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

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

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

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

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

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

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

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

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

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

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

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

Nepal, ADB sign loan and grant agreements amounting to Rs 105.59 billion

The government and the Asian Development Bank (ADB) today signed loan and grant agreements amounting to $777.6 million (equivalent to Rs 105.59 billion), at the Finance Ministry, for the implementation of three projects and a programme.

The Financing agreement for the implementation of Kathmandu Valley Water Supply Improvement Project (phase 2), South Asia Subregional Economic Cooperation (SASEC) Electricity Transmission and Distribution Strengthening Project and Green, Resilient and Inclusive Development (GRID) Programme were signed, according to a press note issued by the Finance Ministry.

Finance secretary Dr Ram Prasad Ghimire and Country Director of the Nepal Resident Mission ADB, Arnaud Cauchois signed the agreement on the behalf of the government and ADB, respectively.

The project—Kathmandu Valley Water Supply Improvement Project (phase 2) aims to secure safe and reliable water supply services for people in the Kathmandu Valley, the press note reads, adding that tt includes the relocation and construction of the Melamchi intake, construction of long tunnel and the expansion of the Sundarijal Water Treatment Plant.

The project cost of Kathmandu Valley Water Supply Improvement Project (Phase 2) will be $240 million (equivalent to Rs 32.59 billion). The ADB will support $15 million (equivalent to Rs 2.03 billion) grant and $170 million (equivalent to Rs 23,08 billion) concessional loan, Japan Fund for Prosperous and Resilient Asia and Pacific (JFPR) will support $3 million (equivalent to Rs 407.46 million) grant and the government contributes $52 million (equivalent to Rs 7.06 billion) for it, it adds.

Similarly, the project—SASEC Electricity Transmission and Distribution Strengthening Project focuses on meeting Nepal's growing energy demands while supporting green electricity exports. It will be $537 million (equivalent to Rs 72.93 billion). ADB will support $30 million (equivalent to Rs 4.07 billion) grant and $311 million (equivalent to Rs 42.24 billion) concessional loan, EU will support $22.6 million (equivalent to Rs 3.06 billion) grant, Norway will support $31 million (equivalent to Rs 4.21 billion) grant, Strategic Climate Fund will support $10 million (equivalent to Rs 1.35 billion) and the government contributes $132.4 million (equivalent to Rs 17.98 billion) for the execution of this project.

The construction of 290 kilometers of transmission lines, five new substations, and the upgrading of two existing ones are key components of this project, the press note adds.

Likewise, the GRID programme aims to assist in implementing the Green, Resilient and Inclusive Development approach by addressing policy, regulatory and institutional barriers to unlock sustainable investment opportunities across various sectors. The programme's objective is to ensure that development activities are environmentally sustainable, resilient and inclusive.

The ADB will support $100 million (equivalent to Rs 13.58 billion) for GRID Programme as a budget support.

The Irrigation Modernization Enhancement Project (IMEP) focuses on modernising surface water irrigation systems of Nepal and piloting hill lift irrigation. It will directly benefit families of project area enhancing agricultural productivity and climate resilience.

After signing the agreement, finance secretary Ghimire expressed his heartfelt appreciation to ADB for its consistent support and partnership. He emphasised that these initiatives would not only improve irrigation system, water security and agriculture but also strengthen climate resilience in Nepal's most affected communities and contribute to achieving sustainable development goals.

Country Director of ABD Arnaud Cauchois, on the occasion, emphasised the key features of these projects, including their financing structures and significance for Nepal's economy.

He reiterated ADB's strong commitment to supporting Nepal's development priorities, particularly in climate adaptation, agricultural productivity and water resources management and support to achieve SDGs.

Nepal, ADB sign grant agreement of Rs 21.23 billion for two projects

The government and Asian Development Bank (ADB) today signed a concessional loan and grant agreement of $157 million (approximately Rs 21.23 billion), at the Finance Ministry, for the implementation of the Mechanised Irrigation Innovation Project (MIIP) and the Climate Resilient Landscapes and Livelihoods Project (CRLLP).

The grant agreement amounting to $15 million and loan agreement amounting to $110 million for the implementation of MIIP was signed by finance secretary Dr Ram Prasad Ghimire and Country Director of the Nepal Resident Mission ADB Arnaud Cauchois, on the behalf of the government and ADB, respectively, according to the Finance Ministry.

According to the agreement, the MIIP will introduce advanced irrigation technologies, including a prepaid card system allowing framers to access water based on their field's need. "The project will be enforced in the Rautahat and Sarlahi districts of Madhes Province, benefitting over 121,000 farmers."

The primary objectives of the project are to improve agricultural productivity, ensure year-round irrigation and contribute to food security. Additionally, this project will adopt Design, Build and Operate (DBO) modality and establish an irrigation management company for the long-term sustainability of groundwater irrigation system in the region.

Similarly, the grant amounting to $22 million and loan agreement amounting to $10 million for the implementation of CRLLP was also signed by joint-secretary at the Finance Ministry Dhani Ram Sharma and Country Director of Nepal Resident Mission, ADB Arnaud Cauchois, on the occasion.

The CRLLP stresses enhancement of climate resilient rural communities in the Karnali and Sudurpaschim provinces, which are highly vulnerable to the impacts of climate change, a press note issued by the Finance Ministry reads. "The project is aimed at addressing water insecurity, promoting nature-based livelihoods and empowering local communities through the sustainable management of water resources." The project further stresses empowerment of communities to adapt to climate challenges by fostering sustainable water management, agroforestry, silviculture and forest management.

The project will also play a crucial role in improving water security by addressing the region's vulnerability to climate-induced challenges, it claims.

After the signing of the agreement, finance secretary Ghimire expressed his gratitude to ADB for its continued support and partnership. He emphasised that these projects would not only enhance irrigation infrastructure but also spur climate resilience among some of Nepal's most vulnerable communities.

