Investment Board to approve Rs 25 billion cement factory

Investment Board of Nepal is going to approve Rs 25 billion cement factory.
The board meeting after the Tihar festival is going to approve India's Reliance Industries' Rs 25 billion cement factory for foreign direct investment, informed external affairs head of the board Ghanashyam Ojha.
The board – chaired by the Prime Minister Sushil Koirala – has received the proposal from the Reliance Industries that is owned by India's Ambani group, he said, adding that the company is planning to set up the cement factory in either the central region or the eastern region of the country. "The Department of Mines and Geology has already given its permission to the factory in mid-July."
The approval got delayed due to the board's busy schedule with the project development agreement (PDA) on Upper Karnali Hydropower Project with another Indian firm GMR.
After the board's approval – post Tihar festival that ends on October 25 – Reliance will conduct environmental impact assessment (EIA). The company will then submit the EIA report to the board, through Ministry of Environment.
After the clearance of the EIA from the board, Reliance will start the work to set up the factory, Ojha added.
Reliance has, however, demanded that the government provide 60 MW of uninterrupted supply of electricity to the factory, he said, adding that the company has demanded that it should be provided subsidy in the import of coal or other fuel for generating electricity, in case the government is unable to provide uninterrupted supply of electricity.
More cement companies both domestic and foreign investment are coming up lately as the demand for cement has increased due to construction of big infrastructure projects including hydropower projects lately.
The government – to encourage the cement industries – promised to provide access road and electricity to new cement factories. According to Trade and Exports Promotion Center (TEPC), import of cement has gone down by 19.2 per cent to Rs 3.18 billion in the fiscal year 2013-14 compared to a fiscal year ago in 2012-13, when the country saw Rs 3.94 billion worth cement import. But the country has seen rise in import of clinker as most of the domestic cement factories are dependent on imported raw material for cement that is clinker. Only few of the cement factories rely on domestic mines and majority of them have been importing clinkers.
According to central bank, in the fiscal year 2013-14, the country imported Rs 9.71 billion worth cement and clinkers that is some three per cent higher than that of a fiscal year ago in 2012-13, when the country imported Rs 9.42 billion worth cement and clinkers.

TAAN rescues 77 trekkers from Manang district

A team of Trekking Agencies’ Association of Nepal (TAAN) rescued some 77 trekkers from different parts of Manang district today.
"Of the total rescued trekkers, some 17 were Israelis, 29 Nepali support staff, five Indonesians, 10 Germans, five Spanish, four Indians, three Canadians, two Russians, and two Polish, said the association that had deployed two choppers – AS 350 B3 and MI 17 – for rescue works.
Likewise, rescue workers have recovered 10 bodies from Phu and Kangla area of Manang district.
The association had sent rescue team from land route in the Mustang side of Thorang La Pass. The team brought down five bodies – two Nepalis, two Israelis and one Polish - today. Similarly, one more body has been brought down to Jomsom. They have not been identified yet.
With today's deceased, the total number of death toll in Mustang side has reached 10. Rescue teams had recovered four bodies yesterday.
Rescue team of Nepal Army has told us that there are eight bodies near Doomcamp below Thorong Pass, second vice president of TAAN Pokhara Chapter Hari Bhujel, said from Mustang. "We will bring them down tomorrow."
According to Mustang chief district officer Baburam Adhikari, 64 trekkers from different countries, including Nepali support staff, were rescued from Mustang yesterday.
The association's executive members Ang Pemba Sherpa and Pasang Tendi Sherpa were in the rescue team, whereas TAAN president Ramesh Prasad Dhamala oversaw rescue works in Manang.
Coordinator of TAAN’s Rescue Department Keshav Pandey coordinated the rescue works from Pokhara. Likewise, first vice president Kami Rinji Sherpa, general secretary Sagar Pandey and treasurer Gopal Babu Shrestha were at TAAN Secretariat to coordinate the rescue works, while executive member Vidya Hirachan was at Tribhuvan International Airport (TIA) to facilitate the operation.

Nepal still one of the least economically free countries in the world

Nepal is still one of the least economically free countries in the world, according to an international report.

