EIA to shape to eco-tourism project

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KATHMANDU, Dec 22:With the government initiating a study on environment impact assessment (EIA) on a multi-million dollar Eco-tourism project a couple of weeks ago, the Asian Development Bank (ADB) financed third tourism project is likely to take its final shape soon.

According to a high-level government official, the Ministry of Culture, Tourism and Civil Aviation is conducting the environmental assessment on the much-talked tourism project in co-ordination with Nepal Tourism Board (NTB) and Civil Aviation Authority of Nepal (CAAN).

The third tourism project was earlier scheduled to be introduced early this year, but has not been finalised yet due to the delay in environment impact assessment and the escalating domestic insecurity.

"The components of the Eco-tourism project was set long time back. But with the change in the internal situation of the country, it was difficult to ascertain effective implementation of the project, which led to its delay," said a highly placed ADB official talking to The Kathmandu Post today.

The total cost of the Eco-tourism project would be US$ 30 million, as per the preliminary estimates, says a government source adding, most of this would be financed by the Asian Development Bank. Confirming on the funding from the ADB, one of the high-level ADB officials had recently said that the new project would probably be launched in 2004.

The delay in the completion of Second Tourism Infrastructure Development Project (STIDP) too was another reason behind the postponement of the project.

The STIDP was supposed to be completed by the end of December 2001, but the controversy over the construction of landfill sites at Pokhara Sub-Metropolitan City, one of the components of the project, forced the extension of the project to the end of March 2003.

The major components of the yet-to-be-launched project are the infrastructure development and awareness building on eco-conservation, says Subas Nirola, Director at NTB. "There would be hardware and software components of the project," he said.

Under the hardware component of the project, some rural airports would be upgraded and some new tourism trails would be developed. The five airports that would get a face-lift after the commencement of the project include airports at Taplejung, Tumlingtar, Simikot of Humla, and Masinechour and Jufal both of Dolpa district.

With the infrastructure upgradation of these airports, the NTB would be able to promote high-valued tourism spots of all sectors, claims Nirola. "At a time when the NTB is looking forward to develop Ilam, Basantapur, Lumbini and Rara, among others, as tourism sub-hubs, the expansion of facilities in these airports would assist in our tourism development endeavour," he adds.

In addition to the airport improvement, the project also aims at ameliorating the environment of Tansen, along with developing infrastructures at Lumbini and Simikot to attract more tourists. The project would also work for infrastructure development in the surrounding Village Development Committees in Kanchenjunga and Sagarmatha Himalayan range.

The new eco-tourism project is being prepared to undertake park management and wildlife conservation at Makalu Barun National Park. And it aims at extending the road infrastructures in Lumbini area and establishing a new tourist information centre there.

The ADB-financed US$ 22.4 million STIDP had also focussed on infrastructure development in airports at various parts of the country and environment upgradation of major cities. The STIDP had three major targets that included developing six domestic airports, promoting eco-tourism and environment improvement in the Pokhara Valley.

The project also worked on developing campsites and micro-hydel projects with the capacity of generating 10 to 33 kilowatts electricity. The STIDP had constructed five heli-pads and also carried out other development works at Manaslu area.

Pay your employees adequately: Minister

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KATHMANDU, Dec 22:Minister for Labour and Transport Management, Kamal Prasad Chaulagain, highlighting the role of business and manufacturing houses in curbing child labour, asked them to provide adequate wages and salaries to their employees to prevent their children from entering into the labour market.

"Unless the labourers of manufacturing sector get adequate wages for their livelihood, their children will not be able to go to school and to enjoy a normal life of a child," he said.

Minister Chaulagain said this while inaugurating the sixth annual general meeting (AGM) of Nepal Rugmark Foundation (NRF) here today. He further noted that formulation of laws alone would not be enough to curb child labour. "To deal with the menace of burgeoning child labour all the stakeholders should be positive and put in a consorted effort."

He also praised the NRF’s efforts in preventing the use of child labour in carpet industries, rehabilitating displaced carpet children and conducting preventive measures to promote child labour-free carpets. At the same time, he stressed for the need to expand the Rugmark licensing in the entire carpet sector to make it free from child labour.

Budhendra Raj Joshee, President of the NRF, said that the foundation is working in the direction to achieving the goal of Rugmark International which aims at providing Rugmark label to the total Nepali exports to Germany thereby freeing the sector from child labour.

As of mid-December, the NRF has issued Rugmark licence to 149 carpet exporters/producers and 468 carpet factories. Also, it has removed 478 child labourers from carpet factories for rehabilitation, out of which 345 children have been reunited with their family. Moreover, 126 children are currently staying in two Rugmark Rehabilitation Centres of the NRF.

"But still, the challenge of brining in remaining 35 to 40 per cent of the carpet factories into the net of Rugmark system is paramount," said Joshee. He also viewed that the scope of Rugmark activities should be extended in areas like minimum wages, occupational health and safety in manufacturing units that already belong to the Rugmark system.

