UK provides Rs 130 million to help Nepali mothers and children to meet nutritional needs

The UK government has made an additional £788,000 (Rs 130 million) toward its nutrition support for vulnerable families in Nepal.

The UK aid contribution, through the British Embassy Kathmandu, comes at a time when monsoon floods, on top of the socio-economic impact of the Covid-19 pandemic, are disrupting livelihoods and exacerbating food insecurity and malnutrition for many Nepalis, according to a press note issued by WFP Office in Kathmandu.

The funding is in addition to the £4.49 million (Rs 678 million) WFP received from the UK Government in December 2020 towards the agency’s response to Covid-19. "Natural hazards affect marginalised communities disproportionately, including women and children," the press note quoted development director at the British Embassy Kathmandu, Nathanael Bevan.

"Protecting the health of the Nepali people is a top UK priority," he said, adding that the UK is glad to be supporting WFP’s efforts to make sure vulnerable Nepalis, especially mothers and children, receive proper food and nutrition.

The support will mean more than 100,000 mothers and children in 8 districts in Province 2, Sunsari in Province 1, Jajarkot in Karnali province, Kailali, and Kanchanpur in Sudur Paschim province will receive Super Cereal, a specialised nutritional product that helps prevent malnutrition, for two months. Mothers will also receive information and counselling on nutrition and Covid-19. Part of the contribution will help WFP conduct a new round of cross-country household food security surveys.

Nepal is one of the most disaster-prone countries in the world. Each year, thousands of Nepalis are affected by floods, landslides and other forms of natural hazards linked to climate change. Already over 15 per cent of households in Nepal are food-insecure, while around 39 per cent of children between 6 to 23 months do not meet minimum dietary requirements. This monsoon season, women and children’s access to adequate and nutritious food is further threatened by Covid-19.

"The pandemic and its socio-economic impact have put unrelenting pressure on Nepalese families’ food security," the press note quoted WFP Nepal country director Jane Pearce. "Between December 2020 and June 2021, the number of households experiencing income loss has doubled - from 21 per cent to 45 per cent - making food increasingly out of reach for many," Pearce said, adding that they are thankful for this timely contribution from the UK Government. "It will enable us to reach the most vulnerable mothers and children whose lives have been made harder by Covid, and now the monsoon, in support of the Government of Nepal’s emergency preparedness and response."

Nepal-UK conclude fifth Bilateral Consultation Mechanism meeting

 Nepal and UK today concluded the fifth Bilateral Consultation Mechanism (BCM).

The fifth meeting of Nepal-United Kingdom Bilateral Consultation Mechanism (BCM) concluded today by discussing a wide range of matters relating to bilateral relations and issues of mutual interest, according to a press note issued by the Foreign Ministry. “The meeting took stock of overall state of cooperation between Nepal and the United Kingdom ata cordial and participatory atmosphere.”

The delegations of both the governments exchanged views on over two centuries-old friendship and cooperation, and reviewed the progress made in various aspects of the bilateral ties, including development cooperation, the British Gurkha matters, cultural relations, people-to-people contactsand educational cooperation, the press note reads, adding that developments on political and economic fronts in both the countries as well as their national experiences in fight against the Covid-19 pandemic were also shared during the meeting. “In the context, Nepal thanked the British government for its cooperation in Nepal’s fight against the pandemic, while appreciating the progress made in the development of vaccine.”

The two sides also agreed to work closely towards further consolidating and widening cooperation and engagements in productive sectors such as trade, investment, energy and tourism, among others, the press note further reads. “Matters of regional and global importance also figured in the meeting.”

The two governments renewed their commitment to collaborating on various matters of common interest at multilateral forums. Both sides will work together to advance the agenda of addressing the impacts of climate change with their substantive engagements in the COP26 as well as in Sagarmatha Sambaad, a Nepali initiative for dialogue.

The Foreign Ministry – the convener of the Nepali side – was joined by senior officials of the Office of Prime Minister and Council of Ministers and relevant line ministries, the press note reads, adding that the British delegation was led by the Foreign, Commonwealth and Development Office. “The ambassador of Nepal to the UK and the British ambassador to Nepal were also part of their respective country delegations.”

