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Page 16

QUOTE UNQUOTE 2 BRIEFS 3

NEWSNOTES 4

COALITION PARTNERS: Divided They Stand 7 POLITICAL INSTABILITY: Hampering Development 9 NOB'S FAILURE: Banking On Lessons 10 VIEWPOINT : Shivanth Pande' & Santosh Pokharel 11 FACE TO FACE :Dr Bipin Adhikari 15 FORUM:Kamal Maden 19

FORUM:Mohan Das Manandhar & Rojan Bajracharya 21

PROFILE : CHANDA RANA 22

ARTICLE: SB Pun 23

INTERVIEW- Sujata Koirala Page 12 OPINION: Qiu Guhong, Chinese ambassador to Nepal 24

Editor and Publisher : Keshab Poudel, Copy Editor: Ben Peterson Marketing Manager : Madan Raj Poudel, Photographer : Sandesh Manandhar Cover Design/Layout: Hari Krishna Bastakoti Editorial Office: Phone/Fax: 977-1-4602807, E-mail: [email protected], [email protected] Office : Newplaza, Putalisadak, Tel: 4421846 Printers: Pioneer Offset Printers (P.) Ltd., Dillibazar, Kathmandu. Ph: 4415687 COO Regd. No. 148/063/64

NEW SPOTLIGHT NEWSMAGAZINE I June 16-20091 1 QUOTE UNQUOTE

"I am ready to swallow all the bitterness they can spit at me. I will continue to advocate cooperation and unity."

Prime Minister Madhav Kumar Nepal at the constant condemnation hurled at him by the Maoists.

"The Nepali Congress and Unified Marxist Leninist are responsible for plotting to split our party."

Upendra Yadav, chainnan of Madhesi Janadhikar Forum (MJF), accusing NC and UML of conspiring to divide the party by inciting a section of MJF leaders.

"This government will fall within three month.

Prachanda, Chairman UCPN Maoist.

"There are consipirators within the party, who are more dangerious

Jhalanath Khanal, Chairman CPN UML

"Ours is a genuine Madbeshi Party. Bijaya Kumar Gachhadar, Deputy Primeminster & Leader of break away MJF •

•

NEW SPOTLIGHT NEWSMAGAZINE ! June 16-20091 2 Chinese Ambassador to Nepal QIU Guohong Launching a book on the life of Nepalese Buddhist Master Buddhabhadra

