Qatar Emir Al Thani wraps up Nepal visit, Nepal-Qatar sign two agreements, six MoUs

Qatar Emir Sheikh Tamim bin Hamad Al Thani concluded his two-day state visit to Nepal and left Kathmandu today afternoon.

President Ram Chandra Poudel and other high-ranking officials saw off Al Thani at the Tribhuvan International Airport (TIA) this afternoon in Kathmandu.

Earlier Nepal and Qatar signed two agreements and six memorandums of understanding (MoUs) following a delegation-level bilateral meeting at The Soaltee Hotel in Kathmandu. Prime Minister Pushpa Kamal Dahal and Qatar Amir Al Thani led their respective delegations in the meeting.

According to a press note issued by the Foreign Ministry, the two countries have signed different agreements and MoUs for cooperation in the fields of education, arts and culture, sports, news agencies, diplomatic training and attorney general offices.

Likewise, the private sector organisations of the two countries also signed agreement to further enhance economic relations between the two countries.

Emir Al Thani arrived in Kathmandu yesterday afternoon from Dhaka after wrapping up his state visit to Bangladesh. He held talks with President Ram Chandra Poudel at the Office of the President yesterday evening. 

Later, he attended a state reception organised by President Poudel in the honour of the Qatar Emir and the Qatari delegation.

After the bilateral meeting with Prime Minister Pushpa Kamal Dahal today, Qatar Emir Al Thani attended a luncheon hosted by Prime Minister Dahal.

Nepal has also decided to gift a pair of elephants to the State of Qatar.

Agreements and MoUs signed:

i) MoU for Cooperation in the Fields of Culture and Arts

ii) MoU for Cooperation in the Field of Education, Higher Education and Scientific Research

iii) MoU on Cooperation in the Field of Youth and Sports

iv) MoU on Cooperation between the Office of the Attorney General of Nepal and the Public Prosecution of the State of Qatar

v) MoU on Cooperation in the Field of Diplomatic Training and Education between the Institute of Foreign Affairs (IFA), Nepal and the Diplomatic Institute of Qatar

vi) Renewal of the MoU between Qatar Chamber and the Federation of Nepalese Chambers of Commerce & Industry (FNCCI)

vii) Agreement on Cooperation and Exchange of News between Rastriya Samachar Samiti of Nepal and Qatar News Agency (QNA)

vii) Agreement on the establishment of Joint Business Council (JBC) between Qatar Chamber and the Federation of Nepalese Chambers of Commerce & Industry (FNCCI)

Before signing agreements, Prime Minister Dahal held bilateral talks with Emir of Qatar Sheikh Tamim bin Hamad Al-Thani.

Taking stock of the existing relations so cordially subsisting between Nepal and Qatar, both leaders discussed about enhancing bilateral cooperation by furthering the avenues of partnerships.

Following the talks, the Prime Minister and Emir witnessed a signing ceremony of bilateral agreements and MoUs. 

Meanwhile, Prime Minister Pushpa Kamal Dahal 'Prachanda' has said that there should be an exchange of bilateral assistance between Nepal and Qatar in the best interests of both nations by further consolidating the bilateral ties.

During the bilateral talks, Prime Minister apprised the distinguished guest that Nepal offers ample and appropriate opportunities for investment in agriculture, tourism, and infrastructure sectors.

Stating that Nepali migrant workers in Qatar have served as a tool to further strengthen the friendly relations between Nepal and Qatar, he spoke of the need to deepen such ties in the days to come.

The Prime Minister also called on Qatar to facilitate the safe release of Nepali student Bipin Joshi, who has been missing since the conflict between Israel and Hamas.

Affirming that Nepal and Qatar always enjoy a cordial relationship, the Prime Minister said this relationship is founded on cordial friendship, mutual respect, trust, and assistance. "Qatar remains as a reliable friend of Nepal and such relations are getting deeper and extended," he said, adding that these relations are not limited to just an official level but have been expanded to the people-to-people level as well.

Describing Nepal as 'one of the attractive destinations for investment for the globe', Prime Minister Dahal said agriculture, energy, hydropower, infrastructure development, tourism, information and communications technology, service and hospitality sectors are suitable areas for foreign investment in Nepal.

"Nepal is a suitable place for producing organic agricultural products due to its geographical diversity," he said, adding that the Qatari investors would be encouraged to consider investment in this sector since Nepal was a center of attraction in tourism in the world parlance.

Remembering the ascent of the highest mountain in the world Mt Everest by the first Qatari man, Sheikh Mohammed bin Abdulla Al-Thani in 2013, the Prime Minister said that it helped contribute in the promotion of Nepal's tourism in the world.

On the occasion, PM Dahal requested to include Nepal in the list of Qatar's Tourism Authority's external tourism destination.

PM Dahal urged the Qatari government for operation of flights from Lumbini and Pokhara to Qatar as well.

Stating that there were effective and sufficient air transportation between Kathmandu to Doha, PM Dahal urged the Qatari government to consider operating flights from Lumbini and Pokhara to Doha as well.

Earlier, stakeholders had urged the government to take initiatives for operating direct flight between Bhairahawa and Qatar from Gautam Buddha International Airport during the Qatari Emir's visit to Nepal.

Siddhartha Chamber of Commerce and Industry's president Thakur Kumar Shrestha, requested the government to prioritise the proposal of operating direct flight between Bhairahawa and Qatar.

Likewise, PM Dahal observed that around 400,000 Nepalis migrant workers working in Qatar at present were an important bridge further cementing the bilateral ties between Nepal and Qatar.

"Nepal is going to establish vocational training and skill development center for aspiring Nepali migrant workers to Qatar," he said, urging Qatari government for its assistance in setting up such centre.