CDC Group establishes presence in Nepal, invest more

CDC Group Plc – the UK’s impact investor for Africa and South Asia -- welcomes Rabi Rayamajhi as country representative for Nepal.
Rabi joins CDC from the Department for International Development (DfID) Nepal, where he was a private sector development advisor for four years and led projects in the financial and SME sectors. Prior to his role at DfID, Rabi used to provide advisory support to the Investment Board of Nepal (IBN) in promoting foreign investment and executing large-scale infrastructure projects in waste management, hydropower and cement sectors. He started his career at Standard Chartered Bank and has an MBA qualification from Singapore Management University.
According to a press note issued by the CDC, Rabi will be based at CDC’s representative office in Kathmandu, where he will work closely with CDC teams across Asia.
Over the last 18 months, CDC has made long term commitments to three businesses that will help economically support thousands of Nepalis through jobs, products and services. “We made a direct investment of a $15 million in NMB Bank, one of Nepal’s leading commercial banks,” the press note reads, adding that it was followed by a $12 million investment into a leading internet provider WorldLink, and a subsequent $21.9 million investment into the Upper Trishuli-1 Hydroelectric Project, which will supply clean and reliable electricity to millions of Nepalis.
In 2019 – along with a consortium of lenders – CDC signed a $453 million debt financing package to help build a hydro-electric plant in the Upper Trishuli region of central Nepal. Upper Trishuli is expected to help create over 20,000 jobs in the Nepali economy across multiple sectors. The hydro-electric plant will also increase Nepal’s electricity supply by one-third from today’s levels and provide clean, reliable power to millions of people.
For CDC, the Upper Trishuli commitment in 2019 swiftly followed a $15 million three-year loan to NMB Bank, one of the country’s leading commercial banks. In the same year we invested $12 million of equity in to the country’s largest private sector internet service provider, WorldLink.
Rabi will help accelerate our commitment to invest more capital in Nepal, and support local businesses to advance their commercial success as they work to adopt internationally recognised environmental, social and governance standards. He joins CDC at a time of uncertainty as the pandemic is challenging the lives of people, communities and businesses across Nepal, the press note further reads, adding that as a committed long-term provider of flexible capital to the private sector, CDC has never been more important. “With a mandate that includes providing counter-cyclical financing during financial crises, CDC is playing a role in protecting jobs and businesses.”
The firm’s response to the Covid-19 pandemic has three areas of focus: ‘preserve’, ‘strengthen’ and ‘rebuild’. CDC’s goal is to support the economic stability that will improve the lives of millions of people in Africa and South Asia, read more on its response framework here.
Head of Asia at CDC Srini Nagarajan welcomed Rabi to CDC as the Country Representative in Nepal. “His expertise in private sector development and extensive knowledge of the investment environment in Nepal will boost CDC’s priority of providing increased long-term capital support to businesses and bolstering sector growth in the country,” Nagarajan said, adding that Rabi will be instrumental in strengthening our partnership with businesses and broadening CDC presence in Nepal, as it works to enhance corporate governance, develop environmental and social strategies, promoting skills and job creation that power Nepal’s economy.
Likewise, the newly appointed country representative for Nepal Rabi Rayamajhi, said that he is proud to be representing CDC in Nepal and supporting the execution of the organisation’s mission to bring about lasting development impact and widespread economic growth in Nepal. “In only a short period of time, CDC’s commitment to Nepal’s finance and infrastructure sector has resulted in improved access and connectivity throughout the country,” he said, adding that he is keen to get to work on developing local partnerships that will continue to boost business growth and improve the lives of millions of people.
Welcoming a stronger presence for CDC in Nepal acting UK ambassador and country director for DfID, Nepal Lisa Honan said that the UK continues is committed to playing a strong role in working with the government of Nepal and all development stakeholders to ensure Nepal is ‘open for business’. “While the current Covid crisis has adversely affected Nepal’s economy, there are also opportunities for investments to help ensure Nepal’s recovery is resilient to future shocks and promotes green growth,” Honan added.