CffiN.ESE AMBASSADOR TO relations. Chinese ambassador Qui THE WORLD BANK BAS NEPAL QTU GUOHONG Guohong also spoke the impottance ofthe APPROVED financial support of about LAUNCHED A BOOK on THE LIFE booR': Delivering a note of thanks general US$ 782 million to Nepal for the next two OF Nepalese Buddhist Master secretary of Center Dr. Upendra Gautam years through International Development Buddhabhadra at a function recently. said this book showed how Nepal-Cllina Association (IDA), the bank' s Organized by the China Study Center relat ions are bound by century old concessionary lending arm. The meeting Nepal, the book was written by Nepalese interactions. Attended by large number of of the board of directors of the bank scholar Min Bahadur Shakya. Making a scholars and historians, author Shakya discussed interim assistance strategy welcome speech, chairman of the Center discussed his research and the publication saying Nepal's determination to build a robust peace through development and said, "the China Study Center, with its of book. poverty reduction will get strong support activities focused on studies and research THE INDIAN EMBASSY IN from the bank. Welcoming the many aimed at promoting social, cultural and KATHMANDU HAS REFUTED significant milestones achieved since the economic ties between Nepal and China, reports appearing in the Nepali media that signing of the Comprehensive Peace takes immense pleasure in publishing Ulis India has encroached upon Nepali land Agreement in November 2006, the Bank's useful book which unveils very important and forcefully evicted Nepali people from strategy document supports the promotion aspects the of age old cultural bondage their viUages. Issuing a statement Friday, of consensus and unity to address key between our two countries." It may be the Indian embassy also said that India's elements of the peace process, including recalled that Buddhabhadra, a native of border security force- the Seema Suraksha the foundations for state building, growth, Kapilvastu of Nepal, traveled to China Bal - has not committed any atrocities and improved basic service del ivery for some Sixteen hundred years ago on his against the Nepali people as has been Nepal's poor, a statement issued by the Buddhist mission and spent his entire life reported. The embassy said it cross­ bank says. "This is a period not only of in propagating Buddhism in China. It checked the facts with the concerned risk but also enormous opportunity," says seemed that he generated a large number Tndian authorities following border related Susan Goldmark, World Bank Country of disciples in China who became the reports appearing in the Nepali media and Director for Nepal, adding, "While many pillars of Buddhist meditation, doctrine fow1d the allegation of encroachment of ofthe transitions will not be completed in and the foundation for pure monastic life Nepali territory and attack on the Nepali a two-year period, during this time the of Chinese Buddhism," said Regmi. people by SSB personnel totally baseless. country can continue to establish a sound Stressing the need for more research, The embassy further said it bas not yet basis for peace and economic Regmi said many more facts and figures received any formal infonnation on the development." The strategy reflects still remain unexplored and are let Dang incident from the Nepali considerable continuity, emphasizing the distorted due to lack of intensive research. government and also continned that no areas of strength but suggesti11g more There should be more in-depth research border pillar has been shifted or tampered flexibility to respond to opportunities. It builds on the areas which have shown to works carried out by dedicated scholars with. "These baseless reports have been 'be robust and to modalities of of both the countries which will enhance devised to shatter the cordial ties between implementation tailored to local conditions the historical importance ofNepal-China Nepal and India," the release said. and what bas worked in the past. • NEW SPOTLIGHT NEWSMAGAZINE! June 16-20091 3 become economicall y active members increases ministerial accountability to and are able to contribute to the poli tical parliament and provides for stability and economic development as autonomous provinces and self­ Nepali nationals in Nepali society. government. It enhances the role of He said that the idea that PLA constiLUtional watchdogs and also integration is into the Army and increases their pubic accountability. The rehabilitation is into the society are not draft was prepared by drawing on in the peace agreement. Sood said that lessons from the past as well as trends given today's economic recession there and innovations in other parliamentary may be difficult to extend the pace democracies. process for an inordinately long time. Launching the draft, National He also hinted the recent leakage of CD Human Rights Commission Chairman questioning to place more than 4000 and former Chief Justice Kedar Nath 'Dahal's Shows Leadership" disqualified combatants in the camp. U padhyay said that the expert draft Indian ambassador to Nepal Rakesh He argued that india has nothing to addresses many complicated issues that Sood dismissed the claims that New do with the fall of Maoist governroent. the new constitution of Nepal will have Delhi bad engineered the fall of the He said that it is the breaking down of to deal with. He also added that this Maoist led government, that Indian the consensus in Nepali political system draft should serve as an important border security forces were involved in led to growing differences and eventuaUy reference point for the work being the Dang incident and that Nepal Delhi the decision where tbe Maoist led undertaken by the CA. was alarmed by Nepal's ties with government became a minority and The draft was also commented upon • Beijing. fn his interview given to the prime minister Pushpa Kamal Dahal was by senior political leaders Chakra Editor ofKantipur Sudheer Sharma and obliged to resign. Compiled from Prasad Bastola of Nepali Congress, the Editor of The Kathmandu Post Kantipur and The Kathmandu Post. Bharat Mohan Adhikari of CPN Akhilesh Upadhyay, Indian ambassador A Model Constitution for Nepal (UML), and SureshAle MagarofUCPN Sood said, "Nepal is a sovereign country Released (Maoist). Whi le the first two and it will decide what kind of A model constitution for Nepal was commentators applauded the efforts of relationship it will have with nay other released on May 21 to provide a the author to deal with almost all country. I don't think that impinges on comprehensive expert input into the political problems of Nepal anyway with Nepal's relationship w ith constitution making process at the comprehensively, and within the liberal India. India has its own kind of Constituent Assembly. The model democratic framework, the Maoist relationship with China ." He said comprises 26 Chapters, 297 Articles, representative said the draft, although India's bilateral trade with China is over and six schedules. very useful for the Constituent US$ 40 bi llion. The model constitution was drafted Assembly, had a class orientation. He On the recent border controversies by a senior constitutional expert, Dr also said the Janjatis will not accept his on Dang, he said Delhi had sent its Bipin Adhikari. The Model Constitution provinces based on geography. Senior surveyors "who found that there was of Nepal is intended to help stimulate Advocate and President of Nepal Bar absolutely no untoward incident. He rational discussions on core Association B iswa Kant Mainali also said when new pillars are installed constitutional issues facing the country. expressed his views on the model. • ninety- eight percent of border dispute The constitution is based on a Introducing Dr. Adhikary's book, will be resolved. parliamentary form of government at imminent constitutional lawyer and On tbe question of fall of Maoist the center and a presidential system at convener of the Consortium of government Indian ambassador Sood the provincial level. The draft Constitutional Experts Dr. Surya said," it is completely an internal affair incorporates new fundamental rights, Dhungel introduced the model of Nepal. Lauding the leadership role constitution. of Maoist leader Dahal in transforming the Maoist party from a militant group to a major political party, indian ambassador Sood said," that shows his leadership." On the question of peace process, sood said," firs of all, peace process implies the complete disarmament of the People's Liberation Army (PLA).Second, it implies the integration of the PLA combatants into the Nepali society in a manner in which they

