More World Bank aid in the offing for Nepal

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KATHMANDU, Dec 20:A crucial meeting of World Bank (WB) Board of Executive Directors held in Washington DC has decided to upgrade Nepal into the ‘base case’ scenario from existing ‘low case’ scenario in the World Bank’s lending category.

The latest upgrade means Nepal now would receive loan assistance worth US$ 100 million annually or more depending upon the sustained progress that Nepal makes in accelerating reforms. Prior to the graduation, Nepal was in low case category, under which Nepal used to get annual loan assistance of upto US$ 50 million.

But, the Board of Directors has clearly warned that the future resource availability from the bank would largely depend upon the acceleration of reform process in Nepal. "The board agreed that resource availability would move in parallel with the Nepal’s performance on reforms," states a press release issued here today.

The much-awaited graduation into the base case has come as a result of serious efforts of Nepal in simulating reform process. "The latest decision is important for Nepal as it sends a positive single among the donor community over Nepal’s commitment on reforms," said Shankar Sharma, vice-chairman of the National Planning Commission.

The graduation is based on the progress report of the Bank’s Country Assistance Strategy (CAS) that was formulated in 1998 and fulfillment of most of the conditions of CAS ensured the graduation. "Progress in the implementation of a wide range of reforms over the past 12 months could earn Nepal a significant increase in the availability of WB resources for the country’s development," states the release.

Similarly, the meeting also vowed to continue bank’s support for accelerating financial sector reforms. "Endorsing Nepal’s efforts at reforming its ailing banking sector, the Board also approved a US$ 16 million credit on support of a Financial Sector Technical Assistance Project," states the release. This newly announced assistance is a part of a financing plan totaling US$ 30.1 million and the rest would be financed by Governments of Britain and Nepal.

The meeting also discussed the present political turmoil of Nepal and expressed satisfaction that despite all the turbulence, a wide range of reforms has been under implementation. "It is obvious that there are serious security concerns and political uncertainty, but when one looks past them, one can sees an impressive records of reforms sustained by the successive governments over the last year or so," said Ken Ohashi, the WB’s Country Director for Nepal.

The meeting also praised the progress made in fighting against the worsening poverty through the adaptation of Poverty Reduction Strategy, which has been incorporated in the Tenth Plan and recent efforts to fight against corruption. Similarly, the meeting also extolled the effective implementation of Immediate Action Plan (IAP) and noted that "the IAP is being implemented with a vigor and seriousness."

The meeting also stated that the a new Country Assistance Strategy would be formulated next year and until then the government emphasis on acceleration of decentralisation, among others would guide the bank’s assistance to Nepal, the release further says.

The meeting also sketched the three main core areas that the future assistance on financial sector reforms would rest upon. These include restructuring and re-engineering of the central bank initiating the reforms of the two largest commercial banks to protect the financial integrity and to prepare the banks for further steps of restructuring.

Similarly, helping to improve the environment for financial sector reforms, particularly in the areas of enhancing credit information, better financial news reporting and better training for the staff in financial institutions is another core area that the assistance would concentrate on.

India extradites six hospitalised ‘Maoist rebels’

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KATHMANDU, Dec 20:Indian police today extradited six Maoist rebels receiving treatment in Bihar’s Sitamadi to the Nepali officials for necessary action, according to police. The government had officially approached the Indian government to extradite them in Nepal for legal action after local- level initiatives failed to materialise.

The injured rebels were extradited on the Nepal-India border. High-ranking Indian police officials from Sitamadi were also present during the extradition.

Deputy Superintendent of Police Uttam Bahadur Karki said they were undergoing treatment at a private nursing home after being seriously injured during a massive attack on an area police post in Sindhuli’s Bhiman on September 7. A total of 49 policemen and scores of rebels were killed during the battle.

The injured rebels, extradited by the Indian police, have been identified as Dinesh Sharma of Dhanusha, Dinesh B.K. of Dharan, Rupa Budhathoki of Jhapa, Sabita Sharma of Sarlahi, Ram Kailash Sah and Shuresh Sah, both of Jungwa Kabilas.