UK assures Nepal of its continued support

UK has assured to continue support to Nepal.
During a telephonic conversation with foreign minister Pradeep Kumar Gyawali today, minister of State at the Foreign and Commonwealth Office of the UK Lord Ahmed has committed to continue the support to Nepal. They, on the occasion, also discussed various matters relating to Nepal-UK bilateral relations and development cooperation, particularly in the context of the Covid-19, according to a press note issued by Foreign Ministry.
“The two sides expressed their condolences on the loss of life and wished for a speedy recovery of those suffering the pandemic,” the press note reads, adding that the ministers also reaffirmed their solidarity in the common fight against the deadly virus. “Gyawali thanked the British government for the support in protecting Nepali community living in the UK during this difficult time.”
He also assured that Nepal will extend support British nationals who are in Nepal.
The two leaders also shared that the bond of friendship subsisting for over two centuries will continue in the years ahead with an enhanced level of cooperation in various productive sectors.
Ahmed assured Nepal of the UK’s continued support and partnership on Nepal’s request for the continued partnership of the UK in its development endeavors particularly in complementing the economic recovery packages in the aftermath of the pandemic, the press note reads, adding that the two sides also exchanged views on topical global issues. “On climate change issue, Ahmed apprised of the arrangements for the COP26 Summit of UNFCCC and highlighted the significance of green economy.”
“The two leaders agreed to work closely to further strengthen and widen all spheres of the friendly bilateral relations and remain engaged on the issues of common interests," the press note adds.

Ex-Gurkhas threaten to halt Gurkha recruitment process

Ex-British Gurkhas Satyagraha Joint Struggle Committee today threatened to disturb Gurkha recruitment possess scheduled for next week in Pokhara to pressurise the government and the United Kingdom to address its long-standing demands.
Issuing a press note today, chief coordinator of the committee Krishna Bahadur Rai warned that they are also planning pressure campaigns in Nepal and the UK, simultaneously. “Issues raised by ex-Gurkhas are not just related to the retired servicemen, but to Nepal and all Nepalis sovereignty and dignity,” the press note reads, adding that they will continue their protest until both the governments form a high-level talks team and hold dialogue to address the demands of ex-Gurkha servicemen.
The committee has served an ultimatum until February 15, 2020 to the Government of Nepal and the Government of the UK to form a high-level talks team as soon as possible. “A prompt dialogue between the two governments on the Report of Technical Committee – that comprised the ambassador of Nepal to UK, minister of defence (UK) and representatives of British Gurkha ex-servicemen’s associations – has to be started without further delay,” the press note further reads, adding that the dialogue should be held in line with the report of the International Relation Committee of the Federal parliament of Nepal as guiding instrument.
According to the committee, imposition of Indian Pay Code on British Gurkhas after 1948 is unfair and against the national sovereignty and independence of Nepal. The Indian Pay Code on British Gurkhas after 1948 – in the name of Tripartite Agreement-1947 that came with mutual understanding between India and Britain – is against the national sovereignty and independence of Nepal, the committee argued, warning that the movement of equality and dignity that was started by Gurkha veterans against the British government will be advanced at national as well as international level in the form of patriotic movement.
The ex-Gurkhas have demanded an end to discrimination and injustice imposed on Gurkha veterans and on their families and pay compensation to the families of thousands of soldiers, who had lost their lives in wars. The compensation, according to them, comes to around Rs 120 billion. The British Government is ready pay compensation – based on the Report of Technical Committee – but Nepal government must start government-to-government talks immediately, they claim, adding that they also want to their pension to be paid directly from British Government not through the Indian government.

Government seeks UK investment in energy, roads

Appraising the newly appointed British envoy on Nepal’s development agendas, state of country’s economy, improved tax and revenue administration and the country’s trade status with the international market, finance minister Dr Yuba Raj Khatiwada today urged the United Kingdom to invest in Nepal.
During a meeting with the newly-appointed ambassador of UK to Nepal Nicola Pollitt today at the ministry, he also sought UK investment in Nepal in hydropower, tourism and road projects. “Nepal could be a good place for the UK government and British investors to invest as Nepal has seen improvement in business environment,” he said, adding that the UK is a good market for Nepali products. “Nepal intends to expand trade relationship with the country.”
The two countries will soon ink a pact on double taxation avoidance on goods,” he said, adding that the government will facilitate trade and investment to and from the UK.
He also mentioned that tourism, hydropower and roads sectors in Nepal had high investment potential and urged the British government to help Nepal enhance its trade sector. Khatiwada also urged the UK government to help Nepal promote tourism and increase the inflow of tourists from the UK to Nepal.
Pollitt, on the occasion, said that her priority during her tenure will be to further enhance bilateral and trade relationship between Nepal and the UK.
Claiming that Nepal has achieved political stability, she said promised to extend support to Nepal in the coming days based on Nepal’s priority and development goals.