Likewise, shedding light on the performance of the NRF for the last seven years, Keshav Bhakta Mathema, General Secretary of the NRF, said that over 67 per cent of the total carpet manufacturers has already been incorporated under the inspection and monitoring of the foundation. "This has not only assisted in promoting the exports of one of the largest foreign currency spinners of the country, but also helped in protecting the child rights," he stated

He also requested the concerned government officials and ministries to help the NRF in its movement to brining cent per cent of the carpet manufacturers into the Rugmark system. Minister Chaulagain also gave away letters of appreciation to top three importers and three exporters that imported and exported carpets with Rugmark label. The minister also gave away certificates to Rugmark-rehabilitated children who topped their respective classes and passed school leaving certificate examination.

Bank closure affects public

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GHORAHI, Dec 22:The financial transaction has been severely affected here as the Rastriya Banijya Bank, Lamahi branch office has remained closed for the past nine months. The office of the Lamahi branch, that was providing banking facilities to ten village development committees (VDCs) of Deukhuri valley in the district, was destroyed by the Maoist rebels nine months ago.

Lamahi bazaar, a major financial centre of Deukhuri, has seen its financial transaction fall down by over 75 per cent due to the bank’s closure. Deukhuri Chambers of Commerce and Industry (DCCI), local Jaycees and business organisations have recently put a formal demand to security officials for the re-operation of the bank, informed Numa Kant Dahal, president of DCCI.

The bank was the sole banking facility for the Deukhuri valley. The local business organisations claim that the bank has been grappling with internal problems rather than security reasons for opening again.

Imports of bus, truck plummet

By Sujit Mahat

BIRGUNJ, Dec 22:The number of registration and import of public buses has remarkably declined as the number of people travelling within the country through surface route has massively fallen down due to security threats.

Bus is the only means of public transport for the common people. Due to increased activities of the Maoist rebels, who have not spared even the public buses in their looting spree, bus entrepreneurs have started day-service in longer routes. But the travellers are still fearful of travelling.

People do not travel from one part of the country to another unless they have some kind of compulsion, say the public-bus entrepreneurs. "I used to save money to buy more public-buses in the past," says a desperate entrepreneur Krishna Upreti, "But now I am trying to sell my buses as they are running in loss due to decreased number of passengers."

The record at Transport Management Office, Birgunj shows that in the fiscal year 2000/01, a total of 1,844 buses and trucks were registered whereas in 2001/02, the number went down to 1,229. The number is expected to further decline this year. By the end of the first quarter this year, only 429 buses and trucks have been registered at the office.

"Till two years back, operating means of public transport was an attractive business. But now as it is no longer profitable, people are shying away from it", said Upreti, who is also the president of Narayani Zone Bus Entrepreneurs Association. The net yearly profit was over 30 to 40 thousand per bus in the past, but the amount has fallen by over 75 per cent these days, said Upreti.

From Birgunj, 89 buses depart for other parts of the country daily under day-service and 68 under night-service. In the Birgunj-Kathmandu route only 40 night-buses and 15 day-buses are operating. Due to increased competition and decreased number of passengers, the normal fare has been lowered at 100 rupees from previous 175 rupees, informed Ram Shrestha, secretary of the Association.

Hero Honda comes with Ambition

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KATHMANDU, Dec 22:Hero Honda Motors Company has launched its new product, Hero Honda Ambition in the Nepali market. The new model motorbike comes with five gears and high-powered engine having a digital ignition system AMIS (Advanced Microprocessor Ignition System).

"The AMIS helps in high mileage and higher pick-up power," says a press release issued by the Company on the test drive launching of the motorbike here today. This is a 4-stroke motorbike. The Hero Honda Ambition is a 133cc displacement bike with an 11 BHP at 8000 RPM max torque is 10.N 4500RPM, the release adds.

According to press release, the new motorbike is available in three different models - kick drum brake, kick disc brake and self disc brake. According to Syakar Company Limited, the authorised dealer of Hero Honda, more than 300 customers participated in the test ride of the new bike today.

Farmers to protest against sugar mills

By Aman Koirala

SARLAHI, Dec 22:A meeting of sugarcane farmers held in the district Saturday decided to launch protests against Indu Shanker Sugar Mills (ISSM) after its management unilaterally decided to slash the price of the sugarcane, lowering below the price of last year.

The sugar mills decided to cut down the price after a parley of meetings held between the management of the ISSM and the Federation of Sugarcane Producers (FSP) failed to concur on prices that the respective sides proposed.

Although the federation’s demand of fixing the price of sugarcane at Rs 168 per quintal placed since last two years was never agreed upon, the price used to be fixed on a higher side than the previous year. However, the sudden decision of the sugar mills to slash the price below last year’s rate has irked the farmers who decided to launch protests against the sugar mills.

