Government, World Bank launch $275 million Butwal-Gorusinghe-Chanauta road

The Government and the World Bank today jointly launched the $275 million (equivalent to Rs 34.96 billion) Accelerating Nepal’s Regional Transport and Trade Connectivity (ACCESS) Project aiming at upgrading Butwal-Gorusinghe-Chanauta road.

Under the project, the 69-kilometer two-lane section of the Butwal-Gorusinghe-Chanauta road along the East-West Highway will be upgraded to a climate-resilient four-lane highway, according to a press note issued by the World Bank. "With a focus on ensuring better road safety, the project is expected to reduce travel time by 30 percent, thus providing better access to India’s western seaports."

The project will construct at least three market areas with required internet and trade information facilities along the highway to help enhance economic opportunities, especially for women entrepreneurs and traders, the press note reads, adding that the project will also support advancing Nepal’s preparedness and subsequent implementation of the Motor Vehicle Agreement (MVA) signed by Bangladesh, Bhutan, India, and Nepal to allow smooth passage of goods and passenger vehicles in each other’s territories. "It will help improve trade and connectivity by reducing trade and transport costs and transit time along selected corridors in Nepal."

The project was jointly launched by Minister of Physical Infrastructure and Transport Prakash Jwala and the World Bank Vice President for South Asia, Martin Raiser.

“The ACCESS project will help develop resilient infrastructure in Nepal and help unlock Nepal’s economic potential through better connectivity and trade, both between the provinces as well as regionally,” said minister Prakash Jwala, after launching the project.

“Enhanced trade and transport connectivity promotes economic integration and opens larger markets among South Asian countries," World Bank vice president for South Asia Region Martin Raiser, on the occasion, said, adding that the ACCESS project will help improve regional trade and promote sustainable infrastructure development to support Nepal’s green, resilient, and inclusive development.

The project will be implemented by the Ministry of Physical Infrastructure and Transport, Ministry of Industries, Commerce and Supplies, and Ministry of Forests and Environment. The project’s financing agreement was signed by the Government and the World Bank in September 2022, the press note adds.

Chinese experts team arrives Nepal for detailed study of Kerung-Kathmandu railway

It may just be a coincident as just a day after Pushpa Kamal Dahal ‘Prachanda’ took oath of the Office of the Prime Minister, a Chinese experts team has arrived in Kathmandu to carry out the detailed feasibility study of the Nepal-China international railway.

Only yesterday, an 8-member cabinet was formed under the leadership of Dahal, chairman of the CPN-Maoist Centre. 

The Chinese Embassy in Kathmandu has confirmed that Chinese experts has come to Kathmandu to study and survey the feasibility of the Nepal-China international railway. They arrived in Nepal to conduct a detailed study of the Kathmandu-Kerung railway, the Embassy confirmed, adding that the team will study the geological features, tunneling, earthquake risk.

The Kerung-Kathmandu railway is one of the nine development projects proposed by Nepal with China to be constructed under the Belt and Road Initiative (BRI), but has not moved forward due to Covid-19. However, none of the nine projects have gained momentum till date. The Kerung-Kathmandu Railway and 'Trans Himalayan Multi-Dimensional Connectivity Network' were also included in the joint statement issued after the Second Belt and Road Forum held in Beijing in April 2019, where President Bidya Devi Bhandari took part.

An agreement on the railway project was also reached during the visit of Chinese President Xi Jinping to Nepal in October 2019. He had promised that China will help turn land-locked Nepal into a ‘land-linked country’ by boosting connectivity between the two countries. But the Covid-19 pandemic played a spoil sport. During Chinese foreign minister Wang Yi's visit to Nepal last March, Nepal and China again signed an agreement on providing technical assistance for the feasibility study of the railway. He also promised to provide grants for feasibility studies of the cross-border railways.

