Homework lacking for Destination 2002

By Satyendra Timilsina

KATHMANDU, Dec 20 - Just eleven days remain for the new year to set in, and yet the groundwork to realise the government’s high sounding former plans to observe the year as Destination Nepal 2002 to promote Nepal’s tourism industry at the global arena have hardly begun.

And it was only today that the eyes of the authorities opened. They held a meeting to discuss as to what could be done in the next ten days as preparations to materialise the tourism promotion year, which was announced even by the Finance Minister Dr Ram Sharan Mahat on June 9.

While scores of tourism entrepreneurs in recent days have been expressing scepticism over the success of the year-long programme, in the light of the present crisis the country is going through, sources said that this possibility was not discussed at today’s meeting.

According to sources at the Ministry of Culture, Tourism and Civil Aviation, the meeting that was also attended by the tour operators, discussed on the programmes to be held in the coming year and the promotional campaigning procedures to be adopted.

Even Birendra Kumar Deuja, Secretary at the ministry, asserted that the government will announce its plans for next year very soon. "We are preparing to announce the programmes in the next few days. We will take care to see that the programmes are organised in such a manner that they are result oriented," said Deuja.

And despite the optimism shown by some government officials over the success of the one-year tourism promotion programme, private sector entrepreneurs are frustrated over the last minute preparations. "Such a late start to materialise a programme that was decided more than a year and half is frustrating," says an entrepreneur preferring to remain unnamed.

Whatsoever, entrepreneurs opines that if the government is bent on observing the Destination Nepal 2002, than some of the former envisioned targets must be changed. "The situation today is entirely different to that of the time when the programme was formerly announced," says Suman Pandey, President of Trekking Agents Association of Nepal (TAAN). "The challenge now is to grip the existing market and to campaign more effectively."

Private sector entrepreneurs are of the view that the Destination Nepal 2002 will not succeed unless the government takes care to promote regional tourism rather than international tourism. That is especially in the light of the recent series of setbacks that the global tourism industry has, since the terror strikes in the United States, received.

Whatsoever, participants at today’s meet, according to sources, pointed out the need to announce in advance the events that would be organised during the whole year. They were of the opinion that event campaigning would be more effective than media campaigning.

Meanwhile, Tashi Sherpa, President of Nepal Mountaineering Association (NMA), said that the association is gearing up to celebrate next year that also happens to be the International Mountaineering Year. Furthermore, it is also the Golden Jubilee of the conquest of Mount Everest. To mark the event, the association is preparing to open Pokhara Museum of Mountaineering on May 29 next year.

Nepal’s loan repayment good: ADB

Post Report

KATHMANDU, Dec 20 - The Asian Development Bank (ADB), one of the principal donors to Nepal, has said that Nepal has a very satisfactory loan repayment record and the Bank is willing to continue with its assistance.

"The loan repayment record of Nepal is fully satisfactory and there is no outstanding arrears as of yet and ADB will try to continue support consistent with the bank’s policy", said Dr Richard Vokes, Resident Representative of ADB Nepal Resident Mission, speaking at a year-end press interaction today.

However, he said that the government needs to improve in the delivery of public services and public expenditure management. Areas like civil service, financial sector and decentralization should be reformed as committed by the government at Nepal Development Forum meeting held in Paris in 2000, he said.

Vokes also said that the Agriculture Prospective Plan (APP) is valid in terms of perspective, vision, strategy, but the plan/targets need reformulation. The plans/targets are set without differentiating the roles and contribution of the public and private sectors and does not include self-correcting mechanisms for revisions, he said citing interim findings of the Bank.

He also said that the year 2001 has been very unfavorable for Nepal, which have had a negative impact on the national economy. However, in terms of relationship between Nepal and ADB, it is good in that a Poverty Reduction Partnership Agreement was signed between Nepal and the Bank in October 2001, he added.

ADB has been providing soft loans for infrastructure development, governance reform and tourism sector development projects since 1969. Altogether $ 1.9 billion loan has been extended to Nepal as of yet for a total of 102 projects and $ 200 million as technical assistance.

