NATIONAL 9 (Spotlight Weelky)]

Art Of Negotiation

A leading entrepreneur says both the government and private sector should prepare for future business negotiations

By A CORRESPONDENT

Prabhakar Rana : Nepal needs to develop art of negation

Prabhakar Shumsher J. B. Rana, chairman of the Bhote Koshi Power Company, had to approach literally 110 banks to persuade them to finance in the nearly $100 million Upper Bhote Koshi project in central Nepal. It was the 111th bank that agreed to finance in the 36 MW project in which IFC, a lending arm of the World Bank, was also going to invest. Upon working out financiers in the mid-90s, Rana's company entered into an PPA (Power Purchase Agreement) with the state-owned Nepal Electricity Authority in which the latter agreed to buy the power from Upper Bhote Koshi in US dollars and tie up the inflation with the New York Stock Exchange. Bhote Koshi, that is to start its generation later this year, is the first private sector company to borrow money from international financial markets fulfilling their terms.

A successful negotiator. Though some activists have criticized the terms and conditions of the PPA that NEA entered with private power developers like Bhote Koshi and 60 MW Khimti, Rana argues that he can't be blamed for the terms in the contract. " We did what we were supposed to do-to protect the interests of the investors."

Addressing a select group of leading businessmen and diplomats at the SAARC Secretariat on Monday, Rana, who is also head of the Soaltee Group of companies, said in negotiations it is not unusual for one to be stronger than the other party. "(In such a situation) the bottomline is the 'Give and Take' principle that should benefit both the contracting parties," said

Rana. "Compromise is the key to success." According to Rana, as large multi-national companies with multiple brands are invading the businesses and consumer is being considered as king, information technology would help to a great extent in the process of business negotiations. As we will have to operate under the WTO regime, countries like Nepal will have to develop financial and legal expertise to negotiate with larger MNCs. "Both the government and private sector should work together in this direction. Regional collaboration and sharing of experiences will also help," said Rana.

AVIATION
Crowded Sky

Nepalese domestic aero-space is becoming full with new and latest models of aircraft as more than half a dozens of new aircraft have already been put in the competitive domestic market in the last one month. Despite the shrinking number of aircraft of the government owned RNAC, private airlines are fulfilling the seat demand of the passengers by introducing new planes.

After Buddha Air, Cosmic Air and Shangrila Air, it is now the turn of Yeti Airways which is introducing the flight service by EMB 120 aircraft Built by Embraer Aircraft Corporation, worldís fourth largest aircraft manufacturer, more than 350 EMB aircraft successfully operate acrcoss the world. According to Vijay Shrestha, general manager of the airways, this modern 30-seater aircraft has spacious passenger cabin, ample leg space and cabin height. Yeti airways plans to introduce two EMB 120 in its present fleet of four DHC-6\ 300s (Twinotters). The airline will operate flights on trunk-routes with this newly introduced aircraft.

As more and more air seats are avilable in the domecstic sector, fare has become more competitive. But the pertinent question is how many new arilines will survive? Some aviation expert expect that some airlines will have to go out of business within the coming tourist season.