Nepal and China had also held a discussion about the construction of a cross-border railway, in the second week of last August. In a bilateral meeting between foreign minister Narayan Khadka and his counterpart Wang Yi in Qingdao, Wang reiterated his commitment to grant funding for the railway's feasibility study. He even promised to send a team of Chinese experts. According to the agreement, the Chinese government agency China International Development Cooperation Agency (CIDCA) has written a letter to the Finance Ministry too. The CIDCA, under the State Council of China, coordinates development projects and aid with other countries. 

However, there are lots of technical complications in construction of the cross-border railway including cost to bring a train from Shigatse in Tibet to Nepal through high mountains terrain and gorges. Though it is estimated that the construction cost per kilometre is about 200 million yuan ($29.68 million), the difficult geography including Himalayan terrain with high earthquake risks are considered major hurdles. But once constructed, the railway line is expected to shorten transit time by as much as three weeks to transport goods from cities such as Chongqing, Beijing or Shanghai, though, it is expected to cost at least $3 billion, too large a bill for Nepal to foot.

According to the senior divisional engineer and spokesperson at the Railway Department Aman Chitrakar, the feasibility study on the construction of the Kerung-Kathmandu railway will be expedited in collaboration with the visiting Chinese experts team. "The visiting team will carry out the detailed feasibility assessment of the project in coordination with the department."

According to a press note issued by the Chinese Embassy in Kathmandu. the railway line is an integral part of the BRI between China and Nepal. "China gives priority to Nepal’s aspiration and needs in this regard, and will proactively push ahead with the feasibility study with China aid fund," it reads, adding that the two countries will maintain close contact and coordination in jointly carrying out the work ahead with a view of building a trans-Himalayan multi-dimensional connectivity network.

Though, Nepal and China repeatedly agreed to carry out the feasibility study for the construction of a cross-border railway, the investment modality and technical aspects are yet to be agreed upon. Fearing to be debt-trapped, former Prime Minister Sher Bahadur Deuba has also clarified that Nepal will construct the cross-border railway, if China constructs it under grant. "Nepal can not take loan to construct the cross border railway line, he has explained.

But once constructed, the railway is expected to bring Tibetan Autonomous Region of China and Nepal's capital Kathmandu much closer. China has already constructed Lhasa-Shigatse railway line on the Chinese side that will link Kerung. It is also expected that the Kerung line will ultimately extend to the Indian border, linking two Asian economic giants via Nepal.

Nepal-India Joint Commission discuss a gamut of bilateral issues

 The sixth meeting of the Nepal-India Joint Commission today reviewed the entire spectrum of bilateral relations that included the important areas of Covid-19 vaccine, boundary and border management, connectivity and economic cooperation, trade and transit, power and water resources, and culture and education, among others, according to a press note issued by the Foreign Ministry.

Held in New Delhi today and co-chaired by foreign minister Pradeep Kumar Gyawali and his Indian counterpart Dr S Jaishankar – as leaders of the respective delegations – the meeting of the Joint Commission also appreciated the close coordination between the two sides in facing the challenges posed by the Covid-19 pandemic, the press note reads, adding that the Nepali side thanked the Government of India for its assistance of essential medicines and medical equipment. “On Nepal’s request for the Government of India’s support in availing Covid-19 vaccines, the Indian side assured that the requirements of Nepal would be in priority consideration after the roll-out of vaccines.”

The meeting discussed the boundary matter and expressed the commitment to early completion of the boundary works in the remaining segments. “It also discussed the review of the Peace and Friendship Treaty of 1950, submission of the report of the Eminent Persons Group (EPG), and air entry routes,” the press note adds.

The two ministers expressed satisfaction over the progress achieved in increasing cross-border infrastructure and connectivity, strengthening of development partnership and expeditious implementation of major ongoing projects and initiatives, including the first cross-border petroleum products pipeline, Integrated Check Posts (ICPs) at major border crossing points, railway links, power transmission lines, upgradation of roads and motorable bridges. The meeting also agreed to further speed up the implementation of the ongoing and planned bilateral projects such as the new Integrated Check Posts (ICP), Inland Container Depot (ICD), including at Dodhara-Chadani, remaining cross border railways, roads, and transmission lines, among others, the press note adds.