Himalaya Airlines and Huawei Cloud join hands to form a strategic partnership

Himalaya Airlines and Huawei Cloud, Chinese multinational technology company, signed a memorandum of understanding (MoU) for strategic cooperation today during a signing ceremony held at Huawei company office in Kathmandu.
Leveraging its advantages in Information and Communication Technology (ICT) products and solutions, Huawei, a leading global provider of information and communications technology, will provide Himalaya with competitive products and services to enable Himalaya to provide its passengers, better ticketing options and travel experience, according to a press note issued by the company. “The agreement is expected to promote the construction of smart aviation and trans-Himalaya multi-dimensional connectivity to achieve more substantial results, opening up opportunities for Himalaya to be a leading airline in South Asia.”
 The event was virtually graced by Economic and Commercial Counsellor at the Embassy of China to Nepal Zhang Fan, deputy director of the Department of Commerce of the Tibet Autonomous Region Wang Ping and president of Huawei Technology Cloud and AI business group of Asia Pacific Region Zhou Danjin. The MoU was signed by president of Himalaya Airlines Zhou Enyong and chief executive officer of Huawei Technologies Nepal Deng Shuigen.
Congratulating both the parties, Economic and Commercial Counselor of Embassy of China to Nepal Zhang Fan expressed that the collaboration between the two parties is indeed a proactive effort to cope with the new challenges and circumstances of post-pandemic international aviation, international communication and Belt and Road Initiative (BRI) cooperation. He also hoped the two companies as well as the other companies with Chinese investment in Nepal can break the barriers of conventional mindset, adopt more innovative methods to create suitable business models for the post-pandemic period and thereby make meaningful contributions to the BRI cooperation between China and Nepal.
While delivering his remarks, Wang Ping affirmed Himalaya’s contribution to the establishment of an important aviation channel to South Asia for the Tibet Autonomous Region. He also hoped Himalaya will achieve smarter management, operation and win-win development with the help of Huawei's advanced information solutions. He promised that the Tibet Autonomous Region will continue to support the development of overseas investment enterprises.
Addressing the event president of the Himalaya Airlines Zhou Enyong said that he believes the cooperation with Huawei will speed up the digital transformation and informatisation of the company, optimise the ticketing and travelling experience for customers, and will contribute to the overall development of the entire civil aviation industry of Nepal. He also welcomed the third party cooperation based on the bilateral cooperation in software, instruments, and other service areas through united innovation and exploring solutions for betterment of the industry in this region.
Likewise, president of Huawei technology Cloud and AI business group of Asia Pacific Region Zhou Danjin shared that they will take this opportunity to employ Himalaya Airlines’ expertise in aviation field together with their strength in technology to push ahead the process of ‘Intelligentisation]. Through digital transformation for Himalaya and improve its competitiveness to realize the business potential.
Himalaya and Huawei will cooperate in ICT technologies represented by Huawei Cloud and AI, in order to achieve mutual benefits and common development. It will also include building the Cloud platform for Himalaya's sales and finance system, set up Business Intelligent (BI) system, and push ahead the upgrade and renovation of existing ICT equipment. Himalaya also is ready to explore all-round cooperation possibilities with Huawei and third parties in passenger and freight transportation systems in the future.

Nepal and the Philippines form bilateral mechanism

Nepal and the Republic of the Philippines today signed a Memorandum of Understanding (MoU) to establish Bilateral Consultation Mechanism between the Foreign Ministries of both the countries.
Joint secretary and head of South East Asia and the Pacific Division at Foreign Ministry Tapas Adhikari and ambassador of the Philippines to Nepal Ramon S Bagatsing Jr signed the MoU on behalf of their respective ministries in Kathmandu today.
According to the MoU, Nepal and the Philippines will hold regular consultations to review the state of bilateral relations and the ways to further expand relations and promote mutually beneficial cooperation. “Nepal and the Philippines established diplomatic relations on February 12, 1960,” according to a press note issued by the Foreign Ministry.

Nepal, Myanmar sign MoU on tourism and culture

Nepal and Myanmar signed a memorandum of understanding (MoU) on cooperation in tourism and culture for strengthening relationship in this field following bilateral talks held today in the presence of President Bidya Devi Bhandari and State Counselor of Myanmar Aung San Suu Kyi.
President Bhandari is currently on a five-day state visit to the Republic of Union of Myanmar at the friendly invitation of the President of Myanmar U Win Myint, according to a press note issued by the Foreign Ministry.
Minister for Foreign Affairs Pradeep Kumar Gyawali and Union Minister for International Cooperation of Myanmar Kyaw Tin signed and exchanged the two MoUs after the bilateral talks held at the Presidential House in Nay Pyi Taw, the capital of Myanmar. President Bhandari arrived in Nay Pyi Taw yesterday evening and held talks with her Myanmar counterpart U Win Myint at the Presidential House today.
Earlier, Myanmar Army presented a Guard of Honour to President Bhandari.
President Bhandari’s entourage includes Minister for Foreign Affairs Gyawali, foreign secretary Shanker Das Bairagi, secretary at the Office of the President Dr Hari Poudel, chief personal secretary to the President Dr Bhesh Raj Adhikari, high officials at the Ministry of Foreign Affairs and the Office of the President.
The President will conclude her state visit to Myanmar on October 20, the press note reads.

Ministry finalises medical firms for health check-up of Malaysia-bound Nepalis

The government has finalised some 99 health check-up centres for Nepali migrant workers going to Malaysia on the basis of the Malaysian government’s new health standard guideline that clarifies the medical requirements for migrant workers. But these centres will have to receive authentication from the Malaysian government before they can start different biometric works targeting Malaysia-bound Nepali workers.
These medical firms will have to wait for official authorisation from the Malaysian government, according to the Ministry of Labour, Employment and Social Security (MoLESS) that has claimed that the Malaysian government will soon authenticate these selected firms.
After the authentication by the Malaysian government, it is expected to help resume the flow of Nepali migrant workers to Malaysia, added the ministry that had stopped sending workers to Malaysia since last May after it cracked down on Immigration Security Clearance and One Stop Centre, which were levying additional charges on Nepali migrants for obtaining health certificates.
Though, the government move is blamed to have been motivated by the political differences as those health centres were related to the opposition party Nepali Congress (NC) representatives’ relatives, the ministry has been claiming that they have been charging extra charges. The dispute has, however, completely halted the outflow of Nepali migrant workers to South Eastern country that tops the chart as the most favoured destination.
Likewise, the government has also signed a memorandum of understanding (MoU) on the bilateral labour pact with Malaysian government last October, the process to send Nepali migrant workers to Malaysia has not resumed yet.