NEW SPOTLIGHT NEWSMAGAZINE ! June 16-20091 4 NEWSNOTES has been fo rmed constituting representatives of all students' unions Nepal Tourtsm Boanl to inspect the encroached sites. Compiled from reports Maoists Demonstrate Against Border Encroachment The Unified CPN (Maoist) staged rallies in the capital protesting the encroachment of Nepali territory by Tndia and harassment of Nepal is living in bordering villages. After rallies at different parts of Kathmandu, hundreds European Film Festival (SSB), the meeting of tbe 18 parties of Maoist cadres and some centra l The diplomatic missions and called by the Maoists drew the leaders staged sit-in in front of the cultural institutions of the European government attention towards Indian embassy at Laincbaur, chanting Union (EU) based in Kathmandu addressing tbe problem form diplomatic slogans against the encroachment of organi zed a five day European Fi lm level. The meeting concluded that the Nepali land and harassment of Nepal is Festival at the Nepal Army Auditorium constant encroachment and attack of the by Indian border security personnel. from June 13-1 7. Nepalis in the border areas is a major They also submitted a memorandum at • The fist two days of festival, which blow to sovereignty and nationality of the embassy calling for immediate end is the second of its kind, will draw a Nepali people. A team led by Chairman of the border encroachment. Earlier, the large audience from different sectors of of N ational lnterest Preservation U nified CPN (Maoist) called an all­ the Nepalese community, going by the Committee Amik Sherchan has been party meeting to discuss the border response from last year's screenings in formed to inspect the encroached sites encroachment and evacuation of Nepali September. in Dang and Bara districts, senior settlers from several border villages in The festival will be featuring ten Maoist leader Dr Baburam Bhattarai Dang. Reports say as many as 6000 European films of different origins and informed. The team will constitute Nepaiis have been displaced after the on themes. lt aims at building a strong representatives of all parties. Nepali Indian Seema Surakchya Bal (SSB) tradition in the years ahead with the Congress, Madhesi Janadhikar Forum personnel hope reaching out to the ever-growing (MJF), Tarai-Madhes Loktantrik Party Conservation Award goes to Nepalese audiences. (TMLP) and Sadbhawana Party did not Women in Environment (WE) The movies- two from each Member participate in the meeting. Meanwhile, Year 2009 has proved quite State represented in Nepal (Denmark, 13 students' unions besides All Nepal rewarding so far for the Women in Nationallndependent Students· Union­ Fi nland, France, Germany and the Environment (WE-Nepal), a national United Kingdom) are masterpieces of Revolutionary (ANNISU-R) have environmental organization of women, contemporary European demanded the government to stop the with over 5000 members. The Ministry cinematographic arts. From comedy to encroachment in Dang and Bara of Environment, Science and war and drama, all kinds of films were di stricts. A meeting of the students' Technology declared WE-Nepal the screened. bodies at Nepal Students' Union office winner of Environmental Conservation "We find many simjlarities between in Putalisadak concluded that the Award 2009 (2066 BS) for its Europe and Nepal in tem1s of diversity problem should be addressed from outstanding contributions to protect, conserve and promote in culture a nd language. This is what government level. Likewise, a taskforce environment in we want to show in the four day long film festival,'' said Ference Weigl, fri st secretary political affairs of th e European Commission to Nepal. Eighteen Parties Call Govt To Stop Encroachment Eighteen parties representing the Constituent Assembly (CA) including the Unjfied CPN (Maoist) called on the government to commence diplomatic appeals to stop encroachment ofNepali land by the Indian side. Condemning the encroachment by Indian border security force, Seema Surakshya Bal