Similarly, Country Director of ADB Cauchois, on the occasion, underlined the key features of these projects, the financing modalities and their importance to Nepal's economy, reaffirming ADB's commitment to supporting Nepal's development goals—particularly in the areas of climate adaptation, agricultural productivity and water security.

Government halves provincial and local financial equalisation grant

The federal government has reduced third installment of the financial equalisation grants – to be provided to the provincial and local governments – by half, due to mounting pressure on coffer. 

“The federal government will provide them with only Rs 23 billion – after reducing Rs 23 billion – out of the total Rs 46 billion allocated earlier,” according to Finance Ministry. “The Council of Ministers meeting held on April 25 – on Tuesday – decided to reduce the grant by half and send remaining amount.”

Finance Ministry had written to the Office of the Financial Comptroller General – on April 27 – asking it to transfer only 50 per cent of the third installment of the financial equalisation grant to the local governments and provinces. 

According to Sub-section (3) of Section 4 of the Financial Equalisation Grant Allocation Act-2079 BS, the final installment to be transferred in the financial year 2022-23 is Rs 9.94 billion to the provinces and Rs 13.20 billion to the local governments.

ADB approves $200 million loan to strengthen education system in Nepal

The Asian Development Bank (ADB) today approved a $200 million concessional loan to help Nepal strengthen the equity, quality, and resilience of its school education.

The programme will assist the implementation of the first 5 years of the government’s School Education Sector Plan 2021–2030 in a sector wide approach supported by eight development partners, including ADB, according to a press note issued by the multilateral development partner. “The programme will enhance learning provisions for basic and secondary schools; strengthening teaching and learning in schools; accelerate the recovery from learning losses caused by the Covid-19 pandemic; and improve capacity of local governments in education planning, monitoring, and reporting,” it reads.

“Nepal has done significantly well in terms of improving access to education, however, there is still a need to address remaining equity issues to access and importantly to take a holistic approach to address persistent challenge in improving learning outcomes,” ADB Principal Social Sector Specialist for South Asia Rudi Van Dael said, adding that the programme will help accelerate reforms and transform the country’s education system to develop human capital, reduce social inequity, and attain sustainable growth.

Selected secondary schools will be upgraded to increase opportunities to study science education in grades 11–12, especially for girls. The pro-poor scholarship scheme will be expanded from grades 9–12 to grades 6–12 to improve retention.

To mitigate learning loss from the Covid-19 pandemic, a recovery and accelerated learning program will be jointly implemented with community and civil society organisations. “To prepare schools against future learning disruptions, more and better accessible e-resources will be made available through the Sikai Chautari online learning portal,” ADB Senior Project Officer (Education) for South Asia Smita Gyawali said, adding that the programme will further strengthen local government’s capacity to deliver education in the federal system.

ADB will provide an additional $1 million technical assistance grant from its Technical Assistance Special Fund and administer equivalent of $600,000 grant from the Government of Norway to support capacity building activities, strengthen programme management and coordination, and improve the monitoring and reporting capability of the Ministry of Education, Science, and Technology.

Nepal’s graduation from LDC will not impact development cooperation hugely

Nepal’s graduation from Least Development Country (LDC) status will impact development cooperation modestly only, according to a research report “Nepal’s graduation from the LDC category: Implications for international trade and development cooperation”.

The impact on development cooperation will be modest as most of the development partners – multilateral and bilateral – have indicated that LDC status is not the main criterion for aid flows, concludes the study conducted by South Asia Watch on Trade, Economics and Environment (SAWTEE) to investigate the implications of graduation for Nepal in the areas of market access, development cooperation, and trade-related policy space. As, the motive of the study was also to offer recommendations in these areas for the government to consider when formulating the transition strategy, the study highlights that Nepal could lose access to specific instruments and funds dedicated exclusively to LDCs, particularly with regard to climate change-related funds, after a transition period.

Some development partners may switch from grants to concessional loans or increase interest rates for concessional loans, it reads, recommending that the government should explore new forms of finance, including blended finance, public-private partnerships, private philanthropies and co-financing, among others, and work with development partners for new forms of support mechanisms such as dedicated funds for graduated countries, disaster insurance, and technology transfer mechanisms.

Nepal is scheduled to graduate from the LDC category in 2026. While this is an important milestone in Nepal’s development journey and a testament to its achievements in socio-economic progress, Nepal’s exit from the category will result in the loss of a variety of international support measures that the international community has provided to help Nepal overcome development-related challenges. The government is also in the process of formulating a transition strategy to ensure smooth, sustainable, and irreversible graduation.

The study has also suggested that graduation from LDC status will have trade implications in terms of higher tariffs and more stringent rules of origin provisions in preference-granting countries. The projected loss in total exports emanating from the increase in tariffs is moderate, it reads, adding, however, the loss emanating from more stringent rules of origin, while uncertain, could be significant, especially in the garments sector.

The study has also recommended the government to aspire to become a party to the more generous preferential schemes such as the EU’s Generalised System of Preferences Plus (GSP+) and the UK’s GSP Enhanced Framework, while studying the implications of acceding to the additional conventions that Nepal needs to ratify to qualify for these schemes. “Nepal should also initiate dialogue with other trading partners seeking an extension to LDC-specific concessions and preferences for another 3-5 years following graduation,” it reads, adding that Nepal should lobby for lenient rules of origin (RoOs) for LDCs for a period sufficient for the private sector to adjust to the new RoOs. “To realise the untapped export potential of Nepal, the government should prepare trade strategies, in consultation with the private sector, to strengthen the overall competitiveness of the economy, upgrade exporter’s capabilities, diversify export products and markets, simplify and streamline processes to attract more foreign direct investment and encourage enterprises to participate in regional, global value chains.”

