ADB’s support to TISP imminent

By Prem Khanal

KATHMANDU, July 6 - Spurred on by the success of a multi-million Second Irrigation Sector Project (SISP), which is in the final year of completion, the Asian Development Bank (ADB), the principal lender of the project, is most likely to support for Third Irrigation Sector Project (TISP).

SISP, one of the national priority projects, was initiated in 1996 with a loan assistance of US $ 25 million from ADB and $ 4.2 million from the government. The project, which also mobilized the labour of the local consumers worth $ 4.1 million, has set a target to extend sustainable irrigation facility to 41,000 hectares of land of 35 districts of the Eastern and Central Development Regions.

Ajaya Kumar Pokharel, Coordinator of the project said that most of the targets set by the project would be fulfilled within June 2000. There is high possibility that the ADB and the government would start similar third project immediately after the termination of the SISP. "Despite some problems, the ADB is positive on initiating the Third Irrigation Sector Project," he said.

He also said that there are still many probable and potential local irrigation projects in the pipeline that could be included in TISP.

Sources informed that a 2-member Fact-Finding Mission is arriving here in the near future, which will thoroughly examine the ongoing projects and will conduct feasibility study for the TISP.

Though the SISP is successful in achieving most of its targets, there are many problems to be resolved to ensure continued support from donors. Concerned people say that political intervention and inability of Local Consumer Group (LCG) to fulfill their commitment are some other major problems of the project.

As per the project rule, LCG should make certain commitment of its contribution to the project, which requires 10 and 15 per cent of rehabilitation of traditional irrigation and new construction of the total estimated cost respectively. The rule requires LCG to contribute 30 per cent of their commitment before any government fund is released for the project.

However, in some projects, LCG has failed to fulfill their commitment, due to which some of the projects faced tough problems and some even remained incomplete.

Pokheral said that the main cause of such problems was laxity in the rule. He said "Now, we have started to follow the project rule strictly and LCG must fulfill their commitment to realize government’s investment."

Another problem is the forced allocation of maintenance expenditure after the completion of project. LCG itself should raise funds for maintenance. However, in some cases, top political leaders influence the projects to release maintenance amount, which has greatly eroded the sense of responsibility of local consumers.

Similarly, growing practice of ‘top down approach’ is another emerging problem, which is against the basic principle of the project that stress on ‘bottom up approach’ which means local people themselves should first identify and demand such project.

However, political figures use their clout to take such project to their own constituencies, in some cases even without the notice of the Department of Irrigation. Recent studies have shown that low people participation in such project result in low output.

Similarly, the government has initiated preliminary homework to extend period of Nepal Irrigation Sector Project (NISP), another multi-million national priority project, funded by the World Bank, since one year. The main purpose of the extension of NISP, which is undertaking various irrigation and agriculture related activities in 40 districts of the country, is to fulfill the growing demand of local people.

The total budget allocated for the current fiscal year is Rs 1.16 billion out of which the project estimates to expend Rs 950 million. The principal objective of the project is to reform and strengthen Farmer Managed Irrigation System (FMIS) and to formulate long-term water resources strategy.

Nepali agro and food products need to be quality-conscious

Post Report

KATHMANDU, July 6 - Nepali agro and food products have to meet the minimum requirements of standard in order to continue their exports to international market in future.

As Nepal is the member of Codex, an international standard for agro and food products and is in the process of joining World Trade organization, it is imperative for Nepal to meet the requirements laid in the standard.

Since every individual nation has separate standards for agro and food products, it is internationally agreed to adopt Codex as an intermediary to resolve the problem of standardization. Therefore, Codex has a greater role to play in the import/export of agro-products.

Any nation importing agro and food products from Nepal is eligible and likely to ask for certification meeting the Codex standard.

"Any country importing agro and food products from Nepal can any time suspend buying our goods citing lack of meeting minimum standardization criteria," said Dr Dev Bhakta Shakya, Managing Director of Agriculture Enterprise Centre.

Dr Shakya was speaking at a seminar on ‘Role of Codex in the Trade Food Products’ organized by Department of Food Technology and Quality Control here Thursday.

Most of the Nepali food products do not meet the basic requirements of the Codex system as there are quite a few industries that stick labels regarding the complete information on their products.

Dr Tika Bahadur Karki, Director General of the Department of Food Technology and Quality Control, expressed the views that it calls for a national commitment to produce food products fulfilling the requirements of Codex.

The standard does not allow the use of pesticide/insecticide and any other toxic chemical. It also requires producers to mention purity, measurement and ingredients in the products.

Government attorney, Durga Bandhu Pokhrel said that the laws relating to food security are very weak. There is no provision of even taking the persons engaged in food adulterating into custody or imprisoning them in the existing laws.

Deputy Director General of the Department, Deep Jung Shah stressed on the need to create awareness among the consumers through the coordination between local administration and police.

Bankers’ President elected

KATHMANDU, July 6 (PR) - The annual general meeting of the Nepal Bankers’ Association held today has, unanimously, elected Narendra Bhattarai, the Managing Director of Nepal Bangladesh Bank as the President of the association.

According to a press release issued here today, the position of the President had fallen vacant due to the voluntary retirement of erstwhile president D C Khanna, Executive Director of Nepal Arab Bank.