Nepal, Finland establish bilateral consultation mechanism

Nepal and Finland established a bilateral consultation mechanism to hold regular consultations alternatively – in Kathmandu and Helsinki – and to review bilateral relations and identify new areas of cooperation between the two countries, as well as exchange views on regional and international issues of mutual interest.
A Memorandum of Understanding (MoU) – to establish the bilateral consultation mechanism between Foreign Ministries of Nepal and Finland – was signed by joint secretary and head of Europe America Division at Foreign Ministry Ghanshyam Bhandari and ambassador of Finland to Nepal Pertti Anttinen signed the MoU on behalf of their respective governments, at the Foreign Ministry in Kathmandu today.
Nepal and Finland established diplomatic relations in 1974. They have been enjoying cordial relations based on mutual respect, cooperation and trust but the bilateral relations needs to be taken to new height, the ministry press note reads.

Nepal, UAE agree to seal revised labour deal

Nepal and the United Arab Emirates (UAE) today agreed to sign a revised labour agreement that is expected to benefit as many as 360,000 Nepali migrant workers, who are currently working in the UAE. The both sides also agreed on a draft of revised labour agreement that guarantees zero investment jobs in the Gulf country for Nepali workers.
The two sides reached the consensus during a two-day second Bilateral Technical Meeting on the draft Memorandum of Understanding (MoU) between Nepal and the UAE on Recruitment, Employment and Repatriation of Workers that concluded today, in Kathmandu.
The deal was signed by joint-secretary at the Ministry of Labour, Employment and Social Security (MoLESS) Ram Prasad Ghimire and director of International Bilateral Relations under the Department of Ministry of Human Resources and Emiratisation of the UAE Abdullah al-Muaimi. According to the understanding, Nepali workers will not have to bear any financial burdens – whether cost or any fees – for jobs in the emirates.
The revised agreement that has put special stress on enforcement of wage protection system for Nepali workers will be tabled at the cabinet soon to approve it. "The MoU will be signed once the two governments approve the document,” Ghimire, who led the Nepali delegation, said, adding that once the new agreement is signed, it will officially replace the ‘MoU between the Government of Nepal and the Government of United Emirates in the Field of Manpower’ signed on July 3, 2007.
According to the proposed agreement, the Nepali workers will not pay any amount in cost or fees for jobs in the UAE. "The employer will be paying all the expenses on behalf of the worker,” the agreement reads, adding that employers will bear the cost of recruitment to the recruitment agencies, employment and residency of Nepali workers in the UAE. "The employers will bear all the costs related to recruitment, employment and the residency of Nepali worker in the UAE including but not limited to recruitment agency fees, air ticket costs, insurance fees, visa fees, medical examination fees and all other recruitment related costs and fees."
"The UAE government will ensure access to Labour Court for the worker without any cost until the case is resolved," it reads, adding that when the case is in the Court, the worker is entitled to apply for a temporary work permit in accordance with the relevant Laws of the UAE. "The terms and conditions of employment of the Nepali worker in the UAE shall be defined by an Employment Contract between the worker and the employer."
The Employment Contract will specify the basic employment conditions, and the rights and obligations of the employer and worker in accordance with the laws and regulations in force in the UAE, it further reads. "The UAE government will ensure that the employment offer shall indicate the job specifications, required qualifications, types of jobs for which recruitment is proposed as well as the terms and conditions of employment offered including wages, non-wage benefits, accommodation and transportation when applicable, end-of-service entitlement, and any other details required by the government of the UAE. All these details must be reflected unaltered in the Employment Contract, Ghimire said, adding that the worker will be eligible to seek and obtain alternative employment when it is duly established that the employer has failed to meet contractual or legal obligations to the worker due to any reason including closure or winding up of business or if the worker is subjected to violation of any of his or her rights under UAE laws, without prejudice to the right of the worker to collect his or her dues from the employer and/or seek judicial redress. "In such events, the worker shall also have the right to return back to Nepal, if he or she so desires. In such case, the employer will bear all associated costs."
Most of the Nepali migrant workers currently are ordinary workers engaged in construction, hospitality, farming and security service sectors in the Gulf nation.
The UAE government has also agreed to ensure the safety, security and welfare of the Worker with due regard to the female worker. "The government of the UAE shall ensure that the worker is not subject to any form of unlawful treatment and is free to communicate with any third party," it reads, adding that the UAE will ensure extensive and close oversight over the application of the existing wage protection systems to monitor timely payment of wages and other benefits. "Besides, the UAE law has a provision of both work related insurance as well as medical insurance schemes that cover almost all the cases of accidents or injuries and sickness except personal negligence.
Nepal, as the chair of the Colombo Process – a common regional forum of labour source countries – has put priority on securing zero cost jobs for its workers as well as reviewing the existing labour agreements and signing new deals with other destination countries lately. Likewise, the UAE has been one of the most-preferred labour destinations among the Gulf countries for Nepali migrant workers for its better treatment, remuneration among other facilities. 