Ex-Gurkhas demand government start talks with Britain

The agitating British ex-Gurkhas have demanded the government to start bilateral talks – government-to-government (G2G) – immediately to finalise the compensation package for them.
The British Gurkha Satyagraha Samiti has also served an ultimatum – until February 15 – to the government and also British Governments to form a high-level talks team and start dialogue for addressing their demands.
The Samiti demanded to start immediate dialogue between the Nepal and Britain on the report of the Technical Committee that comprised ambassador of Nepal to UK, minister of defence (UK) and representatives of British Gurkha ex-servicemen’s association, according to a press note issued by the agitating ex-Gurkhas.
“A dialogue on the report should also be held with the International Relations Committee under the Parliament, as a guiding instrument,” the press note reads, adding that imposition of Indian Pay Code on British Gurkhas after 1948, which came in the name of Tripartite Agreement-1947, but with mutual understanding between India and Britain, was absolutely unfair, against the national sovereignty and independence of Nepal and contrary to the principles of right to self determination provided by international human rights laws; and was incompatible with other international laws including the Montevideo Treaty-1933, that defines the relations among the states and Article 2 of United Nations Charter.
If Nepal starts the dialogue with the British government, and claim the compensation, the British government is ready – on the basis of the Technical Committee report – to pay compensation to the ex-Gurkhas, they claimed, adding that the delay by Nepal is suspicious as Prime Minister KP Sharma Oli has also agreed – during their meeting in Baluwater some 9 months ago – to their demand.
They also warned that the movement of equality and dignity started by ex-Gurkha veterans against the British government will be spread across Nepal and also internationally in the form of patriotic movement. “The campaign is dedicated to human rights and dignity of Nepalis,” the press note reads, adding that the ex-Gurkhas have demanded an end to injustice and discrimination against Gurkha veterans and their families, and compensation to the families of thousands of soldiers, who had lost their lives in the past wars.

Nepal receives $100 million grant to improve governance

Nepal has received $100 million grant to improve governance from the European Union (EU) and development partner countries.
The EU and the governments of Switzerland, Norway and the United Kingdom (UK), collectively referred to as the development partners Joint Financing Arrangement (JFA) have agreed to provide a grant assistance worth $100 million, equivalent to Rs 11.4 billion to Nepal, according to a press note from the EU office in Kathmandu.
The Joint Financing Arrangement to this effect was signed and exchanged between the government of Nepal and JFA development partners at the Finance Ministry, the press note reads, adding that the JFA was signed by  joint secretary at Finance Ministry Shree Krishna Nepal, and permanent secretary at the Department for International Development (DFID) Matthew John Rycroft,  ambassador at the Norwegian Embassy in Nepal Lasse Bjorn Johannessen and ambassador at the Swiss Embassy in Nepal Elisabeth Von Capeller on behalf of their respective governments. “The European Union has already extended the commitments and will sign the JFA at the earliest.”
The grant assistance aims to strengthen the capacity of provincial and local governments to deliver public service in a more effective and efficient way, another press note issued by the Finance Ministry reads. “The project will ensure to attain functional, sustainable, inclusive and accountable provincial and local governance by maximising benefits of cooperative federalism for Nepali citizens,” it reads, adding that the project will conclude in four fiscal years commencing from July 2019-20 and wrapping up in July 2022-23. “Important activities listed under the project are innovation and partnership fund, local policy, strategy, guidelines, framework and institutional development, capacity development programme (province and local level), and public financial management (PMF) for the implementation of SuTRA and local PFM.”
The project is expected to be a landmark project in capacitating the subnational governments by bridging the existing gap between the three levels of governance system, it adds.
Meanwhile, Nepal has expressed its appreciation to the EU, and the governments of the UK, Norway and Switzerland for providing such generous financial support for this programme and for the continuation of trusted partnership in strengthening provincial and local level governance.