Likewise, the graduation could result in a loss of policy space, either through the loss of current flexibilities and special treatment, such as in the area of intellectual property rights, or through greater scrutiny of certain practices, such as the subsidy regime, the study reads, adding that the policy space to promote infant industries and exports, and pursue public health objectives, could be squeezed.

वित्तीय समानीकरण अनुदान चार किस्तामा हस्तान्तरण हुने

तल्लो सरकारले प्राप्त गर्ने गरी विनियोजन भएको वित्तीय समानीकरण अनुदान चार किस्तामा हस्तान्तरण गरिने भएको छ । महालेखा नियन्त्रक सुमनराज अर्यालले कोष तथा लेखा नियन्त्रक कार्यालयहरुलाई चालु आर्थिक वर्ष २०७९÷०८० को बजेट कार्यान्वयन मार्गदर्शन पठाउँदै यस्तो जानकारी गराएका हुन् ।

उनका अनुसार वित्तीय समानीकरण अनुदानको एक चौथाइले हुन आउने रकम सम्बन्धित सञ्चित कोषमा यस वर्ष २ भदौ, १ कात्तिक, २ माघ र २ वैशाख गरी चार किस्तामा हस्तान्तरण गरिने भएको छ । त्यस अगाडि वित्तीय समानीकरण अनुदानबाट खर्च भएको रकमको विवरण सम्बन्धित कोष तथा लेखा नियन्त्रण कार्यालयमा पठाउनु पर्छ । यसरी विवरण पठाउनु पर्ने मिति भने १ कात्तिक, १ माघ, १ वैशाख र २०८० को साउन मसान्तलाई तोकिएको छ ।

महालेखा नियन्त्रक अर्यालका अनुसार सम्बन्धित स्थानीय तहले वित्तयि समानीकरणबाट खर्च भएको विवरण आएपछि मात्र सम्बन्धित तहको सञ्चित कोषमा रकम हस्तान्तरण गर्नुपर्छ ।

सरकारले चालु आर्थिक वर्ष २०७९÷८० मा ७ प्रदेशका लागि ६१ अर्ब ४३ करोड र ७ सय ५३ स्थानीय तहका लागि २ खर्ब ४० अर्ब ८९ करोड रुपैयाँ विनियोजन गरेको छ । यस्तो अनुदान स्थानीय तह र प्रदेशले आफूले बनाएको बजेट तथा कार्यक्रम मार्फत विना शर्त खर्च गर्न सक्छन् ।

सशर्त अनुदानको एक तिहाइ रकम २ भदौमा हस्तान्तरण

सशर्त अनुदानतर्फको एक तिहाइ रकम भने सम्बन्धित कोष तथा लेखा नियन्त्रक कार्यालयले सम्बन्धित प्रदेश वा स्थानीय तहको सञ्चित कोषमा २ भदौमा हस्तान्तरण गर्नुपर्ने भएको छ ।

वैदेशिक स्रोत समावेश भएको बजेटमा भने स्रोत फुकुवा चाहिने कार्यालयले उल्लेख गरेको छ । यस वर्ष सरकारले प्रदेशमा ५७ अर्ब १७ करोड र स्थानीय तहमा १ खर्ब ८३ अर्ब ७२ करोड रुपैयाँ गरी कुल २ खर्ब ४० अर्ब ८९ करोड रुपैयाँ सशर्त अनुदानमा छुट्याएको छ ।

समपूरक र विशेष अनुदान भने सरकारको स्वीकृत गरेको कार्यविधि बमोजिम प्रदेश र स्थानीय तहमा हस्तान्तरण हुने महालेखा नियन्त्रक कार्यालयले जनाएको छ । यस वर्ष प्रदेशमा ६ अर्ब ३० करोड र स्थानीय तहमा ७ अर्ब २७ करोड रुपैयाँ समपूरक अनुदान विनियोजन भएको छ । विशेष अनुदानका लागि प्रदेशमा ४ अर्ब ५६ करोड र स्थानीय तहमा ९ अर्ब १४ करोड रुपैयाँ विनियोजन भएको छ ।

खर्च नभएको रकम संघीय सञ्चित कोषमा फिर्ता गर्नुपर्ने

मार्गदर्शन अनुसार सशर्त, समपूरक र विशेष अनुदानको रकम आर्थिक वर्ष भित्र खर्च नभई बचत भएमा त्यस्तो रकम सोही आव भित्र संघीय सञ्चित कोषमा दाखिला गरिसक्नु पर्छ ।

सोही आवमा फिर्ता गर्न सम्भव नभए आव सुरु भएको १५ दिन भित्र फिर्ता गरिसक्नु पर्छ । त्यसरी फिर्ता नभएको अवस्थामा भने वित्तीय समानीकरणबाट फिर्ता नभएको रकम कट्टी गरेर बाँकी रकम मात्र सम्बन्धित प्रदेश र स्थानीय तहको खातामा हस्तान्तरण गरिने भएको छ ।

कसको बजेट ?

गणतन्त्रका पाँच वर्षअघि र गणतन्त्रपछिको पाँच वर्षमा अर्थतन्त्रमा खासै परिवर्तन आएको छैन । नागरिकले आर्थिक विकासको अनुभूति गर्न तथा सुशासन एवं आफैंले छानेका प्रतिनिधिमार्फत शासन गर्दा मुलुकको आर्थिक विकास हुन्छ भन्ने आशा गरेका थिए । तर, गणतन्त्रका अघिल्ला पाँच वर्षमा औसत ४.५४ प्रतिशत आर्थिक वृद्धि भएकोमा गणतन्त्रपछिका पाँच वर्षमा पनि औसत ४.४ प्रतिशत नै आर्थिक वृद्धि भएको छ ।