Nepal continues to be one of the least economically free countries ranking 126 out of 152 countries with an overall score of 6.16, which is slightly lower than last year's score, the annual Economic Freedom of the World report 2014 revealed. Nepal ranked 125 with a score of 6.19 last year.

The report released today in Brussels concluded that Nepal's scores reveal weaknesses in Legal System and Property Rights, Labour Market Regulations and Regulatory regime for trade and business.

The report measures the economic freedom – including levels of personal choice, ability to enter markets, security of privately owned property, and rule of law – by analysing the policies and institutions of 152 countries.

Lower level of economic freedom could be attributed as a reason behind's Nepal's inability to catch up with other developing nations which are experiencing higher levels of economic growth owing to reforms that make it easier to trade and do business.

The peer-reviewed report that uses the data of two years back is released annually. Therefore, the 2014 report provides ratings for the year 2012, the most recent year for which comprehensive data is available.

Nepal showed mixed performance in regards to all the five measured areas of economic freedom in the 2014 report. Though its ranking and scores in some of the areas have improved, Nepal’s overall performance in terms of economic freedom continues to be low.

Nepal scored less in two of the five key areas of economic freedom. Under size of government Nepal's score decreased from 7.6 in the previous year to 7.4 this year. Likewise, under regulation of credit, labour and business, the country's score slightly decreased from 6.5 in previous year to 6.4 this year.

However, under legal structures and security of property rights, the score remained unchanged at 4.2, and freedom to trade internationally, the score unchanged at 6.4, whereas under access to sound money, the score increased slightly from 6.3 in the previous year to 6.4 this year, the report added. "The score is awarded from 1 to 10, where a higher value indicates a higher level of economic freedom and a higher ranking."

The Fraser Institute – Canada's top ranked think tank – produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 90 nations and territories.

The Economic Freedom of the World Report uses 42 variables to construct a summary index and measure the degree of economic freedom of countries around the world. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of private property. Economic freedom is measured in five different areas: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally, and (5) regulation of credit, labour, and business.

According to the report, Hong Kong, once again, is the most economically free jurisdiction in the world followed by Singapore, New Zealand, Switzerland, Mauritius, United Arab Emirates, Canada, Australia, Jordan and (tied for 10th) Chile and Finland.

Likewise, the report, based on 2012 statistics (the most recent year of available data), the US that was once considered a bastion of economic freedom now ranks 12th in the world, tied with the UK, whereas Japan (23rd), Germany (28th), Russia (98th), India (110th) and China (115th) are some of the economically free countries.

However, the 10 lowest-ranked countries are Myanmar, Democratic Republic of Congo, Burundi, Chad, Iran, Algeria, Argentina, Zimbabwe, Republic of Congo and Venezuela, which retains the title of the world’s least economically free country.

Some despotic countries such as North Korea and Cuba could not be ranked due to lack of data.

Globally, the average economic freedom score dropped slightly to 6.84 out of 10 from 6.87 last year.

Like previous years, Samriddhi Foundation – one of the co-publishers of the report – has released the report in Nepal this year. The report demonstrates a strong link between economic freedom and prosperity whereby the most economically free countries have shown to offer the highest quality of life and personal freedoms.

Investment Board of Nepal, GMR sign PDA for Upper Karnali

Investment Board of Nepal and Indian company Grandhi Mallikarjuna Rao (GMR) Energy today signed Project Development Agreement (PDA) for construction of the $1.5 billion Upper Karnali Hydropower Project in western Nepal.

Investment Board of Nepal chief executive officer Radhesh Pant, president of Hydro Energy Business Unit of GMR RV Seshan and Nepal chief Harvinder Manocha signed the agreement after six years of signing of memorandum of understanding between Nepal government and India’s GMR-ITD Consortium.

The Project Development Agreement is expected to open a door for the Indian company to move ahead for financial close and construction of the 900 megawatt Upper Karnali Hydropower Project.

According to the PDA, Nepal will get 27 per cent free equity and 12 per cent (108 MW) free electricity from the project. Likewise, the agreement also ensured handover of the project, along with the 100-km transmission line, to the government after 25 years of operation.

GMR is planning to sell the remaining 88 per cent energy to India, Bangladesh and Nepal. However, the price will depend on the final project cost and the situation of demand and supply in the market on completion of the 900 MW hydel project.

