KOICA marks 30 years in Nepal with $29 million grant agreement

The Korea International Cooperation Agency (KOICA) celebrated three decades of development partnership in Nepal with a commemorative event 'Together for 30 Years: A Journey of Trust and Cooperation' today in Kathmandu, with signing three agreements worth $29 million grant.

The most important session of the event was the signing of three major project agreements that mark KOICA’s strategic priorities for the years ahead, according to a press note issued by the KOICA. 

The first was the signing of a Memorandum of Understanding (MoU) signed between finance secretary Ghanshyam Upadhyaya and ambassador of the Embassy of the Republic of Korea in Nepal Park Tae-young for the establishment of the Gandaki Institute of Technology, a $9 million project to be implemented from 2025 to 2030.

It was followed by Record of Discussion (RoD) signings for two new projects. The Value Chain Development Project (Phase II) in Lumbini Province, with the budget of $10 million to be initiated from 2025 to 2031 signed between joint secretary of Ministry of Agriculture and Livestock Development Dr Hari Bahadur KC and country director of KOICA Mooheon Kong. Similarly, the establishment of the Sudurpaschim Polytechnic Institute -- with the budget of $10 million was also signed between joint secretary of Ministry of Education, Science and Technology Shiva Kumar Sapkota and country director of KOICA Mooheon Kong -- that is scheduled for implementation between 2025 and 2030.

On the occasion, KOICA Nepal Country Director Mooheon Kong emphasised KOICA’s enduring partnership with Nepal and its unwavering commitment to inclusive and sustainable development. He highlighted the agency’s focus on supporting local capacity building and fostering innovation across key sectors such as education, health, agriculture, and governance.

The joint secretary at the Ministry of Foreign Affairs Bhrigu Dhungana highlighted the long-standing friendship and cooperation between Nepal and the Republic of Korea, emphasising KOICA’s invaluable contributions in areas such as education, health, agriculture, and capacity building. He expressed appreciation for KOICA’s role in strengthening bilateral relations and supporting Nepal’s sustainable development goals. He also conveyed the ministry’s commitment to deepening this partnership in the future, envisioning even greater collaboration in advancing prosperity and resilience in Nepal.

Likewise, ambassador of the Republic of Korea to Nepal Park Tae-young, on the occasion, noted that KOICA’s 30-year journey in Nepal reflects the deep-rooted friendship and mutual trust between the two nations. He emphasised Korea’s continued commitment to supporting Nepal’s socio-economic development and highlighted the new project agreements as a symbol of shared progress and future cooperation.

Mayor of Pokhara Metropolitan City and Chief Guest of the event Dhana Raj Acharya congratulated KOICA on its milestone anniversary and praised its impactful contribution across diverse sectors. He commended KOICA’s strategic alignment with Nepal’s national development goals and reaffirmed the government's readiness to work closely with KOICA to expand the reach and sustainability of future programmes.

As KOICA reflects on its three decades of development engagement in Nepal, it renews its commitment to building a more inclusive, resilient, and prosperous future in close partnership with the government and local communities, according to KOICA.

Since 1991, the Government of the Republic of Korea, through KOICA, has been a key development partner of Nepal, supporting various sectors such as health, education, agriculture, vocational training, rural development, IT, and tourism. KOICA has dispatched 2,921 volunteers to government institutions across the country. Additionally, over 2,230 Nepali officials have participated in KOICA’s fellowship programmes.

KOICA collaborates with businesses, CSOs, universities, and foreign agencies to help Nepal achieve its SDGs. Since Nepal was designated a priority country for KOICA in 2010, support has significantly increased, and by 2025, KOICA’s total assistance surpassed $200 million. This progress has been further strengthened through a framework agreement on development cooperation, reinforcing the strong and growing friendship between the two nations.

Investment Board of Nepal approves investment worth Rs 8.84 billion

Investment Board of Nepal (IBN) has approved an investment of Rs 8.84 billion for the development of the 54 megawatt (MW) Lower Apsuwa Hydropower Project.

A Board meeting held today took the decision to approve the investment, IBN spokesperson Pradhumna Prasad Upadhyay confirmed.

Likewise, the IBN has decided to form a dialogue committee under the leadership of the CEO to table a proposal on project development agreement (PDA), financing modality and other issues regarding the West Seti Hydropower Project. 