Nepal, China sign 9 deals worth $2.50 billion

Nepal and China today signed 9 agreements – including government and private sector – worth $2.50 billion on the second day of Prime Minister K P Sharma Oli's visit to Beijing.
The agreements – reached between the two governments and private sectors – signed at the Nepali Embassy in Beijing in the presence of Prime Minister Oli include hydroelectricity, cement industries, establishing highland food parks, water resources, cement factories, pashmina, and fruit cultivation and farming.
Some more memorandum of understandings (MoU) and agreements – between the two governments – will be signed tomorrow after delegation-level talks between Oli and his Chinese counterpart Li Keqiang.
On the occasion, chief executive officer of Investment Board of Nepal (IBN) Maha Prasad Adhikari and vice president of Huaxin Cement of China Xu Gang signed the project investment agreement (PIA) between the Board and Huaxin Cement Narayani Private Ltd. The Chinese firm has pledged $144 of FDI to generate 3,000 metric tonnes of cement per day.
Likewise, Ministry of Energy, Water Resources and Irrigation, and China Communications Construction Company signed a MoU to prepare a detailed feasibility study on Eastern Terai River Training in Biring, Kamala, Kankai rivers. Joint Secretary at the Ministry of Energy Dinesh Kumar Ghimire and deputy general manager of China's Communications Construction Company Liu Dongyuan signed the agreement.
Similarly, Fortuna Investment and Guizhou Maritime Silk Road International Investment Cooperation signed another MoU on establishing the highland food park for varieties of fruits and vegetables. Chairperson of Fortuna Investment and Federation of Nepalese Chambers of Commerce (FNCCI) president Bhawani Rana and Zhag Zao of Guizhou Maritime Silk Road International Cooperation signed the agreement of over $46 million for project.
Yunnan Xinhua Water Conservancy and Hydropower Investment Company, Hydrosolutions Group and Shanghai Investigation, Design and Research Institute signed a Joint Development Agreement (JDA) for the development of 164 MW Kaligandaki Gorge Hydropower Project. Hydrosolutions executive chairman Gyanendra Lal Pradhan and Xu Jianxiang of Yunnan Xinhua Water conservancy and Hydropower Investment and S Xiaoquang of Shanghai Investigation, Design and Research Institute jointly signed the MoU to develop the project under BOOT model.
Likewise, Shailendra Guragain of Siuri Nyadi Hydropower Plant Project and Zhang Yanfei of National Electric Engineering Company signed an agreement for the construction of 40.27 MW Siuri Nyadi Hydropower Plant Project in EPCF model.
On the occasion, Nepal Pashmina Industries Association and One Belt One Road (OBOR) International Trade Platform of CIC Mutual Trade Investment Company also signed an agreement for the sale of Nepali pashmina in China. Nepal Pashmina Industries Association president Durga Bikram Thapa and chairperson of OBOR International Trade Platform of CIC Mutual Trade Investment Company Shu Ya signed the MoU that guarantees purchase order from China would be between 200,000 to 500,000 pieces every year.
Similarly, Butwal Power Company (BPC) chairman Padma Jyoti and the representative of Sichuan Investment Group Company, Chengdu Xingcheng Investment Group Company and Sichuan Qingyuan Engineering Consulting Company signed a MoU on Framework Agreement for Cooperation in Marsyangdi Cascade Hydropower Project of 600 MW.
Siddhakali Power Company chairman Guru Prasad Neupane and vice president of Dongfang Electric International Corporation Chen Qiang signed a MoU on Cooperation Framework Agreement for the Construction of 75 MW Trishuli Galchhi Hydropower Project in EPCF model in the presence of Prime Minister Oli.
However, the agreement on much-talked about Kerung-Kathmandu railway is expected tomorrow though, the modality has not ben finalised yet. The land-locked Nepal is keen to enhance cross-border rail-road connectivity, infrastructure development, trade and tourism cooperation with China under its ambitious Belt and Road Initiative (BRI) to strike the geo-political balance.
Oli has been claiming that his government is fully committed in implementing the MoU on cooperation under the framework of the BRI signed with China two years ago in 2016.
"Our two countries have common views on the concept of Trans-Himalayan Multi-Dimensional Transport Network," said Oli after the signing ceremony. "Based on the broad framework, we want to seek cooperation with China on cross-border connectivity of railway, road, transmission lines and other related areas for mutual benefit," he said, adding that Nepal viewes the BRI as an important development initiative.
He also believed that China can help a lot in Nepal's socio-economic transformation as the country is marching ahead to achieve economic prosperity.
During his six-day visit, Prime Minister Oli is scheduled to hold bilateral talks with his Chinese counterpart Li Keqiang and address a Nepal-China Business Forum and think-tanks in Beijing.
During Oli's visit – second visit as Prime Minister and also immediately after a trip to India soon after his election as Prime Minister and followed by Prime Minister Narendra Modi's return visit to Kathmandu – Budhi Gandagi and West Seti hydropower projects will figure out or not is yet unknown, though both the projects have created lots of hush-hush between the two nighbours.
The then Prime Minister Sher Bahadur Deuba-led government had suspended a Chinese-funded dam construction deal – Budhi Gandagi – citing irregularities, and the incumbent Finance Minister Dr Yubraj Khatiwada in his budget speech stated that Nepal will construct West Seti by itself, which Chinese government immediately protested claiming that the project is still under Chinese company.

Nepal, Oman establish bilateral consultation mechanism

Nepal and the Sultanate of Oman have signed a Memorandum of Understanding (MoU) on establishing a bilateral consultation mechanism.
The MoU was signed at Muscat on the occasion of the official visit of Prime Minister Sher Bahadur Deuba to the Gulf country. Nepal's ambassador to Oman Sharmila Parajuli Dhakal and head of West Asia Department at the Ministry of Foreign Affairs of Oman Hilah Marhoon al-Mammari signed the MoU on behalf of their respective governments today. Deputy Prime Minister and Minister for Foreign Affairs Krishna Bahadur Mahara witnessed the signing ceremony.
As Nepal and the Sultanate of Oman have been celebrating the 40th anniversary of the establishment of bilateral relations this year, the conclusion of the MoU reflects the determination of the two governments to enhance and activate different fields of co-operation, particularly on economic, cultural, technological, scientific and educational relations, a press note from the Embassy of Nepal in Muscat reads.
The MoU provides that bilateral meetings will be organised on annual basis or as deemed necessary, alternately in Muscat and in Kathmandu. The MoU comes into force from the date of its signature for a period of five years and is automatically renewable for similar periods.
Meanwhile, Prime Minister Deuba and members of his delegation returned to Kathmandu yesterday upon successfully completing the 3-day official visit to the Sultanate of Oman.