NEW SPOTLIGHT NEWSMAGAZINE I June 16-20091 5 NEWSNOTES

Nepal. On June 5, 2009, the Chairman Maoist to launch the joint agitation but from jail after three years. She returned of the Constituent Assembly Subash she accepted t he nomination of to Nepal with her political mentor and Chandra Nembang handed over a ambassador to India by same coalition then NC president B.P Koirala in 1976 certificate of appreciation, including a government. After fac ing humiliation with a message of nationa l cash prize of Rs. I 00,000, to Mrs. in then Legislature Parliament by reconciliation. Acharya was appointed Kamala Acharya (Dhungel), President CPN­ agriculture minister in the ftrst elected of WE-Nepal, at a function organized Maoist legislature, Acharya gave up her government following the restoration of in Kathmandu by the Government of claim. democracy in 1990. She resigned from Nepal to celebrate the World She resigned as a deputy prime the post, complain Environment Day. It needs to be minister following the dispute with ing of widespread corruption in the re minded that las t March, Mrs. prime minister Girija Prasad Koirala. ministry. In the Dhungel was unanimously elected Vice­ Similarly, she resigned from the central coalition government in 1997, Acharya Chair of the East and South Asia IUCN membership after party's decision to was the deputy prime minister with Regional Committee in Bangkok for a join with Maoist saying that it was water resources portfolio. Her body was three year term. Similarly, Dr. Araju against the spirit of B.P. Koirala's kept at the NC central office, Sanepa, Deuba, member of CA from Nepali national reconciliation. for a few hours for paying last respects. Congress, was elected earlier as Whatever her role in the party She left the party following Nepali International Councilor of lUCN in politics, she spent almost all her life to Congress decision to align with CPN­ Barcelona. the cause of democracy. Nepali Maoist. She was shocked when Acarya Tt needs to be remem be red that WE­ Congress leader and former deputy was humiliated by the Maoist members Nepal was registered as NGO in 1990 Acharya passed away at the age of 65 in her appoint to Nepalese ambassador and since then it has widely covered its Friday (June 12) morning while to India in parliamentary hearing. activities in over 15 districts of Nepal, undergoing treatment at Tribhuvan Tourist Arrivals See Negative with focus on women empowerment U niversity Teaching Hospital, and sustainable development to uplift Growth Maharajgunj. Acharya had been ill the underprivileged communities. This season has seen a decreasing since past two years and hospitalized Remarkable environmental friendly trend in arrival of tourists through air, since the last one year. She infrastructural support by constructing had ligures released by Immigration Office, undergone treatment three irrigation dams for the rural in Bangkok and Tribhuvan International Airport (TlA) Kathmandu. D octors in Bangkok farmers, clean water supply for the rural , say. According to the figures, visitor where Acharya had been hospitalized people, installation of over 30 artesian arrivals in the month of May 2009, for nine months, had diagnosed her wells and hand pipes, and construction compared to the same month last year, of 13 primary school building and with Alzheimer's disease. She was have decreased by 5 percent. The health care centre in Mahottari alone admitted at the hospital Wednesday (1 0 SAARC segment shows a 12.7 percent is sufficient for anyone to visibly assess June) after s he complained of decline; Indian as to how effectively WE has been respiratory problem and was put on market alone showed a working at the grassroots. ventilator support at the Intensive Care hefty decline of 13.6 percent. Similarly, SHAILAJA ACHARYA Unit since then. arrivals from Bangladesh and Pakistan Late Acharya have witnessed negative growth of 4.2 PASSES AWAY was among the few women leaders who made a remarkable percent and 17.9 percent respectively. Although she died at the age of 65, contribution to reinstate democracy in The other markets to decline are Japan N e pali Congress leader ShaiJaja the country in 1990. She was jailed for (2.3 percent), Malaysia ( 11 .4 percent) Acharya proved herse lf as an showing black Oag to the then King and South Korea (23 percent). However, • unpredictable politicians. She opposed Mahendra in 1961. She went into self­ Sri Lanka registered a positive growth the move of her party to join with exile in lndia when she was released of 19.7 percent. Chinese arrivals have increased by 36.2 percent along with Thailand (87.8 percent) and Singapore (65.1 percent). European markets registered overall positive growth by 9 .I percent. Arri vals from the UK and Italy are up 11.1 percent and 24 percent respectively. However. other destinations in Western Europe posted weaker arrivals figures - France, Germany and Spain have suffered a decline by 7.2 percent, 9.4 percent and 14.7 percent respectively. Arrivals from Australi~ Canada and United States of America saw increase by 7.6 percent, 8.5 percent and 4.4 percent respecti vcly. Compiled from reports • NEW SPOTLIGHT NEWSMAGAZINE~ June 16-20091 6 POLmCS

