Khimti-I formally opens today despite high price tag  

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KATHMANDU, Nov 26 - The Khimti I hydro-electricity project, which was the first privately-developed hydel project, has been commercially generating electricity since July this year.

On Monday, King Birendra is scheduled to inaugurate the 60 megawatt project at Kirne, some 170 kilometres east of here on the border between Ramechhap and Dolakha districts.

The project which is a run-of-the-river type project began to contribute to the national grid in March and by July 11, it began commercial generation. Annual generation is estimated to be 350 kilowatt hours or units.

The project is the first privately-developed hydro power project introduced since the government adopted a liberal economic policy and announced programs and policies to invite foreign investment into the country.

The project, when it was first announced in 1994, was hailed as the beginning of a new era for private investments to develop the immense hydro power potential in the country.

Over the years, as the project neared completion and began trial operation, it was not the success of a private investment that was the topic of discussion but rather the expensive power that Nepal Electricity Authority (NEA) was compelled to buy that made headlines.

At present, NEA buys power from Khimti-I at about Rs. 5 per unit and adds Rs. 1.47 for distribution costs bringing the total to Rs. 6.47 per unit. However, NEA only charges Rs. 6.27 per unit to its consumers bringing direct loss to NEA and that figure does not include other hidden losses.

"Right now power may appear expensive but in the long run this is beneficial for the country. After 20 years, 50 per cent of the project will go to NEA and 30 years after that, the entire project will belong to the country," said Ganesh Man Gurung, Consultant of the Himal Power Limited (HPL), the developer and operator of the project.

HPL officials have already ruled out renegotiating the controversial Power Purchase Agreement (PPA) and warned such an attempt would only serve to further deteriorate the climate for foreign direct investments in Nepal. The nation is said to possess a potential hydroelectricity capacity of 83,000 megawatts out of which 42,000 megawatts is feasible. At present, NEA’s power houses produce a little over 300 megawatts of electric power.

The high price tag of Khimti and similar projects have also been blamed for the escalating electricity tariff that is considered one of the highest in the region.

"It is not for us to comment on the policy of electricity tariff. It has to be asked of the government of Nepal why it is so high," said HPL General Manager Harold O. Skar. And due to the "take or pay" arrangement signed between NEA and HPL, the developer and operator of the project, NEA has to pay in full for the power generated whether it uses it or not.

This part has brought much criticism and put NEA and the government on the target as the unused power during low demand seasons goes to waste.

To make things worse, this project generates full capacity during the four monsoon months when NEA already faces massive surplus from its other power plants.

But during the winter months, when the demand is at its peak, this project generates maximum 18 megawatts only.

The US 140 million dollar project is the first major private sector hydropower project undertaken on a BOOT (Build Own Operate Transfer) structure in Nepal with a large foreign investment from commercial and multilateral financing sources.

HPL is owned 73 per cent by Statkraft, 15 per cent by Butwal Power Company and six per cent each by Alstom Power and GE Energy. The project is financed 70 per cent by loans. Following Khimti-I closely, there are at least three similar projects.

The 36-megawatt Bhote Koshi project, the 14-megawatt Modi Khola and 5-megawatt Indrawati projects are on the way and heading completion that would total private company contribution to 115 megawatt into NEA’s main grid by next year, totalling production to 428 megawatts. That is only one megawatt surplus according to demand forecasts by NEA.

But the biggest boost will be when Kaligandaki A will begin to pitch in 144 megawatts of power in the near future, after which the total generation is expected to soar to 544 megawatts leaving 110 megawatts of power as surplus.

Small cars are in as preferences change

By Bhaskar Sharma

KATHMANDU, Nov 26 - The just -concluded Auto Show 2000 underscored one big fact like never before. Nepali consumers, at least the ones who can afford a car or are planning to buy one in the future, prefer smaller, zippier models.

