Elysee coming with 'too good' deal on Upper Karnali

By Binaj Gurubacharya

KATHMANDU, Oct 25 A Hong Kong-based Trust is preparing to apply to develop and operate the 300-megawatt Upper Karnali hydel project in partnership with Nepal Electricity Authority (NEA).

Elysee Trust is yet to apply formally with the government but has reached verbal understanding with NEA and the government to develop the project, according to officials at the Electricity Development Department (EDD).

The proposed project that is estimated to cost about US dollars 500  million is being proposed to generate electricity for the domestic market unlike other commercial projects that are proposed by foreign developers in the country with their main target of exporting electric power to neighbouring India.

The Elysee Trust, which according to EDD officials is a non-profit organization involved in developing projects at low costs in underdeveloped countries, is proposing to set up a joint venture with NEA.

Before applying with EDD for a survey and operating license like all other companies, NEA and Elysee would have to first set up a new company and register it with the government.

The company would have to apply with EDD who in turn would hand over the proposal to the Ministry of Water Resources. The secretary would either reject or accept the proposal and then EDD would issue the license.

"We have considered the proposal made by them and it looks very good. It is even offering NEA 30 per cent of the total share for free and wants to develop the project at the lowest cost," said a EDD official who did not want to be named.

Elysee would only take 70 per cent or less of the take and will reinvest all the profit in other projects in Nepal.

But as the saying goes 'if a deal is too good to be true it probably is,' EDD officials are saying they would first have to study their proposal and check backgrounds before jumping to conclusions.

The target set is to complete and run the Upper Karnali project by the year 2007/2008 when the country should once again begin to feel the pinch of power shortage, according to hydro power experts.

Up until then other projects that are in the line of being complete should be able to take the burden. In fact after some of the projects like Kaligandaki A project, there could be surplus electricity to replace the deficiency, load shedding and power cuts that has been a common sight in the past few years.

The 144-megawatt project when comes into operation around November next year is expected to give the country interruption-free flow of electricity.

At present, NEA's various hydel power plants produce maximum 319 megawatts of power with additional 32 megawatts from diesel-powered plants when needed.   

NEA projections show that by September next year, new projects like the 14-megawatt Modi Khola, 20-megawatt Chilime and 36-megawatt Bhotekoshi will also be up and running generating power totalling production to 428 megawatts, which would leave only one megawatt as surplus.

But the biggest boost will be when Kaligandaki A will begin to pitch in 144 megawatts of power two months later in November, the total generation for that Fall month will soar to 544 megawatts leaving 110 megawatts of power as surplus compared to 69 megawatts of deficiency a year before on that same month.

With limited number of consumers who are already becoming stingy with the rising tariff of electricity, NEA would have much surplus electricity on its hands.

Existing provisions allows Nepal and India to exchange up to 50 megawatts of power which means that much of power can be sold to neighbouring Indian states without having to sign new power agreements.

However, officials are hopeful that during the meeting of Power Exchange Committee between Indian and Nepali officials in November the limit will be raised to 150 megawatts. But the problem is electricity in India is much cheaper which is Rs. 3.70 compared to Rs. 6.27 in Nepal which would not make sense selling power for half the price.

Leasehold forestry project under cloud

By Damakant Jayshi

KATHMANDU, Oct 25 - Although the leasehold forestry project is showing signs of realising its objectives, it might not get extension due to "government's confusion and inaction".

Hills Leasehold Forage and Forestry and Development Project (HLFFDP), is due to expire in July next year. The project, currently underway in 10 districts of the country, started in 1993 with the objective of raising income of families below the poverty line and to improve the ecological conditions in the hills of Nepal.

According to Frits M J Ohler, chief technical adviser for the project, "confusion at the policy-making level in the government has sent wrong signal to the possible donors who are very impressed by the achievements of the project on poverty alleviation".

"There is no consensus among high government officials on how to move ahead," said Ohler.

Ohler also pointed that project on community forestry was still relying on foreign funding even after two decades of its commencement. "So how can anyone expect HLFFDP to become self-sustainable in just seven years?"

Ohler called for immediate strengthening of legal framework of leasehold forestry and asked the government to make the move "as the donors are ready with money".  

Jamuna Krishna Tamrakar, the project coordinator spelt out the changes necessary to strengthen the legal framework. "District Forest Officer has to be empowered to sanction land for the lease just like in the case of community forestry." At present, the proposal has to be cleared by Ministry of Forests and Soil Conservation "which might even take a year or more".

Tamrakar added that the issue of inheritance right also had to be addressed by law. At present, if one or more leaseholders break away due to migration or death, among other causes, before the completion of a third of the 40-year lease period, it is not specified who would inherit the leased land.

The Forest Act of 1993 and Forest Regulations, 1995 provides for transfer or sale of the rights of the leaseholder to another party with permission of the Ministry "if their work is satisfactory for at least one-third of the leased period".    

Two of the line agencies in the project, DOF and Agricultural Development Bank, forms leaseholder groups with a member of each family in the target area comprising a group of minimum five members and ten at most. Then degraded land is given to the group for 40 years.

