Loan terms should be fulfilled: Gurung

Kathmandu, July 19 (RSS): There is provision in the loan agreement signed between His Majesty’s Government of Nepal and the Asian Development Bank on rural electrification, distribution and transmission line consolidation project for implementation of the loan agreement only after four conditions are met.

According to the conditions, the self-investment of the Nepal Electricity Authority (NEA) will be 23 per cent, the rate of return six per cent, and the ratio of payment of principal and interest 1.2 per cent and if necessary electricity tariff would be adjusted and regulations concerning fixation of tariff would be amended in this regard.

The agreement between NEA and ADB stipulates the provision for general adjustment in power tariff, passage of power tariff bill by the Parliament, and the arrears of the payment of bill by HMG and municipalities should be less than three months.

At the meeting of the House of Representatives today, Minister of State for Water Resources Ram Bahadur Gurung gave a statement of public importance on matters concerning rural electrification, distribution and transmission project raised by the MPs and made it clear that while implementing projects with grants and loan assistance of various donor agencies, the terms and conditions mentioned in the agreement had to be fulfilled.

He said that if the terms and conditions mentioned in the agreement between HMG and donor agencies could not be implemented, it would be difficult to receive foreign cooperation in the power sector and this would have adverse impact in the sector.

It is natural for the donor agencies to make investments only after ascertaining that the concerned organisation has sufficient internal resources and proper methods for mobilisation of resources, he added.

Stating that the conditions for equity share, return from investment and payment ratio were not unnatural, he made it clear that the condition that the financial situation of any organisation should be sound is not bad, and the condition was in line with the agreement signed in 2053 B.S. for the implementation of Kalagandaki ‘A’ Project.

According to him, at present the return from investment of NEA was 3.2 per cent, self-investment ratio 3 per cent and principal interest payment ratio 1.3 per cent.

Minister of State Gurung said that NEA has been giving emphasis on improving its financial management, curbing expenditures and leakage and recovering arrears for the implementation of the rural electrification and transmission consolidation project.

Stating that arrears amounting to more than Rs 520 million from the municipalities had not be recovered yet, Mr Gurung said that as the elecricity from the distribution system of NEA was used and payment for it was not made, this had led to poor financial situation of the NEA thereby resulting in electricity tariff hike.

Stating that HMG and NEA did not want to increase electricity tariff to burden the people, Mr Gurung said that various measures would be taken to improve the financial situation of NEA and to implement the terms and conditions of agreement before hiking the electricity tariff.

The Minister of State said that electricity tariff hike, improvement in management, prevention of leakage, recovery of arrears, and curbing of expenditures are also conditions laid down for implementation of the loan agreement.

Electricity tariff will be increased only if these conditions could not be fulfilled, he said, adding that HMG and NEA were making effort to fulfil the conditions through other options rather than tariff hike.

ADB is undertaking a study on electricity tariff and once the report is received, HMG and ADB could hold talks again on this matter, Mr Gurung said.

Cops killed in clash with Maoists

Pokhara, July 19 (RSS):Assistant Police Inspector Dil Bahadur G.C. was killed in an encounter between police patrol team and Maoists in Kumal Village of Chakratirtha VDC of Lamjung district this morning.

The police team led by Mr G.C. was on its way back to Tinpiple police post after a routine mobile inspection when the incident took place.

The encounter began after the police team luckily escaped an electric ambush set up by the terrorists.

Two other police constables were also injured in the incident while the terrorists escaped, according to DIGP Ravikant Aryal.

MPs demand copy of ADB deal

Kathmandu, July 19 (RSS): The meeting of the House of Representatives today was withheld for an hour after members of Parliament representing the main opposition party CPN-UML and other opposition parties picketed the well demanding fulfillment of their demand to provide the MPs a copy of the agreement on electricity reached between His Majesty’s Government and the Asian Development Bank(ADB).

Taking time from Speaker Taranath Ranabhat as soon as the meeting began, CPN-UML’s Pradip Kumar Nepal said His Majesty’s Government while reaching agreement with ADB agreed to the latter’s condition to increase electricity tarriff and therefore the meeting should not be moved ahead until unless a copy of the agreement is presented to the parliament.

Chief Whip of CPN-UML Bharat Mohan Adhikari said the views expressed by MP Nepal is the view of CPN-UML parliamentary party and that the decision taken to increase electricity tariff by 30 per cent under the agreement reached with ADB will have an adverse impact on the economy.

Lilamani Pokahrel of Samyukta Janamorcha said the government had accepted unnecessary pressure from ADB while signing the loan agreement and this would have a negative impact on the Nepalese economy. He also urged the speaker to withhold the meeting unless the agreement is presented to the Parliament.

Hridayesh Tripathi of Nepal Sadbhawana Party said it is not proper for foreign agencies to repeatedly pressurize the government to increase price. The agreement will have a long-term affect on the country. As this may be taken as a reason for increasing price of other goods also, the issue should be seriously discussed in the Parliament, Mr Tripathi added.