The meeting chaired by the chairman of the IBN Prime Minister KP Sharma Oli has also entrusted the Board's CEO to submit the feasibility study report of Kathmandu-Hetauda-Birgunj podway project and development and operation of Panchkhal Special Economic Zone (SEZ) as well as provide the survey license for the projects.

The IBN meeting also provided approval to the developer company Karnali Transmission Company for the Environmental Impact Assessment (EIA) and feasibility study of the new route alignment for the development of transmission line for the Upper Karnali Hydropower Project of 900 MW.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, Physical Infrastructure and Transport Minister Devendra Dahal, National Planning Commission (NPC) vice chairman Prof Dr Shivaraj Adhikari, chief secretary Eaknarayan Aryal, central bank governor Dr Bishwo Nath Paudel and other top ranking officials attended the meeting.

The Governing Board Meeting of South Asian University sets course for growth and regional cooperation

The South Asian University (SAU), a flagship initiative of the South Asian Association for Regional Cooperation (SAARC), convened its thirteenth Governing Board Meeting virtually, with participation from Governing Board representatives of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, alongside a representative of the SAARC Secretariat and SAU office bearers, according to a press note issued by the SAARC Secretariate.

Minister of State for Higher Education Ahmed Shafeeu from the esteemed Government of Maldives, presided over the meeting and officially called it to order. The Governing Board undertook a detailed review of the proposed budget for the upcoming year, engaging in comprehensive deliberations on resource allocation and financial planning to support the University’s growth. Members also underscored the urgency of releasing outstanding contributions from Member States to ensure the smooth functioning of SAU, it adds.

Presenting his report, President of SAU Prof Aggarwal outlined the initiatives undertaken since assuming office and shared his reform agenda for the years ahead. While acknowledging constraints that may affect implementation, he reaffirmed his commitment to strengthening the University’s academic profile, institutional resilience, and overall contribution to regional cooperation.

The Governing Board also discussed future priorities, placing particular emphasis on expanding academic programmes, and reinforcing SAU’s role as a hub for regional collaboration. It was further decided that the Chairmanship for the next Governing Board Meeting will pass on to the Government of Sri Lanka.

As SAARC’s Centre of Excellence, SAU continues to serve as a unique hub for learning, research, and creativity for the citizens of South Asia, according to the SAU. "With five faculties and seven departments, the University currently offers Master’s and PhD programmes to around 1500 students, supported by 70 distinguished faculty members from across the region and beyond."

Since its establishment, SAU has educated nearly 2300 students and research fellows, making a significant contribution to knowledge generation and people-to-people connectivity in the region.

Nepal-USA Chamber reminds government of TIFA commitments

The Nepal-USA Chamber of Commerce and Industry (NUSACCI) strongly urges the Government including the Ministry of Industry, Commerce and Supplies (MOICS), to implement its commitments made during the Trade and Investment Framework Agreement (TIFA) Council Meeting held last September.

At the meeting, the importance of effective intellectual property right (IPR) protection and enforcement was emphasised as a critical factor in attracting trade and investment, particularly in IP-intensive industries, according to the binational chamber. 

Nepal’s initiatives in legal and institutional reforms related to IP, along with improvements in trademark administration and examination through the development of technical expertise, are essential to enhance consistency and reliability within Nepal’s IP Office, it adds.

NUSACCI has long been advocating for stronger IPR protection by organising various seminars and workshops on IPR-related issues and raising awareness within the business community regarding the use and misuse of international and domestic company trademarks and labels, it claimed, adding that the improper use of trademarks and counterfeit labels not only damages Nepal’s image domestically but also undermines its reputation internationally, thereby deterring potential foreign investment.

The recent notice of Kathmandu Metropolitan City (KMC) in this regard has drawn our attention and we hereby extend our solidarity with Kathmandu Metropolitan City, it adds

NUSACCI has requested and urged all concerned stakeholders to refrain from the unauthorised use of international and domestic company trademarks and labels. 

Banks can distribute 1.44 per cent to 38.27 per cent dividend subject to central bank approval

Due to central bank’s flexible policy most of the commercial banks appear to be able to provide dividends to shareholders from last fiscal year’s profit, as their balance sheets are comparatively better than last year.

Of the 20 commercial banks in operation, all except 4 will be able to distribute dividends to shareholders, according to their unaudited balance sheets of the last fiscal year 2024-25.

