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EU sets  aside  fund for Nepal

Nepal will also benefit from a $2.8 fund set aside by the European Union Thursday for natural disaster prevention and preparedness programmes in South Asia, reports from Brussels said.

The Commission's Humanitarian Aid Office (ECHO) said besides Nepal, the money will also go to projects in India, Bangladesh, Sri Lanka and Pakistan. 

Total money allotted for Nepal was not revealed. nepalnews.com br July 27

First Deuba cabinet meet urges settlement with Maoists

Prime Minister Sher Bahadur Deuba's first cabinet meet Thursday said his government urged security forces to use restraint to find a negotiated and peaceful solution to a communist insurgency that has claimed at least 1,800 lives in nearly six years.

The new government ordered its security forces to observe restraint and called on rebels to stop even stray incidents on violence as a member of the ruling Nepali Congress party was murdered by insurgents in Janakpur Wednesday.

Deuba said his call for an immediate cessation of hostilities by Maoists after begin elected new government head Sunday replacing Girija Prasad Koirala was "positive from the people and Maoists." "Peace is essential for development and democracy. The cycle of violence and destruction must end. There can be no development without peace," Deuba told parliament in his first address to the legislature Thursday after being elected Nepal's head of government for the second time in nearly four years.

"The government will sincerely pursue a policy of a negotiated settlement to the issue and create an atmosphere for peace," he said. He asked Maoists to eschew even random violence being reported after the temporary suspicion of clashes earlier this week. "There should be an end to violence and destruction ," he told parliament.

Deuba admitted the Maoist problem was a "by-product" of economic and social national issues. Despite the announcement of the cessation of hostilities, there have been no further developments from the government or Maoists. Deuba told parliament he will seek a problem to the Maoist issue on a national consensus involving all political parties. Deuba's initial initiative has been hailed by all national political parties.

King Gyanendra formally installed Deuba as prime minister Thursday morning. Deuba  administered the oath of office and secrecy to his 12 cabinet colleagues in the presence of the King after his formal installation as head of Nepal's new government. The entire cabinet paid floral tributes to martyrs at a memorial at Tundikhel before beginning work. 
nepalnews.com br July 26

Deuba announces government

Prime Minister Sher Bahadur Deuba Thursday made public the first 13 members of his council of ministers after four days of internal haggling in the ruling Nepali Congress to assemble a united party government.

King Gyanendra announced the government formation on the recommendation of Deuba who was appointed Sunday, a Royal Palace announcement said.

Chiranjibi Wagle has been appointed minister for Physical Planning and Works as the second man in government. Khum Bahadur Khadka, a powerful factional leader who backed Deuba in Sunday's election, has been given the home and local development portfolios as the new prime minister moves to hold talks with Maoists to end nearly six years of a communist insurgency that has claimed nearly 1,800 lives.

Dr.Ram Sharan Mahat continues as finance minister. Mahesh Acharya, confidant of outgoing prime minister Girija Prasad Koirala, was stripped of his defence ministry portfolio and given charge of the inconsequential agriculture ministry.

Foreign Minister Chakra Prasad Bastola who challenged Deuba in the government leadership is out but another Koirala relative and confidante Amod Prasad Upadhaya has been retained in the new government as education minister.

Deuba will look after the foreign , defence and several other ministries pending the expansion of the government in the second phase. P.L.Singh, a close aide of late Ganesh Man Singh, has been inducted in the government for the first time as minister for environment.

Jaya Prakash Prasad Gupta staged a comeback as minister for communications.

According to a Royal Palace notice, followings are the names of members of cabinet and their portfolios:
Names

1. Sher Bahadur Deuba- Prime Minister
Ministry of Defence, Ministry of Foreign Affairs, Ministry of General Administration, Ministry of Industries, Commerce and Supplies, Ministry of Law, Justice and Parliamentary Affairs, Ministry of Land Reforms and Managements, Ministry of Women, Children and Social Welfare, Ministry of Science and Technology

2. Chiranjibi Wagle- Minister Ministry of Physical Planning and Works	3. Khum Bahadur Kahdka- Minister Ministry of Home and Ministry of Local Development	4. Bijaya Gachhadar-Minister Ministry of Water Resources	5. Dr. Ram Sharan Mahat- Minister Ministry of Finance

