Nepal Army plans to expand investment portfolio

Despite criticism for being involved in commercial activities, Nepal Army seems to have been expanding business more without any hesitation.
According to a draft bill for the revision to the Nepal Army Act, it wants to get legal clearance to invest money from its welfare fund in business activities ‘as a promoter’ as it has been lobbying for last few years. “We have submitted the draft to revise the Nepal Army Act (2006) to the government on July 16,” confirmed Judge Advocate General Ranta Prakash Thapa, who is in charge of the Army’s legal department.
“We are expecting that their draft bill soon gets government approval before it goes for parliamentary ratification,” he said, adding that the current Act bars Nepal Army from investing in business enterprises, companies and infrastructure projects like hydropower. “After receiving the draft bill, the Defence Ministry has formed a committee comprising officials from Defence and Law ministries and the Army to study it.”
The Defence Ministry will take a decision about the bill – that seeks revisions to different clauses including the one related to the investment of money from the welfare fund – based on the recommendations from the committee. The draft bill needs an approval from the cabinet before it is tabled in the federal parliament for endorsement.
Nepal Army has been eyeing investments in hydro projects and in the Treasury Bill, which will provide more returns than the interest that banks pay. Though, the bill is yet to be approved, Nepal Army has already approached the Department of Electricity Development, seeking to invest in the 25 MW Dudh Khola and 32 MW Bhimdang Khola hydropower projects.
Currently, Nepal Army has invested is in gas stations, schools, medical colleges and emulsion plants, apart from selling bottled water, but it wants to spread its wing, despite criticism from the different quarters of society.
Though, its primary role is to ensure the national security, the Nepal Army has been increasing interested in commercial activities, which has time and again, tarnished its image, according to the security experts, who are much worried about the Nepal Army’s inclination to business rather than limiting itself to its primary role of ensuring national security, gathering intelligence, protecting national parks and natural reserves and saving people during the times of disaster. “The more the Army is involved in non-military activities, the more it will get weakened professionally.”
Nepal Army was used in development activities by the then king Birendra Bir Bikram Shah, as he thought that the Army has become idle due to his ‘Zone of Peace’ proposal for Nepal. Birendra had proposed Nepal be declared ‘Zone of Peace’, which means the country would not need a big Army.
Likewise, the Army was involved in building roads during the conflict. Slowly, Nepal Army then started to getting involved in contracts for various projects. Currently, the incumbent government has also contracted Nepal Army for constructing the Kathmandu-Tarai expressway, which has also been criticised. 
The Army, however, denies that its involvement in several projects is ‘commercial venture’. But the Nepal Army ‘welfare fund’ has to invest on various projects to give good returns to the depositors.
Constituted in 1975, the Army’s welfare fund currently has cash deposits of Rs 45.86 billion in different banks and financial institutions, apart from an investment of Rs 5.74 billion in different ventures. Every year, it has been adding billions, as the interest and the contribution from those, who are deployed in United Nations (UN) peacekeeping missions, to its coffers. It witnessed an increment of Rs 7.29 billion in its welfare fund in the last fiscal year alone, according to the Nepal Army press note issued today.
The Army wants to expand the business also to ‘expand its welfare fund’, claimed Thapa, in the press meet. “Bank interest is not a sustainable source of income,” he said, adding that the Army wants an investment in the projects that give high return. “The draft bill proposes provisions that would allow the Nepal Army to invest in projects ‘only after the government’s approval.’
Nepal Army has also been criticised, recently, for leasing out a new building it has constructed in Mahakal, in the prime location, to replace the earthquake-damaged Tri-Chandra Military Hospital that was constructed with the help of Britain in 1925 in memory of 20,000 Nepalis, who were killed in Europe in the First World War. The Army had demolished the 85-year-old neoclassical structure to rebuild a new hospital, and leased out for commercial purpose, which has been criticised by almost everyone blaming Nepal Army that it is turning into ‘corporate army’, and the combination of ‘gun and money’ is going to be more lethal weapon against democracy and federalism in the long run.