NC rally on January 5 to protest against royal move

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KATHMANDU, Dec 20:Nepali Congress (NC) today announced a nation-wide rally on January 5 to protest against the royal move of October 4, by which King Gyanendra dismissed the Sher Bahadur Deuba government. The party is demanding restoration of sovereign powers on the people.

The party is mobilising its district level organisations across the country in a peaceful manner to impress upon the king the need to make correction in the constitutional process. The rally is also being organised to press for the redressal of the hardship faced at the local level. Main among them is the restoration of law and order and security from the Maoist rebels.

Govinda Raj Joshi, joint general secretary of the party, said, "Protestors will submit a memorandum to the chief district officers of each district. The demands will range from maintenance of law and order to redressal of the grievances of the people at the grassroots level."

The party is currently conducting awareness generation programmes against the royal move. It has conducted nearly nine major rallies including one in the capital.

Meanwhile, President of the party Girija Prasad Koirala left for New Delhi today. Although the visit is a private one, Koirala is scheduled to meet Indian Prime Minister Atal Behari Vajpayee, former prime ministers and leaders of various political parties.

Party spokesman Arjun Narsingh KC declined to shed light on the possible agenda Koirala will take up with the Indian leaders during his seven-day visit.

MCC, PWG camps in Nepal hills, claims Indian envoy
‘Nepal is not India-locked, but India-open’

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KATHMANDU, Dec 20:At a time when there are reports that the southern neighbour is allegedly sheltering the Maoists, India’s Ambassador to Nepal Shyam Saran today claimed that two Indian terror groups, the Maoist Co-ordination Committee (MCC) and the People’s War Group (PWG), are in training camps in mid-hills of Nepal.

Saran made the remarks at a face-to-face programme at the Reporters’ Club. The remarks came as the ambassador explained how the open border between Nepal and India had made criminal elements to cross the border with ease.

Admitting that there could be Maoists among the Nepalis crossing into India through the open international border, Ambassador Saran said, "We also have reports of MCC and PWG cadres from India going to training camps in western mid-hills of Nepal."

Saran’s predecessor, late Deb Mukharji, at a similar programme at the same venue some months ago, had admitted then that the Maoists had contacts with the MCC from Bihar and the PWG, mainly from Andhra Pradesh in the south, both declared terrorists organisations in India.

Although Ambassador Saran, in his opening address, blamed the open border enabling the Maoists from crossing into India, he denied India was giving any safe haven to the Maoists. Instead, the ambassador reiterated that India attached highest priority to its relations with Nepal for sharing a long and open border which in turn reflected the closed people to people contact.

He ruled out Indian mediation between the government and the Maoists and stressed that there was no room for any third country. "We believe people of Nepal are capable of solving the problem themselves." The ambassador also ruled out any joint Nepal-India military action against the Maoists in either country. Reiterating India’s pledge to act against the Maoists in India, if found, he suggested both the countries should sit together and exchange information and intelligence.

Speaking on the current situation in Nepal, Saran suggested that the way to political stability and economic recovery in Nepal lay on "the adherence to the twin pillars of constitutional monarchy and multi-party democracy".

Both through his statement and while answering the questions by the reporters, the Indian ambassador urged Nepal not to view India suspiciously or as a threat. "Do not see Nepal as India-locked, see it as India-open." The envoy said that there was a huge market in India for Nepali goods and it should be tapped. He also suggested to develop tourism market in Nepal to lure Indian tourists who are visiting other parts of Asia in millions of number.

On SAARC, Saran blamed Pakistan for postponing the 12th Summit that was scheduled to be held in Islamabad on January 11-13. Denying that India and Pakistan were affecting the regional body, he pointed out that there was functional co-operation between the two countries in matters relating to the seven-nation organisation. He also denied India was redefining its role vis-à-vis SAARC.

India’s former foreign secretary J N Dixit had argued in a recent article that India should examine the relevance of SAARC in its present form as a forum for regional co-operation in the context of the record of its performance during the last 17 years. Saran also said "SAARC was alive and kicking" in replying to a question.