Parliamentarians instruct government to construct Budhi Gandaki by itself

Instructing the government to halt the process of allowing China Gezhouba Group Corporation (CGGC) to develop Budhi Gandaki Hydropower Project, the Parliamentarians have asked to construct by itself.
Nearly four months after the government signed a contract agreement for the hydel project with the CGGC, a joint meeting of Agriculture and Water Resources Committee (AWRC) and Finance Committee – under the Legislature Parliament – today has instructed the government to to scrap the Memorandum of Understanding (MoU) to award the 1,200-MW Budhi Gandaki Hydropower Project to the Chinese government undertaking . The MoU was signed in May.
The 1,200-MW project was recently listed as a component of the Belt and Road Initiative (BRI), the China-led plan that envisages greater trade and connectivity and supports varied infrastructure projects.
"The meeting has decided to order the government to scrap the MoU and all the processes of awarding the hydropower project to the Chinese developer and develop it by mobilising internal resources,” chairperson of the Agriculture and Water Resources Committee Mohan Prasad Baral said, adding that the national pride project should be built by mobilising domestic capital and capacity instead of handing it over to a foreign company.
The lawmakers, on the occasion, also flayed the government saying that the project was handed over to the CGGC against the country’s legal premises and breaches the Public Procurement Act. The government has also been criticised for not holding free competition before deciding on the company to undertake the hydroelectricity project.
"This project was handed over to a controversial Chinese company whose track record is so bad in Nepal by flouting various laws like Public Procurement Act," chairperson of the Finance Committee Prakash Jwala said, adding that the government made a blunder by awarding the project to the Chinese firm. "The intention behind selecting this Chinese firm is only to hold the project."
Budhi Gandaki – a reservoir-type mega project that lies in Gorkha and Dhading districts – has been highlighted as a key project to resolve the country’s perennial power crisis.
Kulekhani hydropower projects 1 and 2 – the only reservoir type hydropower plants in the country – having combined capacity of 92 MW are capable of offsetting supply shortage during dry season.
The government-led by Pushpa Kamal Dahal, on May 23, had in principal decided to entrust the work of building the mega project to the CGGC under the engineering, procurement, construction and finance (EPCF) model, though the government led by KP Oli had already completed the home work to award the project to the Chinese developer.
Following the cabinet decision, the then energy minister Janardan Sharma had signed the MoU with president of CGGC Lv Zexiang on June 4 in the presence of then PM Pushpa Kamal Dahal and Chinese ambassador to Nepal Yu Hong. The MoU, however, is silent about project cost. According to the project's DPR prepared by a French consultant, the project is estimated to cost Rs 261 billion.
State Minister for Energy Shambhu Lal Shrestha, on the occasion replying the House committee, said that the country can construct the project with domestic resources.
Though the parliamentary panels have directed the government to scrap the project, they want continuation of land compensation payment. The committees have suggested providing the displaced people a share in the project instead of compensation, for easing the process. The government has listed it as a national pride project. The government has allocated Rs 5.33 billion for project development this fiscal year.