USAID, DIFID join hands to combat human trafficking

Development agencies of the United States and the United Kingdom today announced a partnership to support the Nepal in combating human trafficking.
Partnership between the United States Agency for International Development (USAID) and the United Kingdom’s Department for International Development (DFID) will expand USAID’s ongoing ‘Hamro Samman Project’ to support the government’s efforts to combat human trafficking in 10 districts.
“For over a decade, USAID’s support has enabled Nepal to strengthen its 49 policies to prevent human trafficking, prosecute traffickers and protect and rehabilitate survivors,” USAID Nepal Mission director Amy Tohill-Stull said speaking at the signing ceremony. “We are pleased that DFID has joined our partnership,” he said, adding that the joint collaboration will enable us to expand our efforts to address this serious issue.
Likewise, head of DFID in Nepal Rurik Marsden, on the occasion, said that the UK is committed to working with the Government of Nepal to help end modern slavery in Nepal. “We are happy to join hands with USAID in this mission,” he said, adding that DFID’s contribution will help strengthen government mechanism to address human trafficking and generate better plans to curtail the crime.
The US Government’s Trafficking in Person Report-2018, ranks Nepal as a tier two country and identifies it as a source, transit and destination country for human trafficking. While this report estimates that 30,000 Nepali girls and women are commercially exploited for sex each year, Global Slavery Index 2018 estimates that 171,000 Nepalis are subject to slavery at any given time, according to a press release issued by the US embassy in Kathmandu.
Despite these challenges, Hamro Samman, which was initiated in 2017 and is implemented by Winrock International, has made substantial strides in reducing human trafficking in Nepal, the release reads, adding that over the project’s remaining three years, the partnership with DFID will add to Hamro Samman’s past success in combining human trafficking.

PM Oli for revising Gurkha recruitment pact

Nepal has proposed to revise the tripartite Nepal-India-UK agreement on Gurkha recruitment inked in 1947 to address the demand of the changed time and context.
Prime Minister KP Sharma Oli has proposal – during his talks with British Prime Minister Theresa May yesterday held at her office at 10 Downing Street in London – to revise the tripartite agreement and sign agreement between Nepal and the United Kingdom, according to a press note issued by the Foreign Ministry.
“During the talks, the PM Oli told his British counterpart that the tripartite agreement has become obsolete,” the note reads, adding that a new agreement between Nepal and the UK will encompass recruitment, retirement and post-retirement situation of Gurkhas.
The current pact permits the governments of the United Kingdom and India to recruit Nepali citizens in their armies.
Though, May has already resigned from her post and is presently a caretaker, she assured premier Oli that she would convey his proposal to her successor.
The government is under pressure from the ex British Gurkhas, who have been protesting in Nepal and the UK demanding equal pay, pension and other facilities with British nationals.
The former Gurkhas have also demanded that besides equal pension, the British government should compensate them the entire amount that former and serving Gurkhas did not receive over the years due to discrimination against them in terms of pay, pension and other facilities. “The amount comes to around 1.2 trillion including compensation,” according to coordinator of the Struggle Committee Krishna Bahadur Rai, who have been making rounds of Baluwater – the official residence of Prime Minister in Kathmandu – every time he comes to Kathmandu.
After the long protest, the British government has started providing equal pay and pension to Gurkhas from 2007. Since Gurkhas retire after 15 years of service, those who were recruited after 1993 retired after 2007, and became eligible for equal pension. But those who retired before 2007 are deprived of equal pay and facilities for their service.
Rai said that the British government is ready to pay the compensation but only after the government-to-government talks with Nepal. “We have requested the Prime Minister Oli to take initiative to hold government-to-government talks and pave the way to get around Rs 1.2 trillion compensation and around Rs 36 billion annually thereafter in increased pension amount every year,” he said, the British government has already sent a letter to Nepal to hold the talks.
He also demanded that the British government implement the ‘Report of The Technical Committee on Gurkha Veterans’ that calls for providing serving and former Gurkhas pay, pension, and other facilities equal to those paid to British soldiers. The report was prepared by ‘The Gurkha Technical Committee’ comprising officials from the United Kingdom Ministry of Defence and officials from the Embassy of Nepal in the United Kingdom, together with representatives of Gurkha veterans groups. It was submitted to both governments on March 22, 2018.
Rai – during the meeting with the Prime Minister Oli in Baluwater in April – had asked to take a strong stand to ensure implementation of the report. He said that there is no reason why the British government delays implementation of the tripartite committee.
Rai explained that those Gurkha, who were recruited from 1975 to 1993 retired before 2007 and were deprived of equal pay, pension and facilities. “Likewise, those who served the British Army from 1947 to 1975 when there was no provision for pension were not provided equal pay and facilities,” he said remembering that the Gurkhas discrimination began after the adoption of ‘Brigade of Gurkhas Standing Instruction’ in 1949 that provisioned disparity in pay, pension and other facilities. “The standing instructions were against the tripartite agreement of 1947 that states Gurkhas will be treated on the same footing as the other units in the parent army.”
Rai welcoming the Oli’s proposal for the revision of the tripartite agreement, said they would continue their agitation unless the government made concrete efforts towards addressing their demands by forming a high-level dialogue team in line with the ‘Report of The Technical Committee on Gurkha Veterans’.
The Parliamentary International Relations Committee had also – in March – directed the government to form a high-level talks team to hold dialogue with the British government to implement the report.
Former Gurkhas have asked the government to form talks teams before a July 1 or face the music.
According to the press note from the Foreign Ministry, the two PMs, on the occasion, deliberated on the various aspects of the 203 years old bilateral relations between the two nations and expressed satisfaction on the relationship that is based on trust and cooperation. “British Prime Minister May stressed concluding the Bilateral Investment Promotion and Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) between the two countries at the earliest,” it reads, adding that investment climate in Nepal will become even better, with the signing of these two agreements.
PM Oli is in an eight-day entourage – from June 8 to June 15 – of Europe.