The Joint Commission deliberated on the progress in the discussions held between the two sides to review the bilateral treaties on trade, transit and rail services. “Both sides agreed for an early conclusion of the review of Treaty of Trade, Treaty of Transit and the amendments to Rail Services Agreement (RSA) with a view to further strengthen cooperation in these fields. They also discussed on progress in operationalisation of connectivity through inland waterways.

The meeting agreed to expedite the work for 400 Kv Butwal-Gorakhpur cross-border transmission line, it reads, adding that reiterating the importance of Pancheshwar Multipurpose Project and taking note of the positive discussion at the recent bilateral meeting of the secretary-level delegations held in New Delhi, the Joint Commission agreed for early finalisation of the project DPR. “The meeting also deliberated on the inundation problems facing people living in border areas especially due to non-tagging of embankments, interlinking of drains, and inadequate drainage provision.”

The Nepal-India Joint Commission was established in 1987 with a view to review and further strengthen all aspects of bilateral relations.

The Nepali delegation to the meeting included Nepali ambassador Nilamber Acharya, foreign secretary Bharat Raj Paudyal, health secretary Laxman Aryal and the officials of various ministries, departments and the Nepali embassy. Likewise, Indian external affairs minister Jaishanker was accompanied by Indian foreign secretary Harsh Vardhan Shringla and India’s ambassador to Nepal Vinay Mohan Kwatra. 

Meanwhile, foreign minister Gyawali today gave a talk at the Indian Council of World Affairs (Sapru House) on ‘Nepal-India Relations’ and interacted with the distinguished audience comprising of former ambassadors, academics, think-tank analysts and media persons. 

The foreign minister reached New Delhi yesterday to participate in the meeting as its co-chair, though back home there is a hearing going at the Supreme Count on either the incumbent government led by KP Sharma Oli is caretaker or not as the prime minister dissolved the House of Representatives on December 20 and declared a mid-term poll, instead of facing no confidence motion in the House. Oli’s House dissolution move has been challenged in the Supreme Court. 

Before today’s Joint Commission meeting, Gyawali and Jaishankar held a one-on-one bilateral talk, sources at the Indian capital said, adding that the minister is also scheduled to hold high-level talks with the Indian authorities.

Nepal-India relationships rest on four pillars: Visiting Indian foreign secretary

 India’s relationship with Nepal rests on four pillars – development cooperation, stronger connectivity, expanded infrastructure and economic projects – according to visiting Indian foreign secretary Harsh Vardhan Shringla.

Shringla, who is on a two-day official visit to Nepal, during a lecture on Nepal-India relations in Kathmandu today, also said stressing the need for strong cooperative relations between the two neighboring countries, he also said that his country sees Nepal as foremost friend and development partner. “India will work to Nepal's priority.”

He also highlighted easier and enhanced access to educational opportunities in India for the young people of Nepal. “India will work to Nepal’s priorities,” he said, adding that the structure that the pillars hold up is also well-defined and unchanging – mutually beneficial people-to-people contacts. And in all this technology, particularly digital technology, is to my mind a force multiplier. “Nepal is fundamental to India’s neighborhood-first policy apart from people-to-people linkages between the two countries are strong.”

“Enhancing cross-border connectivity and infrastructure projects are also critical,” he said, adding that they unlock potential of millions and in millions. “Connectivity projects come in various forms like physical connectivity projects such as highways, rail and air links and inland waterways enhance movement of goods and people, whereas energy connectivity – whether power transmission lines or petroleum pipelines – contribute to the well-being of each other’s citizens, and build mutual trust and partnerships.”

“Digital connectivity through optical fibre networks is our route to the future, particularly, and as we find in India, with remote access to education, healthcare and other services through the digital medium,” he said. “Finally, trade facilitation through upgraded border infrastructure makes for easier transit and seamless commerce.”

“India sees itself as Nepal’s natural and instinctive responder,” the Indian foreign secretary said, while referring to India's prompt response to devastating earthquake in Nepal in 2015 that claimed nearly 10,000 lives leaving thousands injured. “India will also share the Nobel coronavirus vaccines as soon as the vaccine once it is rolled out.”

