaptation and loss and damage funds reach those communities impacted. To mountain communities – raise your voice to call for this urgent action. As Thame shows, for many of us, continued inaction from world leaders poses an existential risk.”

“Thame was a beautiful village, home to many generations of Sherpa people and their family," a media and mountaineering outfitter from Khumbu, and supporter of #SaveOurSnow, Dr Nima Sherpa said, adding that these homes now lie buried under debris. "It’s sad to see how the mountain communities are paying the price of the global climate crisis," he said, "Some complain about the recreational or cosmetic impacts of too much or too little snow; but these changes affect the lives of the people who live in the mountains so differently – impacting them directly and often catastrophically as we see in Thame, where almost an entire village has been wiped out in minutes.  

“World leaders need to believe in making the change with collective global effort to control what they can change," he said, adding that mountain communities have not contributed to global temperature rise. "We must do more to help their voices and experiences to be heard.”

“Climate change is a crime scene," Cryosphere lead for ICIMOD Miriam Jackson, said, adding that the glaciers are making it visible. "We cannot look the other way."

Meanwhile, a government team led by defence minister Manbir Rai confirmed that the unusual flooding incident that occurred in the Everest region on Friday was triggered after glacial lake outburst.

The swollen Thame river destroyed 20 houses, Thame elementary school along with a clinic and displaced 135 people in ward 5 of Khumbu Pasang Lhamu Rural Municipality in Solukhumbu District on Friday.

The government team led by defence minister Rai today reached the affected area. After observing the condition of the flood-hit areas and the upstream through helicopter inspection, they concluded that the reason behind the flood was glacier outburst.

The officials found that two of the five lakes formed above the Thame village in the Everest region had burst and flooded downstream.

Chief District Officer of Solukhumbu Devi Pandey, who was one of the members in the minister-led inspection team, said that two of the five lakes above the village burst on Friday. "Two other lakes look potentially dangerous and may breach any time while the remaining one looks safe."

Government, World Bank sign $100 million project to improve provincial and local roads

The Government and the World Bank on Monday signed a financing agreement for a $100 million concessional loan from the International Development Association (IDA) to help improve the connectivity, efficiency, resilience, and safety of Nepal’s provincial and local road network and strengthen the government’s capacity to manage the road network.

The Provincial and Local Roads Improvement Programme (PLRIP)-Phase 1 will build and maintain about 3,000 kilometers of all-weather, resilient, and safe provincial and local roads and bridges, benefiting about one million people in Sudurpashchim, Karnali, and Madhesh provinces, according to a press note issued by the World Bank. "It will also strengthen the institutional, management and technical capacity of provincial and local governments to plan, design, construct, and maintain road and bridge infrastructure and improve service delivery."

The financing agreement was signed by the finance secretary Dr Ram Prasad Ghimire on behalf of the Government and the World Bank country director for Maldives, Nepal and Sri Lanka, David Sislen, at the Finance Ministry on Monday. A separate project agreement was also signed by the Ministry of Urban Development, the participating provinces, and the World Bank.

“This programme will help enhance rural connectivity, improve access to services and markets, and unlock Nepal’s economic potential in an inclusive manner, while reducing travel time and costs for Nepalis,” said joint secretary at the Finance Ministry Shreekrishna Nepal.

The Government recognises the scale and magnitude of transport connectivity challenges and the need for substantial investment to support provincial and local governments as they adapt to decentralised governance. "To address this, the PLRIP will help strengthen rural development and build the capacity of the provincial and local governments to handle complex sector challenges," the press note reads, adding that the first of the three-phase programme will target three of Nepal’s seven provinces and four local areas which will be scaled up in future phases.

“The programme supports Nepal’s federalism agenda by empowering provincial and local governments and promoting inter-governmental coordination in the transport connectivity sector to help improve the lives of Nepalis through better infrastructure and services,” said World Bank country director for Maldives, Nepal, and Sri Lanka, David Sislen, after the signing the agreement.

The programme will introduce several best practices including five-year performance-based maintenance along with construction contracts, routine maintenance through self-help groups, community-led complimentary infrastructure, pilots on alternative means of connectivity and rural transport services, approach roads, and an online program monitoring and management system.

Advancing conservation targets in South Asia

Target 3 of the Kunming Montreal Global Biodiversity Framework, calls to ensure and enable at least 30 per cent of terrestrial, inland water, and of coastal and marine areas, especially areas of particular importance for biodiversity and ecosystem functions and services, are effectively conserved and managed through ecologically representative, well-connected, and equitably governed systems of protected areas and other effective area-based conservation measures (OECMs) by 2030.