The sugar mills management has fixed the price of sugarcane at Rs 130 per quintal, which is down by Rs 15 per quintal from the last year’s price. "Cut in the price of sugarcane is nothing but the ill-intention of the mills management towards farmers," said Bidur Kharel, a sugarcane farmer of Ghurkeuli.

The farmers of the area pursued sugarcane farming after the ISSM was established in the district. "However, decision of the company has sent shock waves to the farmers who have nothing but sugarcane to sustain their livelihood," said Kapil Muni Mainali, President of FSP.

Most of the farmers of the area have cultivated sugarcane in their entire land, he said, adding, "Sugarcane farmers and their families, that have been waiting for a year to harvest their labour, have been badly hit by the mills’ decision to cut the price of their produce."

However, officials at the ISSM said that the mills was forced to lower the price of cane sugar to bring its supply rate on a par with the price of the sugar that has been entering the market from India.

They also said that the Nepali sugar mills have been badly affected by the unlawful inflow of the cheaper Indian sugar. "Due to the price difference, the Nepali sugar mills have been losing competitiveness. In order to address this problem, we decided to slash the cane’s price," they said.

However, Mainali said that the mills’ move to slash the price to compete with the illegally brought in sugar was unjust. "If the sugar smuggling is rampant, it should draw the attention of the government and revenue patrol rather than snatching away farmers’ piece of pie. The FSP does not buy this logic in the case," he said.

He further said that the commitment that the delegation of the FSP obtained from the Home Secretary and Finance Secretary recently on tightening the illegal import of sugar too puts the management’s claim and stance at fault.

Meanwhile, acting general manager of the ISSM, Krishna Chandra Das, said that the operation of the mills would begin in the nearest future and the management would also put in efforts to establish an agreement with farmers.

The annual demand of sugar in the country stands at 150,000 tons, while the Nepali sugar mills produced just 90,000 tons of sugar last year. Customs data shows that 8,500 tons of sugar was brought into the country through customs offices, said Das, adding, "Despite the deficit of over 50,000 tons in the supply, the country did not face the shortage last year. Does not this prove the illegal inflow of sugar and how the sugar mills are facing survival threat?"

Economy, Finance and Market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate (AWDR) of 91-day Treasury Bills (TBs) rose by 08 basis points to 4.07 percent and the 364-day Treasury Bills (TBs) also improved by 16 basis points to 4.24 percent compared to previous week. The rupee was traded higher at NPR 99.06 and lowers at NPR 98.98 for 91-day and at NPR 95.93 for 364-day. The NRB had received 16 bids worth NPR 1050 million against the notified amount NPR 750 million for 91-days and only one bid worth NPR 20 million against the notified amount NPR 110 million for 91-day. The Repo rates for member banks and institutions have been quoted at 4.5736 for the trading days 24 to 31 December 2002 for 91-day TBs. The outright purchase facility for bank, institutions and other on TBs is also available. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 1100 million and 364-day TBs worth NPR 500 million on December 24, 2002. In the inter bank, call money was traded at the closed band of 4.30 percent.

Domestic capital market:

The stock market further slumped as many companies closed their books for Annual General Meeting (AGM). The Standard Chartered Bank, one of the highest cash dividend announcer, lost by NPR 214 over the week after book closure for the Fiscal Year 2058/59. The NEPSE Index-100 lost sharply by 8.00 points over the week. The index opened lower at 214.27 and remained in this range for second day but it lost heavily in the third day with Standard Chartered at 208.08 and it further lost in all consecutive days closing lower at 206.57 for the week. This week, trading was estimated at 62596 shares valued NPR 16.70 million compared to 53770 shares valued NPR 12.50 million of previous week. Finance Sector and Commercial Bank shared 68.56 percent and 27.72 percent of total traded amount. This week, the index of all sectors lost. This week, brokers had quoted the prices of 60 companies but only 43 companies were traded so far. Out of forty-three traded companies only two companies improved, twenty-six companies lost and fifteen traded companies remain unchanged at their previous prices. Mahalaxmi Finance, Bank of Kathmandu and Everest Bank registered the first, the second and the third most traded companies trading 30080, 3046 and 2594 shares respectively. Share of Nepal SBI Bank, Bank of Kathmandu, Everest Bank, Nepal Merchant Bank, Nepal Development Bank and Sagarmatha Finance were able to trade in all five working days. Likewise, Nepal Bank Ltd, Nepal B’desh Bank, Taragaon Regency Hotel, Union Finance, Siddharth Finance and NIC Bank were able to trade in four working days.

Forex round-up:

The USD lost against all its major trading partners over the week on mounting concern over the threat of war in Iraq. Analysts said that with recent US trade data expected to reveal another huge deficit, the market was increasingly concerned about the country’s ability to fund its shortfall in a climate of increased risk aversion. The yen’s rise was backed by speculators, who had been buying back the Japanese currency in order to flatten off their books ahead of the end of the year.

The INR improved against the dollar on the good inflows while the NPR also improved against the green back by 20 paisas over the week on the back of weaker dollar.