On Bhutanese refugee, he reiterated the long-held Indian position that it was a bilateral problem between Nepal and Bhutan and hoped that the two sides would solve it amicably. He denied any knowledge of Bhutanese refugees being debarred from crossing over to Bhutan through India. "I have no information about the march being stopped." Referring to power necessity by India, the ambassador said India would purchase it from any source that supplied cheap power.

Replying to yet another question, Ambassador Saran said that India was ready to discuss any article of the Sugauli Treaty of 1816 and the Nepal-India Friendship Treaty of 1950. Recently, the Maoists said that they would press for changes in the Sugauli Treaty.

Nepal’s dream run ends with 27-run loss in semis

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KATHMANDU, Dec 20:Nepal’s campaign in the U-15 Asia Cup ended today following a 27-run loss to Pakistan in the semi-final match at Dubai Cricket Club Ground I in UAE.

Nepal failed to capitalise on the initiative laid on by bowlers, who did wonderfully well to restrict Pakistan to 117 in 36.3 overs after captain Raj Shrestha won the toss and elected to field first in the match.

Pakistan will play with Sri Lanka in the final on Sunday after the latter beat India by four wickets in the other semi-final.

Nepal had a dreadful start, losing the first wicket at one, when opener Sunil Jain fell leg before to Nasir Ahmed without scoring. Nepal never really recovered from there as it slumped to 90 all out in 37.1 overs.

Sarad Veswakar (3) became the second victim of Ahmed, caught behind by wicket keeper Owasis Ahmed and Pawan Das once again paid the penalty for his poor running between the wickets, being run out for four.

Pakistan maintained the pressure through its pace attack and Sardar Nawaz claimed the wickets of Paras Khadka (8) and Ravi Thapa (1) while Mohamad Jamshaid removed Mahesh Chhetri (1) to leave Nepal reeling at 28-6.

Skipper Raj Shrestha (15) and Irfan Siddiqui, who top scored with the bat making 22, added valuable 39 runs for the seventh wicket to raise Nepal’s hopes. But spinner Raza Ali Dar lured Shrestha to get him stumped by Owasis Ahmed, leaving the tail wide exposed.

That allowed another spinner Suleman Ali to do the rest of the job as he claimed the last three wickets, including that of Siddiqui, which brought an end to the Nepali innings.

Earlier, Nepali bowlers gave Pakistan some scare reducing it to 25-3. Pakistan lost its first wicket at seven when Paras Khadka removed Fayyaz Ahmed for nought. Deepak Shrestha claimed the next two wickets of opener Suleman Ali (4) and Fazal Mohamad (11).

But some sensible batting by the Pakistan middle order batsmen steadied the innings defying Nepali attack. Adnan Raza Ali and Sardar Nawaz each put on 25 runs while Salma Akbar (13), Nasir Ahmed (12) were other contributors. Nawaz was rewarded with the man of the match award for his all-round effort.

Nepali lads impress ACC

KATHMANDU, Dec 20 (PR) – The U-15 Asia Cup may be over for Nepal. But young cricketers from the Himalayan Kingdom have done enough to catch the imagination.

According to officials of Asian Cricket Council (ACC), some of the Nepali players are likely to tour Sri Lanka in February or March next year with the Asia under-15 team from among the non-Test playing teams that participated in the tournament.

"Top performers from the non-Test playing teams in this tournament will be picked for a tour of Sri Lanka," Zakir Hussain Syed, Development Manager of the ACC, was quoted as saying in the online edition of Gulf News. "We are really impressed by the performance of Nepal, who beat a Test playing country…We want the boys to learn more and the Sri Lankan tour will be a kind of incentive," he remarked.

"They also need to get a feel of the longer version of the game, and hence the two-day matches. Most likely the manager of Nepal, which was the most outstanding team among the non- Test playing countries, will be appointed as the manager of this Asian team," informed Syed, who is eager to have more tournaments in Asia.

Doctored metres taking taxi passengers for a ride

By Bikash Sangraula

KATHMANDU, Dec 20:Reena Poudel of Kathmandu gets furious every time she travels by taxi, not because the taxi-driver is a foul-mouthed male but because the taxi fare metre plays truant.

"I have been paying different fares for travelling exactly the same distance. This month itself, I’ve paid fares ranging from Rs 50 to 75 travelling from my home at Bishalnagar to New Road," the flustered housewife told The Kathmandu Post.

