NEWS NOTES (Spotlight Weelky)

Foreign Aid Commitments Go Up

Commitment for official development assistance (ODA) went up significantly for Nepal during 2000 01, reports said Thursday. According to the Finance Ministry, bilateral and multilateral agencies committed a total assistance worth Rs 30.24 billion for 33 projects by the end of the last fiscal year, 48 percent up from the previous year. The total inflow of loans for seven development projects during this period soared to Rs 17 billion, whereas the total grant amount for 26 projects amounted to Rs 13.2 billion. The ambitious Melamchi Drinking Water Project alone attracted Rs 12.77 billion as foreign assistance out of which only Rs 634 million in the form of grants. Similarly, the Rural Access Program received a grant assistance worth Rs 3.4 billion from the British government, whereas the Small Town Water Supply project drew a loan assistance worth Rs 2.59 billion from the Asian Development Bank. The Manila-based Bank was the largest lender to Nepal in the last fiscal year by committing a loan worth Rs 13.02 billion for five different projects. Nearly two-thirds of the development expenditure in Nepal is financed through foreign loan and grants. Kantipur daily reports.

Businessmen Urge Renewal Of Trade Treaty

Former Nepalese bureaucrats and businessmen have urged both Nepalese and Indian governments to extend the Trade Treaty between the two countries in its present form. The treaty was first signed in 1991 and later modified in December 1996. A day after India officially notified Nepal that it was seeking review and revision of certain provisions in the treaty, which is to expire in December, former commerce secretary Mohan Dev Pant said the spirit of the treaty would be killed if it is changed. He said the basic objective of the treaty was to accelerate Nepal’s process of industrialization and economic growth. "But we should also respect the sensitivities of the Indian side by introducing appropriate domestic measures," he added. Addressing an interaction program organized by the Society of Economic Journalists (SEJON) here Wednesday, Pant said the issue of `export surge’ should not derail the treaty. President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Ravi Bhakta Shrestha urged the Nepalese government to consider the concerns of the Indian side. Former FNCCI President, Pradip K. Shrestha, said Indian hue and cry on the issue of ‘export surge’ was not appropriate as Nepalese exports to India was negligible when compared to their total domestic demand. Nepalese officials were absent from the program. Compiled from reports.

Bill To Give Autonomy To Central Bank

The government has introduced Nepal Rastra Bank (NRB) bill 2001 and bill concerning recovery of loans from Banks and Financial Institutions 2001 in the ongoing session of the parliament. The House of Representatives unanimously agreed to discuss both the bills. Replying to questions raised by the members, Finance Minister Dr. Ram Sharan Mahat said the NRB bill aimed at providing autonomy to the NRB to function as a central bank. He said the bill contains a provision to specify a ceiling as per international standards regarding the provision of overdraft by the government from the NRB. There is also a new provision for improving procedures for the appointment and dismissal of the governor and deputy governors of the bank, he said. The bill also proposes to increase authority of the NRB, strengthen the mechanism for controlling and supervising commercial banks and other financial institutions and has made strict provisions for punishment for any wrongdoing. RSS news agency reports.

Army Hands Over Road To The Govt.

The Royal Nepalese Army has handed over the 26.5 km Hile-Leguwaghat section of the Naradmuni Thulung highway in eastern Nepal after its construction to the government amid a function Tuesday. The road was completed in a little more than four years at the cost of Rs 126 million. The rest of the 83-km long road will be constructed with the help of the DFID, international development assistance arm of the British government. Inaugurating the road, Prime Minister Sher Bahadur Deuba lauded the role of the army in national development and peacekeeping operations overseas. RSS news agency reports Aug. 15.

Dr. Mahat Clarifies On Overdraft

Amid fierce criticism about lack of fiscal discipline on part of the government, Finance Minister Dr. Ram Sharan Mahat told parliament last week that he has constituted a probe body to investigate on the circumstances leading to the government to seek overdraft of Rs 5.57 billion at the end of the last fiscal year ending mid-July this year. The minister said the government had to resort to overdraft, as the estimates of revenue and expenditure were not exact. "The government had to provide nearly Rs 6 billion between mid-June and Mid-July this year for development works as it could not receive money promised by different donor agencies and governments, including the Agriculture Program Loan (APL), Debt Relief Fund and KR," he said. The government could not collect the revenue as targeted in the last fiscal year due to violence, industrial instability and shutdown strikes. Leading dailies report August 15.