Cars like the Hyundai Santro, Daewoo Matiz, Tata Indica, and the new Maruti-Suzuki Alto attracted huge crowds at the Auto Show held at Bhrikuti Mandap. That, say observers, is in sharp contrast to car preferences of yore.

Whereas Nepali buyers previously favoured family sedans like the Toyota Corolla and Nissan Sunny, these days it is the small joint-venture cars from India that are taking on the market share.

The reason: these cars are "compatible to a family’s requirements." Small family cars, many of which are plying the Kathmandu roads are Daewoo Matiz, Toyota Echo and Hyundai Santro. Daihatsu Cuore and Maruti Suzuki Alto being others.

"Cars should be such so as to meet the requirements of a family. It should be affordable, comfortable and easily repairable," said Raghu Adhikari, a potential customer browsing the line of cars at the Second Auto Trade Show 2000, which concluded today. Given the conditions of the valleys’ narrow roads, small cars would be the first option that present customers would have, he says.

Such a transition in customers’ taste took place hardly within a span of two years. The reasons for customers preferring these cars are very obvious: Not only are these cars comparatively cheaper and easier to maintain, most importantly, they are also nuclear in nature.

"The days of expensive and extra-trendy big cars, especially in the Neaplese context, are gone. Small nuclear ones are the cars of the future," says Pragyan Rana, marketing manager at Sipradi Trading Pvt Ltd which distributes the Tata Indica.

The launching of a number of family cars in the country within the past one year transformed the car market, say dealers. Also, customer taste, to some extent, has also been influenced by the recent revolution in the Indian car market, when Maruti Udyog Ltd.’s monopoly in the small car segment broke leading to the launching and success of a number of other small family cars. Ensuing competition between car companies led to slashing of prices and upgrading of products, which all the better served the interests of customers.

In addition, availability of credit in the domestic financial market on easy terms seems to have played a part in increasing the customers for the small cars. "Customers are becoming more realists. They would invest on something which would be easy to maintain financially and with a comparatively high salvage value. Small cars are serving their purpose," says Rana.

CPN-ML braces for national conference

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KATHMANDU, Nov 26 - The upcoming national conference of Communist Party of Nepal (Marxist-Leninist) will prove that the party is united and people with vested interests are spreading rumours to the contrary, said Bamdev Gautam, General Secretary of the party on Sunday.

"Even the dissenting leaders, including C P Mainali, will speak from the Open Theatre on December 7," said Gautam. "Those who are indulging in rumour-mongering will be disappointed by our show of unity."

Doubts have been raised about the participation of Politburo member Mainali and some central committee members in the five-day national conference in Kathmandu. These leaders had registered their note of dissent towards the party policy forwarded by the general secretary in the four-day central organisation committee meeting that began on November 23.

However, speaking to The Kathmandu Post, Mainali said that discussion was going on within the party to find alternatives to his proposal to defer the national conference, which was not accepted. "The time to go through the policy is short. If we remove the weaknesses arising out of this, I will surely take part," said Mainali. He added there was no question of quitting the party.

Speaking to the press at a face-to-face programme organised by Reporters’ Club today, the general secretary Gautam said that no new programme will be unveiled at the conference. "Altogether there are five proposals, including one by Comrade Mainali and one by me, that will be considered at the national conference.

Gautam also said that all the political parties, including the underground Nepal Communist Party (Maoist), have been invited to the conference. "The Maoists have said their representative is going to read out a felicitation message at the Open Theatre. He admitted that his party was in regular touch with the Maoists "many of whose views are shared by our party".

When asked to spell out his party’s differences with the rebels, Gautam said that his party was against the use of violence. "We do not support the killing of so-called informers or policemen. The time is not ripe for armed struggle. We should try for peaceful change till the last; only when it will fail, there is no option but to resort to violence."

Gautam called for the unity of communist forces as the Left movement in Nepal has become controversial. He said he was not joining CPN-UML as the "rumours suggest".

