WB pledges to extend Birgunj ICD project

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KATHMANDU, Jan 1 The World Bank (WB), the principal lender to inland container depots (ICDs) construction project, has pledged an extension of nine months for the Birgunj-based ICD project after the government failed to bring it into operation within the stipulated deadline of Dec 31, 2002.

"The WB, issuing a letter on Friday, informed of the project about the extension till September 30, 2003," said a highly placed government source, talking to The Kathmandu Post. "Such an extension has been pledged on the government’s request," he added.

With the latest extension, the government now needs to hammer out the much-delayed deal of railways link with India by the end of September 2003. Despite several attempts, both Nepal and India have failed to find out an acceptable solution regarding the operation of a direct railway link and it has been the main factor responsible for the delay in the operation of Birgunj ICD.

The government had requested the WB to extend the project after the lender warned of tagging the project ‘unsatisfactory’ due to the government’s failure in fulfilling the objectives of investment within the deadline.

The Nepal Multi-model Transit and Trade Facilitation Project (NMTTFP), the WB funded project, envisaged constructing three ICDs in the country in Bhairahawa, Biratnagar and Birgunj to facilitate the third country trade. Constructions of Bhairahawa and Biratnagar ICDs have already been completed.

Even as the ICDs in Bhairahawa and Biratnagar are already into operation while the largest ICD based in Sirsiya, Birgunj, having a direct railway link with Kolkata, is yet to go operational due to delay in materialising the railways agreement with India.

"This extension has prevented the project from being labelled as ‘project at risk’," said the source. However, he added that the risk factor was still there as India and Nepal are yet to concur on the key issues of operating a direct cargo train from ICD to Kolkata.

Although the two rounds of bilateral joint secretary-level talks have already been held to iron out differences pertaining to technicalities of railways operation and customs procedures, nothing tangible has been achieved yet.

The difference on the issue of customs clearance still persists between the two countries, which have been delaying the finalisation of the railway agreement.

While Nepali side has been persuading for a mechanism of issuing customs clearance for the third country trade at the ICD itself, the Indian side has been adherent to the stance of inspecting the containers at Raxaul.

Later, in a bid to facilitate the talks, the Indian government even informed of forwarding a new proposal on customs procedures. However, Nepali officials informed that such a proposal has not been forwarded as of yet.

Apart from the railway agreement, the government also needs to finalise transport legislation like Railways Act to govern the cargo handling and Multi-modal Act for governing the ICD operation, among others. It also needs to appoint a Terminal Management Company to take over the management of the ICD before its operation actually commences.

"However, these could be solved without any hassles, as the Railways Act was prepared about a year back and currently pending in the dissolved parliament. Even the Multi-modal Act is at the final stage and is being studied by the Ministry of Law, Justice and Parliamentary Affairs," the source said.

He further added that necessary calls for the bid from parties have already been sought for appointing a company to manage the ICD.

The WB funded government-run NMTTFP was initiated in 1998 and due commitment from the Indian government too was taken for railways agreement and the ICD-Kolkata direct train operation.

An investment of over US$ 18 million has been made for constructing Birgunj-based ICD. India assisted in the project by extending a broad-gauge railway line to ICD from Raxaul.

Tourist arrival by air dips 28 pc in 2002

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KATHMANDU, Jan 1 Plagued by domestic violence and internal security problems, Nepali tourism industry witnessed a steep decline in total tourist arrival by air during the year 2002 as compared to the previous year.

According to statistics of Nepal Tourism Board, the figure of tourist arrival during the year 2002 was 27.65 per cent lower than that of the year 2001. A total of 215,922 tourists visited the country last year against a total of 298,456 visitors during the previous year.

Despite a steep decline in the total tourist arrivals, the tourism industry got some relief in the form of an increment in Indian tourist arrivals, which went up by 2.23 per cent. The statistics say, the number of Indian tourists soared from 64,200 tourists in 2001 to record a total of 65,629 visitors during the last year.

NTB says, the increment is due to the massive promotion campaign in the Indian markets during the last year. Several schemes including Fly ‘n Win scratch scheme, organised by Royal Nepal Airlines Corporation and NTB and an Indian Airlines Package were launched in the Indian market during last year.

