No More Restrictions

By BMD

Keeping in view the upcoming national tourism event — Destination Nepal Year (DNY) 2002 — the government is planning to open up some more areas for foreign visitors. One million tourists are targetted for the year 2002.

The new areas to be opened up soon include 45 village development committees (VDCs) in 13 different districts from Mechi to Mahakali. They stretch from Olangchung Gola of Taplejung district to Vyas Rishi area of western Nepal. Kimathanka of Sankhuwasabha, Lobangthang of Mustang and Upper Dolpa in Dolpa district as well as many other attractive sites are situated in this area.

Those areas that were prohibited to foreign visitors due to security reasons that arose out of the Sino-India war in 1962 are very attractive sites for nature-lovers and trekkers.

Currently, tourists have nowhere to go, other than to concentrate their activities in the Kathmandu valley, Pokhara, Chitwan, Lumbini and Dhulikhel. Both tourism entrepreneurs and visiting tourists have been demanding that the restricted areas be opened up as new tourist destinations.

Development of new destinations and products are a must to attract tourists from the international tourism market as there is growing competition among nations globally. Neighbouring China and India have already opened up the adjoining sites to foreign visitors.

Shankar Prasad Koirala, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation, says that since the government is planning to launch development activities in these areas through tourism, it has decided to open them up to visitors.

Koirala says the opening up of these areas will be helpful both for product development and diversification of tourism.

The Tourism Council, the apex body for the development of tourism headed by the Prime Minister, has already given the ‘go ahead’ to the Ministries of Home and Culture, Tourism and Civil Aviation to open up the restricted areas.

But the government has yet to take the decision on how it wants to open up these areas.

Even in the restricted areas, the government has already opened up many mountain peaks to mountaineers.

Until now, it has allowed 158 peaks, out of the 1,310 identified peaks above 6,000 meters in the country, for climbing purposes. Now it is in the process of charting peaks above 5,000 meters.

Koirala said that the two ministries are now chalking out plans to open the sites to tourists. "Once they are declared open, the inflow of tourists into the areas will start and the task of infrastructure development will begin gradually."

After the government announces the areas open, the overall development activity in those areas can be expected to gear up. But with the growing Maoist activities in the country, tourists and entrepreneurs feel insecure outside Kathmandu.

The government needs to give equal importance to the law and order situation so as to diversify the tourism industry to various parts of the country.

Meanwhile, as part of developing new tourist destinations in diverse parts of the country, Nepal Tourism Board (NTB) has identified 390 spots in 46 different districts. It has started conducting necessary studies to find out the prospects of tourism development in seven districts already.

"We will submit reports to the concerned ministries after completing the studies," Pradeep Raj Pandey, Chief Executive Officer (CEO) of NTB, said.

"We will appraise the respective ministries about what is necessary in the districts so that the necessary infrastructure developments such as roads, electricity and drinking water can be carried out."

The NTB will provide tourism-related training to the local people and inform them about the tourism potentials the local areas hold. The NTB has also plans to conduct marketing and promotional activities to promote the areas.

Regional Airport For Pokhara

By Our Correspondent

After allowing a foreign company to conduct detailed feasibility report for the construction of Nepal's second international airport at Bhairawa, the government has plans to call for a global tender to build a regional/international standard airport at Pokhara as well.

The Ministry of Culture, Tourism and Civil Aviation has begun preparing an initial draft proposal to attract foreign investors for the construction of the airport following the recommendation of the Investment Promotion Committee headed by the Prime Minister.

The government has already pooled in more than 3,100 ropanies of land in Pokhara, a hub destination and route to the Annapurna Trekking Area.

According to Yagya Raj Gautam, Joint Secretary at the Ministry of Culture, Tourism and Civil Aviation, tenders will be invited for the construction of the airport in Pokhara on a build, operate and transfer (BOT) basis.

The regional standard airport where even Boeing 757 aircraft can land is expected to cost a minimum of Rs. 10 billion.