संयोगले गणतन्त्र दिवसकै दिन हरेक वर्ष १५ जेठमा बजेट आउँछ । गणतन्त्रका पाँच वर्षमा नेपाली नागरिकले ६ वटा बजेट देखे । भलै कार्यान्वयनमा भने पाँचवटा मात्रै आएको छ । चालू आर्थिक वर्षको बजेट तत्कालीन अर्थमन्त्री विष्णु पौडेलले तथा वर्तमान अर्थमन्त्री जनार्दन शर्माले ल्याएका कारण ५ वटा बजेट भए पनि गणतन्त्रपछिका बजेट कार्यान्वयनको अवस्था हेर्दा गणतन्त्र अघिभन्दा तात्विक भिन्नता छैन । नागरिकमा परम्परागत राजनीतिक दलप्रति चुलिँदो अविश्वासको प्रमुख कारण पनि यही नै हो । नागरिकले महसुस हुने गरी परिवर्तनको अनुभव गर्न पाएका छैनन् । गणतन्त्रको लाभ पाउनबाट चुकेकै कारण पनि नागरिकमा निराशा छ, जुन स्थानीय तहको निर्वाचनको परिणामले पनि देखाएको छ । आइतबार संसद्को संयुक्त बैठकमा अर्थमन्त्री जनार्दन शर्माले दोस्रो बजेट ल्याए । तर, कसको लागि बजेट ल्याए त ?

पछिल्लो समय मुद्रास्फीति बढेका कारण मध्य आय भएका नागरिकका लागि बजेटमा विशेष केही नभएको वरिष्ठ अर्थविद् प्रा.डा. विश्वम्भर प्याकु¥याल बताउँछन् । सरकारले विश्वमा विविध कारणले बढेको महँगीलाई सरकारी कर्मचारीको तलब बढाएर सम्हाल्ने प्रयास त गरेको छ तर, यसले सामान्य नागरिकलाई असर गर्ने उनको तर्क छ । भारतमा पनि मूल्यवृद्धि भइरहेको तथा रुस तथा युक्रेन युद्धका कारण विश्व आपूर्ति शृंखलामा नकारात्मक असर पनि परेका कारण मूल्यवृद्धि ६ प्रतिशतभित्रै राख्न सरकारलाई कठिन भएको उनको विचार छ ।

सरकारी कर्मचारीको तलब १५ प्रतिशतले बढेका कारण मूल्यवृद्धिलाई त्यसले ढाडस हुने अर्थविद् नरबहादुर थापा बताउँछन् । साथै सरकारले व्यक्ति वा परिवारको आधारभूत जीवन निर्वाह लागतलाई दृष्टिगत गर्दै प्राकृतिक व्यक्ति तथा दम्पत्तिलाई आयकर ऐन, २०५८ ले प्रदान गरेका आयकर छुटको सीमालाई वृद्धि गरी प्राकृतिक व्यक्तिको हकमा ५ लाख र दम्पत्तिको हकमा ६ लाख पु¥याएका कारण पनि मध्यम वर्गीयको जीवन सहज हुने उनको अनुमान छ ।

तर, महँगीलाई तह लगाउन आपूर्ति व्यवस्था सहज बनाउने र निगरानी गर्नुपर्नेमा थापा पनि सहमत छन् । नेपालमा प्रतिवर्ष प्रतिव्यक्ति ६० हजारभन्दा कम आय भएका नेपाली निम्न आय वर्गमा पर्छन् । जसको जनसंख्या कूल जनसंख्याको १८ प्रतिशत अर्थात् ५३ लाख छ ।

यस्तै, प्रतिवर्ष प्रतिव्यक्ति ६० हजारभन्दा बढी र ३ लाख २ हजारसम्म आय भएका नेपालीलाई मध्यमवर्गीय नेपाली मानिएको छ । जसमा ४२ प्रतिशत जनसंख्या पर्दछन् । अर्थात् नेपालमा मध्यमवर्गीयको जनसंख्या १ करोड २२ लाख छ । त्यसपछि ३ लाख ३ हजारभन्दा माथि प्रतिवर्ष प्रतिव्यक्ति आय हुने नेपालीलाई सरकारले उच्च आय वर्गमा वर्गीकरण गरेको छ । जसमा ४० प्रतिशत अर्थात् १ करोड १७ लाख जनसंख्या पर्छन् । 

महँगीले निश्चित आय भएका मध्यम वर्गीय १ करोड २२ लाख नेपाली मर्माहत हुँदा बजेटले झन् पीडित बनाएको छ । साथै, स्रोत संकुचन भएका बेला आएको बजेटले सामाजिक सुरक्षामा प्रतिस्पर्धा गर्दै सरकारको दायित्व भने बढाएको छ । राजनीतिक दल तथा सरकारले कसले देशमा बढी दिगो र छिटो विकास गर्ने, गरिबी घटाउने भन्ने प्रतिस्पर्धा गर्नुपर्नेमा कसले कम उमेरमा वृद्धभत्ता दिने भन्ने प्रतिस्पर्धा हँुदै गएको छ । त्यसैले स्रोतको दबाबका बीच सरकारले एकातिर आयकरको सीमा पनि बढाएको छ भने अर्कोतिर वृद्ध भत्ता पाउने उमेरलाई ७० वर्षबाट घटाएर ६८ वर्ष बनाएको छ ।  

वित्तीय समानीकरण अनुदान

प्रदेश : ६१ अर्ब ४३ करोड

स्थानीय तह : १ खर्ब २३ करोड

सशर्त अनुदान

प्रदेश : ५७ अर्ब १ ७ करोड

स्थानीय तह : १ खर्ब ८३ करोड

समपूरक अनुदान

प्रदेश : ६ अर्ब ३० करोड

स्थानीय तह : ७ अर्ब २७ करोड

विशेष अनुदान

प्रदेश : ४ अर्ब ५६ करोड

स्थानीय तह : ९ अर्ब १४

राजस्व बाँडफाँट

१६३ अर्ब ३ करोड

'The Constitution of Nepal prevails over the MCC Nepal Compact, has no military alliance'

The Millennium Challenge Corporation (MCC) headquarters has clarified that Nepal's constitution is always above the MCC. "The Constitution of Nepal prevails over the MCC Nepal Compact," reads the clarification sent to the government today through US Embassy in Kathmandu.