PM Nepal ( Left) Congress Leader GP Koirala: Divided we stand

Sources say, even the octogenarian COALlTION PARTNERS architect of the present coalition has left his hand- picked prime minister guessing. Tn the power games. Divided They Stand A Nepali Congress-Maoist combine is what some are speculating about. In The second coalition of the Republic of Nepal in less than a year f aces ominous a few months from now. threat from deep imernal division am/long-running mutual suspicion Jt was not for noth ing that an unsure prime minister sought a meeting with the man he replaced three weeks ago. BY SUSHIL SHARMA Interestingly, the meeting with the Maoist supremo Prachanda was held e ll begun is half done, goes long. Not because ofbis bcte noire and in the presence of the Maoist-fricndly a legend. Three weeks after the former foreign minister. But because party chief, Jbal nath Khanal. W he took the oath. Prime of the ministerial ambitions of the 32 There was no major breakthrough Minister Madhav Kumar MPs who "backed" him. aL the Godavari resort meeting. Nor Nepal has not even begun. The fallout of the cabinet expansion was the message he sought to convey T he hotchpotch coalition has will be his litmus test. Past records of was immediately clear. struggled to take off. Thanks to th e 'tested ' big parties- leave alone the But ominous speculation s have hard bargaining among the coalition small Terai outfits - are not begun doing the rounds. Of a Maoist­ partners over posh portfolios. And, encouraging. UML combine at the helm. To counter more importantly, to the deep di vision The Nepali Congress has weathered the prospect of a Nepali Congress­ w ithin the key partners. the storm over the induction of the party Maoist combine. Internal dissension has claimed the boss Girija Prasad Koirala's daughter Prime minister Nepal's UML is no Khanal and youngest oftbe key coalition parties as Sujata Koirala into the government. less divided. Chairman lead the rival bandwagons. The its first casualty. The Madheshi For now. K.P.Oli prime minister is caught in the middle. Janadhikar Forum has split into two. The power equation in the party has The internal division has weakened the The founder-chairman Upendra changed. Former Sher Bahadur Deuba ever-indecisive Madhav Kumar Nepal. Yadav's left- leaning faction has been and Sujata have joined hands. Trusted Given the s haky grounds the major The new-entrant, Bijay aides like Prakash Man Singh have left weakened. parties find themselves in. the future of has bolstered his Deuba to join hands with the latter's Kumar Gachchhdar, the coalition looks equally shaky. bitter rival, Sushi! Koirala. non-lcfi faction. As they set out for honeymoon, the Sujata leads the party in the Yadav is out of government. coalition partners are bound to rock ofDeuba. Gachchhdar is in, as deputy prime government. With the support their forced marriage. A natural fallout minister. But the perennially faction-ridden of the divided houses and deep-running But the former Nepali Congress centrist party is too divided to be in a mistrust in the world of the make­ leader's moment of glory may not last position to ensure the coal ilion's future. believe consensus.•

