June 30, 2006

The high-level judicial commission formed to prove repressions against people’s movement has dispatched letters summoning three former ministers including former vice chairman of the Council of Ministers Dr. Tulsi Giri, Badri Mandal and Nikshya SJB Rana for interrogations. The commission has asked the three to present themselves at the commission office on Tuesday morning (June 26). The commission is expected to summon other ministers and key royal advisors soon. Leading dailies report.

Mid-Marsyangdi Row In International Court

The multi-national contractor of the Middle Marsyangdi hydropower project has filed a case against Nepal Electricity Authority (NEA) at an international court demanding payment of additional Rs 3.68 billion. Already the cost of the project has doubled compared to initial estimations. The multinational contractors DDC-JV has filed the case during the tenure of former executive director of NEA Harish Chandra Shah. The contractor is said to have approached the court after attempts of reaching the settlement mutually failed. Kantipur daily reports.

Cop Gets Clean Chit

The committee formed to probe the incident regarding the beating up of Bharat Keshar Simha, president of World Hindu Federation and honorary ADC to King Gyanendra, by locals in Lainchaur and the subsequent response by police inspector Abhusan Timilsina has given a clean chit to him. The three-member team submitted its report to the chief of Nepal Police stating that there is no reason to take action against Timilsina. Following the report, Timilsina has resumed work at his Durbarmarga police post. “The police officials had enough grounds to handcuff Bharat Keshar Simha and his two sons. Had they not done so, the incensed mob would have set fire to Malla Hotel,” said a police official. The Police Headquarters had set up the probe panel headed by Deputy Inspector General Rabi Shrestha. Leading dailies report.

Parties Express Commitment For Himalayan Lokmarga

The main political parties have expressed their commitment for the construction of Himalayan Lokmarga (People’s Highway) that links the northern belt of the nation from Taplejung in the east to Darchula in the far west. The concept of this highway has been forwarded by Himalayan Lokmarga Citizens’ Concern Society. The highway is planned to run 1300 km at the foothills of mountains across the northern belt. The Society expects that construction of such highway would lead to emotional integration of people living in the mountainous region; physical transformation of the region; help in the sustainable exploitation of natural resources; and avert possible rebellion in the future by ensuring development and prosperity. The highway will pass through various northern hilly districts including Darchula, Bajhang, Bajura, Humla, Mugu, Dolpa, Mustang, Manang, Lamjung, Gorkha, Dhading, Nuwakot and Taplejung. Proposing that the road be named “Himalayan People’s Highway” UML general secretary Madhav Kumar Nepal announced that he would mobilize hundreds of thousands of UML militia in the construction of the road. He also hoped that the Maoists and other parties would also similarly mobilize their cadres for the purpose. “Congress is committed for this road. This road will now be constructed anyhow. No one can stop it,” said vice president of Nepali Congress (NC) Sushil Koirala. Convener of the Society Hari Bairagi Dahal said that the road has been proposed with the objective of empowering the local people. The feasibility of the highway is yet to be conducted. Nepal Samacharpatra daily reports.

Rayamajhi Commission Asks Govt To Put 13 Under Surveillance

The high-level probe commission led by Krishna Jung Rayamajhi has asked the government o put 13 persons including ministers and advisors of the previous royal regime under surveillance. Following the incident of one of the key royal advisors Sharad Chandra Shah fleeing to Bangkok last week, the commission has submitted a written recommendation to put them under surveillance. “We gave the written recommendation so that such incidents do not repeat,” said a member of the commission. Among those in the list of 13 persons include former vice chairman of Council of Ministers Dr. Tulsi Giri and former ministers Kamal Thapa, Badri Mandal, Niranjan Thapa, Tanka Dhakal, Shrish SJB Rana, Jagat Gauchan, Senate Shrestha and Nikshya SJB Rana. Likewise, the commission has also asked the government to put advisors Satchit SJB Rana and Bharat Keshar Simha under surveillance. The member added that the commission has almost completed its preliminary investigation and would start summoning these persons for interrogation within a few days. The commission had been formed to probe repression against the people’s movement by the previous regime. Kantipur daily reports.

Prachanda Smells Conspiracy

Maoist chairman Prachanda has said that conspiracies are afoot against the eight-point pact between the seven parties and the Maoists. Addressing his party cadres and militants in Barchhain of Doti district in far west Nepal, Prachanda said, “We are seeing that conspiracies are being hatched against the eight-point pact,” he said, adding, “Such conspiracies will be shattered in a few days.” He claimed that a foreign power, which had colluded with the King, is working to break the pact. He did not elaborate on the nature of conspiracy. Prachanda also added that his party was demonstrating maximum flexibility for the sake of peace in the country. Leading dailies report.