Likewise, GMR will also construct a 2-MW project that will supply electricity round the year to locals. More than 2,000 people are expected to get employment opportunity from the project estimated to cost Rs 145 billion.

The project will bring road connectivity, hospital, technical school and bridge in the district.

Prime Minister Sushil Koirala, some of his cabinet colleagues, senior government officials, visiting Indian home minister Rajnath Singh and ambassador to Nepal Ranjit Rae were present at the signing ceremony at Singha Durbar in Kathmandu, on the occasion.

The agreement will be implemented with immediate effect, said deputy prime minister and home minister Bam Dev Gautam, after signing of the agreement.

"The agreement has opened the door for developing other large hydropower projects in Nepal," he added.

Likewise, wishing timely completion of the project visiting Indian home minister Singh termed the agreement a 'historic' one. "I believe this is the single biggest foreign investment in the history of Nepal," he said, adding that the success of GMR in Nepal will ensure credibility of both the company and India both.

The Investment Board of Nepal had been working hard on PDA negotiation with GMR since last June. But according to Pant, serious negotiations actually began last September. "Today's PDA agreement is the outcome of several rounds of discussions with stakeholders and has addressed issues raised by them," he said, adding that the board has prepared the PDA document according to the international norms and standards and good practices. Pant also said Nepal can buy energy at competitive market rates from the export-oriented project.

"GMR Group will mobilise 25 per cent equity capital while the remaining 75 per cent will be raised from international lenders including International Finance Corporation (IFC)," Seshan said, after signing the agreement.

There will not be any problem in raising prerequisite equity and debt capital to execute the project,” he said, adding that the GMR was confident of completing the financial closure within two years, according to the PDA. "We will implement the project within the next five years."

However, construction of re-regulating dam by GMR is yet to be finalised.

"The decision will be taken based on the consultation with Nepal government once the joint study team submits its report,” Seshan added.

According to the PDA, the Indian developer will have to build the re-regulating dam on its own, if the study report shows Upper Karnali will impact water flow for downstream irrigation project. Construction of the re-regulating dam was suggested by an independent study team has been included in the PDA document after experts and Irrigation Ministry drew attention to the matter, saying the hydropower project would affect irrigation projects.

Likewise, planning commission vice chair Dr Govind Raj Pokharel, who led the technical team to study the PDA, hoped that the PDA signing would be a first step towards the prosperity of Nepal. "It will also send message of an improved investment climate in the country," he added.

The Cabinet has approved the PDA yesterday after the Investment Board of Nepal approved the amended PDA draft a day ago on Thursday.

The government yesterday also formed a high-level task force led by Dr Pokharel for the implementation of the project that is planned to be generate power by 2021. The panel will help address problems arising during project development.

The 900-MW Upper Karnali Hydro Power project – located on Karnali river in the Surkhet, Dailekh and Achham districts – was awarded to the GMR Group through an International competitive bidding process in 2008 on BOOT model.

US summit highlights new approaches, fundsup to $70 million to build a more resilient Nepal

The US Mission in Nepal, through the US Agency for International Development (USAID), today announced – during a Resilience Summit organised in the valley – three new programmes with up to $70 million in funds that will help communities more quickly recover from natural disasters and other stressors.

The Summit brought together government officials and development experts to look for new models to solve complex and interrelated challenges such as extreme poverty, food security, and climate shocks. Working under the leadership of the Nepal government, the US government aims at saving and improving more lives, building inclusive economic growth, and decreasing the need for humanitarian assistance.

"Resilience is essential if we are to win the fight against poverty," US ambassador Peter Bodde, shared addressing the Summit. "We know we cannot prevent floods and landslides, but we can work much harder and more strategically to ensure these shocks don’t devastate families or set back hard-won development gains," he added.

"The government sees resilience as a vital framework to help alleviate poverty and promote more sustainable development, lessening the impacts of disasters," said chief guest at the Resilience Summit, vice chair of National Planning Commission Dr GovindaPokhrel. "That will take creativity, innovation, and cross-sectoral partnerships, and we are pleased that USAID is highlighting this most important priority."

The envoy announced three resilience projects –  community resilience programme, early warning flooding system, and science and technolocy competition for resilience – at the summit to help Nepal.