NEW SPOTLIGHT NEWSMAGAZINE] June 16-2009 ] 7 POLITICS

baby republic was a forgettable event. There was no parly.Out of power less than a year after they were in , the Maoists now find themselves on the run. Even as he publicly spits venom against the "foreign master" a desperate Prachanda, according to sources, has privately sent feelers to influential power centres to create conditions for the return of the Maoists to power. Prachanda conlidcd to a reporter recently that he was busy preparing a political document to clear the way for the return to power. It was in this light that the surprise meeting with the prime m in ister Madhav Kumar Nepal at Godavari had been seen. Prachanda knows the prime Prachanda (Left) COAS Katwal: What is next? minister's vulnerability to the pulls and the pressures from within and without • POLITICS the present coalition. The prime minister, on his part, is also learnt to be toying the idea of allying with the Maoists, should he Collision Course continue to be "cornered" by the Koirala and Ol i company. Confrontation is set t o become a bitter reality of Nepali politics lt is not for nothing that be delayed amidst the never-ending sweet rhetoric the revocation of the Maoist government's dismissal of the army By SUSHIL SHARMA chief Katwal. The delay bas alienated the army It is dawn. June 8, Monday. Bhanu fate could prove a future reality. top brass. It has felt betrayed by the Khanal 'Yaman' hangs himself. At the Tbe supreme leader, Prachanda, did prime minister who rode to power on Chulachuli cantonment, in the far admit as much. In his Tundikhel the strength of the army chief Katwal 's eastern Ham district. outbursts against the "foreign masters" solo defiance ofthe Maoist government. Acquaintances gave two reasons for who "master-minded" the government's The army is increasingly becoming the Maoist combatant's s uicide. The downfall, he referred to "warnings" of restless over the indecision and frustration over the ouster of the Maoist making him another Prabhakaran. uncertain future of the new coalition. government. Doubt over the integration Sources confirm that Said • he did indeed a top general, "waar ki paar into the Nepali army. And fear of receive intelligence warnings in the ko ladai (a fight to finish) against the meeting a fate of Sri Lanka's LTTE wake of the abortive move to dismiss Maoists is inevitable. Sooner than later" fighters. army chief Rookmangud Katwal. As mistrust and deep division make The young warrior's fatal decision Having led a bloody insurgency for the coalition shaky and the Maoists seek might be challenged. But not his ten years under powerful intelligence to take advantage of the situation to reported analysis. surveillance, no one is better positioned reverse the recent setbacks and a The downfall of the Maoist than Prachanda to read the writing on possible doom, national and regional government is the present-day reality. the wall. security concerns will take precedence The impossibility of the integration ln a desperate counter move, he over the constitutional and democratic of the Maoist combatants into the sought to show his muscle. By brining process. Nepali army is a near-certain future in more than a hundred thousand people That will lead the country to a reality. at Tundikhel. collision course. With the constitutional No influential national forces nor But th e same zeal was president finding himself pushed into any critically key international forces conspicuously absent in the subsequent the centre-stage, one more time. As he are for it. first anniversary of the republic that the was during the Katawal episode that And there is a lurking danger that Maoists claim to have fathered. proved suicidal for the Maoists• the Maoists meeting the LTTE fighters' The first birthday celebration of the