Only India recorded an increment in tourist contribution to Nepal compared to the previous year. Tourist arrival from the major tourist generating market of the USA declined by 45 per cent, UK by 40 and Japan by 24 per cent.

The Nepali tourism industry that pinned its hope in Nepal’s inclusion in Chinese list of outbound destinations in November 2001, observed a decline of 12 per cent in Chinese tourists during 2002, as compared to the figures of year 2001.

The total tourist arrival from the countries other than India recorded a heavy decline of 35.84 per cent, the highest decline in the recent years. According to the statistics, the total third country tourists declined by a total of 234,256 to record 150,293.

The decline in the third country tourist arrival is mainly due to the general slackness in the international tourism industry, says the NTB. Negative international media coverage on Nepal is also a fact that has contributed to decreasing tourist arrivals from the third countries," the NTB says.

Despite the whopping annual decline in tourist arrival last year, the month of December proved to be good for the aspirant tourism entrepreneurs. Giving a break to continuous decline in the monthly tourist-arriving figures, December brought 19.27 per cent more tourists inside the country compared to the corresponding month the year before.

Last December, a total of 18,291 tourists visited Nepal as against a total of 15,336 tourists in the same month in 2001. During the month Indian tourist arrival increased by 91.78 per cent and Japanese tourist arrival by 14 per cent as compared to the same month the year before.

Of the total contribution from tourism markets to the tourist arrival into this Himalayan Kingdom, the number of Indian tourists, that used to be one-third of the total tourist arrival in the past years, made 30 per cent of the total tourists in 2002. The contribution of Indian tourist was 21.51 per cent in 2001.

Britain proved to be the second top tourist generating country for Nepal. A total of 8 per cent of tourist coming to Nepal were the Britons. Similarly, the US and the Japan contributed seven per cent each to the total tourists arrival. The contribution of tourists from UK, US and Japan were 9.76 per cent, 9.51 per cent and 7.89 per cent in 2001.

Nepali tourism industry had recorded a similar decline in the total tourist arrival during the previous year also. The number of total tourists had plunged by 20.73 per cent in 2001 against the arrival in 2000. The number of Indian tourists then, had declined by 33.04 per cent.

Lack of cold storage affects fruits producers

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DAMAULI, Jan 1 Lack of cold storage in the region has forced a large number of entrepreneurs dealing in agricultural products to use straw for protect their products from cold.

Despite the usage of straw as preservative measure, the local entrepreneurs are worried about the long-term solution to the problem.

"Straw could assist to preserve the products only for short term while we would have been highly benefited with the cold storage that serves long term perseverance," say local entrepreneurs.

Apart from the absence of cold storage, according to these entrepreneurs, fruits also decay because of lack of transportation. "More than five per cent of fruits rot on the way to Damauli from remote villages of the district as it takes at least two days," they said.

Dal Bahadur Shrestha, a local entrepreneur, says that they are more concerned over preserving their produce from adverse weather this time than perennial problem of low price.

Though few small-scale cold storage are functioning in some remote districts, there is no cold storage in the district headquarters. As a result, the local entrepreneurs are forced to store a large volume of fruits in the straw compact room at Damauli.

According to District Agricultural Office, the district produced over one hundred tons of oranges during this year.

PM inaugurates New Road Street Festival

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KATHMANDU, Jan 1 Prime Minister Lokendra Bahadur Chand, inaugurating New Road Street Festival amid a function here today, said that the festivals of this kind should be organised regularly in order to boost the dwindling tourism industry of the country. "Tourism is one of the most lucrative industrial sectors, which alone can help the country to land safely on prosperous economy despite the present difficulties," he added.

Stating the industrial development as the only factor to strengthen the economy of the country, PM Chand, however pointed out the need of restoring peace in the country for the industrial revival.

PM Chand said that the political parties and the leaders are to blame for the present stagnant economic condition of the country. "Had we all been a little more sincere towards the country during the early days after the restoration of democracy, the economy could have far better," said PM Chand.

‘New Road Street Festival’ was launched coinciding the beginning of the New Year 2003 amid a colourful programme here today to mark the thirty second birthday of the crown prince.

