Opposition sticks to 2-day bandh

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KATHMANDU, Nov 13 - The grouping of nine left parties have decided to go ahead with their call for a two-day nation-wide bandh on November 16 and 17, just when a major international conference is taking place in Kathmandu.

The parties took the decision today following -a meeting between all opposition parties, including the nine leftist groups after the government failed to reach an agreement over the revision of kerosene prices.

The meeting had initially raised hopes of the bandh being called off. However, all hopes have now been dashed since the government-opposition talks today failed to reach an agreement. The hike in petroleum prices last month is the reason why the communist groups are holding the bandh later this week.

The timing of the bandh couldn’t have come at a worse time for Nepal since the nation’s capital city is playing host to the 39th annual conference of the World Wildlife Fund which is being attended, among others, by the Duke of Edinburgh. The proposed bandh dates coincide with the last two days of the conference.

The two-day strike has broad appeal among all communist groups. Even the main opposition Communist Party of Nepal (United Marxist-Leninist), along with its left allies, and the underground Communist Party of Nepal (Maoist), has extended its support for the 48-hour bandh.

Soon after the all-party meeting today, the grouping of nine left parties issued a press statement flaying the government for its unwillingness "to reduce the price to provide relief to the people".

"Although we are not interested in the bandh, we are compelled to go ahead with it," said the joint declaration.

The group plans to distribute pamphlets and hold street corner meetings on Tuesday and chakka jam (transport strike) on Wednesday before the two-day bandh starting Thursday.

Earlier in the day, it was four rupees that made all the difference. While both the government and the opposition agreed that an all-party committee was needed to look into Nepal Oil Corporation (NOC)’s financial status, its compulsion to hike the rate and also consider the international rates, they could not agree on the price of kerosene per litre. The committee’s recommendation was to be final and binding upon both the sides.

The government did not budge from its offer - Rs 24 per litre, which was rejected by the opposition. After toying around with Rs 15.50, the opposition parties finally offered to the government side - comprising Deputy Prime Minister Ram Chandra Poudel, Finance Minister Mahesh Acharya and Minister for Industry, Commerce and Supplies, Ram Krishna Tamrakar - Rs 20 per litre.

"The opposition was generous enough to suggest a price of Rs 20 per litre on the open market and Rs 15.50 through coupon," Dr Prakash Chandra Lohani, Vice-President of Rastriya Prajatantra Party which also took part in today’s meeting told The Kathmandu Post. "The government did not agree."

Lilamani Pokhrel, General-Secretary of United People’s Front, one of the nine left parties, said that the proposal to form the committee ran into rough weather due to what he called "government’s stubbornness".

However, DPM Poudel said the government was keen to find a solution to the stalemate. "We have proposed Rs. 24 per litre and it is up to them (the opposition) what they want to do," said Poudel. "We are ready to abide by the committee’s decision if it comes to that."

CPN-UML rules out alliance with Maoists

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KATHMANDU, Nov 13 - Leader of the main opposition CPN-UML Madhav Kumar Nepal today ruled out the possibility of forming any alliance with the Maoists until they enter the national mainstream.

"It’s not possible to have any association with the Maoists until they give up arms, and enter the mainstream," Nepal said when asked if his party was considering the appeal of the Maoists to form a national alliance against the ruling Nepali Congress (NC). He was talking to The Kathmandu Post at his office immediately after on-going central committee meet of the party, today.

General secretary of the underground CPN-Maoist Comrade Pushpa Kamal Dahal " Prachanda" in his recent press statement had urged all the political forces in the country to form a coalition against the Girija (Prime Minister Koirala) faction of the ruling NC.

Reiterating his party’s stand on the peaceful resolution of the four and half year of insurgency, Nepal said his party had begun necessary initiatives to bring the Maoists to the national mainstream. "We had to take the initiative because the problem must be solved at the political level and NC alone can’t solve it," he said. "This, however, doesn’t mean that we are trying to mediate the Government-Maoist talks."

When asked to comment on the main agendas of the on-going central committee meet of the party, he said that amendments in some of (the amendable) clauses of the Constitution, Maoist insurgency problem, protest campaigns against the recent petro price-hikes and the organisational enhancement of the party were top on the list.

Elaborating on the need for the National Constitutional amendment, a party central committee member Bhim Acharya said that the Constitution needs to be amended for creating conducive environment for free and fair election, effective decentralization, greater local autonomy and eliminating discriminatory clauses against the ethnic and religious minorities.

"The Constitution should also be amended for bringing about revolutionary land reforms, which is also strategically related with the Maoist issue," Keshav Badal, another party central member added.

The three-day central meet of the party which kicked-off here yesterday might get prolonged, a party official added.

