PM chairs meeting
Committee asks panels to speed up work

Kathmandu, Apr. 26 (RSS):Prime Minister Girija Prasad Koirala presided over the high level committee constituted to undertake studies and evaluation and submit a report to the House of Representatives on the need to amend existing laws and acts, and changes in the management to make the elections in the future more peaceful, free, fair and transparent by considering the elections being held after the restoration of democracy.

Prime Minister Koirala is the Chairman of the Committee.

At the meeting, convenor of the management improvement recommendation sub-committee concerning elections mp ishwar Pokharel and convenor of the laws, acts and rules improvement sub-committee convenor mp krishna Prasad Sitaula apprised the committee of the progress made by their respective sub-committees.

The meeting has directed the sub-committees to function more effectively and submit a joint report with recommendations concerning changes to be made in management, acts and rules related to elections to the high level committee.

The meeting decided to request the absent members of the committee to be associated with and extend cooperation to it.

Speaker Taranath Ranabhat, National Assembly Chairman Dr. Mohammad Mohsin, leader of the Opposition in the House of Representatives Madhav Kumar Nepal and chief secretary Tirtha Man Shakya were present at the meeting.

Likewise, sub-committee convenors mp ishwar Pokharel and Krishna Prasad Sitaula and its members mp ramesh Lekhak and mp surendra Prasad Pandey were also present.

Aircraft Lease Stalemate
RNAC could be incurring big loss

BY A STAFF REPORTER

Kathmandu,  April 26: The Royal Nepal Airline Corporation (RNAC), the National Flag Carrier of the nation, could be incurring losses in millions of rupees once more due to managerial bungling in the process of leasing an aircraft. It may be recalled that the Corporation has not been able to recover the money to the tune of US $ 300,000 that was deposited in a foreign bank by some officials while trying to lease an aircraft more than one year back.

 This time also, it is alleged that RNAC stands to lose around Rs. 300 million because of a delay in leasing an aircraft from the lowest bidder in the tender called for by the Corporation.

The process to lease another aircraft for RA’s international flights started when the lease of the Boeing B-757 of China Southwest Airlines was about to expire on March 27, 2000. The then management of the Corporation had called for an international tender to lease another aircraft.

The then Executive Chairman of the Corporation had revealed that as the Boeing Company could not deliver a new Boeing 767 for another two years, RNAC was forced to lease another aircraft of the same made. The RNAC management had earlier said that they would lease-purchase a brand new B 767-300.

However, after the calling of the first global tender, the most transparent way of leasing an aircraft, it was disclosed when the tenders were opened on February 29 that only one bidder had the type of aircraft as had been specified. But even that bidder, Ansett Australia, did not submit the 2.5 per cent of the bid bond which amounted to around US $ 600,000. So not even one valid tender was received.

In the meanwhile sources claim that other parties interested in submitting a tender started to check on how many B767s that were less than five years old were actually available in the market. This can easily be done through the Internet. According to ehe infornation  received through the Internet, it was revealed that only three companies, Ansett Australia, Royal Bruniei Airlines and City Bird Airlines of Belgium had such aircraft available for leasing.

But even out of these three, it was found that Royal Brunei had two B767 300s one of which was already leased to Air Algerie and the second one was grounded due to serious engine trouble. City Bird had not participated in the first tender bid and only Ansett had the available aircraft, but it was quoting a very high price as compared to the normal rate.

Furthermore, when even the second global tender, with similar conditions as the first - low age restriction and 2.5 per cent bid bond - was announced, many in the aviation sector suspected that there may be foul play, and some wanted to award the leasing contract to a particular company. RNAC could be the loser as the Corporation would have to pay a hefty amount to Ansett that was quoting a very high price. Fortunately, this tender was also scrapped for various reasons and then a third global tender was called on 12th March in which the age restriction was relaxed and the bid bond was brought down to a more reasonable figure of US $ 25,000. This move made it possible for other interested parties to also participate in the tender bids.

Also, being a new tender and not a re-tender, when the bids of the third tender were opened on 18th April, as 15th April happened to be a Saturday, it was revealed that five tenders had been received. Among them Babcock and Brown of Northern Ireland, Great Britain had put in a bid at the rate of US $ 3,375 per flight hour and also submitted a bid bond, Nepal Trade Concern had made a bid at the rate of US $ 6,000 per flight hour and it had also submitted a bid bond, City Bird of Belgium had filled the tender through Transaction Pacific at the rate of US $ 5,450 per flight hour and it had also submitted a bid bond, whereas A and H Aviation of UK had not submitted a proper bid bond and there was a controversy on the tender of Ansett on whether its seal had been tampered with.