RPP’s Renu Kumari Yadav said the Rajbiraj airport opened by the Nepali Congress government in 2016 B.S. has been closed since the past 5 years and that the 54 bighas of land under the airport has been converted into a pasture land.

Shiva Prasad Humagain of Nepali Congress, referring to the murder of NC regional member Arjun Dahal in Anekot of Kavre district, said the increasing rate of violence, murder and arson is moving the country towards a dark future. The country cannot make progress unless the Maoist problem is solved, he added.

Pari Thapa of Rastriya Janamorcha said it is inapproriate not to present the agreement and treaties reached with foreign agencies to the Parliament. Many agreement and treaties have been reached secretly after the after the popular movement of 1990 deceiving the country, people and the Parliament, he alleged.

RPP’s Govinda Bikram Shaha urged the government to provide relief to the people affected by landslides in Jajarkot district.

Benup Raj Prasai of Nepali Congress drew the attention of the Ministry of Law and Justice towards the recent murder Ravi Upreti in Jhapa district who died in police custody. Mr Upreti’s death was termed as ‘accidental’ in the report of the public prosecutor contrary to the post-mortem report of the local hospital which stated that he had died as a result of beating and torture, he added.

CPN-UML’s Raghuji Pant said conditions against the interest of the country set by organisations like World Bank and Asian Development Bank should not be accepted.

Following this, Minister of State for Water Resources Ram Bahadur Gurung presented a report of the agreement reached with the Asian Development Bank.

Expressing dissatisfaction over the reply of the Minister of State, MP Pradip Nepal urged the speaker to discontinue regular proceedings of the House until the agreement reached with the ADB to increase electricity tarriff is presented in the Parliament.

NC’s Dr. Ram Sharan Mahat said the murder on Tuesday of a NC worker in Kavre district and four policemen in Sindhupalchowk a few days ago indicates further deterioration in the law and order situation in the country. The government should adopt a security policy, he added.

Stating that the L.P.G. gas-run micro-buses should not be allowed to run in the capital unless a provision of in-built tank and a separate gas filling system is made, Dr. Mahat said plastic bags should be banned and paper and jute bags encouraged.

Accusing Dr. Mahat of trying to divert the attention of the Parliament, opposition MPs argued that the meeting should not be moved ahead until and unless the main draft of the agreement is presented to the Parliament.

Those making such an argument were MPs Raghuji Pant, Dr Dilliraj Khanal, Dr Mangal Siddhi Manandhar, Subas Nemwang and Pradip Kumar Gyawali.

Govinda Bahadur Shaha of Nepali Congress said the opposition have raised a serious issue but since the Minister of State for Water Resources has replied the regular proceedings of the House should be moved ahead.

RPP’s Dr Prakash Chandra Lohani said unequal treaties like the Khimti and Bhotekoshi project were signed when the country has to buy its own product in foreign currency. He alleged that an extra burden of expensive electricity has to be faced by the people as a result of the agreement signed with ADB.

Following this, Speaker Ranabhat tried to move ahead the regular proceedings of the House in response to which the opposition MPs excluding the RPP picketed the well in front of the Speaker.

After the Speaker’s repeated request to take their seats was ignored by the MPs, the Speaker postponed the meeting for an hour.

Gurung coordination council formed

Bhaktapur, July l9 (RSS):A National Tamu (Gurung) Co-ordination Council has been formed with a view to co-ordinate Gurung organisations throughout the country and represent the Gurung community at the national level.

Captain Umardhwaj Gurung, Prof. Dr. Ganeshman Gurung, Devi Raj Gurung and Garjaman Gurung are the chairman, general secretary, secretary and treasurer of the council ad hoc-committee respectively.

A recent seminar on institutional development and inter-relationship between Tamu organisations adopted the decision on setting up the council.

During the seminar inaugurated by speaker Taranath Ranabhat, the Minister of State for Water Resources, Dr. Harka Gurung, Dr. Chaitanya Subba, Raj Parisad Standing Committee member Bhadra Kumari Ghale, Lok Darshan Bajracharya and Prof. Santa Bahadur Gurung expressed their views.

The seminar was presided over by Minister of State for Local Development Suresh Malla.

Melamchi water will come, but will it be affordable?

BY NAVIN SINGH KHADKA

Kathmandu, July 19:Backed by a positive donor community and so inching toward reality, the Melamchi Water Supply Project may splash the parching capital, but with an increased water tariff.

If Kathmanduites want regular and forceful Melamchi water-supply through their taps, they will have to cough up more than double the money what they are paying for water-supply now.

"Considering the foreign investment on the project, the tariff may go up to an average of Rupees 32 per 1000 liters," said Dinesh Chandra Pyakurel, Director of the Melamchi Water Development Board, in a public hearing of the project’s progress here today. "The foreign aid comprises 50 per cent of loan and the other half is grant."

Consumers in the capital are paying less than Rupees 16 per 1000 liters of water the Nepal Water Supply Corporation (NWSC) supplies. "The present cost has hidden subsidy," said Pyakurel.

NWSC has been able to supply only half the demand for water during dry season in Kathmandu that needs 180 million liters water per day.