Up to $70 million Community Resilience Programme is an integration in disaster risk reduction and climate change adaptation into USAID’s food and nutrition security efforts in Nepal. "A quarter of Nepal’s population lives below the international poverty line of $1.25-per-day, and the programme will benefit an estimated five million of the most vulnerable in hilly regions," Bodde said.

Under the $500,000 Innovative Early Warning Flooding System, the USAID’s Office of Foreign Disaster Assistance will fund an early warning system to help protect communities in the Eastern region from flooding, he said, adding that the project will install gauges along flood-prone rivers and share real-time data with district authorities using SMS and email. "It will help save lives in the event of flood."

Likewise, a $100,000 Science and Technology Competition for Resilience programme is a call for bold and innovative solutions to 'building sustainable food security' in Nepal. "The Competition opens on September 4, and will be open to individuals, non-profits, academic institutions, and the private sector, with a focus on districts primarily in the Mid- and Far-West regions of the country," Bodde added.

अवैध सम्पत्ति आर्जन: नेपाल अझै उच्‍च जोखिममा

अवैध सम्पत्ति आर्जनमा नेपाल उच्च जोखिमयुक्त मुलुकमा परेको छ। वासेल सम्पत्ति शुद्धीकरण सूचकांक (वासेल एएमएल इन्डेक्स) ले नेपाल अझै उच्च जोखिममा रहेको देखाएको हो। गत साता प्रकाशित सन् २०१४ को वासेल सम्पत्ति शुद्धीकरण सूचकांक अनुसार नेपाल जोखिमपूर्ण अवस्थामा रहेको पुष्टि भएको छ।
एक सय ६२ मुलुकमा गरिएको अध्ययनमा नेपाल उच्च जोखिमयुक्त देशमध्ये १४औं स्थानमा परेको छ। विगत एक वर्षमा यो क्षेत्रमा नेपालले थोरै सुधार भने गरेको छ। नेपाल सन् २०१३ को सूचकांकमा एक सय ६० मुलुकमध्ये १६औं स्थानमा थियो।
नेपालले असारमा सम्पत्ति शुद्धीकरणसम्बन्धी कानुन अनुमोदन गरेर अन्तर्राष्ट्रिय वित्तीय कारबाही कार्यदल (फाइनान्सियल एक्सन टास्कफोर्स, एफएटीएफ) को कालोसूचीबाट भने जोगिएको थियो। भ्रष्टाचार, सुशासन, कानुनको प्रभावकारिता, वित्तीय प्रणालीमाथि नियन्त्रणका स्रोत, सार्वजनिक र वित्तीय पारदर्शिता, अन्तर्राष्ट्रिय लेखामानलगायत १४ विभिन्न सूचकांकको समग्र अध्ययन गरी यो प्रतिवेदन तयार गरिएको हो।
वासेल सम्पत्ति शुद्धीकरण सूचकांकले सम्पत्ति शुद्धीकरणसम्बन्धी विभिन्न मुलुकका जोखिमका बारेमा प्रकाश पार्छ। यो सूचकांकले कुन देशमा कति अवैध सम्पत्तिको ओसारपसार वा खरिदबिक्री वा हस्तान्तरण हुन्छ भन्ने भन्दा पनि त्यो देश सम्पत्ति शुद्धीकरणको मामलामा कति जोखिमयुक्त छ भन्ने प्रस्ट पार्छ।
नेपाल राष्ट्रबैंकका डेपुटी गभर्नर महाप्रसाद अधिकारीका अनुसार वासेल सम्पत्ति शुद्धीकरण सूचकांकले बृहत् सूचकांकका आधारमा अध्ययन गरेकोले नेपालले त्यसलाई चुनौती दिन नसक्ने बताए। एफएटीएफको कालो सूचीबाट हाललाई जोगिए पनि नेपालले सम्पत्ति शुद्धीकरण कानुन कार्यान्वयनमा अझै धेरै काम गर्न बाँकी छ।