"Buses have fixed prices for fixed locations, and so do the three-wheelers and micro-buses that operate at various transportation stops in the city. However, in the case of the metered taxis, you can never be sure how much you end up paying," voices Sangita, a teacher.

Examples of taxi-fare fluctuation abound aplenty in the city of gods. Many passengers believe that it is due to faulty meters. Were that the case, the manufacturers and Nepal Bureau of Standard and Metrology (NBSM), the organisation responsible for checking the functioning of meters, would have to bear the brunt of the passengers’ ire. However, things appear to be far more complicated than that.

According to Sitaram Joshi, Deputy Director of NBSM, taxi drivers deliberately de-calibrate the meters to as much as twice the call rate, to fleece exorbitant fares from unsuspecting passengers.

"The department has been conducting regular checking, in collaboration with the traffic police, to identify and punish the culprits of meter de-calibration," Joshi told The Kathmandu Post, adding, "We undertake checking once a week. This week itself, we identified more than 50 taxis with faulty meters".

Officials at NBSM opine that checking once a week is inadequate. According to Joshi, the taxi drivers have grown wise and do not ply on routes where checking is being conducted. Since de-calibration of meters is a trick not unknown to most of the taxi drivers, the irregularity has grown dramatically in recent years.

Indra Prasad Neupane, Superintendent of Police of Valley Traffic Office told The Kathmandu Post, "We are willing to conduct checking on an everyday basis. However, NBSM lacks the manpower and it has only one equipment for identifying faulty calibration."

Neupane opines that there is absolutely no other way to stop this irregularity except finding and punishing the culprits severely enough to scare away others from the practice.

The taxi drivers, on the other hand, are a happy lot. According to Ram Krishna (name changed), a taxi-driver, operators in the city and throughout the country have been taking advantage of techniques that speed up the taxi fare meters.

"Many taxi drivers are making a lot of money manipulating the meter," he discloses, and adds, "Every evening you rotate the metre back a couple of hundred rupees so that the owner doesn’t charge you extra."

Since, the driver, as is generally the case, pays a fixed monthly sum to the owner and pockets the rest, the owner has no logical interest in manipulating the meter.

"It is useless arguing. They point at the fare meter and we have no option but to pay," says Anju Gurung, a regular taxi passenger.

India blocks overhead space to aircraft carrying Belgian arms

By Surendra Phuyal

KATHMANDU, Dec 20:An aircraft carrying a consignment of sophisticated arms to Nepal from Belgium has got stuck in central Asia for the last one week following denial from authorities in India to give "overflying permission" to the special cargo flight steering its way into Nepal through Indian airspace.

The Wallon (south Belgium)-based arms manufacturer, Fabrique Nationale (FN) Herstal, owned by the Belgian government, announced the delivery of the first shipment of Minimi machine guns to the Royal Nepal Army (RNA), December 14. What that meant was that the shipment of Minimi machine guns should have arrived in Nepal shortly afterwards. But that did not happen.

The delivery is part of the 25 million Euro arms deal hammered out earlier this year by the Sher Bahadur Deuba government, which was fired following a royal proclamation on October 4. Under the deal, the Belgian government is to deliver 5,500 Minimis to the RNA, which joined the civilian and the armed police forces last year to fight Maoist insurgency.

Highly placed sources in the Royal Nepal Army (RNA) said that the plane diverted towards Kazakhstan in central Asia after India denied permission to use its airspace. "It has remained grounded there ever since," one RNA officer told The Kathmandu Post Friday, expressing concerns that further delay in sorting out things could mean increased costs, which Nepal might be forced to cough up.

But sources said that the army was following "necessary procedures" so as to get permission from the Indian authorities and soon fly the consignment of arms home. "We have initiated steps to get the consignment of arms as soon as possible," one senior RNA officer said. "If that works, then maybe the aircraft could land in Kathmandu anytime soon."

But the Defence Ministry had not initiated any steps whatsoever until Friday evening towards making a formal request to the southern neighbour, which encircles Nepal from east, south and west, to receive permission from India to use its airspace.