Indian Diplomats Deny Media Reports

Indian authorities have denied that the construction of Rassiyawal-Khurda Lautan bund would affect Lumbini — the birthplace of Lor Buddha — along with other places in the Nepalese territory. Addressing a program here Saturday, an official at the Indian Embassy Ms. Nagma Mallick said there are "in-built regulators as high as six meters (at the bund) that allow easy passage of water into the Indian side. Saying that the construction of the embankment had been stopped as requested by the Nepalese government, she said there is no record of damage caused by the Danda River in the Indian territory. Mallick said the bund constructed near the border region of Marchawar in west Nepal was a local issue and should not be internationalized. She went on to say that there was a conspiracy to make the bund a national and international issue. First Secretary at the Indian embassy, Manoj Bharati, urged the media not to exaggerate the issue in a way that could harm bilateral relations. Indian officials’ comments have come amid Nepalese media reports that the under-construction bund in the Indian territory could submerge dozens of villages and affect more than 100,000 people on the Nepalese side. Compiled from reports Aug. 14.

PAC Seeks Details On Arms Purchase

The Public Accounts Committee (PAC) of parliament on Monday decided to request the Defense Ministry to provide to the committee within the next seven days a report concerning the decisions and action taken by the ministry toward the purchase of arms and ammunition and helicopter by the ministry, RSS news agency reported Tuesday. The PAC decision came amid reports that the Defense Ministry was procuring arms and armored helicopters from different countries as part of its drive to modernize the weaponry of Royal Nepalese Army. Nepal Samacharpatra daily reported that the previous G.P. Koirala government had decided to procure two night vision MI-17 helicopters at a cost of not more than Rs 400 million to the army. The daily quoted PAC chairman Subash Nemwang as saying that the PAC had demanded papers only for study and that it would pursue probe into the deal if the process (for procurement) were found faulty. Compiled from reports.

Udaypur Cement Factory Registers Profit

At a time when most of the state-owned entities are in the red, the Udaypur Cement Industry Ltd. has made good performance, a newspaper reported Monday. According to the report, the company registered a profit of Rs 110 million over the last six months and has distributed bonus to the workers. The industry was set up a decade back at the cost of Rs 6.2 billion with Japanese assistance. "We have been able to turn the loss-making industry into a profit-making one by discouraging political interference," said Ashok Kumar Malla, general manager of the industry. Himalaya Times Aug. 14.

Library Project For Strengthening Democracy

Thirty-two school teachers and volunteers from Palpa and Kavrepalanchok districts have completed 35-day training on "Library and Information Science" conducted jointly by Nepal-Finland Society and Tribhuvan University Central Library this month. Charge d'affaires at the Finnish embassy, Asko Luukkainen, distributed certificates to the trainees amid a function here Sunday.

The training was organized under the "Democratic Education and Library Development Project" launched by Nepal-Finland Society with the grant assistance from the Finnish embassy. The project, being implemented in 10 high schools in Palpa and Kavre districts, aims at developing awareness about the functioning of multiparty democracy and the rights and responsibilities of a responsible citizen in a democratic environment. The project comprises youth parliamentarian program and establishment of libraries.

Under the library component, a library with nearly 1,000 books with hard cover and all the necessary equipment required for the operation of a proper library shall be established. The project aims to mobilize community support to sustain the operations of library at the local level. Addressing the function chaired by Mrs. Shanti Adhikari, general secretary of the society, Rabindra Rimal, hoped that the project would go a long way in making local people, especially rural youth, aware toward functioning of multiparty democracy, human rights and legal system. On behalf of the society, he expressed sincere thanks to the Finnish embassy, TU central library and schools concerned for their active support in making the project a success.