The corporation’s management contract will be awarded to private sector by July next year in line with one of the conditions tagged by the donors for the US $ 340 million project.

Explaining that efforts will be made to relieve people, Pyakurel said that the first five years after the Melamchi water is piped, the tariff will be gradually increased. "The tariff will be fixed in accordance to the different income level consumers."

Majority of the people in the public hearing today focussed their inquiry on the expected water tariff-hike once MWSP starts supplying in water.

The multi million Dollar project initially plans to pipe in 170 million liters of water every day diverting the Melamchi River waters to Sundarijal through a 28-kilometer long tunnel.

What also became evident in today’s hearing is the shift of public interest: From the doubt — whether MWSP will ever materialize or not — to another concern — will the Melamchi waters be affordable?

This they may have done reading the donors’ mood. "Melamchi will definitely come," Arthur Mcintosh, head of a visiting mission of Asian Development Bank, said during the public hearing. Commenting on one of the public inquiry on tariff rise, Mcintosh said "those who will use more will have to pay more."

ADB’s voice counts much in the MWSP since it is the project’s donors’ coordinator assuring to chip in US $ 60 million for the bulk distribution component.

But it won’t be before the end of this year when ADB will release the loan since its fact-finding mission, currently in the town, is yet to submit its report to the Bank’s headquarters in the Philippines. "We will submit the appraisal to the board of directors who will then take the decision," said Mcintosh.

Equally crucial will be the decision of Norad, the Norwegian aid agency that has said it would fund US $ 24 million for the tunneling component of the project. So, when will that happen? "We are waiting for the appraisal of the project and for that we need to have a complete project document," said Jon Heikki Aas, Second Secretary at the Royal Norwegian Embassy here. "And the document is still under preparation."

Whether or not they are decided on the MWSP, what donors are sure about is that the price of the water should go up if their funded project pipes in the precious liquid here. "Full cost recovery of the investment on the project has to be there," said Mcintosh.

World Bank missing in Melamchi meeting

BY A STAFF REPORTER

Kathmandu, July 19:For the second time in the last six months, World Bank remained absent in the public hearing meeting of the Melamchi Water Supply Project (MWSP) here today. On February earlier this year, the multilateral agency had chosen not to attend the donors’ meeting held here.

World Bank’s absence in the meet — where all the major donors were present today — fuelled speculations among the public on why the multilateral agency did not turn up.

Top officials of Melamchi Water Development Board, however, assured the general people that the bank was in constant touch with the Board and that it has been co-operative on the project.

According to Rajib Upadhya, spokesman of the World Bank, the bank’s officials were over-stretched with other meetings and so they could not make for the Melamchi meet. "Regardless of the MWSP, the World Bank’s commitment is clear on the rehabilitation of the drinking water distribution network in the capital and the private sector partnership on water distribution."

‘Nepal-India ties should be nourished’

BY A STAFF REPORTER

Kathmandu, July 19:Nepal-India Human Development and Friendship Association looks forward to work as a bridge to assist the governments of Nepal and India in the line of resolving the problems affecting bilateral ties, the members of the newly formed Association said.

"Problems between the two neighbours are piling up because of some unscrupulous elements on both sides that have stood as impediments," former Nepali Congress lawmaker and Association Chairman told a press conference here today.

Efforts to resolve the problems have not been satisfactory because of the lack of candid approach to put up the views by the respective sides, Mani Lama said.

He said that the Association had been formed in the wake of the realisation that the governments of Nepal and India had not been able to resolve the bilateral problems despite all efforts.

"We look forward to hold interactions among doctors, politicians, journalists, religious leaders, businessmen and industrialists from both the countries in order to generate public opinion, which would in turn serve as inputs to resolve the problems," Lama said.

He said that the Association was formed to identify genuine problems and hold discussions for their resolutions thereby creating a congenial atmosphere for the development of both the countries.

"We have been verifying the controversial report that appeared on the web page of India Today and we will make public our views after we complete the verifications," Lama said replying to a question on the view of the Association towards the report that has charged Nepal’s politicians, bureaucrats and media persons of being involved in anti-Indian design.

On the issue of the inundation of Nepalese villages in the border following the construction of Laxmanpur barrage by India, Lama said that the Association would draw the attention of the government towards the issue.

Vice Chairman of the Association Surya Bhusal said that he had not found a single Indian journalist in India who was against the welfare of Nepal.

"Some undesirable elements in both the countries have been creating misunderstanding between the age-old neighbours," he said.

He said the Association would direct its efforts to create awareness amongst the citizens of both the countries towards the problems existing at the bilateral level.

Minister of State for Land Reforms Gopal Rai, who was present at the press conference said that the map showing some of the disputed territories between Nepal and India as parts of India was controversial.

"The controversy was brought to public notice under the initiative of the Ministry," he said in response to queries as to how the Ministry was viewing the issue of misleading maps being sold in the capital.

He said that after the completion of the demarcation of the Nepal-India border, which has been going on, the problems related with disputed territories between the two countries would be resolved.