Shringla arrived Kathmandu yesterday at the invitation of his counterpart Bharat Raj Paudyal. Earlier yesterday, he called on President Devi Bhandari, Prime Minister KP Sharma Oli and foreign minister Pradeep Kumar Gyawali. Shringla also held a delegation-level meeting with foreign secretary Paudyal yesterday afternoon. “In my meetings here in Kathmandu, with the President and the Prime Minister of Nepal, the foreign minister, and my counterpart the foreign secretary, and other dignitaries and officials, I have been left with no doubt that our countries are on the same page and share the same vision,” he informed

He also reminded the high level meetings of the leaders from both the countries. “Our Prime Minister’s visit to Nepal in August 2014 was the first at that level in 17 years,” he said, adding that the visit injected a fresh energy into the relationship and created a steady stream of two-way travel and developmental initiatives. “Over the past six years, Prime Minister Modi has visited Nepal four times and the Prime Minister of Nepal has been welcomed in India seven times, apart from the leaders have met 16 times at the level of head of state or head of government.”

He also reminded the High Impact Community Development Projects, which according to him are tailored to the needs of the local community, create community assets, and promote socio-economic welfare at the grassroots level. “Such development projects have been implemented in all 77 of Nepal’s districts and over a hundred of them have been completed since 2014 when our Prime Minister visited Nepal for the first time when he took over.”

These programmes cover diverse sectors such as education, health, irrigation, drinking water, preservation of culture, skill development, youth training, and agriculture, and have immediate and positive impact on the lives of people, touching everybody in society, added the visiting guest. 

Before wrapping his two-day visit, Shringla today afternoon travelled to Gorkha and inaugurated three schools – Shree Mahalaxmi, Shree Ratnalaxmi and Shree Tara Secondary Schools – constructed with Indian reconstruction assistance. “There are about 1600 students in these three schools, who now have the advantage of the newly constructed earthquake resilient school buildings,” according to a press note from the Indian Embassy. “These schools are part of 71 educational institutes across nine districts being built under government of India grant assistance of $50 million for reconstruction in the education sector,” it reads, adding that the nine beneficiary districts are Gorkha, Nuwakot, Sindhupalchowk, Ramechhap, Dolakha, Kavrepalanchowk, Dhading and Kathmandu. 

Speaking on the occasion, Indian foreign secretary emphasised that education is the best investment in the future of the country and its people. Since 2003, government of India has built nearly 270 educational campuses across Nepal under High Impact Community Development Projects scheme, complementing the efforts of Nepal in this area. Shringla also encouraged Nepali students to take advantage of over 3000 scholarships being provided by government of India to contribute in the development of their country and to further strengthen India-Nepal partnership.

India is also working with Nepal on reconstruction of 147 health posts and hospitals in ten districts of Nepal under a grant of $ 50 million and 28 cultural heritage sites in 8 districts of Nepal under another grant of $ 50 million.

In his last engagement before leaving Nepal that also signifies the diverse bilateral development and cultural cooperation, foreign secretary Shringla virtually inaugurated the Tashop (Tare) Gompa monastery constructed at Shree Kharka village in Manang district, the press note reads, adding that the event was also attended by secretary at the Ministry of Culture, Tourism and Civil Aviation Yadav Prasad Koirala, acharya Lama Norbu Sherpa, president of Nepal Buddhist Federation along with the representatives of Khangsar Sewa Samiti.

After completing his two-day official visit, foreign secretary Harsh Vardhan Shringla returned to New Delhi in the late afternoon today, the press note reads.

Projects under Indian assistance

• The Motihari–Amlekhgunj petroleum pipeline was the first of its kind in the region. It has created capacity to carry two million metric tonnes of petroleum products into Nepal, and has already led to savings of over Rs 800 million for the people of this country. 

• Brisk implementation of the 900 MW Arun III hydropower power project is underway, and cross-border power transmission lines have been upgraded

• The Jayanagar-Kurtha cross-border rail line should be operational shortly. It will make Janakpur so much quicker to visit from India. Tourism from India would be an important area of employment, commerce and opportunity. We want to promote it to the extent that we can.