Financial Discipline Worsening: Report

By Krishna Shrestha

The country's Auditor General has been warning the government for years. But with each passing year, financial discipline only gets worse. Financial irregularity, as shown by the latest report of the Auditor General, has deteriorated compared to the last few years.

The government in its highly prioritized reform action programme - which was approved by His Majesty’s Government in April this year - had announced that it would emphasize on public expenditure management, corruption control and good governance, among others. But in its commitment to bring about economic reforms, the increasing amount of financial irregularities could be a big threat.

The 37th annual report of the Auditor General which was made public last week shows rampant financial irregularities in government offices as well as in public corporations. The report was presented to the House of Representatives last Tuesday.

In keeping with the Constitution of the Kingdom of Nepal, the Auditor General audits the accounts of the Supreme Court, the Parliament, the Raj Parishad, the Commission for the Investigation of Abuse of Authority, the Office of the Audito-General, the Public Service Commission, the Election Commission, other offices of the constitutional bodies, the Royal Nepal Army and the Nepal Police, as well as all other government offices and courts.

"Financial irregularities have increased by 19.10 per cent in the latest report compared to last year," the Office of the Auditor General of the Kingdom of Nepal says. (see chart for trend).

According to the report, financial irregularities over the years which amounted to Rs. 22.36 billion in last year's report has touched Rs. 25.70 billion in this year’s report. Total financial irregularities in 2057 alone was equal to Rs. 9.83 billion.

Another serious aspect shown by the report is the widening irregularity figures. The country had witnessed a declining trend in financial irregularities in the years between 2054 and 2055. But there has been a reversal with the years 2056 and 2057 showing an increasing trend.

Another serious issue raised by the report is the absence of settling or clearing financial irregularities. In 2054, 24.22 per cent of the total financial irregularities were cleared, which increased to 27.61 per cent in the reporting year 2055. But, in 2056, it declined to 21.06 and this year, it is down to 17.44 per cent - a serious indication of financial indiscipline.

Ten ministries account for 88.69 per cent of all financial irregularities. Though committees have been formed to settle or clear them, no remarkable progress has been achieved.

It has been learnt that the Public Accounts Committee has given a 53-point directive as well as suggestions to His Majesty’s Government. If implemented, they will have a positive and long-term impact on the country’s financial administration. At least that's what the Auditor General, Bishnu Bahadur KC, feels.

The Auditor-General’s report has indicated some serious lapses on the part of the government machinery too. Accordingly, the government has not yet prepared an integrated statement on foreign grants. Nor does there exist any up-to-date record of domestic and foreign loans taken by the government.

Records involving government investments, loans and shares in various institutions are also missing. Regular monitoring to clear or settle financial irregularities is also lacking. There is a declining trend in the revenue increment growth rate, although it slightly increased in the fiscal year 2055/56.

In addition to this, the performance auditing conducted by the Office of the Auditor General has shows serious lapses in development projects. Accordingly, the Narayani Lift Irrigation Project was started seven years back. But the project is unable to provide water for irrigation during the winter season. More than Rs. 746.4 million has been spent on the Rajapur Irrigation Project, but no additional land has been irrigated. It is because of the fault in study of the Modhi Khola Hydro Project that an additional Rs. 13.6 million had to be spent on consultancy services.

There are many other issues that show the weaknesses of the government-owned entities.

The 37th annual report has raised a big question mark over financial discipline. It clearly shows that financial rules and regulations are being grossly violated. Directions given by the Auditor General and Public Accounts Committee have not been pursued and followed. If the trend is not checked or controlled, this will lead to corruption.

If the rules and regulations are not practical or if they hinder the execution of works, then they should be changed or amended. But nobody should be allowed to engage in financial irregularities, taking advantage of the existing loopholes.

S. Lankan Tea In Nepal

By Our Correspondent

M.J.F. Teas Private Limited, member of the MJF Group which is the largest tea manufacturing and marketing unit in the world, on Thursday launched its finest Dilmah tea in the Nepalese market.