Likewise, the MCC also clarified that the MCC Nepal Compact is not an agreement under the Indo-Pacific Strategy. "MCC compacts are agreements between MCC and the partner government," it reads, adding that the strong relationship between the US and Nepal long pre-dates the Indo-Pacific Strategy. "The MCC Nepal Compact is not an agreement under the Indo-Pacific Strategy, nor is it a part of any military strategy of the United States. There is no connection between the MCC Nepal Compact and any military alliance or defense strategy."

In response to a letter from the Finance Ministry, the MCC also vowed to remain committed to having open and transparent dialogue with the people of Nepal and sees this exchange as a positive step toward ratification of the MCC Nepal Compact.

"The grant programme will benefit nearly 23 million people by providing more reliable electricity and lowering the cost of transportation and energy," the reply signed by MCC vice president Fatema Sumar reads. "Recognising the immense value of the MCC Nepal Compact grant signed by the government of Nepal and MCC in 2017, MCC’s promise to help the people of Nepal has never wavered."

The response addressed to Finance Minister Janardhan Sharma also reads that it is dedicated to reducing poverty and fostering economic growth for all Nepalis. On Friday, Finance Ministry had sent a letter to MCC headquarters seeking clarification about some points in the agreement.

The MCC, according to the clarification, was established in 2004 with a singular focus on poverty reduction through economic growth in countries that are committed to democratic values such as rule of law, investing in their people, and economic freedom.

According to the response, all projects funded by the MCC Nepal Compact were selected by Nepal, in consultation with Nepal’s private sector and civil society, as projects that are important for Nepal’s own economic growth. The response today comes on the eve of the scheduled 4-day visit by vice president of the Department of Compact Operations Fatema Z Sumar. She is scheduled to visit Nepal tomorrow. Nepal is receiving $500 million in grants -- for cross border transmission line and road upgradation -- but it has become controversial with Nepali political parties sharply divided over its proposed parliamentary ratification.

Some political parties want the MCC to be implemented without ratifying it. But the response reads that MCC compacts with all MCC partner countries are international agreements governed by the principles of international law, thus seeking ratification from parliament. "Based on MCC’s experience in other countries, a compact’s status as an international agreement is critical to ensuring the implementation can proceed without delay, which is particularly important given the limited five-year implementation period of a compact,” the response reads, adding, "in practical terms, the status of an international agreement means that the implementation of compact projects will proceed in accordance with laws of Nepal except in rare instances where local law conflicts with a specific provision of the compact."

In such a case, compact projects will be implemented according to the mutually agreed upon terms of the compact and the Constitution of Nepal, it adds.

Though, in its 13-page response, the MCC has furnished clarifications to all the 11 concerns raised by the Finance Ministry, including whether the MCC agreement is above Nepal’s constitution and whether it undermines Nepal’s sovereignty, the political parties may not yet convinced.

Nepal signed the MCC in 2017. But four years down the line, the MCC is yet to be ratified by the Parliament, a prerequisite for its implementation. The incumbent Prime Minister Sher Bahadur Deuba led government had signed the MCC agreement and he is now planning to ratify it in the Parliament. But the coalition partners -- the Communist Party of Nepal (Maoist Centre) and the CPN (Unified Socialist) -- are opposed to it. They are demanding some amendment before ratifying from the parliament.

Japan supports improvements in water access and agriculture income

Japan has provided grant assistance of $701,273 (about Rs 83.21 million) for a project on improving water access and agricultural income in Sindhupalchowk district.

The project will be implemented by Peace Winds Japan to stabilise the income and livelihoods of the locals by improving access to water they need and introducing vegetable cultivation, according to a press note issued by the Japanese Embassy in Kathmandu.

"The grant contract for the project was signed by ambassador of Japan Kikuta Yutaka and acting country representative of Peace Winds Japan Yamaguchi Nana," the press note reads, adding that the project plans to build safe drinking water systems and encourage village committees for managing and maintaining the facilities.

The water supply system is expected to assist health and sanitation improvements of the area and also assist to increase agricultural production there. Promotion and support for efficient marketing of local agricultural products with the support by the project are expected to stabilise incomes of local residents.

Peace Winds Japan, Japan-based international NGO works with the Institution for Suitable Actions for Prosperity (ISAP), their Nepali partner NGO, to carry out the project in Sunkoshi and Melamchi Municipalities and Balefi Rural Municipality.

On the occasion, ambassador Kikuta said that Japan has been assisting community-based projects like this, in which we can find the improvements in people’s daily lives, by collaborating with the non government organisations to make changes especially in remote districts. "Although similar projects are facing difficulties to proceed due to Covid-19," he said, adding that Japan and Nepal can overcome the pandemic, saving peoples’ lives together by focusing on the better public health. "I sincerely hope that this project will improve the lives of people of the communities, which will lead to the prosperity of post-Covid Nepal society."

The Embassy of Japan in Nepal believes that the project will contribute towards poverty reduction by improving water access and agriculture incomes in Sindhupalchowk district, thus strengthening the cordial friendship between the peoples of Japan and Nepal.

India hands over a section of Postal Highway

 India today handed over a section of Postal Highway to Nepal.

Indian ambassador to Nepal Vinay Mohan Kwatra and minister for Physical Infrastructure and Transport Basant Kumar Nembang today jointly dedicated the Terai roads built with Indian grant assistance to the people of Nepal.

Indian ambassador and minister for Physical Infrastructure and Transport dedicated 13 of the 14 packages, which have been completed and are already being used by the people of the areas since over a year, according to a press note. "These newly completed roads have been providing smooth travel experience to people of the Terai region," the press note reads, adding that the Postal Highway directorate has issued taking over certificates in respect of five of the completed packages and is completing the documentation in respect of the remaining.