नेपाल सम्पत्ति शुद्धीकरणको अन्तर्राष्ट्रिय प्रतिबद्धताबाट भने अझै खतरामुक्त भइनसकेको भन्ने वासेल सम्पत्ति शुद्धीकरण सूचकांकले मात्र देखाउँदैन। पाँच वर्षपछि हुने एफएटीएफको मूल्यांकनले नेपालको विस्तृत अध्ययन पछिमात्र नेपालको जोखिम टरेको वा नटरेको थाहा हुन्छ।
राष्ट्रबैंक वित्तीय सूचना एकाइका अनुसार सन् २०१९ को विस्तृत मूल्यांकनमा नेपालको कानुनी एवं संस्थागत संरचनाभन्दा पनि एफएटीएफले सम्पत्ति शुद्धीकरण मुद्दाका परिणाम एवं प्रकृयाका बारेमा गुणस्तरीयताको अध्ययन गर्छ।
कानुन बनाउनु र संस्था गठन गर्नुमात्र सम्पत्ति शुद्धीकरणको आशय होइन। त्यसैले पाँच वर्षपछि हुने मूल्यांकनमा कार्यान्वयनका प्रक्रिया एवं परिणामलाई अध्ययन गरेर अपराधबाट आएको सम्पत्ति रोक्‍न देशको कानुन कति सफल भयो भन्ने आधारमा मूल्यांकन हुनेहुँदा नेपालको सही परिक्षा त्यति बेला हुने वित्तीय सूचना एकाइको ठम्याइ छ।
सम्पत्ति शुद्धीकरण वित्तीय कारोबारको त्यस्तो पक्ष हो जसमा अवैध वा कसुर गरी कमाएको सम्पत्तिको वास्तविक उत्पत्ति र स्रोत लुकाउने र विभिन्न वित्तीय कारोबारको माध्यमबाट नयाँ कानुनी स्रोत सिर्जना गर्ने प्रयास गरी त्यस्तो सम्पत्तिलाई शुद्ध बनाउने प्रयास भएको हुन्छ।
सम्पत्ति शुद्धीकरणसम्बन्धी अन्तर्राष्ट्रिय संस्था वित्तीय कारबाही कार्यदलले सम्पत्ति शुद्धीकरणलाई अपराधजस्तो नराम्रो स्रोतबाट प्राप्त आम्दानीलाई छिपाउन गरिने प्रक्रिया भनी परिभाषित गरेको छ।
सम्पत्ति शुद्धीकरण निवारण संयन्त्रले जहिले पनि राज्यलाई व्यक्तिको अवैध सम्पत्तिको पछाडि लगाइरहन्छ। यसले जुनसुकै व्यक्तिले जहाँसुकैबाट र जहिलेसुकै गरेको आर्थिक वा व्यावसायिक गतिविधिलाई राज्यको निगरानीमा ल्याई गैरकानुनी आर्जन वा आर्जित स्रोतले नभ्याउने सम्पत्ति र व्यक्तिलाई कारबाहीमा ल्याउने गर्छ।
यसैगरी सम्पत्ति शुद्धीकरणअन्तर्गत वित्तीय पारदर्शिता, स्थायित्व र राष्ट्रको समग्र अन्तर्राष्ट्रिय सम्बन्ध र छविमा समेत महत्त्वपूर्र्ण योगदान गर्छ। नेपालले पाँचवर्षे सम्पत्ति शुद्धीकरण तथा आतंकवादी क्रियाकलापमा वित्तीय लगानी निवारण रणनीति तथा कार्ययोजना (२०६८-२०७३) समेत जारी गरी सकेको भए पनि कानुनको कार्यान्वयन अवस्थाको बारेमा भने अझै निगरानी गर्न आवश्यक छ।
सम्पत्ति शुद्धीकरण अनुसन्धान विभागका महानिर्देशक चूडामणि शर्माका अनुसार हालसम्म विभागले हालेको सम्पत्ति शुद्धीकरण सम्बन्धी मुद्दामा एउटाबाहेक कुनै पनि मुद्दा हारेको छैन। तर, सन् २०१९ मा हुने एफएटीएफको विस्तृत मूल्यांकनले कानुन एवं संस्थाको गठनभन्दा पनि कार्यान्वयन पक्षमा बढी ध्यान दिने भएकोले देशमा अवैध काम गरेर आय आर्जन गर्नेको सञ्जाल बढ्दै गएको छ।
कानुन कार्यान्वयनको प्रक्रिया एवं अपराधबाट जम्मा गरेको सम्पत्ति रोक्न कानुन एवं संस्था कति सक्षम भए त्यसको आधारमा नेपालको मूल्यांकन हुने हुनाले हालको अवस्थाबाट खुसी भइहाल्नुपर्ने स्थिति नरहेको राष्ट्रबैंकका डेपुटी गभर्नर अधिकारीको भनाइ छ।