According to M.J.F. Teas, the premium tea producer of Sri Lanka, the brand’s arrival in Nepal coincides with its 12th anniversary.

Dilmah tea is considered to be the most valued tea throughout the world and it is now distributed in over 86 countries.

The tea is also associated with internationally acclaimed companies such as McDonalds Restaurants and EMIRATES airlines.

According to Malik Fernando, member of the family production, Dilmah tea comes to Nepal directly from Ceylon with care, dedication and commitment.

As to the marketing prospects in the Himalayan Kingdom where people can’t afford to buy expensive tea, the producers say that they have targetted the hotels and high class consumers.

On the launching ceremony Dilmah Tea Pvt. Ltd. appointed Maruti Trading (Pvt.) Ltd. as its official distributor for Nepal. Dilmah Tea expects to sell about two to three million tea bags in Nepal.

Microbuses And All That

By Prem N. Kakkar

THE entry or rather the import of about 300 micro buses into the kingdom may sound as the supporting arch of the government decision to banish the diesel three wheelers from the Kathmandu Valley. The diesel tempos or Vikrams had gained notoriety with their zest for spewing the obnoxious fumes much to the discomfiture of the Kathmanduites.

Some relief was in sight with the diesel tempos being thrown out of the valley. But with so many such vehicles displaced, the problem for the commuters increased. For a few months it was a harrowing experience to trudge around the valley wholly dependent on the buses and minibuses which never moved unless the situation followed the sardine fashion.

The electric tempos were of some help but all the way. As things seemed to be moving somewhat in a positive way, the registration of such tempos came in for closure but was soon opened. This just goes to show that the government actions are sometimes based on ad hoc basis without delving into the intricate details.

As far as pollution of the environment is concerned, the discarded batteries of the electric vehicles are not said to be safe. Unless there are strict monitoring and disposal mechanism the problem will remain there. Otherwise, there is almost zero air pollution by these Safa tempos.

The only thing that matters is the slow speed of these electric three wheelers. The road scene in Kathmandu is indeed a fairy tale. The cycles, buses, pajeros, marutis all vie for their share of the road with the three wheelers of which there are many varieties. Some are powered by electricity while others by petrol or LPG.

The frequency of the movement of the three wheelers is so much that they occupy the road for quite a significant part of the time. This obviously leads to the congestion of the road and traffic jams have become quite common. There is no alternative at the moment and all inconveniences have to be borne.

As if this was not enough, Kathmandu valley has been again flooded with 300 and odd micro buses. They have added to the convenience of the commuters by offering their services for quick trips. The prices are reasonable considering the situation. They are comfortable and fast. People have liked them and they are doing good on the investment made.

The problems that have surfaced with the inclusion of more vehicles carrying ten or twelve passengers per trip are many. Instead of bigger vehicles carrying more passengers per trip now it’s the smaller ones ferrying a few commuters per trip. This obviously leads to more occupancy of the road per vehicle per hour or day. Isn’t this a matter that needs attention?

In fact, long term vision is still lacking among the planners. What they aim at is short term solutions which does not have much time as a matter of survival. Displace the diesel three-wheelers. This was done when the public pressure was built up and the government had to come up with the decision to ban them from the Valley.

The options that they sought was allowing the import of smaller petrol driven vehicles to meet the valley needs. But what was lost on the way was how much they would add to the traffic blues. Maybe it’ll take a few years before any concrete programmes will come up to ease traffic problems. but by then the problems would have grown in proportion as compared to today.

Now, if all the vehicles in the valley and the ones to be added in coming days are to stay, a pragmatic plan has to be formulated as how to adjust them. The idea of banning vehicles of a certain age may be justified or going for the emission standard may hold the ground. It’s high time that the ball was rolled to safer grounds while at the same time see that the commuters are not inconvenienced.