6. Mahesh Acharya- Minister Ministry of Agriculture and Cooperatives	7. Jaya Prakash Prasad Gupta-Minister Ministry of Information and Communication	8. Prem Lal Singh-Minister Ministry of Population and Environment	9. Sarat Singh Bhandari-Minister Ministry of Health

10. Bal Bahadur KC-Minister Ministry of Culture, Tourism and Civil Aviation	11. Gopal Man Shrestha-Minister Ministry of Forest and Soil Conservation	12. Amod Upadhyaya- Minister Minister of Education and Sports	13. Palten Gurung-Minister Ministry of Labour and Transport Management

All ministers are of cabinet rank.  nepalnews.com br/yl July 26

Deuba to be formally sworn in Thursday

Prime Minister elect Sher Bahadur Deuba will be formally sworn in by King Gyanendra only Thursday morning at 11 AM at the Narayanhiti Royal Palace, sources said.

The King appointed Deuba head of government to succeed Girija Prasad Koirala Sunday after being overwhelmingly elected leader of the ruling Nepali Congress parliamentary party which has a majority in the 205 member House of Representatives. Difficulties in accommodating disparate factions of the party in the government is the main cause for the delay in formally assuming office and announcing an administration, party insiders said.

The first list of ministerial appoints will be formally announced at 7 AM (1.15 GMT) or several hours before Deuba's swearing-in, sources said. The first priority of the government is to get parliament's endorsement of the overall fiscal budget for 2001/2 and resolve a Maoist insurgency that has claimed 1,800 lives in nearly six years.

Deuba and the rebels have announced a temporary end to hostilities to resolve the issue. Indian Prime Minister Atal Bihari Vajpayee congratulated Deuba on his election and said New Delhi will support Nepal's peace, stability and progress.

Chinese Prime Minister Zhu Rongji called Deuba an old friend who has contributed to fostering bilateral ties. British Prime Minister, in another message, said he will support
Deuba's effort to negotiate an end to the communist insurgency and strengthen bilateral ties. nepalnews.com br July 25

UNESCO Director General arrives for four day visit

UNESCO Director General Koichiro Matsura arrived in the capital Wednesday for a four day official visit, officials said.

Matsura visits Nepal amid UN threats to delist several world heritage sites around Kathmandu Valley especially near Hanuman Dhoka and Baudhanath for failure to maintain the original character of monument zones; Nepal is trying to enlist new areas in the prestigious international list.

Matsura will visit Lumbini, the birthplace of the Buddha, also enlisted as one of the world heritage sites during his stay in Nepal as some reports said the area might be deluged by the unilateral construction of a dam down south in India. The crumbling Maya Devi temple complex depicting the nativity of the founder of the Buddhist faith is being restored jointly by His Majesty's Government, the Japanese Buddhist Federation and UNESCO.

Matsura will met senior officials including Prime Minister elect Sher Bahadur Deuba during his stay in Nepal. nepalnews.com br July 25

Bush government official arrives

Christina Rocca, the U.S.diplomat directly involved in overseeing and implementing President George W. Bush's South Asia policy, arrived in the kingdom Wednesday for a first three-day fact finding visit. At the airport, she told journalists, "I am happy to be here in Kathmandu."

The Assistant Secretary of State for South Asia arrived in Nepal on the second leg of her regional tour that will also take her to Pakistan. She will begin substantive discussions with Nepali political leaders and officials Thursday to reinforce U.S. strategic and economic interests in the kingdom, officials said.

The Bush administration will pursue independent policies with individual South Asian nations, Rocca said before coming to Nepal. The United States seeks to strengthen multi-party democracy in Nepal, she also said. nepalnews.com br July 25

Nepal Electricity Authority announces electricity tariff hike

The Nepal Electricity Authority (NEA) Wednesday announced a 2.45 percent hike in power tariff for up to 20 units of electricity effective from September 1.

Tariff has been hiked to meet increased power demand, rural electrification among other reasons, state owned Radio Nepal said. Donors have been pressing NEA to increase tariff as a condition for new loans. Overall tariff will jump 10 percent, other reports said.