Modi mesmerizes lawmakers

To the surprise of law makers, he started his speech in Nepali and neither did he try to hide India’s interest in Nepal’s hydropower but Indian Prime Minister Narendra Modi – who arrived here in Kathmandu for a two-day official visit this morning – held the parliamentarians spell bound for around one hour with his impromptu address at the Legislature-Parliament today afternoon.

Modi also recollected his older days, when as a young boy, he visited Nepal many years ago in his quest for spirituality.

Nepal-India ties are as old as the Himalayas and the Ganges, he said, “But I am eager to take the age-old time-tested bilateral relations to a new height during my stint as the Indian premier.”

Modi is the first head of the government to address the Parliament.

Lauding the Nepali Maoists efforts to shun bullet and join ballet to change the course of Nepal’s history, Modi said Nepalis can send the message to the world that history can be made from democratic process rather than from the barrel. ‘By drafting a democratic constitution of the Federal Democratic Republic Nepal, Nepali lawmakers are going to show the world a new example,” he said, adding that Nepal has a huge potential in herbal products, hydropower and tourism that can strengthen economy for the larger benefit of its people.

“Over a billion Indian populace wants to visit Nepal once in their lifetime to pay homage to Pashupatinath and the birth place of Lord Buddha,” added Modi, whose Bharatiya Janata Party came to power a couple months back, with a sweeping majority.
Preaching his development formula for Nepal, Modi said that Nepal can prosper alone by exporting electricity to India. “I want to support Nepal to make it HIT – highways, information technology and transmission line – that can transform Nepal, he said, adding that the trans-border transmission line can help Nepal import more electricity at present and export after a decade when it will have surplus power.

Likewise, he also announced a credit line of $1 billion to be used in infrastructure development and energy projects. Modi also promised to increase the number of scholarship to Nepali students.
Before addressing the Patliament, Modi, who had arrived via a special aircraft of Indian Air Force (IFC54 Boeing 737) that landed at Tribhuvan International Airport (TIA) in Kathmandu at 10:46, held discussion with Prime Minister Sushil Koirala at the Office of the Prime Minister at Singh Durbar.

They witnessed a signing ceremony of two Memorandum of Understandings – on Goitre control in Nepal and cooperation between NTV and Doordarshan – and exchange letters of the Term of Reference for Pancheshwor Development Authority. Pancheshwor Multipurpose Project – that has been delayed by 16 years after signing – is one of long due promises of Indian government that it has been failing to implement.
The two Prime Ministers also affixed the first cancellation mark on the commemorative cover issued by the Nepal Philatelic Bureau marking the visit of the Prime Minister of India, the first bilateral visit by an Indian Prime Minister in 17 years.

During the talks at Singh Durbar, Modi expressed his willingness to extend all possible support to Nepal’s peace process and its development endeavors.

Following the meeting, they also held delegation-level talks in which the two sides reviewed the overall state of bilateral relations and cooperation between Nepal and India.
They expressed satisfaction at the reactivation of Nepal-India Joint Commission with its third meeting in Kathmandu recently and directed their respective authorities to take up the implementation of the decisions taken during the Joint Commission meeting.

The two sides, on the occasion, discussed on a gamut of issues between the two South Asian neighbours, including political cooperation, trade and transit, development cooperation, water resources, earlier treaties and agreements including the 1950 Treaty of Peace and Friendship, mutual security, and boundary issues.

They also directed the authorities in their respective countries to expedite ongoing projects for their timely completion, and explore new areas of cooperation which could be taken up for mutual benefit.

In a departure from protocol, Prime Minster Sushil Koirala had personally welcomed his Indian counterpart at the international airport, where Nepal Army offered a guard of honour and a 19-gun salute to Modi.