• The modern integrated check-posts (ICP) at Birgunj and Biratnagar have transformed cross-border movement of people and goods, and work on the integrated check-posts at Nepalgunj has commenced

• After the earthquake of 2015, India cooperated with Nepal in the restoration of 30 heritage locations, including the iconic Seto Machindranath temple in Kathmandu, the Hiranyavarna Mahavihar at Patan, and the Jangam Matha at Bhaktapur. Our best domain specialists are at the service of the living history of Nepal.

• Given the young population – both in India and Nepal – education is a crucial bridge. Seventy schools and 150 health facilities are coming up in 12 districts of Nepal with Indian support. 

• The outlay of Indian earthquake-related assistance is US$ 1 billion but its true value is not in monetary terms. It lies in how it has helped communities on the ground. To cite an instance, 46,000 houses have been built in Gorkha and Nuwakot. They incorporate earthquake-resilient technologies in line with the motto of ‘Build Back Better’, and they epitomise humanity’s ability to triumph over adversity.

World Bank’s $450 million road support in Nepal to spur Covid-19 recovery

The World Bank today approved a $450 million project to help Nepal improve its roads and set the course for post-Covid-19 economic recovery through greater cross-border trade, more jobs, especially for women, and better road safety.
“In the context of Covid-19, protecting people’s lives is the priority, and giving a fillip to economic recovery is equally urgent,” World Bank country manager for Nepal Faris Hadad-Zervos said. “Our support will pave the way for Nepal’s Covid-19 recovery by making roads safer and more efficient while helping move people and goods, creating jobs, and generating demand for local products and services.”
The Nepal Strategic Road Connectivity and Trade Improvement Project will enhance regional road connectivity by improving the Nagdhunga-Naubise-Mugling road and upgrading the Kamala-Dhalkebar-Pathlaiya road. Both are crucial to Nepal’s connectivity and trade with India and other countries. The project will also enhance infrastructure, facilities, and sanitation at border crossing points to ease trade constraints and spur agricultural exports. Amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.
The project will strengthen the National Road Safety Council and the Department of Roads and support periodic maintenance of high-traffic roads within the Strategic Road Network. It also includes a contingency emergency response component to reallocate project funds to support emergency response and recovery.
“The project will reduce the time and cost of moving goods and boost Nepal’s trade, which accounts for about 40 per cent of the country’s economic output,” the Project Task Team Leader and senior transport specialist of the World Bank Sri Kumar Tadimalla said, adding that equally importantly, the project includes best practices in safety, climate resilience, road asset management, gender equality, social inclusion and citizen engagement, which the federal, provincial and local governments can take on.
The project is well-aligned with the past and ongoing efforts of Nepal and its regional partners to achieve the full potential for trade in the eastern sub-region of South Asia. It is a part of the World Bank’s Eastern Corridor Connectivity Programme, which since 2013, has financed a continually evolving regional programme to improve connectivity and trade in Bangladesh, Bhutan, India, and Nepal.
The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. “We are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs,” a press note issued by the multilateral development partner reads, adding that it will be deploying up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. “This includes $50 billion of new IDA resources through grants and highly concessional loans.”