Replying to a query, he said that the finalization of a subsidiary loan agreement has delayed loan flow to Nepal for rural electrification projects. Vokes also said that the Bank could have helped Nepal to finance its development projects by releasing the fund sooner.

In keeping with the soaring security expenditure, which has to be managed at the cost of development expenditure, the government can provide matching fund to the donor-aided development projects by reprioritizing development projects, he suggested.

Asked whether ADB would make readjustment in loans extended to tourism sector, as the sector has been facing very difficult times, Vokes said that loan to private sector could be restructured.

Apart from providing loan to Tribhuvan International Airport improvement project, ADB has given a loan of $ 15.1 million to Hyatt Regency Hotel, a private enterprise.

ADB is also going to support to enhanced economic cooperation under its South Asia Subregional Economic Cooperation (SASEC) under which Regional Technical Assistance (RETA) programme is going on. RETA is designed to support South Asia Growth Quadrangle initiatives in transportation, energy and power, environment, tourism and trade and investment and private sector.

Cargo complex mgmt to be transferred

By Manoj Rijal

KATHMANDU, Dec 20 - Civil Aviation Authority of Nepal (CAAN) is preparing to call tenders for the management transfer of the newly constructed air cargo complex at the Tribhuwan International Airport (TIA) early next week.

"CAAN is preparing to call tenders for the management of the cargo complex by Tuesday next week. The call for tenders would be published in the major dailies," said Modini Prasad Sharma, Director General at CAAN.

The government had handed the complex to the Department of Customs (DoC) for a short period on rent Sunday. The department will look after the operation of the complex until its management is handed out to private parties through tender.

"Until the tender is called by the CAAN and operation handed over, we are authorised to operate the complex," informed Balananda Paudel, Chief Customs Officer at the TIA. He also informed that the rent is yet to be finalised but it would be paid to CAAN by the Ministry of Finance later on.

The construction of the cargo complex was a part of the TIA Improvement Project, the overall work of which is likely to be completed soon. The overall project is estimated to cost US $ 47.5 million.

Asian Development Bank (ADB) is the largest investor contributing 56.8 % (US $ 27 million) followed by 23.2 percent (US $ 11 million) by Organisation of Petroleum Exporting Countries (OPEC) and 20 percent (US $ 9.5 million) by the Nepal government.

Rabindra Man Singh, President of Nepal Freight Forwarders Association (NEFFA), today said that NEFFA is keenly interested to obtain the management of the cargo complex.

"Since our job is related to cargo handling, NEFFA is well qualified to manage the newly constructed cargo complex," said he. He also said that NEFFA has unanimously decided to support only one of the private sector parties for the management of the complex. However, he refused to name out the company.

Meanwhile, ADB, the largest investor has shown no objection over the modality of the operation of the cargo complex. "We have no objection on how or to whom the management will be handed. These all comes under the internal affairs of the Nepal government," said Dr Richard Vokes, Resident Representative of the ADB in Kathmandu.

However, he expressed his opinion that the management by the private sector is usually better than the government. "Most likely the management would be given to the private sector," he said.

In the soft loan agreement between the government and the ADB, having a payback duration of 40 years with one percent annual service charge, signed on June 10, 1997, it was provisioned that the project facilities would be operated and maintained by CAAN meeting the standards of the International Civil Aviation Organisation (ICAO). Hence, it becomes clear that CAAN has the right to call tenders for the operation of the cargo complex.

The cargo complex building alone cost nearly US $ 7 million. However, including the costs of apron expansion, the total expenditure is likely to touch US $ 9 million. Officials at the ADB say that the actual spending will be known only after the Project Completion Report is prepared.

While the main storage area of the cargo complex is 7,700 square meters, the area of the 2 storeyed office of the complex is about 2,500 square meters. The complex is the most well-equipped for cargo handling. While pilferage and losses during cargo handling is expected to go down substantially, the availability of cold storage facilities are likely to conserve even the easily degradable items like fruits for longer durations.

Hanil Construction Company Ltd, Korea in joint venture with Koneco (Pvt) Ltd, Nepal had carried out the construction works of the cargo complex.