The NEA has agreed to purchase 37 million units of electricity annually for 25 years from the Molniya Power Power Pvt.Ltd. under a power power purchase agreement, an announcement said. The private company runs a 5 MW hydel power unit by damming a river in Rasuwa district.

Government has privatized the power generation sector previously the monopoly of the NEA. nepalnews.com br July 25

18 killed in four traffic accidents

At least 18 persons were killed, many were injured and several others are missing in four traffic accidents in various parts of the kingdom, police said.

At least 11 persons died, 20 others were injured and some are missing when a passenger  bus fell 150 ft. off a highway into the turbulent Marshyandghi  river near Abhukharini 200 kms west of the capital.

Nine persons died on the spot while others died while being rushed to Bharatpur hospital and the capital. The bus was plying between Pokhara and Sunauli. Three persons died and seven others were seriously injured in a collision between jeep and a truck at Butwal, police said.

Another three persons were killed and two others were injured when the driver braked a speeding bus at Phulbariya in Siraha district, police said. The bus was going to Mirchaiya from Katari. 

A motorcyclist died in a head on collision with a bus at near Dhulikhel, police said. nepalnews.com br July 25

Eight killed, 15 injured in bus accident

At least eight persons were killed and 15 others were injured Tuesday morning when a passenger bus fell 150 feet down a highway into the turbulent Marshayangdhi river 200 kms west of the capital, police said quoting first reports.

The bus was going to Sunauli from Pokhara.  An estimated 60 persons were traveling in the bus. Locals and police have launched a search and rescue operation. 

The cause of the accident was not known. nepalnews.com br July 24

A day after the resignation of Girija Prasad Koirala, his sucessor Sher Bahadur Deuba and the Maoists called on Monday evening for a ceasefire in the country's six-year insurgency.

The announcement came in unprecedented fashion as Nepal Television was reading the Deuba statement calling on the Maoists to publicly announce a pledge to stop attacking police. The broadcast was interrupted with breaking news of the Prachanda statement which called on Maoist militia to suspend offensive action. This is the first time that state-controlled media has broadcast a statement by the Maoist leadership.

The statement hailed the "defeat of the Girija clique" and described Prime Minister Deuba as "progressive" and his peace appeal "comparitively positive". Prachanda added: "We take it positively that he has prioritised a negotiated solution." Although this is the first positive sign that a change of leadership in Kathmandu could have a positive outcome on peace, these hopes have been clouded by slaughter of 17 policemen in a Maoist attack in Bajura district in western Nepal on Sunday night. An unknown number of Maoists were also killed and wounded in the four hour firefight.

In his statement, Prachanda demanded that the government  "scrap all policies and decisions" taken by the Girija government to combat his forces. This is probably a reference to Koirala's plan to set up a paramilitary Armed Police Force, the Army-led Integrated Security and Development Package (ISDP) in 11 districts, and the deployment of the army in Rolpa to free abducted policemen.

In return, Prachanda asked his militia all over Nepal to "stop all pre-planned offensives for the time being" and to remain in defensive posture. But the Maoist leader was uncompromising in his long-term goal to overthrow the current parliamentary democracy and scrap the constitution.  Aside from reiterating earlier demands for the release of detainees by both sides, Prachanda laid out a three-point demand for the setting up of an interim government, a new constitution and to work towards the institutional development of a republic. 

Given the rigidity of these demands and Prachanda's uncompromising words, it is not clear where future negotiations will go. But many in Kathmandu saw it as the light at the end of the tunnel that they had been desperately hoping for.

In an interview with the BBC Monday, Deuba refused to be drawn to comment on the massacre of 17 policemen near his home district, and added: "They want to come for talks, I don't want to doubt that at the moment." He committed to consult all parliamentary parties and draw up a consensus on talks with the Maoists.  he said his priority would be to boost foreign investment in hydro-power and agriculture, revive tourism so that the country's economy could get back on its feet.
nepalnews.com kd July 23

Deuba swearing-in only on Wednesday, other details

Newly elected Prime Minister Sher Bahadur Deuba and the new government will be installed only Wednesday, he said in a very brief conversation with Nepalnews.com over telephone Monday evening.