Under a Memorandum of Understanding (MoU) between India and Nepal regarding strengthening of road infrastructure in Terai region of Nepal, the government identified ten priority roads to be built under Indian funding of Rs 8 billion. "These Terai roads are also called as Hulaki Raj Marg and connect major towns located on the East-West highway with India-Nepal border," it reads, adding that these 10 roads are located in seven border districts of Province 1, 2 and 5 of Nepal and provide smooth travel experience to people of over 284 wards, 149 villages, 18 gaunpalikas, 18 Nagar Palikas and 1 sub-metropolitan city.

India funded 10 Terai roads in Nepal are built as per the specifications prescribed by the Department of Roads (DoR), the press note adds. "Each road has a seven meter carriage way and two meters of shoulders on both sides, the press note reads. The roads also include drainage, foot paths with railings in habitation areas, road signage boards, road markings and other road furniture." Under the project over 652 culverts and over 111 km of drainage network have also been built.

The project has been implemented under ‘Government of India funding and Government of Nepal implementation’ modality. "For contractual purposes the 10 roads were divided into 14 packages and the DoR awarded 14 contracts during the period October 2016 to November 2017 for their construction. "The specifications for construction of these roads were prescribed in the Detailed Project Report (DPR) finalised by DoR. It also engaged the National Highways and Infrastructure Development Corporation Ltd (NHIDCL), a Government of India undertaking as the Project Management Consultant for the project and the consultancy fee was paid by Government of India from the Rs 8 billion grant for the project.

India funded Terai roads project has helped strengthen road infrastructures in Terai region of Nepal and further boost people to people relationship between the border areas of the two countries. These completed Hulaki Roads also complement the other major border infrastructure developed by India in Nepal such as Integrated Check Posts (ICP) at Birgunj and Biratnagar and cross border railway lines. The India-funded cross-border railway line between Jaynagar in India and Kurtha in Nepal has also been completed and is ready for handing over to Nepal for running passenger train operations by of Nepal. "In this regard, both sides are working on completing the final preparations for passenger train operations," the press note reads.

During the handover ceremony, ambassador Kwatra and minister Nembang thanked officials of the Postal Highway Directorate under the Department of Roads and the National Highways and Infrastructure Development Corporation Ltd (India) and above all the people of India for their assistance and cooperation in completion of the project.

Names, length and location of the completed and dedicated Terai Road packages: 

Sl No Name of the Road Length (KM) District

1 Manmat-Kalaiya-Matiyarwa, Pkg-1 15.00 Bara

2 Manmat-Kalaiya-Matiyarwa, Pkg-2 11.66 Bara

3 Birendrabazar-Yadukuha-Mahinthpur, Pkg-1 17.00 Dhanusha

4 Birendrabazar-Yadukuha-Mahinthpur, Pkg-2  15.31 Dhanusha

5 Janakpur-Yadukuha 16.63 Dhanusha

6 Maisthan-Gaushalabazar-Samsi 26.94 Mahottari

7 Jaleshwor-Hardi 27.26 Mahottari

8 Lamahi-Koilabas 33.47 Dang

9 Kanepokhari-Rangeli 25.40 Morang

10 Kalyanpur-Barsain-Subhranpatti 17.28 Saptari

11 Tamagadhi-Simraungadh, Pkg-1  20.00 Bara

12 Tamagadhi-Simraungadh, Pkg-2  19.745 Bara

13 Birgunj–Thori, Pkg-1 25.60 Parsa

14 Birgunj –Thori, Pkg-2 – Work Ongoing 30.00 Parsa

Japanese assistance for child labour reduction project

 Japan has helped child labour reduction project in Makawanpur district.

The government of Japan has extended $265,576 (approximately Rs 30.85 million), to Shapla Neer – Citizens’ Committee in Japan for Overseas Support, under the grant assistance for Japanese NGO Projects Schemes.

Shapla Neer, an international NGO based in Japan, will work with a Nepali partner NGO, Child Workers in Nepal Concerned Center (CWIN-Nepal), to reduce child labour through strengthening the child protection mechanism in Makwanpur district, acording to a press note issued by the Japanese Embassy.

A grant contract for this project was signed and exchanged on today by Charge d’Affaires ad Interim of Japan to Nepal Yoshioka Yuzo and country representative of Shapla Neer Nepal Office Katsui Hiromi, at the Embassy of Japan in Kathmandu.

Shapla Neer Nepal Office together with CWIN-Nepal will closely coordinate with local government, stakeholders and community members to achieve a reduction in child labour through various activities to enhance the child protection capacity of local government, to support children at high risk of child labour, and to increase community awareness on child labour in Manahari Rural Municipality of Makwanpur district, the press note adds.

The Embassy of Japan in Nepal expects that the project will contribute to elimination of child labor, child trafficking, and will promote child protection in Makwanpur district. The embassy, according to the press note, is also confident that the project will strengthen the cordial friendship between the peoples of Japan and Nepal.

Japanese assistance for treating severe burns

 The Charge d'Affaires of Japan to Nepal Yoshioka Yuzo signed a grant contract with medical director of Sushma Koirala Memorial Hospital Dr Santosh Bikram Bhandari for installing medical equipment for treating patients with severe burns in Kathmandu district.

The project is funded under the grant assistance for Grassroots Human Security Projects (GGP) of the Japanese government and involves a grant of $90,550 (about Rs 10.57 million), according to a press note issued by the Japanese Embassy in Kathmandu. “The project will support the installation of medical equipment, including two ventilators and micrografting equipment.”

At the online grant signing ceremony, Yoshioka said that he believes the project will help the hospital to respond to the high demand for better services for patients with severe burns. 

The Sushma Koirala Memorial Hospital – established in 1997 – has been offering specialised plastic and reconstructive surgeries, and other medical services including the treatment of burns and post-burn contractures, deformities and plastic surgeries.