Government decides to award Budhi Gandaki Project to Chinese company

In a key move to strike a balance between China and India – that is developing two major hydro projects Arun III and Upper Karnali – the Cabinet today decided to award the 1200-MW reservoir project Budhi Gandaki hydropower project to a Chinese company.
Minister for Law and Justice Ajay Shankar Nayak, after the cabinet meeting informed that the cabinet had decided to begin the process of awarding the project to China Gezhouba Group Corporation (CGGC), China’s government-owned company.
The government will prepare a guidelines on awarding the project including financing model.
The project will be awarded in engineering, procurement, construction and financing (EPCF) model, - a new model for the country. According to this model, the developer has to bring in financing to build the plant to be built in Budhi Gandaki river in Dhading and Gorkha district. The EPCF model of project development, under which the contracting firm makes all the arrangements including the funds to build the project, is considered to be one of the most effective models for the development of huge infrastructural projects.
Currently, the Finance Ministry is in the process of preparing the guideline for the EPCF model of project development. After it is ready, there will be more clarity on how the model works.
The cabinet meeting also approved the draft memorandum of understanding (MoU) to be signed with CGGC soon. The MoU – according to Energy Minister Janardan Sharma – is a preliminary accord and it will not bind the government legally or financially without entering into a separate agreement. However, the CGGC will also have to come up with a technically and financially viable proposal within a year.
"As per the draft MoU, CGGC will get a year to make an assessment of the hydropower project and arrange funds for its development,” he said adding, "If the Chinese developer comes up with a proposal agreeable to us, we will sign another contract."
A Detailed Project Report (DPR) prepared by a French consultant last year has estimated the project's cost at Rs 261 billion including the cost of land acquisition. Land acquisition is underway after completion of Detailed Project Report (DPR).
The 1200-MW project located in Gorkha and Dadhing districts could be crucial in addressing the country's energy crisis. The previous government led by KP Sharma Oli had also considered CGGC's proposal to develop the project but the proposal was shelved without furnishing any clear reason. And the then Finance Minister Bishnu Poudel had – through the budget – started collecting Rs 5 per litre Infrastructure Tax on petroleum products claiming to construct the reservoir project on Nepali's own investment. The government has already collected Rs 84 million from the consumers in the name of Budhi Gandaki that the government was planning to construct in a company model. The government has also allocated a budget of Rs 5.33 billion – as compensation – in the budget for the current fiscal year. The district administration offices of Dhading and Gorkha – the project affected districts – are currently distributing compensation to the owners of the land required for the construction of the project.
But with the decision to award the reservoir-based project to the Chinese company, the government has put an end to the process of building the plant under the company model.
Considering the massive investment needed for the mega project and its technical complexities, the government chose to award it to the Chinese company, according to the Energy Ministry.
According to Energy Ministry spokesperson Dinesh Kumar Ghimire, the government will enter into a preliminary Memorandum of Understanding (MoU) with the company soon but this agreement will not be legally binding until a project development agreement (PDA) is signed. "The government will enter into an agreement after the MoU."
According to the Energy Ministry, the Chinese government was very keen on having a Chinese company develop the project, and had proposed with Prime Minister Pushpa Kamal Dahal during his recent visit to China. Chinese officials had even pledged to provide a soft loan via the Export Import Bank of China to the Chinese company to build the project, if it is awarded the contract.
The government also expects the CGGC to arrange major financing – at least over 50 per cent of the project cost – in the form of a soft loan because the project is not viable on commercial loans. "If the government is satisfied with its proposals – both technical and financial – the final contract will be signed,” added Ghimire.
According to the plan, a 263-meter high dam will be built in the Budhi Gandaki River, which will form a reservoir about 15 times bigger than the Fewa Lake in Pokhara that will generate 1330-GWh electricity annually and will displace about 45,000 people.
The Chinese company CGGC had started working in Nepal in early 2000s by building the 45-MW Upper Bhotekoshi Hydropower plant.
Currently, the company is working as the civil contractor of at least three hydropower projects – including Chameliya that has suffered a cost overrun of more than double the estimated cost – but its overall performance has been poor and the projects have seen multiple cost variations and time overruns, though not only because of CGGC always.
Likewise the company's proposal to upgrade the Upper Trishuli III project in 2013 had also courted controversy.
Sino Hydro Resources – a Chinese government undertaking – completed the 50-MW Upper Marshyandi A Hydropower Project – the project is the first one to be built with Chinese investment – in September.
Likewise, the government is building the 750 MW West Seti Hydropower Project in the western part of Nepal with joint investment from China Three Gorges Corporation (CTGC), another Chinese government-owned company. The government led by Dr Baburam Bhattarai had awarded the project to CTGC that has 75 per cent stake in the project.

Nepal, China sign MoU on consumers’ rights, trade and commerce

Nepal and China today signed a Memorandum of Understanding (MoU) on the bilateral exchange of information on the areas of consumers’ rights protection, trade and commerce relations.
The MoU was signed by supplies minister Deepak Bohara and Minister of State Administration for Industry and Commerce of China Zhang Mao on behalf of their respective governments.
“The understanding is intended to initiating bilateral exchange of information on the areas of consumers’ rights protection, further stepping up of the implementation of existing rules and regulations in the areas, help create competitive market environment and more particularly, accentuate the trade relations between the two countries,” the ministry said in a press release.
The important areas of cooperation include, among others, the mutual exchange of information on newly effected rules and regulations, routinely hold consultations by officials on the matters of common concerns, information sharing on new practices of trade and commerce and periodic exchange visits by government officials, trade experts and consumer’s rights activists.
“The MoU would be a milestone in strengthening trade relations between the countries," said Bohara after signing the MoU. He further added that the Government of Nepal is consistently making efforts in protecting consumers ‘interests'.
Minister of the People’s Republic of China Zhang Mao, on the occasion, said that the MoU would reinforce traditional trade, and commerce relations between Nepal and China, and help protect interests of consumers of both the countries.
During the programme secretary of the Ministry of Supplies Prem Kumar Rai also opined that the MoU would be instrumental in underpinning trade and commerce relationship between the two friendly countries.

Nepal-India agree new loans, to push ongoing hydro projects

Nepal and India today signed an agreement for a line of credit (LoC) of $750 million for post-earthquake reconstruction in Nepal.
"We have today signed the agreement for a line of credit of $750 million for post-earthquake reconstruction of Nepal," Indian Prime Minister Modi said in a speech at Hyderabad House, in New Delhi, according to the Press Information Bureau at the office of the Indian prime minister. "I am confident that it would bring relief to millions of people affected by last year's devastating earthquake in Nepal," he added.
India has also agreed to extend additional LoC for new projects such as Phase-2 of  the Tarai Roads, power transmission lines, substations and a polytechnic in Kaski, Modi said, adding that India's initiatives for open skies, cross-border power trade, transit routes and cross-border connectivity would directly benefit Nepal and help strengthen economic partnership. "Nepal and India are also closely working on a range of areas of economic engagement including energy and water resources sectors," he said.
"Prime Minister Prachanda and I agreed to push for speedy and successful implementation of the ongoing hydro-power projects, and development and operationalisation of transmission lines," he said, adding that it would be a source of much needed energy, and revenue generation for Nepal.
Modi also said that he and the visiting Nepali prime minister have agreed to showcase the shared Buddhist heritage and focus on the development of Ayurveda and other traditional systems of medicine, apart from agreeing to focus on close monitoring and time-bound completion of all development projects. "I and the Nepali prime minister are confident that our decisions today would provide strength to the economic engagement and take it to new heights."
The $750-million credit line is over and above the $1 billion – $250 million as grants and $750 million as a soft loan – which India announced following the devastating earthquake in Nepal last year that claimed over 8,000 lives.
Likewise, Nepal and India also signed a memorandum of agreement (MoU) for project management consultancy services for upgrading and improving the road infrastructure in Nepal's Tarai area.
National Highways and Infrastructure Development Corporation Ltd (NHIDCL) – an Indian government company under the Ministry of Road Transport and Highways that is mandated to build a network of roads in tough terrain, including the north eastern Indian states – is going to provide consultancy to the Nepal government for construction of 10 postal roads in the Tarai region bordering India, at a cost of Indian IRs 5 billion.
Likewise, Nepal and India also signed another agreement on a first amendatory dollar credit line for post-earthquake reconstruction projects in Nepal, according to the PIB.
However, Nepal has failed to prepare projects to absorb the earlier line of credit (LoC) of $1 billion announced by Modi in 2014. Nepal has only been able to absorb only $550 million out of the total.
Of the total of LoC announced in 2014, a total of 14 road projects including small ones and local ones have been identified that could consume $330 million, while $200 million has been allocated for two irrigation projects.