The leader also said that his party was long in favour of comprehensive amendments to the Constitution "as many of its provisions are anti-people and anti-national". Welcoming UML’s demands for changes in the Constitution, Gautam, however, said that their (three) suggested changes "is nothing but much ado about nothing."

College boy missing in mysterious circumstances

KATHMANDU, Nov 26 (PR) - A 19-year-old college student who was last seen leaving for the Pashupati College from his home at New Baneshwor is missing and police have no clue of his whereabouts, relatives said today.

Relatives and friends describe Bimal Gyawali as a hard-working student who made sure he called home even if he was 30 minutes late, but he has been missing for the past five days.

Gyawali, who came to Kathmandu from Gulmi and was staying with relatives, was not affiliated with any political or student organisations, said relatives.

"The police have done nothing except than to accept our application and they have not even told us if they have a clue to the case," the missing man’s uncle Bishnu Gyawali said.

This is not the first time that a student has gone missing under mysterious circumstances.

20-year-old Sanjay Kumar Khaniya was also reported missing for six days while he was returning from Saraswati College. He was found in an unconscious state at the Bus Park with his clothes torn and body full of scars. Up until now he has not been able to say what happened to him.

Koirala camp leading in NC local elections

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KATHMANDU, Nov 26 - Former prime minister Krishna Prasad Bhattarai and his ally Sher Bahadur Deuba have been elected unopposed from Lalitpur and Dadeldhura districts respectively in the ongoing Nepali Congress local level elections.

The result have made way for both of them to represent their districts in the NC general convention scheduled for January.

However, other results of the elections coming in from various districts show that the camp led by Prime Minister and party president Girija Prasad Koirala is still leading with a "strong hold" in many districts.

According to reports that have arrived till today, it is only Kailali, Baitadi, Bardiya and Syangja districts that have showed mixed results falling in favour of either side of the camp with a minimal margin.

In Bardiya, Koirala camp has won 11 seats and Deuba camp has won 10. Likewise, Koirala camp has won 15 seats while the Deuba camp has 14 in Kailali. The result of the election in Syangja remains 11-10, falling in favour of the Koirala camp.

The situation, however, is not so close in other districts and shows a clear majority to one party or the other, mostly in favour of Koirala camp.

In Makwanpur, the Koirala camp has snatched 14 seats out of the total 21 seats. Likewise, out of 29 seats in Siraha, 21 seats have gone to Koirala camp whereas Deuba camp has won seven. The result of one seat is yet to arrive.

The standings in Mahottari is 24 seats to Koirala supporters and four seats to Deuba supporters. Koirala camp has also bagged 17 seats in Kapilvastu whereas Deuba has 13.

Our report from Kapilvastu adds that election at Vilmi VDC - 4, which could not take place due to controversies today, is likely to be held on Monday.

In Rukum, Koirala camp has won 12 out of total 14 seats - out of which two were unanimously elected. The status of the two remaining seats, however, could not be obtained. Two of the seats in Jajarkot have also been swept by the Koirala camp.

Similarly, the Koirala camp has won 14 seats while 7 have been won by the Deuba camp in Surkhet.

However, in Banke the home district of NC General Secretary Sushil Koirala, the Koirala camp has lost most of its seats to the Deuba camp. Out of total 21 seats, 12 have gone to Deuba while 7 remain with Koirala camp. The remaining two seats have been claimed by both the camps.

Unlike the results in the capital, the Deuba camp has won majority of the seats in Lalitpur district. Ten seats have been won by the Deuba camp while seven have gone to the Koirala camp. The status of four other Lalitpur seats could not be obtained. Deuba camp is said to have a strong hold in Lalitpur, where former prime minister Krishna Prasad Bhattarai was elected unopposed.

In Dang, 16 seats have been claimed by the Deuba camp while 12 are in for the Koirala camp.

The Deuba camp has also won a majority of seats in Kanchanpur. Amongst those defeated from the Koirala camp include Minister for Culture, Tourism and Civil Aviation Tarani Dutta Chataut.