NA Takes Exception Against Prachanda’s Remarks

Nepalese Army (NA) has raised serious objections to the remarks made by Maoist chairman Prachanda last week in Baluwatar where he deplored the NA. In a statement issued by NA spokesperson Brigadier General Nepal Bhusan Chand, the NA has stated that its attention has been seriously drawn to the “objectionable remarks and accusations made by Maoist chairman Prachanda targeted at the NA.” The statement reads, “History is witness, the army has been forever committed to work under the directions of constitutional governments to protect the sovereignty and territorial integrity of the nation.” On last Friday (June 16), during a joint press conference with leaders of seven parties, Prachanda had accused the NA of having done nothing “except kill Nepalese people and rape women.” He also stated that the number of NA soldiers should be brought down to 20,000. Leading dailies report.

PM Discharged From Hospital

Following the successful prostate laser surgery, Prime Minister Girija Prasad Koirala has been discharged from the Bumrungrad Hospital in Bangkok . He is currently resting at the Nepalese Embassy there. After a final check up on Saturday, PM Koirala could return home on Tuesday (June 27), reports say. Leading dailies report.

IMF Fears For Nepal ’s Fiscal Well-Being

A three-member mission of the International Monetary Fund (IMF), led by Sanjay Kalra from Washington DC , completed their 10-day long visit to Nepal ahead of Nepal ’s budget announcement for fiscal year 2006/07. It has taken a very serious view of the status of the country’s macro-economic stability, especially of its fiscal imbalance in recent times. Currently, only Rs 3.4 billion is in government’s treasury, which is just enough to meet the salaries of civil servants for a month. With this fiscal imbalance, IMF is confused whether to continue its Poverty Reduction Growth Facility (PRGF), under which Nepal has been getting loans to the tune of about Rs 7 billion at below one percent interest rate for a three-year period. Another major concern shown by IMF is related to Nepal ’s increased domestic borrowing, says a source. During this fiscal year, the government has taken domestic borrowing amounting to Rs 11.85 billion, which is two percent of GDP that stands at Rs 539 billion as of today. As per South Asian standards, this amount is not big but according to global standards, it is ‘dangerous.’ It could ultimately hit external sector such as state of Balance of Payment, IMF views. Meanwhile, the IMF team is said to have advised the government to adjust petroleum prices and expedite privatization. The Himalayan Times daily reports.

FDI Continues To Increase

According to data compiled by the Department of Industry, despite the adverse political and security environment, the volume of Foreign Direct Investment (FDI) increased by 15 percent in the first 11 months of the current fiscal year. The Department informed that FDI worth Rs 1.82 billion came during the period – up from Rs 1.57 billion previous fiscal year. Likewise, the number of foreign-invested projects have also increased in this period. The Department approved 104 such projects in this period compared to only 58 last year. “Compared to the volume of investment, the increase in the number of projects is higher. This shows growing attraction in small-scale projects,” said an official at the department. Of the total FDI, majority have come in the service sector – Rs 900 million. The FDI have come from around 24 countries. Projects from India leads at 29 projects totaling Rs 820 million of commitments. The US is in the second place with the commitment for investing Rs 413.5 million. The number of jobs that will be created by the FDI this year will increase by 3 percent compared to the last year. Kantipur daily reports.

Maoist Leader Calls For Cooperation To Build National Capital

Stating that the country’s economy cannot prosper without industrial development, central leader of the Maoists Dev Gurung has said that his party is willing to cooperate with entrepreneurs and business community to develop the national capital. “After the change of 1950, the process of industrial development had started but due to feudal state system the national capital could not be developed,” Gurung stated, addressing a program organized by Confederation of Nepalese Industries (CNI) titled “Economic Roadmap of Tomorrow.” Gurung added that in the coming days, all forces should give common commitment for economic development. Agreeing that in the immediate term, the country would lack capital and technology for development, Gurung said support from donor agencies could be accepted to fill the gap. He said that in the new context, globalization, open market, liberalization and privatization should be used in the interest of the nation. Nepal Samacharpatra daily reports.

Sikta Irrigation Project Kicks Off

After 27 years of letting it un-utilized, the government has finally decided to construct the Sikta Irrigation Project. As interested donors have turned away from the project due to Indian opposition, the government has decided to construct it itself. The government has signed agreement with contractor this month to construct the project, which aims at irrigating 34,000 hectares of land in Banke district. The European Union, Saudi Development Fund, Kuwait Fund for Economic Development and OPEC were willing to aid the Rs 6-billion-strong project collectively but they backed down after Indian opposition. The government now has awarded the contract for headworks construction of the project at Rs 1.85 billion to a joint venture company of Chinese and Nepalese contractors called Sinohydro-Lumbini JV. The government aims to complete headworks and desilting basin construction by 2009. India had opposed the project stating that its construction would divert water from the downstream areas. The project is expected to benefit around 300,000 people in the district. Kantipur daily reports.