Nepal-China transit treaty to shift geo-political balance

In a major geo-political shift, Nepal has signed a transit and transportation treaty with China today that will give the land-locked Nepal access to sea from China.
Currently, Nepal has the access to sea, which is vital for third country trade, only through India, the southern neighbour. India and Bangladesh are the only two other countries with whom Nepal has signed transit treaties. But the transit treaty with Bangladesh is based on India, as Nepal and Bangladesh do not share border, and thus has not been implemented fully.
However, today's treaty will give Nepal access to a Chinese port for its third country trade, which is expected to reduce Nepal's dependency on India for trade and transit.
Despite historic and socio-cultural integration between India and Nepal, India's imposition of economic blockade for almost five months generated widespread disenchantment in Nepal, forcing Nepal to seek trade alliances beyond the southern neighbour. Though Tianjin Port, the nearest Chinese port is 3,300 km away from the Nepal border – as against the closest Indian port of Kolkata which is only 1,000 km – the treaty is also expected to shift the geo-political power balance in the region.
The agreement on transit and transport with the People's Republic of China could be a psychological shift for the future, according to senior economist Bishwhambher Pyakuryal. "The agreement is going to have a huge psychological shift in otherwise India-locked Nepal as the country will now have an option for international trade," he said, adding that the implementation of treaty is but a herculean task.
Likewise, trade expert and former commerce secretary Purushottam Ojha also opines that the treaty is a milestone, but Nepal needs to invest its huge resources and efforts on road infrastructure to benefit from the treaty. "Nepal must increase road and railway connectivity to take advantage from the transit treaty and increase economic integration with China," he added.
Apart from widening of Rasuwagadi customs point, and upgrading Korala and Kimathanka customs points and access roads, Nepal also has to work hard to simplify trade-related issues, including visa, currency and language, to make the treaty work in its favour, Ojha said.
Likewise, Nepal has to exchange a protocol with China, which will define the procedures that need to be followed. Nepal also have to have railway connectivity to take advantage from the agreement, which will be automatically reviewed every 10 years, as ferrying goods via road through Tibet may not always be cost-effective and convenient.
The visiting prime minister Khadga Prasad Sharma Oli and his Chinese counterpart Li Keqiang today witnessed the signing of the 10-point bilateral agreement and memorandum of understandings (MoU), including landmark transit and trade deal, in Beijing's Great Hall of the People, according to a press communiqué issued by the Nepali Embassy in Beijing after the signing ceremony.
To increase the connectivity, China has also agreed to construct a strategic railway link between the two countries through Tibet. The railway link, which is expected to link Kathmandu and Tibet, is also likely to be expanded to Pokhara and Lumbini.
According to officials in the meeting, Oli's visit has raised the possibility of the construction of two rail lines connecting three of Nepal's most important cities. China has already expanded its railway service to Shigatse, in Tibet, which is around 450 km from Kerung. Kerung lies at a distance of around 26 km from Rasuwagadi in Nepal. China plans to extend its railway service to Kerung by 2020, and also a longer term plan of extending railway lines from Kerung to Kathmandu depending on geographic and technical conditions, as well as financing, according to the officials.
But, Nepal will have to enter into a separate deal with Beijing to make use of the Chinese railway service for trade purpose.
The high profile visit also witnessed signing of Memorandum of Understanding (MoU) between the Ministry of Commerce of the People's Republic of China and the Ministry of Commerce of Nepal for launching the Joint Feasibility Study of China-Nepal Free Trade Agreement (FTA). Based on the findings of the feasibility study, both the governments will decide whether to sign the FTA.
The FTA is, however, not going to benefit Nepali products, which have lost their competitive advantage against the Chinese products. "Nepal should have pushed for preferential trade agreement with China," Ojha said, "As Nepali products cannot compete with that of China's."
China has already given duty free access to over 8,000 Nepali products. Of the total trade, Nepal's exports to China stand at just 2 per cent, whereas Nepal's imports from China stand at 12 per cent, widening Nepal's trade deficit with China. "FTA will only further widen the trade gap," according to Ojha.
Trade between China and Nepal has been governed by Trade and Payment Agreement signed for the first time in 1974.
According to the press communiqué the two countries also signed agreement on concessional loan for a new airport in Nepal's Pokhara and a feasibility study for oil and gas survey projects, though the much-anticipated agreement on commercial import of petroleum products from China was cancelled at the last moment.
Likewise, China has also agreed to distribute solar panels in Nepal’s rural areas by tapping its Climate Fund, and build, manage and maintain Xiarwa Boundary River Bridge at Hilsa, Humla, apart from signing MoU to strengthen intellectual property system in both the countries, and extend cooperation and exchange information on banking regulation.

Nepal, India to sign tourism deal

Nepal and India are going to sign a landmark tourism deal that is expected to boost tourism bilaterally.

The deal is also expected to create an environment for injecting more investment in a big way.

The draft for the proposed memorandum of understanding (MoU) on bilateral tourism investment and cooperation prepared by the two sides is in its final stages with a joint working group giving it a final shape. A technical team comprising experts in the travel and tourism sectors from both countries has prepared a draft MoU. It is a government-to-government pact which will explore and identify areas of cooperation on mutual basis.