Laughter, the best medicine

By Satish Jung Shahi

KATHMANDU, Nov 26 - If your modern, hectic, metropolitan lifestyle is getting you down, you might just be the right person to undergo this new therapy in town.

And, if you believe that laughter actually is the best medicine, it would be an added advantage, say officials of the Yoga and Nature-cure Research Centre (YNRC), who launched "Laughter Therapy" in the capital yesterday.

"This sort of therapy is practised in various Indian cites such as Calcutta and Delhi where the results have been fruitful," says Hari Sharan Risal of YNRC, who assists doctors in performing the therapy. There are presently three doctors performing a one hour session every Saturday at 8 a.m.

"We have doctors learned in allopathy, sexology and gynaecology who contribute in some way or other to practising the therapy on our clients," he added.

According to Risal, the therapy works on the concept of "energizing" the body glands, "some of which become jammed." "Laughing re-activates the body organs which have not been working normally," he said.

In Nepal, the idea of practising the theory in an organized manner was introdued by Dr. Tanka Nath Poudel (Pathith) at a workshop entitled Overcoming Diseases and Tensions on November 20, therapists say. Dr. Pathith, who worked on a thesis on paralysis for his PhD, is presently one of the therapists at the YNRC.

"There are even cases where patients have recuperated from stress, depression, hypertension and diseases such as diabetes," Dr. Pathith said. "As it is usually clients from cities who suffer from such conditions, the therapy best suits them."

"There is no restriction as to who can undergo the therapy. There is no age bar and even weak people suffering from various diseases can try our therapy," he adds. "After all, laughter does no harm."

People who underwent the therapy yesterday certainly feel magically rejuvenated.

"I feel like a young healthy teenager at the age of 50," says former justice Shanker Prasad Shrestha, who inaugurated the YNRC clinic at the capital’s Soaltee Mod yesterday.

According to Risal, G. B. Salyani, a medical practitioner who underwent the therapy yesterday morning, even called up in the evening to say how fresh he was feeling.

However, the saga of the therapy’s followers does not end here. "Ever since we placed an ad in the papers, we have received at least 40-42 inquisitive phone calls each day," says Risal.

Police hold newspapers to Rukum

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NEPALGUNJ, Nov 26 - Police has been holding up newspapers including Kantipur Daily, a sister publictin of The Kathmandu Post, at Salle airport from reaching the Maoist affected mid western district of Rukum since the last four days.

According to Hira Lal Khadka, proprietor of Himali Entrepreneurs Enterprises, police has been holding up the newspapers at the airport since November 22. The held newspapers include Space Time, Jana Astha, Budhabar, Janasatta and Dristi, he added.

Sub-inspector of Police, Umesh Panjiyar said, the newspapers were stopped at the airport due to orders from the higher level.

Talking to The Kathmandu Post, Deputy Superintendent of Police stationed at the District Police Office Rukum said, " We inspect all the goods being taken to the sensitive areas.

We are holding the newspapers because no authorised person has come to claim them."

Locals eager to swap land for garbage

By Razen Manandhar

CHHATRE DEURALI (Dhading), Nov 26 - The villagers of Kagatigaon are eager to welcome the capital city’s garbage with the expectation of getting facilities such as motorable roads and electricity.

The residents of this under-develoed village just 18 km north-west of the capital city stare agog whenever they see any stranger in their village. "When will you build a road though our unfortunate village?" they ask.

Jit Bahadur Balami of Kagatigaon says that he has left his six ropani of field untouched for four years in the hope of a road being constructed but there are no positive signs so far.

A project was launched in 1994 to link the hilly Okharpauwa Village Deelopment Committee (VDC) of Nuwakot with Kathmandu in a bid to develop the river valley of Kalpu Khola into a landfill site for the garbage of Kathmandu. But after two years, after 14.4 km of road had been dug, budget for the project ran dry due to political instability and the project lay in tatters.