As per  the tender opening procedure, before opening the envelopes containing the tenders, the sealed envelopes were circulated and it was observed that some parts of the outer seal had come off in the envelope of the Ansett tender, but the cellotape beneath the wax seal was intact. Yet, in spite of no objections from the competing bidders, sources claim that some representatives of RA themselves objected and refused to open the envelope. This was where some people in the aviation field suspected that there may have been vested interest at play, because the bids of other companies had already been read out.

Thus the  tender was not opened on that day and instead the envelope was sent to the national Forensic Lab at RONAST and it was investigated by the chief of the Lab. A reports was given that the envelope had not been tampered  with on 19th April itself, yet, some officials at the Corporation still refused to open the tender.

Critics say that this was a ploy to give more opportunity to Ansett to withdraw its tender as it was priced too high. Sources said, the company indeed sent a fax some time later that it wanted its tender returned. Thus on this ground officials refused   to open the tender even the next day. Aviation sources informed that universal tender rules do not allow tender bids submitted within the declared due date to be withdrawn, if this was done the bid bond could be confiscated.

But finally the tender was opened on Friday April 21st. It was revealed that Ansett had quoted a price of US $ 4,300 per flight hour for a seven year old plane and US $ 4,100 for a five year old aircraft.

Basing calculation on a usage of 300 hours a month as specified in the tender notice, this would mean that over the 18 month long tender period, this offer would be almost Rs. 300 million more expensive than the lowest bid submitted. This sum can be arrived at when the difference between the price  quoted by Ansett and the lowest bidder Babcock and Brown is multiplied by 300 hours and 18 months.

The present government, which has come with a strong commitment to fight corruption within government institutions, would do well to seriously look into this matter and not allow any irregularities to take place in the effort of the National Flag Carrier to lease an aircraft, sources say.

Making further delays in leasing the much needed aircraft, could also cause further losses not only for RNAC, but also to the whole tourism sector of the country, they pointed out.

GEFONT congress from May 1

BY A STAFF REPORTER

Kathmandu, Apr. 26:General Federation of Nepalese Trade Union (GEFONT) today announced its Third National Congress to be held between May 1 to May 3 in Kathmandu. GEFONT will review its performance of the last four years, decide on policies related to various labour sector issues, amend its constitution to reflect the changed national scenario in labour sector, decide upon programmes to be implemented in coming four years and elect a new leadership during the three days.  GEFONT holds its national congress every four years.

GEFONT will formally inaugurate its newly built office building Man Mohan Majdur Bhawan and GEFONT Health Co-operative, organise motor-cycle rally, hold discussion on policies and programmes on women labourers and take out workers rally in the four days before the formal inauguration of the national congress on May 1. GEFONT will also hold a dialogue between visiting trade unionists and local media on impact of globalisation on labour market, present situation of trade union movement and issues related to international solidarity of labourers and trade unionists, as part of the national congress.

In the up coming national congress 300 trade unionists will represent more than 300,000 GEFONT members from across the country. Trade Unionists from Italy, Denmark, Sweden, North Korea and India will also participate in the congress. In addition to that representatives from various regional and international trade unions and organisations working for uplift of workers will participate the three-day national congress. GEFONT press release claims that the trade union federation has already received solidarity messages from trade unions from Japan, South Korea, India, New Zealand, Malaysia, the Philippines, Pakistan, Hong Kong and Vietnam and international labour offices including United Nations’ International Labour Organisation.

The necessary fund for organisation of the congress was collected from among its members. GEFONT had formed an eight-member fund raising committee for the purpose.

Secretaries for massive reform in administration

BY A STAFF REPORTER

Kathmandu, Apr.26: A corruption-free administration with transparency and honest civil servants with a sense of accountability would result in good governance, the government secretaries said today.

Stating that corruption control, peace and security and good governance are the three priorities of the present government, they recommended for a massive reform in the “old mechanism” of administration.

Administration, for it to perform better and provide quicker services to the public, has to be freed from political intervention, they said at an interaction programme organised here this afternoon by the Reporters’ Club.

The growing cases of rampant corruption coupled with the spreading situation of lawlessness have posed hindrances to good governance, which is an outcome of democracy, they added.