Railway passengers without ticket to be fined Rs 25,000

If anyone travels without buying a ticket in the railway, the person will have to pay cash penalty of Rs 25,000.
The government has – in the new Railway Bill – brought some of the strict provisions, as the Janakpur-Jayanagar railway is about to start operation. After being endorsed by the House of Representatives, the government today tabled the Railway Bill at the National Assembly for final approval.
The government has been long planning to operate railway services in a number of possible routes in and out of the Kathmandu Valley. “Apart from the railway service between Kurtha of Janakpur and Jaynagar of India, the government is planning to operate the new transport means in Kathmandu-Raxaul, Kathmandu-Kyirong and Nijgadh-Hetauda-Bharatpur routes. Likewise, the East West Electrified Railway is also an ambitious project that the government has planned in order to improve connectivity within the country.
Currently, the sector is managed under the provisions of Railways Act 1963 but the government has revived Nepal Railway Company by revising the organisational structure of the old company, and also with a legal teeth. A fully autonomous Nepal Railway Board will work as the regulator of the sector, the Bill reads, adding that the board will be authorised to manage separate travelling ticket examiner to ascertain whether passengers are traveling with ticket or not.
The Bill has provision allowing the Nepali company to extend railway service in other countries or foreign companies to extend their services up to Nepali land. Likewise, any foreign company wishing to operate railway service via Nepali land to connect to the third countries will be given permission based on mutual agreement, it reads.
“The government in accordance with the concerned countries can enforce its own conditions, mechanism and work guidelines,” the bill reads, allowing the government to form a separate unit for the security of the railway lines and related services. It has sought a separate license for the operator of the railway service. “But the operator must be a 10 grade pass or above to be eligible for the job.”

ADB registers record disbursement

The Asian Development Bank (ADB) achieved a record disbursement of $323.7 million for development projects in Nepal in 2019. Some of the projects contributing to 2019’s record disbursement include the Earthquake Emergency Assistance Project ($38.5 million), the South Asia Subregional Economic Cooperation (SASEC) Power System Expansion Project ($28.7 million), Food Safety and Agriculture Commercialisation Programme ($25 million), Regional Urban Development Project ($22.1 million), Rural Connectivity Improvement Project ($20.2 million), and Supporting School Sector Development Programme ($20 million).
“ADB’s support to Nepal in the infrastructure sector has increased in the recent years with larger but fewer projects,” said ADB country director for Nepal Mukhtor Khamudkhanov, speaking at a country portfolio review meeting jointly organised by ADB and the Finance Ministry today. “But while disbursement has picked up pace, challenges remain and the overall performance of ADB operations in Nepal could be much better.”
“For better and quicker results on the ground, higher lending needs to be matched with improved implementation and enhanced technical capacity of implementing agencies,” he said, adding that difficult terrain and remoteness of project sites, addressing safeguards issues, and the country’s ongoing transition to federalism that takes time have also posed challenges in effective implementation of development programmes. “We appreciate the consistent efforts by the Finance Ministry to progressively address risks and constraints through regular country and tripartite portfolio review meetings, with active participation of line ministries and relevant agencies.”
At a special ceremony held in conjunction with the meeting, finance secretary Sishir Kumar Dhungana presented awards to ADB-supported projects that showed excellent results in 2019.
The Third Small Towns Water Supply and Sanitation Sector Project and Community Managed Irrigated Agriculture Sector (Additional Financing) won the outstanding project management teams awards. The Urban Water Supply and Sanitation Sector Project was awarded the best team for procurement management prize. Likewise, the SASEC Power System Expansion Project received the best team award in the categories of environmental and social safeguard monitoring; the Third Small Towns Water Supply and Sanitation Sector Project won the gender equality and social inclusion award; and the SASEC Road Connectivity Project bagged the financial management and disbursement accolade.
“These awards recognise the project teams' excellence not only in effective project management which helped save time and prevent cost overruns, but also prioritise gender equality and social inclusion, as well as environmental sustainability and social safeguards,” Khamudkhanov added.
Since the start of its operations in Nepal in 1969, ADB has provided about $6 billion in financial and technical assistance to the country. The assistance provided by ADB to date focus on the energy, transport, urban development, water supply and sanitation, agriculture and irrigation, education sectors, among others.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.