The then government spent around Rs 6.3 million on constructing around 80 per cent of the road. Now the project is being revived, according to an officer at the Ministry of Local Development (MLD).

So much so, that 52 year old Sudharshan Ghimire of Jitpur VDC is ready to lease his 300 ropani of land in the VDC so that Kathmandu Metropolitan City could use it for dumping purposes, provided the road is built. He says, "Once the road joins us with the city, we will plant vegetables and sell them in the market."

But, the residents are acutely aware that a landfill dump in exchange for a much-longed-for road isn’t a dream deal. "There is no doubt that we need the road but I am afraid that the garbage will bring its own hazards. It is important that the landfill site is well-managed and turned into a composting plant," says a local farmer, Kaila Tamang, from neighbouring Deegaon.

After using Gokarna as a landfill site for around a decade and temporarily solving the garbage predicament by landfilling the river banks, the government has once again turned its attentions to the long-awaited project at Okharpauwa-Chhatre Deurali.

Devinath Subedi, general manager of MLD’s Sewerage Mangagement Department said the horse-shoe shaped valley, made out of rock faulting far away from human habitats is a suitable site for the permanent solution of managing more than 350 tonnes of garbage from the capital. "Although distance is a problem, from an environmental and human settlement angle, this is our best option."

He adds, "We will not have to disturb a single hut to convert this deserted valley into a landfill site."

UML lawmaker and former vice-chairman of National Planning Commission Dr Mangal Siddhi Manandhar, who played a key role in selecting and surveying the site, says that the project would have been finished long ago if there had been no political hurdles.

However, some of the villagers of Chhatre Deurali VDC of Dhading, oppose the project because the road to the landfill site does not run through their village. Chairman of Ward No 9, Ram Krishna Upreti says, "All the development works are being carried out on the Okharpauwa side whereas the landfill site actually lies in our VDC."

"We will not allow garbage in our area - no matter what the government offers. We will refuse both development and garbage," says he in irritation.

About the protests, Lawmaker Manandhar says that the government should do its homework to convince those who oppose the site. "The capital’s problem is the nation’s problem. It is the centre of the country and the nation’s economic development depends largely upon the cleanliness of Kathmandu."

Declaration to maintain roads

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KATHMANDU, Nov 26 - Public officials today signed a declaration to maintain the roads of Kathmandu valley with better coordination among concerned authorities.

Admitting of the lack of coordination among various units involved in the construction of the Valley’s roads that required steps for effective capacity building, Deputy Prime Minister Ram Chandra Poudel, Public Accounts Committee Chairman Subash Chandra Nembang, Kathmandu Mayor Keshav Sthapit among other officials today signed a "public declaration".

The Public declaration was signed by the officials of the Department of Roads, Nepal Water Supply Corporation, Office of the Auditor General, National Planning Commission, Nepal Telecommunications Corporation. It stated that the lack of coordination among these organisations while constructing and maintaining the "Valley’s roads" would be removed without delay.

The Declaration was signed at a public hearing program on "Valley Road Construction - the Report of the Auditor General’s report and Good Governance" organised by Forum for Protection of Public Interest (PRO PUBLIC).

The six public commitments also included measures for adhering to Financial Administration Rules - 2056 (BS) thereby stopping the tendency of breaking the larger projects into smaller ones and negotiating the projects through just and fair quotations.

"While constructing roads, name of the contractor, its examining engineer, its cost of construction, the time required and other related specifications would be compulsorily placed at site of the construction," states the declaration.

The declaration also states that efforts would be made for the formation of an independent body like "Office of the Chief Technical Examiner" that would monitor the technicalities of construction related works.

Meanwhile, speaking on the occasion DPM Poudel said that he would facilitate the Development Committee of the Parliament that would investigate and look for measures to remove the pitfalls in road construction.

A 10 minute documentary was shown at the programme that reflected the pathetic condition of the roads at various places within the Valley. The documentary also showed the black-topped road reaching the "influential peoples’ door".