“We have to develop our own system in line with our social structure,” Chief Secretary Tirtha Man Shakya said. “Unless we do that, our slogan for good governance will be a cry in the wilderness.”

He asked all to think positively and act towards achieving good results in the national campaign of administrative reforms and corruption control.

Responding to a query, Shakya said that revival of the much-hyped National Security Council was not for good governance. “It is for maintaining the peace and security situations in the country.”

Secretary at the Prime Minister’s Office Rameshwar Shah said that good governance meant the rule of law with justice and equal opportunity to all.

“Home Secretary Padam Prasad Pokharel said that corruption was a social problem, not a legal one, which had to be resolved through combined efforts of all.

Stating that reform in administration would lead to good governance, he suggested the civil society to pressure for such reforms.

Health Secretary Srikanta Regmi said that political interference, lack of enthusiasm, accountability and evaluation and a decrease in work ethics were some of the factors affecting good governance.

Pointing out the need for changes in mentality and attitude of civil servants for administrative reforms, he said, “The present administrative mechanism needs overhauling for better performance as per people’s expectation and aspiration.”

Director of Staff College Shambhu Sharan Kayastha said that corruption control, security and good governance had no alternatives. He, however, pointed out a gap between the government policies and their implementation and said, “This has lifted people’s faith from the government.”

Nepal needs to achieve 6% growth: ADB

BY A STAFF REPORTER

Kathmandu, Apr.26: Having recorded a one per cent rise in the GDP growth rate last year, Nepal’s economy should achieve an economic growth rate of five to six per cent in the current year, the Asian Development Bank has stated in its Asian Development Outlook 2000 which was launched here today.

Both the growth rates, of last year and the one expected to, are the result of a better performance in the agriculture and the industry sector, particularly the carpet and garment industries, said the Outlook.

“The Outlook notes that the macroeconomic situation in Nepal was stable in 1999 despite the uncertainty caused by the change in the government. Real GDP growth rose to 3.3 per cent, from 2.3 per cent in the previous year.”

Inflation rose to almost 13 per cent in 1999 due to rise in food prices. The budget deficit remained as 6.1 per cent in 1999, with domestic revenue collection substantially lower than the budgeted amount, with actual revenues about 10 per cent of the GDP. The shortfall in revenues was balanced by slower-than-budgeted growth in development expenditures. Nepal’s current account deficit declined dramatically in 1999 because of strong export growth and a contraction in imports, mainly related to foreign aid.

Price performance in 2000 will benefit from bumper harvests throughout the region. As a result, inflation is expected to fall to five per cent despite increase in prices of kerosene, diesel and electricity in the second quarter of the fiscal year. Domestic revenue estimates in the current budget are optimistic with a projected growth of 14 per cent. Actual revenue performance will critically depend on the effective implementation of the value-added tax.

The fiscal deficit for 2000 is projected to reach seven per cent and to continue to rise in 2001. Development expenditures in 2000 budget are projected to grow by 33 per cent. These will be mainly financed by foreign grants, which are projected to grow by 47 per cent.

The Outlook notes that the peg with the Indian rupee provides a useful nominal anchor for the economy, but to sustain it, the Central Bank must reduce inflation and interest rate differentials with India. “The current account deficit is expected to widen in 2000, as aid-related imports return to their previous levels, particularly if the government succeeds in its ambitious development agenda. Merchandise imports are projected to grow 15 per cent, with investment goods expanding faster than consumer goods imports. Export growth should continue to be strong in 2000, but will slow without the grain export of the previous year. The current account deficit is thus expected to reach about eight per cent of GDP in 2000, and more than nine per cent of the GDP in 2001. The debt-service ratio should remain at a low six per cent, as much of the debt is concessional.”

Highlighting the contents of the Outlook, Richard Vokes, Resident Representative of the ADB, told a press meet today that apart from the need to continue and sustain reforms in the agriculture sector, civil service reform and financial sector reform need to be at the core of the government’s broad-based reform agenda. “If the new government, as promised, push forward with implementation of a second round of economic reforms, then the outlook for 2001 is for continued strong growth.”

Vokes further added that in case of Nepal, which has not been much affected by the crisis, corporate and financial governance reforms are nonetheless crucial for generating pro-poor economic growth given the serious problems facing the financial sector and the weak governance in both the financial and corporate sectors.

Having outlined poverty as the main social challenge in Asia today, he said that the ADB has adopted poverty reduction as its overarching development objective. “Fundamentally, the ADB believes that promoting economic growth remains the best path to poverty reduction.”