The Embassy of Japan – according to the press note – believes that the project will contribute towards improving medical services for patients with severe burns and also contribute towards further enhancing the friendship between the peoples of Japan and Nepal.

Japan provides grant assistance for the Project for Human Resource Development Scholarship

Japan International Cooperation Agency (JICA) extended grant assistance of Japanese Yen 365,000,000 under the Grant Aid scheme of ‘The Project for Human Resource Development Strategy (JDS) for the fiscal year 2020-21. Exchange of Notes for the project was signed between ambassador of Japan to Nepal Masamichi Saigo and finance secretary Sishir Kumar Dhungana on behalf of their respective governments, according to a press note issued by the Japanese Embassy in Kathmandu.
On the occasion, the Grant Agreement (GA) for the project was signed and exchanged between chief representative of JICA Nepal Yumiko Asakuma – on behalf of Japan International Cooperation Agency (JICA) and joint secretary at the Finance Ministry Shreekrishna Nepal, on behalf of the government.
JDS offers 22 scholarships out of which 20 seats are for 2-year Master’s degree and 2 seats for 3-year Doctoral programme for government officials of Nepal, who are engaged in formulating and implementing socio-economic development planning with the objective to resolve development challenges in Nepal. JDS scholarship programme is running in Nepal from 2016 and until 2020, a total of 102 government officers from Nepal are enrolled in 9 Japanese universities. This Grant Agreement is for the second batch of the second phase – from 2020 to 2023 – of JDS programme. JDS has been implementing in 15 countries since 1999 supporting the human resource development of the countries targeting highly capable, young government officials and others who are potential future leaders of partner countries.
After completion of studies the JDS Fellows are expected to engage in formulating and implementing socio-economic development plans and programs and evolve as leaders and change agents for development in their respective countries. The fellows are also expected to contribute towards enhancing bilateral relations between Japan and their respective countries with their knowledge of Japan
Since 2016 Nepal has had 80 JDS Fellows and 22 government officials are expected to go to Japan in 2020. Through the grant assistance signed today, up to 22 government officials will be selected as JDS Fellows.

India builds a block of Shree Mahadev Masta Chaturdev Campus

The administrative and academic block of Shree Mahadev Masta Chaturdev Campus, newly built under the Nepal-Bharat Maitri Development Cooperation programme at a cost of Rs 35.11 million, was formally inaugurated today via video-conferencing by representatives of Village Development Council (VDC) Ratapani, Lui in Mugu District, School Management Committee and Embassy of India in Kathmandu, according to a press note issued by the Indian Embassy in Kathmandu.
The Campus – established in 2007 – is a community owned educational institute affiliated to Tribhuvan University (TU) and approved by UGC Nepal. It offers four-year full time bachelor degree courses. Students from over 24 VDCs including Humla and Bajura study at the Campus and it has been providing various scholarship facilities for deserving students.
The construction of the new administrative and academic block was implemented by District Coordination Committee (DDC) Mugu, the press note reads, adding that the newly built infrastructure of the school is expected to boost learning environment for students. “On behalf of people and Government of India, the Embassy is happy to be associated with the project which compliments the effort of Government of Nepal in augmenting infrastructure in the field of education.”

Japanese grant for Implementation of Development of Digital Elevation Model and Orthophoto

The Government of Japan has extended grant assistance of up to Rs 1.32 billion (¥1,170,000,000) to Nepal for the Development of Digital Elevation Model and Orthophoto.
Japanese ambassador to Nepal Saigo Masamichi, and finance secretary Sishir Kumar Dhungana signed notes to this effect at the Finance Ministry here today, according to a press note issued by the Japanese Embassy in Kathmandu.
Another set of grant agreements for implementing the programme was also signed by chief representative of JICA Nepal Asakuma Yumiko, and joint secretary at the the International Economic Cooperation and Coordination Division of the Finance Ministry Shreekrishna Nepal, the press note reads, adding that Nepal, as same as Japan, is a country prone to natural disasters such as earthquakes, landslides and floods. “In particular, floods during the monsoon in the Terai region cause loss of human lives and damage a number of properties every year.”
There were incidents of large-scale inundations in 2017 and in 2019. In this regard, developing and improving of a flood warning and evacuation system has been an urgent issue.
Japanese government will cooperate with the Nepal government as much as possible to enable Nepal to become a disaster-resilient country, the press note reads, adding that the digital elevation model and orthophoto to be developed under the programme is expected to contribute towards flood-risk reduction, especially through non-structural measures. “Both the digital elevation model and the orthophoto enables the preparation of high precision hazard maps, which can identify inundation prone zones in order to assist the preparation of practical evacuation plans.”
The Embassy of Japan – in its press note – showed confident that the objectives envisaged by the project will be achieved, and contribute towards further strengthening the relationship, friendship and cooperation between the peoples of Japan and Nepal.