Nepal has half a million differently-abled people: UNICEF

Two per cent of Nepalis or about half a million Nepalis are living with some kind of disability, the United Nations Children's Fund (UNICEF) said as it called for providing greater opportunities to differently-abled people and children to help them reach their full potential.
People with disabilities are active members of society and when given right opportunities, they can significantly contribute in its betterment, minister for women and children Tham Maya Thapa said, during a conference 'Disability in Nepal: Working together for an inclusive society' here in Kathmandu today.
The Constitution of Nepal clearly prohibits all kinds of discriminations on the grounds of disability and has a provision for equal access to differently-abled people to basic services and rights including healthcare, education, social assistance and employment, she said.
"People and children living with disabilities face huge barriers in reaching their full potential and experience the worst forms of discrimination," said head of the UK's Department for International Development (DFID) Nepal Rurik Marsden.
The conference draws on the existing data, evidence and initiatives by and for people and children living with disabilities.
"The conference will contribute to further strengthening understanding of disability issues in Nepal and fostering commitment to address them as an integral part of all sectors and areas of development in Nepal," UNICEF representative to Nepal Tomoo Hozumi said, on the occasion.

US calls for free, fair and transparent polls in Nepal

The United States has urged all the stakeholders to create necessary conditions to ensure that the people of Provinces 1, 5, and 7 are given the opportunity to peacefully exercise their democratic right to elect local representatives during the second phase of local elections scheduled for June 28.
"We call on all parties to mutually respect the freedom of nonviolent expression and assembly, and individual voters’ rights as laid down in Nepal’s laws and constitution," reads a statement issued by the US Embassy in Kathmandu today.
"We also call on the security forces to exercise restraint and comply with existing national and international standards while discharging their duties,” the note adds.
Meanwhile, the United States has also expressed its commitment to working with all stakeholders for a peaceful, inclusive, broadly-supported, and credible election process.
Elections are citizens’ right to express their political will in line with the laws and constitution of Nepal and Article 21 of the Universal Declaration of Human Rights.
Likewise, the United Kingdom has also reiterated its commitment to work for a peaceful, inclusive, broadly-supported, and credible election process in Nepal.
Both the countries have urged all Nepali stakeholders to work to create necessary conditions to ensure that the people of Provinces 1, 5, and 7 are given the opportunity to peacefully exercise their democratic right to elect local representation during the second phase of local elections scheduled for June 28.
In a statement issued by British Embassy in Kathmandu, the UK has urged all parties to continue to work to create the conditions for peaceful, inclusive, broadly-supported and credible local elections in Province 2 to complete the local election process.  "We urge the security forces to exercise restraint and comply with existing national international standards when carrying out their duties," reads the statement.

