BRIEFS (Spotlight Weekly)

The International Development Assistance (IDA), credit wing of the World Bank, has agreed to provide a credit assistance worth US$ 54.5 million (about NRs 3.72 billion) to Nepal government for the implementation of the Road Maintenance and Development Project. The five-year-long project (2000-2004) is expected to substantially improve access and mobility for nearly 500,000 people in 250 villages around the country. Finance Secretary R. B. Bhattarai and Country Director of the World Bank in Nepal, Hans Rothenbuhler, signed on an agreement to this effect at the Finance Ministry last week.

The state-owned Nepal Electricity Authority (NEA) signed on an agreement with the Gorkha Hydro Power Pvt. Ltd, a private sector company, on buying the 5,000 KW electricity to be generated by the Gorkha Hydro Power from the Daram river in western district of Baglung. The Gorkha Hydro Power has said it will complete the Rs 800 million hydropower project with the loan and technical assistance of China Machine Building International Corporation and Shanghai Export and Import Corporation in the next two years. According to managing director of the Company, Basanta Bhujel, the Chinese side will bear 70 percent of the project cost as loan while remaining cost will be borne by the Nepalese side.

The United Nations Development Program (UNDP) has agreed to provide an additional allocation of US$ 8.2 million to further strengthen the capacities of the existing decentralized governance structures. UNDP's Resident Representative in Kathmandu Henning Karcher and Joint Secretary at the Ministry of Finance, Madhav Ghimire, signed on revision documents to increase the UNDP contribution by over four million US dollars each to the ongoing Participatory District Development Program (PDDP) and Local Governance Program at the Finance Ministry on Monday. Both the three-year-old programs now have been extended till December 2000. With these revisions, the support from UNDP to these programs will stand at US$ 16.83 million. In addition to this, Norwegian assistance agency, NORAD, has contributed US$ 3.01 million for the implementation of the Village Development Program under PDDP. With additional inputs, the programs will be extended from 40 to 60 districts.

The state-owned Nepal Electricity Authority has cut off power supply in 11 out of 12 municipalities in western Nepal after they failed to pay arrears. According to NEA's regional office in Nepalgunj, the Power supply for street lamps in Mahendranagar, Tulsipur, Tribhuvannagar, Tikapur, Guleriya, Narayan, Amargadhi, Dasarath Chand, Silgadhi, Dhangadhi and Nepalgunj municipalities. According to NEA officials, Nepalgunj municipality alone owes Rs 16.2 million to NEA. Meanwhile, officials from Nepal Municipalities Association have said that the NEA's decision will affect nearly 380,000 people in these areas.

The Central Food Research Laboratory (CFRL), a government agency that monitors quality of food and drink items, has warned eight dairy industries of the valley including the government-run Dairy Development Corporation (DDC) for not meeting standards fixed by the government. Besides DDC, private dairy companies including Sitaram Gokul Mills, Nepal Dairy, Kathmandu Dairy, Bhaktapur Dairy, Sainju Dairy, Kharipati dairy and Himalayan Dairy have been warned after tests carried out on their products revealed that only the milk of Sitaram, DDC and Kathmandu Dairy were free of coliform virus. The Laboratory said that none of the eight producers had used labels with the right descriptions in accordance with food regulation. The fat level in the milk samples of all eight industries was found to be as per the requisite standard.

The meeting of the House of Representatives passed a motion last week strongly condemning the bomb explosion that took place at an election rally in Colombo on last Saturday, following an address by the Sri Lankan President Mrs Chandrika Bhandaranaike Kumaratunga. At the meeting, Speaker Taranath Ranabhat wished speedy recovery to Mrs. Kumaratunga who was injured in the explosion and expressed sympathies to the families of those killed in the incident. Senior Nepali leaders and officials have also condemned the terrorist act.

The state-owned Nepal Industrial Development Corporation (NIDC) has said that it is planning to issue income tax free safe debenture bonds worth Rs 500 million in 1999-2000 in a bid to function as a commercial bank. The Corporation said that it would start collecting deposits from the public beginning January next year. From its inception till fiscal year 1996/97, the NIDC has invested Rs 4.73 billion in different industrial ventures within the country. The Corporation's net profit in the year 1996/97 stood at Rs 35.1 million. The Corporation announced, during its 40th annual general meeting held here on Sunday, that it was going to distribute 3 percent dividends to its shareholders.

KUBER SHARMA, PRESIDENT Nepal Green Party has expressed great distress at the hijacking of Indian Airlines plane that left for New Delhi from Kathmandu. This has exposed great loop holes in the security system. And this, he says, is mainly due to nepotism and corruption. Sharma thinks both the Home Minister and Civil Aviation Minister must resign. Sharma has also expressed deep concern for the Nepalese nations who are on the hijacked plane and thinks the government is doing nothing for their early release. He has also expressed deep sympathy for the dead and all the hostages.