The street festival, organised for the first time in the city, is expected to stimulate the eroding trade and tourism business of the city. The festival has been organised jointly by birthday celebration committee of the crown prince and Dharma Path Yuva Club, a New Road-based local club.

New Road, the main business hub of the capital, was decorated with festoons and a chopper showered fresh flowers during the inaugural ceremony of the four-day festival. But the organisers said that they could extend the function depending upon the performance.

Over one hundred stalls offer a wide range of products including Nepali garments, hand woven sweaters, various liquors and souvenirs among others. The organisers have expected about one hundred thousand and have lowered the entrance fee to attract more visitors.

Rajesh Kaji Shrestha, President of the birthday celebration committee, pointed out the need to organise such promotional programmes on regular basis in order to encourage the tourism industry. Shrestha also stressed on the need of collective effort from the government, private sector, individuals and civil society in order to ameliorate the present economic condition.

Imports of Indian wheat may further affect domestic farmers

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KATHMANDU, Jan 1 At a time when the prices of almost all agro-produces in the domestic market are on the wane, flooding imports of wheat from India, at the discomfort of Nepali farmers, has heightened the possibility of further decline in its price.

Around 50 Nepali traders have recently signed agreements to purchase the 50 thousand tons of wheat that is presently hoarded in a warehouse of Indian Food Corporation (IFC) in Punjab. Around 12 thousand tons entered Nepal last week, according to a trader Babulal Chachan.

The decision to allow the export of Indian wheat was taken by the Indian government recently to reduce its overflowing stock. The 50 thousand tons of wheat that would enter Nepal is out of the 4 million tons that the IFC seeks to dispose off to stock new output.

The IFC is to sell two years old damp wheat below the ration card price, sources revealed. While the ration card price of wheat in India stands at Rs 6,640 per ton, the IFC is to sell the wheat at the rate of Rs 6,336 per ton, including the costs of transporting to the bordering towns.

Farmers, who are already finding it difficult to recover their investment, are concerned that the cheap wheat would further pull down the price of domestic wheat. The effect of the imports is already visible. The price of the prime agro-produce presently stands at around Rs 9,500 per ton, down from the earlier Rs 11,000.

The impending import of wheat from India comes at a time when the domestic output is able to meet the domestic demand. As of 2002, according to figures provided by Nepal Agricultural Research Council (NARC), wheat output stood at 1,258,045 tons against the demand of 1,252,800 tons.

"Such a bulk import of cheap wheat from India will definitely impact the local wheat prices. Nepali farmers will have to face the brunt of the imports in the form of lesser returns from their produce," said Madan Raj Bhatta, a NARC official.

Nepali farmers have been bearing similar pains for the last few years in the case of paddy. Nepali agro-produces are unable to compete with the cheap Indian produce. While India provides subsidy to its farmers, Nepali farmers do not get any direct subsidies.

Despite the apprehension of farmers, traders argue that the wheat that would come from India will be consumed by the time when domestic wheat is ready for harvest. "Another two to three months will pass before domestic wheat is ready for harvest. By that time, most of the imported wheat will have been consumed," claimed Chachan.

The decision to import the Indian wheat has been guided by the cost factor. Traders concede that they are not even aware that the damp old wheat is fit for consumption or not. While the December edition of Business Times had said that damp wheat is fit for using as animal feed, traders mix it with dry wheat as well and sell the blend for human consumption.

The last lot of the wheat was imported without a proper laboratory test. The plant quarantine check post at Birgunj had only checked if the wheat contained insects, without categorically stating that it was fit for human consumption.

Herbs smuggling rampant in Kalikot

By Tula Ram Pandey

MANMA, Kalikot, Jan 1 The District Forest Office (DFO) here is deprived of hundreds of thousand rupees it used to collect in the previous years as royalty due to illegal collection and export of medicinal herbs. It is a result of the increased activities of outlawed Maoists, because of which the officials cannot monitor or control the illegal collection and export of such herbs, said sources.

According to official statistics, the DFO had been raising revenue of over a million rupees till the fiscal year 1999/2000 for the sale and export of such herbs. The revenue collection was substantially down in 2000/01 when only two hundred thousand rupees were collected. In the following year 2001/02, the figure was only 153 thousand rupees. A climax of this decreasing trend, the Office has not been able to raise even a single rupee till the end of the first quarter of current fiscal year.