Relief aid flowing into Nepal, rebuilding could exceed Rs 1 trillion

The country needs around Rs 1 trillion to reconstruct the damaged infrastructure in the Saturday's devastating 7.8-magnitude earthquake.
The cost to rebuild Nepal after its most devastating earthquake, in eight decades, would exceed Rs 1 trillion ($10 billion) and take years, according to the finance minister Dr Ram Sharan Mahat. The reconstruction estimate is equivalent to around half of Nepal's GDP that stands at Rs 2 trillion ($20 billion).
According to the US Geology survey, the earthquake has damaged around Rs 1 trillion worth infrastructure including world heritage sites and historic monuments, roads, and buildings. "Due to the mountainous geography, infrastructure damage, collapsed bridges and damaged roads, access to many of the affected areas is reported to be extremely limited," according to the UN.
Scared to sleep inside due to fear that cracked buildings might crumble in another aftershock, Kathmanduites have been living as refugee out in the open. Kathmandu valley has turned into a refugee camp, and they it is in dire need of tents, water supply and medicines, before it is too late to control outbreak of cholera. The situation is not different outside the valley too.
Likewise, the mountainenous region is out of reach also due to geographical difficulty. The UN has also estimated that about one third of the country's population of 28 million have been affected due to the quake with about 1.4 million in need of food assistance.
The government with its limited resources is doing its best to provide relief, Mahat said thanking the development partners for their immediate relief response.
The friendly nations and development partners have committed around Rs 8 billion grant as an immediate relief package, apart from medicines, tents, water, food stuff and relief staff. However, the government that is struggling hard to rescue people trapped more than 72 hours after the earthquake, is waiting for the cash to fund the rescue work.
The International aid organisations and foreign governments are scrambling to get much-needed relief to Nepal.
The United States, India, Israel, Pakistan and other governments have sent emergency supplies and personnel such as doctors to Nepal. The Red Cross has 1,500 volunteers and 300 staff on the ground providing basic first-aid and other support.
On Monday, the International Federation of Red Cross and Red Crescent Societies (IFRC) issued an appeal to raise 33.5 million Swiss francs ($35.2 million) to provide emergency assistance. "We call on all partners and donors to urgently and generously support our action," said IFRC secretary general Elhadj As Sy.
The country needs some $13 billion to $18 billion investment to fill the infrastructure gap and also to help country graduate from the current Least Development Country (LDC) status to development country status by 2022. With the current damage of estimated $10 billion, the country now needs to invest around $28 billion in infrastructure that could propel sustainable economic growth.
Though the country has witnessed a political stability, the economy has been slowing recently. The Asian Development Bank (ADB) and World Bank (WB) have recently estimated the economy to grow at 4.6 per cent – down from 5.2 per cent a year before – and down from the government's target of six per cent, due to mainly poor monsoon. But the damage of the Saturday's devastating earthquake will pull the economic growth further down.
Though for the time being many charities, government agencies and nonprofits are sending essential aid and medical assistance for the rescue and recovery efforts.

Here are some of the countries and organisations that have announced cash contribution:
United Nations: The office for the coordination of humanitarian affairs is releasing $15 million from the U.N.'s emergency relief fund. It expects to issue an appeal for donations from member states later this week.
United States: Washington has committed a total of $10 million for response and recovery efforts, according to US secretary of State John Kerry.
Japan: Announced a 1 billion yen ($8.4 million) grant and sent rescue personnel.
United Kingdom: Department for International Development (DfID) announced a £5 million ($7.6 million) aid package on Sunday; £3 million will be used immediately; £2 million will be given to the British Red Cross.
Canada: Donating 5 million Canadian dollars ($4.1 million) to aid organisations to help with life-saving efforts.
Norway: Donated 30 million Norwegian kroner ($3.9 million) for relief efforts.
Australia: Donated 5 million Australian dollars ($3.9 million) and sent experts.
European Commission: Announced €3 million ($3.3 million) in immediate aid money for Nepal on Sunday.
China: Ministry of Commerce has reportedly given 20 million yuan ($3.2 million) in humanitarian aid, according to the Chinese newspaper, China Daily.
Germany: Berlin has pledged €2.5 million ($2.7 million) and is sending supplies.
Singapore: Donated 100,000 Singapore dollars ($75,000) to the Singapore Red Cross for aid. Singapore Red Cross agency is appealing for more donations. Has already begun disbursing 50,000 Singapore dollars worth of emergency supplies.
Asian Development Bank: The group of 48 countries in Asia and the Pacific are providing a $3 million grant.
USAID: $1 million in emergency financial support.
AmeriCares: The group has raised $750,000 to support relief efforts in Nepal.
American Red Cross: $300,000 initial contribution.
Save the Children: £300,000 ($454,000) in emergency aid. Expects to eventually send millions.
Christian Aid: Immediately sent £50,000 ($76,000) in aid on Saturday. Has raised £124,000 ($188,000) from donations. Expects to raise over £1 million for this urgent appeal.
Oxfam: The British aid agency said online donations totaled £500,000 in Great Britain and $1 million in the United States.
Companies
Coca-Cola: The beverage giant said it is working to provide bottled water to survivors as soon as possible.
Pepsi: Is also donating bottled water and food.
Kellogg: The food company said it donated $200,000 to the World Food Programme (WFP) that is earmarked for Nepal.
Toyota: Making a combined donation of 10 million yen, or about $84,000.
Facebook: The social network has developed a new tool called Safety Check. The simple tool sends messages to people who are in Nepal, urging them to click a button to let their Facebook friends know they're okay.
Google: The search engine has revived its "Person Finder" tool this weekend. The tool helps people search for and post information about missing friends and family in the disaster zone. As of Monday morning, the site hosted 5,600 entries.
Microsoft: Has pledged $1 million in cash and in-kind donations. It is also offering free Skype calls to and from Nepal.
UPS: Pledged $200,000 to various charities working in Nepal.
Communications companies: T-Mobile, Sprint, Verizon, Vodafone Time Warner Cable and others have waived fees for calls in Nepal.
Payment providers: Apple, PayPal, Square Cash are waiving fees and taking other steps to facilitate donations.