"We (the Defence Ministry) have not yet done any sort of correspondence with India (to receive overflying permission)," Madan Prasad Aryal, Secretary at the Ministry told The Kathmandu Post late Friday, declining to acknowledge the fact that the aircraft had remained grounded in central Asia.

Officials at the Ministry of Foreign Affairs and the Civil Aviation Authority of Nepal (CAAN) were not available for comments, despite repeated tries.

This is not the first time the southern neighbour, which encircles Nepal from east, south and west, has denied overflying permission to Nepalese military aircrafts. In the past, too, senior army officers recall, India had "time and again" denied permission to aircrafts carrying RNA peacekeepers returning home from various UN peacekeeping missions.

But nobody in the officialdom knows for sure who is to blame for this. One official at the CAAN said: "It could be our mistake - because of a lack of coordination between the concerned bodies here. Or it could be because of the Belgian government, which possibly could have made the delivery without making sure that all `overflying permissions’ have been obtained."

Expatica.com, a Belgian news portal, reported, last week that the arms delivery was made after two groups of Belgian observers that visited Nepal recently suggested that "the shipment should go ahead because it did not violate any Belgian arms sale laws". The report also said that the shipment was made just as the Belgian parliament prepared to pass a new and strict arms sale law.

The deal has remained controversial all along. In August, the Belgian government was rocked with a sort of political tremor when one of its allies in the ruling "rainbow" coalition protested against the arms delivery to a country, where democracy and human rights were not very positive. The row also saw the resignation of senior cabinet minister Magda Aelvoet.

Besides the Minimi machine guns from Belgium, the RNA is also getting M-16 rifles from the USA. The HMG is purchasing 5,000 M-16 rifles, while 45,000 more are being delivered as part of the U.S. military hardware assistance to Nepal, which joined the U.S.-led global coalition against terrorism, formed after September 11, last year.

"We are expecting the delivery of the 5,000 M-16 rifles by December-end," said one army source.

Indian Prez decorates COAS Thapa

RSS

KATHMANDU, Dec 20:President of India Abdul Kalam Azad today conferred the rank of Honorary General to Chief of the Army Staff (COAS) Pyarjung Thapa amidst a function held at the Rastrapati Bhavan in New Delhi on December 18.

Present on the occasion were the Vice-President, Home Minister, other ministers, high ranking army officials and other officials of India and the Royal Nepalese Ambassador to India.

After the function, President Kalam hosted a tea reception in honour of Chief of the Army Staff Thapa.

General Thapa yesterday laid a wreath at the "Amar Jawan Jyoti" built to commemorate the brave Indian soldiers at India Gate.

Also yesterday, a guard of honour was offered to Chief of the Army Staff Thapa at the Indian Army headquarters at "South Block."

During the formal meeting between the Army Chief Thapa and Indian Defence Minister, Chiefs of the Armed Forces, Navy and Air Forces of India, it was stated that terrorism was common problem and not specific to any country and therefore there should be common approach to deal with it.

On the occasions, discussions were also held on resolving the problems between the two countries, joining the campaign against terrorism launched at the international level and mutual cooperation among the countries directly combating terrorism.

Chief of the Army Staff Thapa yesterday formally called on Prime Minister of India Atal Behari Vajpayee.

A reception was hosted in honour of the Chief of the Army Staff at the Royal Nepalese Embassy.

High ranking officials of the India Army and other distinguished persons also presented on the occasion.

Hearing on Wagle case begins

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KATHMANDU, Dec 20:The hearing on the case filed against former minister Chiranjivi Wagle began today at the Special Court.

Listing down charges against Wagle, Prem Raj Karki, a CIAA prosecutor, claimed that Wagle abused the authority while assuming the significant ministerial positions in the past.

"Wagle has transferred the illegally amassed property in the name of his son and wife," Karki said.

The Commission for the Investigation of Abuse of Authority (CIAA) had filed a case against Wagle at the court on Wednesday.

The prosecution could not be completed due to time constraints and it would resume from Monday.

Wagle has been charged with amassing over Rs 32.9 million through illegal means while taking charge of ministerial positions in the past.

The Commission is expected to file charge sheet against former minister Jaya Prakash Gupta at the Court on Monday.