Nepal Army changes Express Way alignment to preserve historic Khokana

Nepal Army has changed the alignment of Express Way to preserve the historic Khokana settlement.
Holding a press conference at its headquarters, the Nepal Army informed that the Nepali Army (NA) has changed the entry point of 72.5-km-long Kathmandu-Tarai Express Way in two places – Khokana area, and Mahadevtar-Lendanda according to the recently-approved DPR – to preserve Sikali Temple in Khokana and Kodesh area which hold cultural and historical significance.
Earlier, locals from Khokana had staged a series of a protest demanding preservation of the antique settlement, and the temple.
“As per the demand of locals of Khokana and Bungmati, we have changed the alignment of Express Way,” said spokesperson for Nepali Army Brigadier General Bigyan Dev Pandey.
Pandey further said the Army had consulted the Department of Archaeology to change the entry point of the Express Way to address the concerns of the locals.
However, the change in alignment has increased the estimated cost of the project though the distance has decreased. “The estimated cost of the Kathmandu-Nijgadh Express way has been reestimated at Rs 175.19 billion – which is Rs 63.19 billion more than the earlier estimate of Rs 112 billion – though the length has been reduced by 3.7-km to 72.5-km from its preliminary estimate of 76.2-km due to change in alignment,” the Pandey said, adding that Express Way has now added extra tunnels along Mahadevtari-Lendanda section following the change in alignment.
Ealier, the DPR by the Indian firm Infrastructure Leasing and Financial Services Transportation Networks (IL&FS) had estimated the construction cost at Rs 133.70 billion ($1.12 billion at the current exchange rate), if it were to be built with a soft loan. The cost would have increased, if it was a commercial loan.
Likewise, the Nepal Army had proposed Rs 213 billion estimation to the Cabinet but the widespread criticism has made the Cabinet to reduce the cost to Rs 175.19 billion. However, the project chief of Express Way Brigadier General Sarad Lal Shrestha said that South Korean consultant firm Soosung Engineering and Consultancy Co had estimated the cost of the project based on government set rate and international standards. The Express Way will be constructed based on ‘Asian Highway Class I’ standards, which means it will have four lanes and the construction material used for the pavement will be asphalt or cement concrete, Shrestha informed.
The Express Way that will extend from Khokana in Lalitpur to Nijgadh in Bara with a width of 25 meters in the hilly region and 27 in the plains is set to be completed within next three-and-a-half years. Earlier, the Nepal Army had aimed to complete Nepal’s first Express Way within two years of initiating the project.
“We plan to begin construction of tunnels and bridges by September-end,” Pandey said, adding the process to award tenders to build bridges and tunnels is in final stage. “The NA will build 87 special and normal bridges of the project with total length of 10.59-km, and three tunnels measuring altogether 6.42-km in Mahadev Danda, Dhendra Danda and Len Danda.”
Likewise, there will be three interchange and toll plazas in Khokana of Lalitpur, Budhune of Makawanpur and Nijgadh of Bara district, apart from 12 passenger underpasses, five vehicle underpasses, one passenger overpass, four vehicle overpasses and 141 box/pipe culverts.
According to the Nepal Army, some 151,000 trees will be cut down during the Express way construction.
The DPR of the one of the national pride projects, prepared and submitted by a South Korean firm Soosung Engineering and Consulting Company was approved by the cabinet meeting of August 19.
Of the total length, four km of the Express Way will lie in Kathmandu district, 7.9-km in Lalitpur, 53-km in Makawanpur and rest 7.6-km in Bara.
Due to delay in approval of the DPR by the Cabinet, the government has extended the deadline for Kathmandu-Tarai Express Way by more than two years, pushing the completion date to February 2024.
When the national pride project was handed over to the Nepal Army in August 2017, the government had set August 2021 deadline. But even two years since the start of the construction, the national defence force has hardly completed eight per cent of the work. The Army has already spent Rs 14 billion in the last two years. The government has allocated Rs15 billion in the current fiscal year for the four-lane national pride project.
The Kathmandu-Tarai Express Way was first conceptualised in the mid-1990s. But it failed to take off for almost a decade and a half. The government revived the project in 2013 and two years later, the Indian consortium won the bid for the project – in February 2015 – but in October the Supreme Court ordered a halt to the preparations to award the project to the Indian developer IL&FS.

Cabinet okeys Kathmandu-Tarai express way DPR

The cabinet has approved detailed project report (DPR) of the much talked Kathmandu-Tarai express way.
According to the spokesperson of Nepali Army Brigadier General Bigyan Dev Pandey, the cabinet meeting held on Monday has approved the DPR of the project. “We plan to start construction of tunnels and bridges by September-end,” he said, adding that Nepal Army aims at completing the country’s first express way project within two years. “The process of short-listing contractors for construction of bridges is in the final phase, work related to the detailed design has already been completed and NA is preparing necessary documents to call tender for construction of tunnels.”
According to Pandey, the project will be constructed based on ‘Asian Highway Class I’ standards. “The highway will have four or more lanes and the construction material used for the pavement will be asphalt or cement concrete,” he added.
A South Korean firm – Soosung Engineering and Consulting Company on February 4 – had submitted the DPR of the project to Nepali Army. The Ministry of Defence forwarded it to the cabinet on March 16.
The DPR has, though reduced the length of the express way by 3.7 kilometres to 72.5 km due to change in alignment of the route in Khokana, has estimated construction cost at Rs 175.19 billion, which is Rs 63.19 billion more than the earlier estimate of Rs 112 billion. “The consultant company has determined the estimated cost of the project based on the government fixed rate and international standards,” Pandey explained.
Before the revision in length, NA had said it would construct 17 km on its own, hire Nepali contractors for 37 km of the stretch and assign foreign contractors to construct the remaining 22.2 km section, which includes tunnels and bridges. “Though only a width of 25 metres of the express way section will be metalled, the Nepal Army has cleared a breadth of 30 metres,” he sid, adding that 3.9 km of the express way – of the total length – will lie in Kathmandu district, 6.9 km in Lalitpur, 55.7 km in Makawanpur and 6 km in Bara. “Meanwhile, NA has already signed contract with 32 local contractors for different sections of the project but some works were halted in the absence of the final DPR.”
The Nepal Army will construct three tunnels – one in Mahadev Danda of Lalitpur district and one each in Dhandre Danda and Len Danda of Makawanpur district – and the total length of the tunnels will be 4.41 km. There will be 87 small and big bridges along the express way according to the approved DPR that has changed the alignment to preserve the Sikali temple and other historic places around Khokana and Bungamati areas, also due to protest from the locals.
The government has assigned Nepal Army a full responsibility of carrying out the express way project, segregating it into three segments.