To make the poor share the growth, the Outlook, said Vokes, has emphasised a number of policy priorities including openness and market orientation, human resources and physical infrastructure, improving governance, strengthening social protection, increase in the flow of foreign assistance and providing international public goods.

“We are very encouraged by the government’s Reform Agenda for Poverty Reduction set out in the government’s Country Memorandum presented at the recent Nepal Development Forum in Paris last week, along with a paper highlighting the government’s Priority Reform Actions. These cover all the key elements identified above. However, as we discussed in Paris, the second round reform agenda requires urgent actions across a wide range of areas.”

‘560 joint ventures so far got permission’

Kathmandu, Apr. 26 (RSS): Some 560 joint ventures in collaboration  with foreign investors have been permitted in Nepal to date following the restoration of democracy in Nepal.

According to statistics provided by the Department of Industry, the total outlay in the joint ventures is about Rs.60 billion.

Only 154 joint ventures had been sanctioned five years ago, and in the following years, on average 60 projects have been sanctioned every year.

Of them, the number in the manufacturing sector is 255. Tourism and the   service sector have played a growing role in attracting foreign investors to Nepal.

On a country-wise basis, Indian investors have played a large part in the joint ventures in Nepal. Some 171 joint venture projects from India have received licenses.

They account for 33 per cent of the total of joint venture projects. India also accounts for the same percentages in terms of project investment and employment opportunities generated, it is stated.

The United States of America and Japan are the other countries that   rank high in joint ventures. Besides  these, 9 commercial banks, 3 finance companies and 3 insurance companies are also in operation.

The constitution of the Kingdom of Nepal l990 says that the state shall pursue the policy of attracting foreign investment and technology in the national development effort.

The successive governments formed after the restoration of democracy in Nepal have given high priority to liberalisation policy in order to expedite the process of economic development and the present government is determined to create a positive atmosphere conducive to foreign direct investment here in keeping with that policy, Minister for Industry, Commerce and Supplies Ramkrishna Tamrakar said.

The prospects for foreign direct investment in Nepal have grown with the trade and transit treaty with India and Bangladesh and access to the Tibetan market for products of Nepali origin, he elaborated.

He is of the opinion that the prime concern for Nepal now is how to attract more foreign direct investment to the country.

Dadeldhura farmers benefit from vegetable cultivation

Amargadhi, , Apr. 26 (RSS): We used to buy vegetables in the past, but now we do not need to buy any more.

Beludevi Karki, a 50-year old resident of Sutari Village of Ganeshpur VDC, Dadeldhura replied with a smile on being asked about vegetable cultivation while heading towards Manana area in Amargadhi Municipality, ward No. 1 to observe the vegetables being cultivated there.

Her husband has gone to India to earn money. She is supporting her 5-member family through vegetable cultivation on two Ropani of land. In addition, she has started to accumulate her earnings by constituting a postal service group under the women development branch.

The group with four other women members has saved Rs 5,000 so far.

Durga Prasad Bhatta, a resident of ward No. 10 who has adopted the same calling since the past four years, is of the opinion that vegetable cultivation is lucrative compared to wheat or paddy crops.

Padma Singh Bhandari, a nominated member at the municipality, is one of the experienced farmers of the district. He started in this calling in 2032 bs and since 2042 he has begun to sell the vegetables.

Asked what he has gained through this calling, he replied, “one can benefit about four times more than through cereal crops. We used to take loans for buying our clothing, but that compulsion has ended once and for all”.

The start of non-seasonal vegetable cultivation in parts of Amargadhi Municipality such as Manana and  Panouli Dhakouli and also in Bagarkot, Ganeshpur and Mastamandu VDCs since the past few years has brought about significant changes in the living standard of the rural poor.

 The credit goes to the community-based economic development project (cbed).

The project introduced by His Majesty’s Government in Dadeldhura district in April, 1996 in collaboration with the Candian International Development Agency is being implemented with joint efforts from the Canadian Centre for International Studies and Co-operation and the Agricultural Development Projects Services Centre, Kathmandu.

Land used for vegetable cultivation in the district by the end of 1999 totalled 1,780 Ropani. Some 915 women have been involved in this calling so far through 134 creative groups constituted under the project.

They have produced some 867 metric tonnes of vegetable to date   including almost all varieties.