Based on last fiscal year’s profits, the banks’ capacity to distribute dividends ranges from 1.44 per cent to 38.27 per cent thanks to the Monetary Policy 2025-26 brought by the Nepal Rastra Bank (NRB) that has given a breathing space to the overburdened banks with toxic assets and non-performing loan (NPL). 

Among the 20 commercial banks, Everest Bank has the highest dividend-paying capacity at 38.27 per cent, while Nepal Investment Mega Bank’s capacity stands at 1.44 per cent. On an average, banks have a dividend-paying capacity of 10.33 per cent.

Central bank governor Bishwonath Poudel has also encouraged the banks to pay cash dividends, and that too before the Dashain festival, according to the bankers.

However, Nepal Bank, Kumari Bank, Himalayan Bank, and NIC Asia Bank will not be able to distribute any dividends to shareholders this year.

As of the last fiscal year 2024-25, the commercial banks reported a combined profit of Rs 71.18 billion, which is 43.68 per cent increase compared to the previous fiscal year.

Declining interest rates, increasing NPL due to slow economy and merger baggage had weakened cost efficiency, but regulatory relief from central bank helped the banks significantly to increase their profits in the last quarter. The banks also worked hard and managed to improve loan recoveries toward the end of the fiscal year.

The policy relaxations helped banks to reduce NPL ratios and write back certain provisions set aside for potential future risks, boosting annual profits by as much as 43 per cent, according to the bankers. “It not only helped increase profits but also enhanced banks’ capacity to distribute dividends to investors.”

MCA-Nepal signs $154 million power line contracts

Following the successful completion of the foreign aid review, the Millennium Challenge Corporation (MCC) Nepal Compact resumed work with renewed momentum and shared commitment from both governments.
Today, the Millennium Challenge Account-Nepal (MCA-Nepal) signed two major contracts to advance the compact’s Electricity Transmission Project, jointly funded by the governments and the United States. The milestone signals both governments’ commitment to delivering on one of Nepal’s most transformative infrastructure partnerships, according to a press note issued by the MCA-Nepal.

After a competitive international bidding process, MCA-Nepal awarded, Lot 2 contract (Ratmate to New Damauli) to Angelique-Skipper JV and Lot 3 contract (New Damauli to New Butwal) to WAIBA-SALASAR JV, it adds. "Combined, these contracts are valued at approximately $154.5 million and will cover the design, installation, testing, and commissioning of 180 kilometers of high-voltage transmission lines." 

MCA-Nepal executive director Khadga Bahadur Bisht and company representatives signed the agreements in the presence of MCC’s Acting Deputy Vice President, representatives from the MCC Resident Country Mission, officials from the US Embassy, Finance Ministry and the Nepal Electricity Authority (NEA) 

“In signing these contracts, MCC reaffirms the United States’ investment in mutual priorities and Nepal’s development goals,” said Acting Deputy Vice President John Wingle. “We are honoured to work alongside our Nepali counterparts to improve the availability and reliability of electricity in Nepal and enhance regional power trade and integration.” 

Finance Secretary and chairperson of the MCA-Nepal Board of Directors Ghanashyam Upadhyaya appreciated the financial support from the US Government to materialise the Nepal's plan to construct transmission lines and substations, and expressed continued government support for this programme.

"This milestone is more than a construction contract; it’s a tangible symbol of the United States’ enduring commitment to Nepal’s growth and prosperity,” said US Embassy Nepal’s Chargé d’Affaires, Jason Meeks. “Through this partnership, we are not only creating power lines and economic infrastructure but also accelerating Nepal’s long-term growth," he said, adding that the MCC compact is a cornerstone of cooperation between Nepal and the US. "We’re proud to be moving forward together to benefit all citizens of Nepal.”

"We appreciate the US government’s unwavering support and final approval to move the compact forward," MCA-Nepal Executive Director Bisht added. "This milestone reflects the shared commitment of all stakeholders and the government to this National Pride Project. We remain focused on successful implementation through sustained collaboration.” 

The MCC Nepal Compact represents a landmark $697 million investment in Nepal’s long-term economic development, laying a foundation for increased private sector investment. Through its Electricity Transmission and Road Maintenance Projects, the compact is designed to boost connectivity and unlock economic growth by strengthening critical infrastructure, enhancing cross-border energy trade, and improving Nepal’s transportation network.