Nepali, Chinese officials stress better road connectivity

Unlike Nepal’s wish list of constructing Kerung-Kathmandu railway, Chinese officials suggested to invest in cross-border road connectivity.
A Belt and Road Initiative (BRI) lobby in Nepal has urged Nepal to invest in cross-border road connectivity to boost Chinese tourist arrivals. “The proposed Kerung-Kathmandu railway is a distant dream that may take a few decades, but road connectivity is essential for near future,” the Nepali and Chinese think tank said today. As Chinese officials have time and again referred to the Kerung-Kathmandu railway as a ‘long-term project’ which entails overcoming immense geographical complexities, Nepal-China road connectivity is not only ensure improved Chinese tourist inflow but could be a sustainable way to bring visitors from the northern neighbour.
Speaking at a workshop ‘Drive tourism initiative and tourism transport safety’ organised by the Belt and Road International Transport Alliance – think tank for the Belt and Road Initiative founded by the China Highway and Transportation Society – economic chancellor of the Chinese Embassy Zhang Fan said that the countries included in the Belt and Road Initiative witnessed 77 per cent growth in the number of Chinese tourists – in the last five years – and the numbers are growing at the rate of 15 per cent annually.
“There is a need for increased collaboration between Nepal and China on the framework of BRI projects as part of a cross-Himalayan connectivity network,” he added.
Likewise, deputy director of the International Cooperation Department of China Highway and Transportation Society Honghua Zhang, on the occasion, said that Nepal’s tourism sector could contribute 10 per cent to the country’s gross domestic product (GDP), if challenges related to tourism infrastructure were resolved.
However, Nepal has not made any headway on infrastructure project negotiations under the Belt and Road Initiative (BRI) framework, which will expire in May 2020. Nepal and China signed the framework agreement on BRI on May 12, 2017.
On the occasion, transport expert Ashish Gajurel said that Chinese officials including representatives of Chinese road construction firms has hinted growing interest in what they called a trans-Himalayan network, particularly road connectivity. “Although there is scope of bringing in Chinese tourists or enhancing trade through road networks, the government has not taken the initiative to finalise such projects as part of the Belt and Road Initiative,” he said, adding that there are investment opportunities in Nepal’s transport and tourism sector. “If Nepal could bring direct investments to build roads on the northern border, we can host Chinese tourists in greater numbers.”
The bordering villages in Taplejung, Sankhuwasabha, Solukhumbu, Dolakha, Rasuwa, Gorkha, Mustang, Manang, Dolpa, Mugu and Humla were declared out of bounds to foreign visitors in the 1970s. The foreigners are required to get special permits from the Department of Immigration (DoI) to travel to these areas. The individual trekkers will not get any permit as only trekkers travelling in a group through a government authorised trekking agency can apply for permission with a fee ranging from $10 per week to $500 for 10 days depending on where one wants to go.
In the 1970s, the government imposed restrictions on the movement of foreigners in a number of northern villages bordering China's Tibet region as Khampa rebels were found using Nepali territory to mount cross-border raids. In 1974, the Nepali Army succeeded in completely disarming the Khampa rebels, but the travel restrictions remained.
But the trekking agencies and tour operators have been lobbying with the government to open up these areas. The travel entrepreneurs say that lack of government initiative to open up northern border regions and develop proper road connectivity has hindered growth prospects.
“Currently, Chinese visitors opting to travel to Lo Manthang have to fly to Kathmandu before taking the bus, which makes the travel costlier compared to travelling to their destination by bus via the Korala border point,” said the chairperson of Mountain Sports Federation Nepal, which is associated with the Alliance, Govinda Bhattarai.
“We have been constantly lobbying to promote drive tourism as a product based on-road travel offering trans-Himalayan tours, but poor road connectivity, and safety and legal restrictions made it difficult,” he added.
The Chinese officials have also been pushing for building high-quality roads linking Nepal and China to boost tourist arrivals to Nepal. According to the International Road Assessment Programme, ensuring more than 75 per cent of travel is on the equivalent of three-star or better roads for all road users by 2030 will be critical for Nepal to achieve the Sustainable Development Goals (SDGs), and the BRI can make important contributions to the targets.
“In Nepal, achieving greater than 75 per cent of travel on three-star or better roads for all road users by 2030 stands to save over 2,000 lives each year with an economic benefit to the country of over $6 billion,” according to the International Road Assessment Programme.
Better north-south road connectivity will not only boost tourist arrivals but also more trade among Nepal, China and India. Worse road condition has hit Nepal’s export making domestic products more expensive, whereas the imports have also been expensive fueling the inflation in the country.