Illegal structure coming up at historic Rani Pokhari

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KATHMANDU, Nov 13 - Another illegal concrete structure is being erected overnight beside the capital city’s seventeenth century historic landmark, Rani Pokhari.

A private party has been constructing a shopping mall at Jamal, adjoining the old tempo stand just beside the Rani Pokhari. The illegal construction is coming-up on government land, without the proper clearance of Kathmandu Metropolitan City (KMC).

The Public Garden and Auditorium Development Committee (PGADC), a government body, responsible for the upkeep and maintenance of Rani Pokhari, has leased an area of 1200 sq feet at Jamal for a period of five years, at a monthly rent of Rs 15,000 per month.

"It is our land and we leased it to Praja Rajbhandari of Bhimsensthan some three or four days ago so that we could make some money out of that useless land," said Puspa Lal Shrestha, the manager of PGADC on Monday.

Praja Rajbhandari of Bhimsensthan is the person behind the construction of the mall which has not even got necessary clearance for starting the construction from the mapping department of Kathmandu Metropolitan City.

The Acting Mayor of KMC, Shyam Chitrakar said that KMC had not made any decisions about the building yet. "This building is disturbing the cultural ambience of Rani Pokhari. Not only this construction, but also the other surrounding buildings should all be demolished to revive and restore the archaeological value of Rani Pokhari," said he.

Department of Archaeology (DoA) had made a site study and wrote a letter on Nov 9 to Ministry of Local Development to stop the construction forthwith. The letter states, "Since the shopping mall disfigures Rani Pokhari, we request the government to pull down the new construction as well as other surrounding buildings."

But Shreshta of PGADC claimed that it has acquired the permission. "We received permission some three or four days ago," he asserted.

Rani Pokhari is already surrounded by a shopping mall, a restaurant, a petrol pump, police station and campus buildings from three sides.

Police Welfare Fund dubious: SWC official

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KATHMANDU, Nov 13 - The Police Welfare Fund (PWF), which claims to be a non-government organization (NGO), is neither registered with the Social Welfare Council (SWC) nor does it report its activities as required by the law, a SWC official said today.

"According to existing laws, NGOs need to seek permission from us and report to us immediately if they receive any assistance in the form of technical, financial or any other means," said SWC Under Secretary Madan Rimal.

Rimal was briefing the parliamentary Public Accounts Committee (PAC) which is investigating an agreement between the Indian Oil Corporation (IOC) and Police Welfare Fund (PWF). IOC last year had signed a deal with PWF to rebuild a petrol station on the southern perimeters of the police headquarters at Naxal.

In exchange, IOC got the exclusive rights to supply all lubricants and grease for the 45,000 personnel of Nepal Police for the next 15 years, a deal that would amount to millions of rupees.

PAC formed a sub-committee to probe into the deal under the coordination of Dr. Prakash Chandra Lohani and has N P Saud and Krishna Lal Maharjan as members.

The committee has now gone further than just investigating the deal but also the existence of PWF and its mode of operation that according to the committee members go against all norms of NGOs.

"PWF is not registered with SWC and it has not applied for approval before signing the deal with IOC," he said.

Police officials have maintained that PWF is registered as an NGO with the government. However, experts say that the process of registering it as an NGO is illegal.

The petrol station is built on southern perimeters of the police headquarters at Naxal and plans to build another one by IOC has been put on hold due to the investigations.

Inspector General of Police Pradip Shumshere Rana has already admitted that there has been a mistake in the agreement between IOC and PWF.

The Memorandum of Understanding (MoU) to this arrangement was signed by IOC and PWF on September 17, 1999 giving IOC not only exclusive rights to supply the grease and lubricants but also rights to its dealers to fix the price they want without negotiations.

Hans of WB bowing out with fruitful, but controversial, innings

By Ameet Dhakal

KATHMANDU, Nov 13 - Whoever said Nepal lacks funds for its development efforts. 

According to Hans Rothenbuhler, Country Director of the World Bank, Nepal does not have problems in funding its development. What it lacks is institutions that can use aid productively and efficiently towards the reduction of poverty.

In a nutshell, Rothenbuhler talking to The Kathmandu Post on Monday said, " ... with performing institutions," there should be no problem of foreign assistance to Nepal.

Rothenbuhler, who is retiring from World Bank soon after completing a three years stint, prepared the crucial Country Assistance Strategy (CAS) for Nepal for the first time in the Bank’s history, and tied up the Bank’s assistance with performance. The conditions imposed by CAS were criticized by many as "too harsh."

"I have no difficulty in defending the triggers of CAS, as they come up-front with an intent of improving efficiency," said he.