"Another problem is that the degraded land is not clearly defined," said Jimnath Poudel, district forest officer of Tanahun district.

Rabi Bahadur Bista, Secretary at the MoFSC declined to answer if the Ministry was considering any changes in the Act and the Regulations. When pressed for his reaction on the charge that the Ministry was not interested in the continuation of the project, Bista lost his temper and rudely replied: "I have nothing to say."

However, he did say that the Ministry was not going to extend the project if any further loan from donors had to be taken. "The Ministry cannot pay huge interest on the loan," said Bista.

International Fund for Agricultural Development (IFAD) had given a loan of 8.96 million US dollars, more than 50 percent of which, said project Tamrakar, has been returned.

A project official questioned whether "No further loan" policy was the government's as a whole or only restricted to MoFSC.

A grant assistance of 4.83 million US dollars was given by the government of the Netherlands through UN's Food and Agricultural Organisation under technical assistance.

However, the whole grant is meant for institutional support like salary for the project staff, on training and holding seminars. In other words, not a single penny of the grant is spent on conversion of barren land into a productive one and other related activities of the lease.

"The technical assistance is essential to develop a process for the project," justified B K Singh, project consultant, adding "government is not ready to bear the expenses needed on this front."

Added Ohler, "We have had high development costs since the project is new. There were so many trials and errors."

Laxmi puja today

KATHMANDU, Oct 26 (RSS)  - On the second day of Yamapanchak, Laxmi, the goddess of wealth, is being worshipped with jubilation throughout the kingdom in accordance with time honoured tradition today.

The people worship goddess Laxmi and their wealth in the evening wishing  for prosperity.

All the nooks and corners of the House including courtyard, rooms and cowsheds are illuninated with colourful and decorative lights this evening in the belief that goddess Laxmi does not come to places which are not illuminated with lights, to please goddess Laxmi, people light lamps and spends the whole light in vigil.

The cultural programme "Bhailo" is the main highlight of the Tihar festival.

 " Kukur Tihar" or the festival of dogs  is also observed this morning.

Dogs are worshipped and offered rice and delicacies on the occasion .

Hail-stones play havoc in Kaski

Post Report

POKHARA, Oct 25 - A huge amount of paddy-crop, vegetables and fruits have been completely destroyed by hail-stones across the Kaski district.

According to Mayor of the Lekhnath municipality Saligram Poudel Monday's hail-stones has damaged the paddy-crop worth Rs 40 million and vegetables and fruit worth Rs 5 million.

The worst damage occurred in Wards - 1, 13 and 14 of Lekhnath Municipality where almost all the paddy-crop, the principal annual crop of the locals, was damaged by the hail-stones.

According to Purna Man Shakya, Chief of Agriculture Development Office, more than 60 per cent of the paddy-crop at Wards 9, 10, 11 and 15 of the municipality have been destroyed by the hail-storm.

Lower parts of Rupakot Village Development Committee, specially Ward No. 1, 6,7 and 8, experienced heavy hail-stones that has damaged the entire paddy-crop, locals said. Some of the parts of Pokhara Sub-Metropolis were also affected by the hail-stones.

A farmer from Bharat Pokhari VDC said that Monday's heavy hail-storm damaged all oranges that were almost ready and 40 per cent of paddy-crop has been smashed.

The farmers said that paddy-crop this year was good because of the fair weather, which started deteriorating since the second week of October.

Meanwhile, Speaker Taranath Ranabhat has appealed the government to provide immediate relief to the affected people of the district.

Parties form committee to review Citizenship Bill

Post Report

KATHMANDU, Oct 25 - In order to identify threat posed by the Citizenship Amendment Bill and initiate nation-wide movement against the Bill, an all party meeting today formed a committee in the convenorship of politician Ram Hari Sharma.

Other members of the committee are - former Prime Minister Kirtinidhi Bista, former speaker Daman Nath Dhungana, chairman of United People's Front (UPF) Amik Sherchan and Maniklal Shrestha. There is, however, no representation from the ruling Nepali Congress and the main opposition CPN-UML in the committee.

The committee will soon be extended to incorporate representatives from all the parties and make the programmes of the movement public. This was said at an all party meet called by the UPF.

The meeting has decided to form local level committees with members from all the political parties and pressurise the government to withdraw the Bill and stop it from becoming law. 

The Bill brought to make sixth amendment to the Nepal Citizenship Act - 1963 had been passed during the 18th session of parliament by the Lower House for the second time after the Upper House sent it back to the Lower House without any suggestions. The Bill is currently awaiting the Royal assent.

The Bill had been rejected by the Upper House saying that it could open floodgates of citizenship seekers from all sides of the border. 

"We do not intend to only pressurise the government instead provide alternatives to review the bill and make it in the interest of the country," said Amik Sherchan at the all party meet today.

Former Speaker Daman Nath Dhungana said that the Bill contradicted with the Constitution and needed to be properly reviewed.