The royalty for the herbs available in Kalikot ranges from Re. 1 to Rs. 25 thousand per kilogram. The lowest royalty is for Titepati, and the highest for Yarsha Gumba. Yarsha Gumba is abundant in the high-altitude forests of the district. About 250 varieties of herbs are available in the district, including chiraito, pashanved, sugandh kokila, nirmasi, gurjo, shilajeet, timur and several others.

An official at the DFO even claimed that Maoists themselves are involved in the smuggling of herbs. He cited some villagers as saying, "The Maoists force the locals to pick the herbs from nearby jungles. They smuggle out the herbs to India through the illegal routes."

A retired Village Development Committee chairman said that though there has been some control in the smuggling of herbs from the higher-altitude regions, thanks to snowfall, there has been rampant smuggling from the lower-altitude regions of the district. He said that the Maoists looted 10 sacks of medicinal herbs from his own house. "They force every household to provide one person for herb collection."

Minister lays foundation stone of TAAN building

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KATHMANDU, Jan 1 State minister for Culture, Tourism and Civil Aviation Ravi Bhakta Shrestha laid a foundation stone for the construction of a new building of the Trekking Agents Association of Nepal (TAAN) here today.

Speaking on the occasion, the State Minister said that the government has accorded higher priority to develop the tourism sector and therefore has taken several positive steps to develop Nepal as a tourism hub in the region.

"The announcement for a three-day free visa for the tourists coming to Nepal for transit, is one of such attempts," he said. The government would take necessary measures to uplift the ailing industry, he added.

Suman Pandey, President of TAAN said that the new building would be inaugurated next year, during the celebration of its silver jubilee year. "We have laid the foundation stone on the occasion of the birthday of the crown prince and would complete within the silver jubilee celebration," he added.

According to the Association, the building, to be constructed in 7 annas of land at Naxal would be a three storied building with parking at the basement. The total cost of construction has been estimated to be Rs 7 million, they informed.

The Association, so far has been able collect Rs 2.6 million from the members and the advisors of the TAAN. After the final collection of financial assistance from the members, we would borrow the remaining sum from Nepal Investment Bank," informed Pandey.

Established in 1979, the TAAN is the apex body of the trekking agents of the country. It has more than 300 trekking agents as its members and is working for the development and promotion of adventure tourism in the country.

Trade points can boost exports: Experts

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KATHMANDU, Jan 1 Concerned experts have said that in the context of observing the year 2003 as ‘Export Year’, Nepal’s foreign trade can be increased through the use of ‘trade point’, an integrated information centre providing all necessary details required for trade purpose.

Trade point, which is to be taken as a trade facilitation centre, will contain facilities through which information relating to customs, banks, freight forwarders, transport, insurance, and business associations, among others, can be disseminated.

At a programme organised today to impart information on the two trade points that are to be established, Executive Director of Trade Promotion Centre Naresh Chandra Lamichhane said that trade point is a gateway to international trade.

"The main objective of the trade point is to facilitate international trade for trade promotion through effectively mobilising international companies," he said. He added that trade point can aid in reducing the costs of carrying out foreign trade.

Likewise, Narayan Shrestha, Deputy Director of TPC, said that the trade point could act as a reliable information-disseminating centre for not just businessmen, but also government officials.

On the occasion, Minister for Industry, Commerce and Supplies Mahesh Lal Pradhan stressed on the need to improve the competitiveness of domestic production.

"Unless competitiveness is increased, domestic produce cannot compete in the international markets. This is more so in the present context of globalisation and Nepal’s impending accession to the World Trade Organisation," he said.

Likewise, Joint Secretary at the Ministry Prachanda Man Shrestha said that trade point as an information centre is important to carry out efficient trade in a globalised world. He further said that the trade point would also provide information relating to government decisions on various policies and institutional set-ups.

As of present, 83 countries in the world have trade points for facilitating trade. TPC, Federation of Nepalese Chambers of Commerce and Industry, Kathmandu College of Management and Federation of Nepalese Cottage and Small Industries are working jointly in this regard, Shrestha informed.