Planning commission finalises 654 projects to receive special grants

National Planning Commission (NPC) has finalised the list of some 654 projects that will get special grants for the current fiscal year, though half the fiscal year has already passed.
The commission has segregated the projects and programmes for the provincial governments and local governments according to their demands and requirements, the planning commission vice chair Dr Puspa Raj Kadel conformed. The delay in finalising the projects is attributed to the inability of provincial and local governments to submit their projects earlier as per the procedure developed by the commission, he said, adding that the government had – on December 11, 2018 – developed the ‘Procedure for Special Grants’ with necessary provisions regarding the grants to be provided to projects or programmes run by the provincial or local levels. “Of the total 753 local bodies, some 149 were deemed ineligible for the special grants as they did not fulfil the criteria set in the procedure.”
The commission has finalised 50 projects and programmes for seven provincial governments and 604 projects and programmes for the local governments. “While the local governments had requested special grants of Rs 12.50 billion, they were allocated Rs 4.83 billion, and the provinces had sought special grants worth Rs 22.56 billion but were allocated only Rs 4.60 billion.”
Of the total 50 projects, the commission has allocated special grants for nine projects in Province 1, seven projects in Province 2, five projects in Province 3, four projects in Gandaki Province, six projects in Province 5, some 11 projects in Karnali Province and eights projects in Sudur Paschim Province, the commission confirmed, adding that it will soon call on the provinces and local levels to submit their proposed projects and programmes for the special grants for the next fiscal year to ensure its timely execution from next fiscal year.
“No provincial or local levels shall be allowed to use the special grants in projects or programmes operated with equalisation, conditional and complementary grants or its own resources,” according to the ‘Procedure for Special Grants’.
The federal government can provide special grants for any project or programme to be run by the provincial or local governments for educational development of areas with low literary rate, lacking basic health services, sanitation, water supply and for uplift of groups or communities, equitable economic and social development, according to the federal government’s planning agency.
According to the procedure, special grants may also be provided to maintain balance among the local levels or provinces in terms of physical and human development, ensure food security in the areas with low food production, and manage waste by using modern technologies.

Local governments to get Indian aid as conditional grant

The government is going to disburse aid under India’s Small Development Project Scheme (SDPS) to local governments after channeling resources to the national budget.
The cabinet – on December 23 – approved a proposal of the Finance Ministry about ways to implement the projects to be financed under the scheme that has been in the news for all the wrong reasons. The scheme had remained controversial due to its nature of direct funding to the projects through local governments from the Indian Embassy in Kathmandu without using the Federal budgetary system.
According to the new modality, SDPS will be brought under the federal budgetary system and channeled to the local governments as conditional grants, in line with the Development Cooperation Policy introduced in May.
Conditional grant is the type of grant provided to implement a specific project and the local government cannot spend it on other projects. The government can allocate the budget for the local level from the fiscal year 2020-21 after the federal government gets the Indian aid, according to the Finance Ministry. “Under the scheme, India has been providing up to Rs 50 million to implement small infrastructure projects through the local governments.”
Earlier the grant used to go to the local levels directly raising eyebrows. But after the new constitution promulgated in 2015 required foreign assistance to be channelled through the national budget to ensure transparency in aid, the Sher Bahadur Deuba-led government in November 2017 extended the tenure of the scheme with the caveat that funds pass through national budgetary system, The Federal government will decide which agency implements the project, according to the new rule.
A cabinet meeting – in July 2018 – made it mandatory for India to sign an agreement with Finance Ministry to implement the projects under the scheme and route funds through the central account.
Launched in November 2003, the projects are popularly known as ‘umbrella agreement’, on the basis of which the Indian Embassy in Kathmandu had been extending assistance to various projects.
But bringing the Indian aid under the small grant scheme will not only promote transparency but also helps keep tab on how much money has been spent under the scheme.

US-NPRC demand MCC to be ratified immediately

The US-Nepal Policy Research Center (US-NPRC) has demanded for immediate ratification of the multi-million US dollar Millennium Challenge Corporation (MCC) compact
Saying that a failure could tarnish Nepal's international image, the US-based Center said that it wants to urge the Nepal government, the parliament and political leaders to be serious and honest in implementing the compact. “The failure on timely ratification could tarnish Nepal's international image and trustworthiness.”
The implementation of the project has to be completed within five years beginning June 2020 and the delay could hamper its timely completion," a press note issued by the centre reads.
In September 2017, the US government’s Millennium Challenge Corporation (MCC) signed a $500 million compact with Nepal. The compact aims to increase the availability and reliability of electricity, maintain road quality, and facilitate power trade between Nepal and India, helping to spur investments, accelerate economic growth, and reduce poverty..
The US-NPRC is working in the field of science, technology, education and policy through research, training, professional development programmes, and share knowledge and experience gained from research and analysis through training, seminar, and workshops in the US and Nepal.
The center has over 50 members across the US, mostly academicians.

MCC deal will be endorsed in winter session: Foreign Affairs Minister

The current winter session of the parliament is going to endorse the Millennium Challenge Corporation (MCC) grant assistance agreement.
According to foreign minister Pradeep Kumar Gyawali, the agreement with the US government will endorse the largest grant agreement related to the economic development of Nepal in the current session. “The then government led by the Nepali Congress had reached the agreement and as the government is an institution with unbroken inheritance rights there is no alternative to passing it even to enhance the credibility of the country's image in the international sector,” he said, clarifying about the MCC agreement in the National Concerns and Coordination Committee meeting – under the National Assembly – here today.
“As all the national parties have no differences regarding the MCC, it will be passed by the parliament,” Gyawali added.
After some of the standing committee members of the ruling Nepal Communist Party (NCP) raised serious concern over the MCC agreement’s link to the Asia Pacific Strategy (IPS), a debate has been started either to endorse it or not.
“MCC and IPS are different things,” he said, adding that it is not necessary to relate them together.
Claiming that the incumbent government is alert and serious regarding issues of national interest and concern, he said that doubt regarding the MCC is because of historic mistakes. “This is an agreement related to assistance by the American government in projects for the infrastructure development,” he said, adding that the conditions in the agreement, which have to be considered at the time of its signing, cannot be changed now. “The US assistance, following the successful peace process and achievement of political stability in Nepal, will give the country benefit of positive message worth billions.”
According to him, an independent and professional body has been set up in Nepal for the implementation of the MCC assistance and Nepal's authorised entity can audit its account too. A project worth $64 billion, including around $55 billion US assistance, has been pursued with the objective of developing physical infrastructure and expanding connectivity for eliminating poverty and backwardness in the Asia Pacific Region.
Nepal is – under the project – constructing a 400 kV electricity transmission line from Nanglebhare of Kathmandu to Butwal via Ratmate of Nuwakot and Tanahu, apart from, some road networks of strategic importance.