Central to this commitment is the recognition of indigenous and traditional territories, which involves respecting their rights over their ancestral lands, according to a press note issued by the ICIMOD today.

The Kunming-Montreal Global Biodiversity Framework has 23 action-oriented global targets for urgent action over the decade to 2030. It was adopted by 195 countries in December 2022 at the 15th meeting of the Conference of the Parties to the Convention on Biological Diversity. 

Achieving Target 3 – area-based conservation for biodiversity, ecosystem function, and services – is considered by international scientists as the minimum to conserve and protect if we want to succeed in halting and reversing biodiversity decline by 2030. Experts also point to the importance of achieving conservation objectives within those areas, hence the significance of connectivity, effectiveness, and respecting and recognising the rights of indigenous peoples and local communities.

This week, scientists, conservation managers, youth, women and representatives from Indigenous Peoples and local communities gathered in Kathmandu to explore ways to meet the Target 3.

The four-day capacity building workshop for the South Asia subregion, is organised by ICIMOD with the Secretariat of the Convention on Biological Diversity (SCBD), the High Ambition Coalition for Nature and People.

The workshop discussed ways for South Asian countries to achieve their commitments under Target 3 and related targets of the Framework, including developing national priority actions to enhance progress towards achievement of the target and highlighting essential tools to support Target 3 implementation, such as the 30x30 Solutions Toolkit and the HAC 30x30 Matchmaking Platform aiming at identifying countries needs and match them with appropriate technical and financial assistance offers. 

Additionally, the workshop discussed opportunities for transboundary cooperation through 'Other effective area-based conservation measures' (OECMs). These are areas that are achieving the long term and effective in-situ conservation of biodiversity outside of the protected areas network.

OECMs are an opportunity for inclusive conservation by recognising the rights of Indigenous Peoples and local communities, and their traditional knowledge. It is also an opportunity to conserve biodiversity-rich areas beyond boundaries and promote regional cooperation among stakeholders in the region. 

Speaking at the concluding session, Minister for Forests and Environment, Ain Bahadur Shahi Thakuri highlighted Nepal’s commitment and successful efforts in conservation. He also emphasised the need to focus on innovative approaches, and strong partnerships and cooperation at local, national and regional scales. He underlined the need to implement National Plans to sustainably manage biodiversity and enhance resilience.

He highlighted the efforts made by the country, ICIMOD, other stakeholders and sections of society, including Indigenous peoples and local communities, in achieving its conservation goals for sustainable development.

Target 3 is a qualitative target: Emphasis on effectiveness, inclusion and equitable governance

While Target 3 main indicator is the quantitative measure of the coverage, in order to be successful, Target 3 needs to be a qualitative target. The workshop emphasizes that this global target is met through “…ecologically representative, well-connected and equitably governed systems of protected areas and other effective area-based conservation measures, recognizing indigenous and traditional territories where applicable…and respecting the rights of Indigenous Peoples and local communities, including over their traditional territories.”

OECMs offer a promising approach to reverse biodiversity loss and achieve large-scale conservation targets outside the formal protected areas network. They are defined as “A geographically defined area other than Protected Area, which is governed and managed in ways that achieve positive and sustained long-term outcomes for the in-situ conservation of biodiversity, with associated ecosystem functions and services and where applicable, cultural, spiritual, socio-economic, and other locally relevant values” (CBD, Decision 14/8, 2010). 

Mr Qapaj Conde Choque from the Secretariat of the Convention on Biological Diversity (SCBD) emphasised on both qualitative and quantitative elements of Target 3. “One key outcome that came out of this workshop is that the successful implementation of Target 3 should be premised on both qualitative measure that truly recognise the contributions of all in addition to the quantitative measure that remains important in assessing the progress in meeting this Target. This dual consideration will ensure that the efforts of all are recognized and accounted for, including equitable governed systems”. 

Transboundary Conservation Cooperation in the Hindu Kush Himalaya

Transboundary Conservation Cooperation in the Hindu Kush Himalaya (TCC-HKH) is a collaborative project between ICIMOD and the Secretariat of the Convention on Biological Diversity. The project aims to promote transboundary cooperation through OECMs in a manner that is inclusive of Indigenous Peoples and local communities in the region.

The main objective of the TCC-HKH is to strengthen regional cooperation among the countries and stakeholders, including organisations and networks working for conservation in the region, by identifying and promoting transboundary OECMs in the region, advocating for policy uptake, and establishing a regional OECM network.

Biodiversity Lead at ICIMOD Dr Sunita Chaudhary, on the occasion, highlighted the importance of regional cooperation. “Transboundary OECMs present a great way to achieve conservation at scale and bring countries together to contribute to global conservation goals. We have laid a strong foundation for this through our work in the region.”