The project has been introduced in 15 VDCs in the district and Amargadhi Municipality. The VDCs are Kailapalmandu, Mastamandu, Ganeshpur, Asigram, Bagarkot, Koreli, Nava Durga, Manilek, Belapur, Samaiji, Ajaymeru, Bhadrapur, Chipur, Jogbudha and Shirsa.

Cauliflower, cabbages, tomato, radish, cucumber, chilly, green onion, pumpkin, peas and beans are among the non-seasonal vegetables produced commercially in the district.

After the steady growth in vegetable output, the produce has been despatched to major towns such as Nepalgunj, Dhangadhi, Mahendranagar, Atariya, Silgadhi and Sanphebagar, Lekhnath Joshi, 21-year old vegetable contractor of Dadeldhura Farmers Cooperative Ltd. said.

 Joshi, who has been in this business since the age of eight has to pay the cooperative up to 50 paise per kg of vegetable and is entitled to a five per cent share of profit on the sale of seeds, saplings, tools and equipment, fertilisers and pesticides purchased through the cooperative.

The cooperative was established with the involvement and initiative of local farmers taking into consideration that a mere increase in output does not yield ample returns, agriculture and management resource expert of the project Madhav Prasad wagle told rss.

 Market research has been conducted with a view to identify   potential vegetables and fruits for sale within and outside the country. The markets researched include Dipayal, Mahendranagar, Dhangadhi, Nepalgunj, Kohalpur in Nepal and Barel, Khatiya, Rupaidiya, Tanakpur and Gouriphanta in India, he elaborated.

Following introduction of the cbed project in Dadeldhura district, commercial vegetable cultivation has been carried out by local farmers on an extensive basis.

He said at present they are seeing turnovers ranging from Rs 50,000 to Rs 150,000 annually.

Asked whether there is any problem of over production, contractor Joshi said that the farmers are cued in advance from time to time about the likely demand for non-seasonal vegetables.

But there is a shortage of cold storage to accommodate the growing volume of vegetables, president of Dadeldhura Chamber of Commerce and Industry Kali Prasad Rijal said. A cellar store has been constructed under the project, it is learnt.

There is also a shortage of water for irrigation and in the rainy season buds are destroyed by snails, farmer Beludevi Karki said. If the problems are sorted out, cultivation can be carried on more smoothly.

The farmers of Dola Marana have also been able to take advantage of this calling, a local youth of the same VDC, Bir Bahadur Karki, remarks.

Some 22 families in Dola and 20 families in Manana under Amargadhi Municipality are involved in this calling as are most of the people of Bagarkot VDC.

Smoking down in Jumla

Kathmandu, Apr. 26 (RSS): Jumla district has witnessed a 20 per cent  decrease in the number of smokers.

The number has come down remarkably as 81 per cent of the 90,000 population   had been smoking and 32 per cent of the children between the age 10-19 were among them.

Ninety four  per cent of the people in the remote and high land VDCs were found smoking. They used traditional sulpha for smoking.

This fact was revealed at a seminar organised here today by the Mrigendra Samjhana Trust in order to inform about the pneumonia control programme for the children under five launched jointly by the Trust and the local people in the district with the   financial cooperation of  the Health Tax Committee of the Ministry of Health.

According to an assessment report prepared by a team led by Prof. Hari Bhakta Pradhan,  those giving up smoking are from the Chhetri community  rather than Dalits and Brahmans and males more than females.

The report states that  in some VDCs the percentage of those giving up smoking is more than 50 per cent.

It further states that some have even  thrown  sacks of tobacco in the rivers, broken sulphas and given up cultivating tobacco.

After the programme, the Trust treated 7,942 patients for pneumonia, 261 for diarroaha, 233 for dysentery and 1,117 for those giving up smoking during the period 055/56.

It is said that the child mortality rate from pneumonia and diarroaha decreased to 183 per thousand from 336 per thousand because of the save the children programme launched by the Trust since 1981 in association with usaid.

Speaking on the occasion, special secretary at the Ministry of Health   Dr. Somnath Aryal  said that even though hmg has been allocating Rs 50 million for checking advertisement of tobacco and alcohol products from the electronic media, it is being widely advertised by other medias.

Founder of the Trust Dr. Mrigendra Raj Pandey pointed out the need to provide continuity to the programme.

From the chair, trust chairman Dr. Krishna Jung Rana called on the hmg to continue providing assistance for the programme.

Also speaking on the occasion were programme coordinator and reader Ramji Prasad Pathak, assessment team leader Prof. Hari Bhakta Pradhan and trust vice chairman Bhim Bahadur Adhikari.