Enabling environment key to development

An enabling business environment is key to a country's development, according to a Japanese economist.

"An enabling business environment — that includes political stability, policy stability, domestic savings channelled to investment besides grants and foreign investment, investment in human capital, and collaboration among stakeholders — could help a country move ahead in the development path," said Prof Ryokichi Hirono of the Seiki University.

"Political and policy stability are key for investors, whereas the savings of the people is a must as only foreign aid will not be enough to help any country develop," he said, adding that investment in human capital will help create a human resource pool to support economic development.

But collaboration among the five stakeholders — government, business people, labour, consumer society, and academia — is also key in monitoring policy implementation, said the professor. "The private sector could play a good role by insisting on policy stability to create an investment friendly environment."

The domestic private sector had tried to boost the morale of the business community by proposing the Investment Year, said president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya.

"The campaign will not only help boost the morale of domestic investors, but also foreign investors," he said, adding that the private sector is planning a slew of visits to attract investments from various countries once the Investment Board comes up with concrete projects in a couple of months. "Investments will help generate employment in the country," added Vaidya.

As more Nepalis are going abroad for employment, the country needs to create more employment back home, said Prof Hirono, adding that the remittance from migrant workers should also be utilised in production.

He also urged for the creation of an investment fund from the remittance received. "The major chunk of remittance has been used for consumption that has increased imports," said Hirono, who is leading the Japanese Overseas Development Assistance (ODA) evaluation team to Kathmandu currently.

Japan was the second largest bilateral donor after the United Kingdom in Nepal in fiscal year 2010-11, according to the Finance Ministry.

United Kingdom ($92.1 million) was followed by Japan ($58.7 million), India ($50.7 million), the US ($48.5 million) and Norway ($32.8 million) in fiscal year 2010-11, the Donor Cooperation Report of the ministry revealed.

Japan with 5.4 per cent stood fifth — after the World Bank, Asian Development Bank (ADB), United Nations (UN), and United Kingdom (UK) — among the sources of aid disbursement in Nepal in fiscal year 2010-11, when the country received a total of $1.08 billion aid disbursement from donors.

However, Hirono suggested that the effective utilisation of aid by the government, private sector, and non-governmental organisations, might increase ODA from Japan. "Accountability and transparency will help increase ODA," he added.

Japanese ambassador to Nepal Kunio Takahashi, on the occasion, said that there has not yet been any official decision on the increment of ODA, but both sides should simultaneously increase cooperation with each other.

 

Nepal-Japan bilateral trade

Fiscal Year — Export — Import

2006-07 — Rs 559.45 million— Rs 3,228.97 million

2007-08 — Rs 488.05 million — Rs 6,148.08 million

2008-09 — Rs 572.65 million — Rs 6,111.18 million

2009-10 — Rs 554.15 million — Rs 6,267.57 million

2010-11 — Rs 652.35 million — Rs 3,957.91 million

(Source: Trade and Export Promotion Centre)

UK pledges Rs 2.5 billion aid to peace process

The government of the United Kingdom today pledged to provide Rs 2.5 billion in grant to conclude Nepal's ongoing peace process.
Visiting International Development Secretary of the UK, Andrew Mitchell expressed commitment to provide financial assistance to Nepal during a meeting with Prime Minister today morning held in High View Resort in Dhulikhel. Prime Minister's secretariat said the UK will provide 20 million Pound Sterling for the Nepal Peace Trust Fund.