Himalaya Airlines starts flights on Kathmandu-Changsha route

Himalaya Airlines launched its service connecting Kathmandu to Changsha, the capital of central China’s Hunan province, from today.
As the Nepal-China joint venture international airline explores its new markets before the Visit Nepal Year 2020, it aims at promoting and capturing the outbound tourism potential of the province into Nepal, according to vice president – Administration Vijay Shrestha.
“With the new service, Nepalis will have a convenient, economical and direct connection to explore this new destination in China,” the airlines said, adding that it introduced its newest flight route between Kathmandu and Changsha, after Guiyang.
Himalaya Airlines flies every Wednesday from Kathmandu to Changsha and back, it adds.
The maiden flight today departed from Tribhuvan International Airport (TIA) at 11:03 hours and touched down Changsha Huanghua International Airport (CSX) at 17:19 hours (local time). The return flight departed from CSX at 18:28 hours (local time) and touched down TIA at 21:23 hours on the same day.
“Apart from Beijing and Guiyang, we believe Kathmandu needs more connectivity to other cities of China; in order to take optimum advantage of China’s travel potential,” Shrestha said, adding that the new route will strengthen the Nepal-China connectivity.
China has also placed Nepal as a new leisure destination, which is one of the driving reasons for increased Chinese visitors into Nepal over the past few years.
Himalaya Airlines president Zhou Enyoung, on the occasion, shared that the increasing presence of the airlines in China by adding Guiyang and Changsha in addition to its existing Beijing flights will help develop Himalaya network, offering customers new routes and more robust year-round schedules.

Nepal, China to implement past pacts

Kathmandu and Beijing have agreed to implement agreements and understandings reached between the two neighbours in the past, and underscored the importance of exchange of high-level visits on a regular basis to develop mutual trust and confidence.
During the meeting between the foreign minister Pradeep Kumar Gyawali and state councilor and minister of Foreign Affairs of China Wang Yi, they also reviewed all important aspects of bilateral relations, according to a press note issued by the Foreign Ministry today. “They expressed satisfaction over the expanding and deepening relations between Nepal and China in recent years and agreed to further promote co-operation in various areas of mutual interest,” it reads, adding that they also agreed to continue cooperation in regional and multilateral forums on matters of mutual interests. “Gyawali appreciated China’s continued support for Nepal’s socio-economic development and underlined the need of strengthening cooperation in the fields of connectivity, infrastructure, energy and education.”
In his reply, Wang assured Gyawali of Chinese support to Nepal’s development endeavours.
During delegation-level bilateral talks between them, the two sides also exchanged substantive views on promoting bilateral economic cooperation with special focus on trade, investment and tourism.
Following bilateral talks, the two ministers witnessed signing of two letters of exchange and a memorandum of understanding (MoU). The letters of exchange are related to Hospital Recovery Project in Manang for which the Chinese side has pledged around Rs 350 million and 5,000 units of emergency shelter tents.
Likewise, the Memorandum of Understanding (MoU) on Volunteer Chinese Teachers’ Programme in Nepal has also been inked between the Ministry of Education, Science and Technology and the Embassy of the People’s Republic of China in Kathmandu.
According to the agreement China will provide volunteers to teach Chinese language in Nepali schools.
Wang also paid courtesy calls today on President Bidhya Devi Bhandari and Prime Minister KP Sharma Oli. During the meeting between Oli and Wang, the visiting minister expressed his commitment to elevating Nepal-China relations to new heights by implementing agreements reached between the two sides during Oli’s last visit to Beijing.
In the evening, Gyawali hosted a welcome dinner in honour of visiting counterpart and his delegation.
Wang, who arrived in Kathmandu yesterday evening, will meet Nepal Communist Party (NCP) co-chair Pushpa Kamal Dahal and Nepali Congress President Sher Bahadur Deuba.
The visit of Chinese foreign minister has also ensured the visit of Chinese President Xi Jinping in the near future, according to a high level official at the Foreign Ministry.