The draft proposes that both sides should facilitate overland travel by tourists, create hassle-free transport movement at major crossing points, and ease border formalities at the customs points.

The joint panel also suggested that Nepal cash in on the travel benefits provided to Indian holiday-makers like leave travel concession with effective coordination and cooperation with and among the India Railways and airlines to boost the market on both sides and opening of the Banbasa bridge over Sarada-Mahakali river on the India-Nepal border in western Nepal.

The joint technical team has also suggested holding an annual India-Nepal forum meeting for joint tourism promotion.

Nepal has also proposed revision of the air service agreement (ASA) with India if the existing air seats facility proves inadequate in catering to increasing movement of travelers.

According to spokesperson at the Tourism Ministry Mohan Krishna Sapkota, the deal will help bring investment, boost tourism and provide better facilities to tourists traveling to both countries as both the countries offer huge opportunities in the sector.

Meanwhile, a recent Indian government move on visa liberalisation to extend the visa-on-arrival facility to travellers from nearly 180 countries from this year will also benefit Nepali tourism sector.

Nepal, Taiwan to boost trade

Nepal and Taiwan have signed a memorandum of understanding (MoU) to boost bilateral trade relations.
The signing of the memorandum of understanding will serve as the basis for business exchanges between the two sides, deepening bilateral trade ties, according to the Taiwan External Trade Development Council.
President of Lalitpur Chamber of Commerce and Industry Ajar Man Joshi and president and chief executive of the council Chao Yuen-chuan signed the MoU on behalf of their respective countries, on Friday.
Nepal exported merchandise worth Rs 749.47 million to Taiwan, whereas it imported merchandise worth over Rs 2.35 billion from Taiwan in 2012, according to the statistics of Trade and Export Promotion Centre.
On the basis of exports, Taiwan is the 31st biggest market for Nepal, whereas on the basis of imports, it is the 16th biggest exporter to Nepal as its exports stood at 0.4 per cent of Nepal's total imports in 2012.
Taiwan exports plastic products, machinery and textiles, while its imports metal accessories, blankets and scarves from Nepal.
"Taiwan hopes to use the memorandum as an opportunity to forge a closer trade partnership with Nepal and further expand bilateral trade volume," the Taiwan External Trade Development Council — Taiwan's main trade promotion body — said.

Nepal-India to share information on flow of dirty money

Nepal Rastra Bank (NRB) Financial Information Unit (FIU) and Financial Intelligence Unit-India entered into an agreement to check the flow of dirty money between the two countries.
Central bank's FIU chief Dharma Raj Sapkota and Financial Intelligence Unit-India's Pravin Kumer Tiwari signed a Memorandum of Understanding (MoU) on behalf of their respective institutions on November 17.
The move is supposed to help at curbing the money laundering — turning the illegal money into legal — that can used in funding terrorist or in other illegal drugs and arms related trafficking.
The information on any sort of illegal money laundering and funding of terrorist activities has to be shared among the nations that have entered into an agreement through such MoUs that is supposed to help minimising the instances of such unlawful activities.
Since such money laundering activities are not confined in a single country or jurisdiction, sharing information can be of crucial importance in curbing such activities.
Nepal had entered into similar agreement with other countries like Taiwan of China, Bangladesh, Sri Lanka, Mongolia, Thailand among others, so that, Nepal can exchange information of suspected dirty money flow information with eight other countries.
Signing of the agreement regarding information sharing with other countries will also enable Nepal to strengthen its position in the fight against money laundering. The Anti Money Laundering (AML) Act has already included banks and financial institutions, money changers, remittance agencies, casino, share traders, insurance agencies, land revenue office, Company Registrars’ Office, tax administration, gems and precious metals dealers, lawyers and accountants to provide information to FIU regarding any suspicious transactions or the ones exceeding Rs 1 million of their respective clients.

Nepal-Taiwan Memorandum of Understanding in eye of storm

Finance Ministry officials had a tough time today as confusion prevailed over Nepal’s signing of Anti Money Laundering pact with Taiwan.
Sources claimed that China had protested Nepal’s signing of the pact with Taiwan, but the Finance Ministry and central bank officials played it down, saying Nepal has signed the pact taking into consideration its One-China Policy. “The signing of the pact was in accordance with diplomatic norms and Nepal’s foreign policy,” said a high-level source at the central bank.
However, Law Secretary Madhav Paudel said that the Memorandum of Understanding violated Nepal’s One-China policy. He hastened to add that it was, but a diplomatic issue. When contacted, Chinese embassy official Shan Yiduo said he had no idea about the rift caused by the Memorandum of Understanding.
Nepal and Taiwan signed a Memorandum of Understanding to combat money laundering on March 28 in Taiwan. According to the Memorandum of Understanding, they will share information about suspected money laundering and other cross-border financial crimes, including terrorism funding.
“Nepal has not given Taiwan a separate country status,” the official said, adding that Nepal signed the pact without harming Nepal-China relation.
Nepal and Taiwan are members of the Asia Pacific Group on Money Laundering. They began discussions last year on the Memorandum of Understanding during an annual APG conference in Singapore.
Head of the Financial Information Unit of Nepal Rastra Bank, Dharma Raj Sapkota, and director-general of Investigation Bureau under Ministry of Justice of Taiwan, Chang Chi-ping, had signed the Memorandum of Understanding.
As Taiwan was designated to help Nepal meet the requirements to join the Egmont Group to counter money laundering, Taiwan has sponsored a training programme for central bank officials of financial intelligence department on how to craft a legal framework for documentation of financial dealings and prevention of money laundering.
Egmont Group membership will qualify Nepal to exchange information — relating to money laundering and terrorism financing — with and among the FIUs around the world. Nepal had applied for Egmont Group membership in January 2010.
The Egmont Group of Financial Intelligence Units provides a forum to improve cooperation in the fight against money laundering and the financing of terrorism and supports the implementation of domestic Anti Money Laundering regimes.