Deuba elected Sunday was huddled with party colleagues of the Nepali Congress the whole day Monday to assemble a new government after succeeding Girija Prasad Koirala who resigned Thursday.

Deuba is trying to assemble a government that will include disparate members of his fractionalized party to ensure its longevity, sources said. Deuba declined to take the oath of office before King Gyanendra Tuesday considered inauspicious in Hindu tradition.

Deuba in a second message to Maoists Monday said he had ordered security  forces to stop operations immediately against rebels to pave the way for  talks to end a communist insurgency that has claimed more than 1,800 lives in nearly six years.

Earlier Monday, the new Prime Minister asked Maoists to stop their attacks against police targets, end Nepal's worst internal conflict, and come to the negotiating table.

Latest reports said 17 policemen were killed overnight and five were injured as 31 others survived in a rebel attack on a police outpost in Bajura district 480 ms northwest of the capital.

Deuba was unceremoniously dethroned four years ago as head of a coalition government as he tried to placate coalition members including  members of the right wing Rashtriya Prajatantra party (RPP). Members of his own party, and not the RPP pulled him down then, and his greatest challenge now is to move ahead with the total support of the majority party he now heads. nepalnews.com br July 23

USA supports democracy in Nepal

A senior official of the George W. Bush administration said Washington supports democracy in Nepal while describing the June 1 carnage at the royal palace as tragic.

"The recent events in Nepal have been tragic. We have expressed our condolences to the people of Nepal and to the current king. The county is also under stress from the Maoist insurgency. I will reaffirm our support to this young democracy and our hope that they will stay on this path despite the difficulties because the benefits of democracy are worth it," Assistant Secretary of State for South Asia Christina Rocca said before embarking on visits of India, Pakistan and Nepal Sunday.

"The United States has important strategic and economic interests in South Asia, and I hope to further these objectives," she said. The Bush administration views bilateral relations with South Asian countries independently, she said in an important message.

"We don't want to see any country in the region through the prism of a third country. With that in mind, we want to establish a strong bilateral  relationship with each country individually," she said. nepalnews.com br July 23

Chand resigns from NC chief whip

Chief whip of Nepali Congress Parliamentary Party Binayadhoj Chand resigned from the post of chief whip Monday. His resignation came following the election of Sher Bahadur Deuba as leader of Nepali Congress Parliamentary party. 

He was appointed chief whip by former Prime Minister Girija Prasad Koirala.
nepalnews.com yl July 23

Maoists kill 15 more policemen

Fifteen more policemen were killed overnight in Bajura district 480 kms northwest of the capital, one was injured and three others are missing in continuing Maoist attacks against police posts, a Home Ministry official said Monday. Thirty-four others at the outpost at Pandusen survived a three-hour assault that began at 11 PM.

Rebel casualties were not immediately available. Immediately after the reports of the rebel attack trickled into the capital, newly installed Prime Minister Sher Bhadur Deuba asked the Maoists to stop hostilities to create a conducive atmosphere  for talks to end the communist insurgency that has claimed more than 1,800 lives in nearly six years. 

The Maoist attack came barely  six hour after Deuba was elected head of government to succeed Girija Prasad Koirala. Deuba said his first priority is to end the insurgency. The fresh attack came even after releases of more than 30 abducted policemen by Maoists.

Deuba is expected to be sworn in as prime minister coinciding with the announcement of a new government. Deuba has directly negotiated with the rebels in the past and prepared a report to end Nepal's worst internal conflict. nepalnews.com br July 23

Two policemen killed, five injured in Maoist attack

Two policemen were killed and five others were injured when Maoists attacked a police post at Polang in Therathum district overnight, police said.

Tehrathum in east Nepal is not a severely insurgency affected district. A group of 200 armed rebels decamped with a big cache of arms and ammunition, police said.

Insurgents also killed one person at a village in the severely affected Surkhet district Saturday night, police said. nepalanews.com br July 22.

Gorkha Airlines crashes, all survive

All 22 passengers and crew of  a twin-eigine German built Dronier passenger aircraft survived with minor injuries while landing at Kathmandu airport on an domestic flight from Simara, airline sources
said.

There were 19 passengers and three crew. The rear wheel of the passenger aircraft burst while landing. nepalnews.com br July 22