As the depressing results show, Nepal has failed to meet the stringent performance criteria and the World Bank’s assistance has not been very promising during the last one year. Is it a case of Bank’s aid being tied up to poor performance? "Partly yes," said Rothenbuhler.

However, he said that there were some positive signs of improvement lately and I’m hopeful about that. He pointed out the government’s initiation for financial sector reform, civil service reform and review of public expenditure system as positive pointers. Rohtenbuhler warned that any drift away from this path of reform could be costly as it has been proved in many developing countries.

Nepal saw one of the most active World Bank bureaucrats in this Swiss national with a twenty-five year long career in the Bank. He traveled extensively with his team from Humla to Ilam, and covered many places in between.

However, his activeness also led into one of the most controversial engagement of the Bank in Nepal’s public affair. The Bank issued a press statement raising serious concerns over Finance Minister Mahesh Acharya’s exit from the last government over his differences with the then prime minister Krishna Prasad Bhattarai over the appointment of Nepal Rastra Bank Governor. The Bank had then warned the government of serious consequences in the confidence of Nepal’s foreign friends, which many critics pointed out as the Bank’s "over-engagement." Rothenbuhler defended the move and said," It was not a question of an individual but of principle."

Report on NEA reform next week

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KATHMANDU, Nov 13 - A seven-member task force formed by the government to explore ways to curb further hike in prices of electricity will present its findings to the government next week, a member of the committee said.

The report which is being finalized by the committee will make suggestions and recommendations on reforms in the Nepal Electricity Authority (NEA).

"If the management of NEA is improved, the hike in electricity tariff could be controlled to a certain point," said the member. "NEA has not been running efficiently or economically like it should...There is lot of scope for improvement."

NEA which has always been the target of criticism for over- staffing and misuse of funds, assets and vehicles, increased the price of electricity by 30 per cent last year and was preparing to increase it further this year until the opposition parties in the Parliament stepped in and forced the government to abandon plans.

The committee, formed on July 21, was given 45 days to submit a report to the government.

The decision was taken by the government in the wake of mounting controversy that erupted after a U.S. dollars 50 million or around Rs. 3.7 billion loan agreement between the government and Asian Development Bank was signed that would have led to an increase in electricity tariff.

Officials said ADB had asked the government to hike the price of electricity by up to 30 per cent immediately and review the tariff every six months, besides asking NEA to put its Rate of Return at 6 per cent and self financing ratio at 23 per cent.

The task force had been formed under the convenorship of Bidhya Nath Nepal, Executive Secretary at the Water and Energy Commission Secretariat.

Other members include, Director General at the Department of Electricity Development Dr Kishor Babu Aryal, Keshar Bahadur Chand of WECS, Joint Secretary at the Ministry of Water Resources Madhav Prasad Ghimire, Officer-on-special duty at the Ministry Santa Bahadur Pun, representative of the Federation of Nepalese Chamber of Commerce and Industry, and Director of Finance at the Nepal Electricity Authority Uttar Kumar Shrestha.

Only last year, the government hiked the price of electricity by 30 per cent which currently costs Rs 6.50 per unit on an average which even officials admit makes Nepal’s electricity price the costliest in the world.

Surya Nepal Masters from Nov 22

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KATHMANDU, Nov 13 - Surya Nepal Masters Golf, the only international golf tournament organized in Nepal will be held from 22nd of November to the 25 at the Gokarna Golf Club, according to the Surya Tobacco Company, organizers of the championship.

The tournament, one of the 24 Order of Merit tournaments for Nepali and Indian professionals, is going to have 75 foreign professional golfers. In addition 11 Nepali golfers will be participating in the championship.

At a press conference held here today, the organizers said that the tournament is going to see the Nepali pros such as Deepak Acharya, Deepak Thapa Magar, Pashupati Sharma, Deoraj Pakhrin, Ghanashyam Thapa rub shoulders with the likes of Ali Sher, Feroz Ali from India, Fazal Qureshi from Pakistan and Babu Amar from Bangladesh.

The prize money for the tournament has been increased to Rs 1.2 million, at par with the PGAI (Professional Golfers Association of India) circuit, an increase of 50 per cent over last year’s tournament.

The prizes will be awarded to the golfers who finish in the top 50 with the champion getting 16.2 per cent of the total prize money.

In addition to the masters, the championship will also have Pro-Am games where local amateurs can play along with the international golfers. The Pro-Am event will be held on Nov 21.

Surya Golf includes Surya Nepal Western Open and Surya Nepal Eastern Open apart from Surya Nepal Masters. Surya Nepal Western Open was recently concluded on the 11th of November while Surya Nepal Eastern Open will be held On Nov 17 and 18.