NEW SPOTLIGHT NEWSMAGAZINE' June 16-20091 8 ECONOMY US-NEPAL The Prism

By A CORRESPONDENT During a visit to Nepal a few years ago, one ofRobert Blake's predecessors, Christina Rocca, ruled out looking at Nepal from the prism ofTndia. In Kathmandu last week for his first South Asian journey as ass istant Finance Secretary Khanal : Launching book secretary of state, Blake did not make such commitment POLITICAL INSTABILITY But he used the "familiarization" tour for some hard-talk on the Maoists. He ruled out de-listing the former rebels Hampering Development from the US terrorist list. A study conducted by Asian Development Bank reveals that political That should go down well in Delhi instability hampers Nepal's development process which felt "betrayed" by the Nepalese • Maoists. By A CORRESSPONDENT When former US ambassador James Moriarty dubbed the 12-point epal 's efforts to accelerate "The publication of this study is both timely and relevant as both government Delhi pact between the Maoists and the economic growth and reduce seven mainstream parties "wrong­ poverty are being hampered by and development partners' work to adjust headed", he was condemned as villain pol itical instability, poor their strategies and programs to respond N to the recent developments in Nepal's of peace. infrastmctLu·e, and other critical obstacles, a new study has transition to peace and nation building, found. "said Barry J Hitchcock, country director, Conducted by ADB 's senior economist Asian Development Bank. "We are Ehasan Khan, the country reveled that the hopeful that the report will help shift most immediate and urgent constraint is publ ic policies towards inclusive growth a cluster of interrelated governance factors and put the concept of inclusive growth that are directly political in nature: into the Spotlight when the government political instability, crime and insecurity. prepares its economic plan for the future." "Nepal needs accelerated inclusive "We hope the report will be the start growth to create jobs and maintain of a process ofraising the debate on what's stability in the long term but its difficulties needed to accelerate inclusive growth in are mainly to do wjth internal, structural Nepal," said Sarah Sanyahumbi., DFID issues and it can address these issues if Nepal Head of Office. "Improving and the desire and political will is there,'' said promoting inclusive growth, and creating Ehsan Khan, ADB senior economist and more jobs, is a key tocus of our program Three years down the road, the report's main author. in Nepal for the next few years and vital Moriarty has the last laugh. Probably, for peace and development in NepaL" Launching the report, Finance he w ill share the laugh with the former Despite uucertainti.es, there is sign of Secretary Ramesbwor Prasad Khanal said deputy chief of the US mission in Delhi optimism. "1 am optimistic that the Nepal has made certain progress in in his new avatar as in-charge of South economic sectors despite continual situation will change and the poor people Asian affairs at the State Department pol itical instabiJjty. "Nepal needs to carry of Nepal w ill get benefits," said Blake flew from Kathmandu to Dhaka out the refonn process to accelerate the Sanyahumbi. economic growth," said finance secretary "The prio•ity of the ILO's Decent Work where Moriatty represents the Obama Khanal. Country Program for Nepal is to generate administration. The study, Nepal: Critical productive employment for building sustained Wh il e B lake appeared to see Nepal DevelopmenL Constra ints, is a peace tlu-ough labor market reform and this from the prism of the US' new South collaborative effort by Asian Development research will no doubt accelerate the process Asian "strategic partner" his senior, Bank (ADB), UK Department for of the TLO's ongoing reforms which Nicholas Burns, was in Delhi. encourage investment, as well as stressing International Development (DFTD) and lt will be interesting to find out if International Labor Organization (ILO), the importance of social protection of workers," said Shengj ie Li, Director of lLO the world's two largest democracies that examines the main factors holdim:?: now see eye-to-eye on tbe Himalayan back the country's development progres; for NepaL• republic's communist "rogue".•

NEW SPOTLIGHT NEWSMAGAZINE ! June 16-20091 9 ECONOMY

As per the existing laws. the NRB will have to file a petition seeking dissolution of the NOB at the appellate court first. If the court agrees with its logic. then the NRB can appoint a liquidator who will assess the assets and liabilities. The liabilities will be met on a priority basis by selling off the assets. This is the first time that the central bank had taken the drastic decision of liquidating a financial institution. "In the past also we have taken di lfcrcnt measures of actions against the ailing and erring banks and financial ins titutions. In some institutions. we have only given warning, while in others we have intervened in the management. This time we had no option than to go for liquidation given NDB'S FAILURE the size of loss," said the governor. • 'Myth' The NOB fiasco bas pricked the Banking On Lessons inflated myth surrounding the invincibility of the banks. For the first time in Nepal's banking histary, the central banks takes "This episode has indeed busted steps to liquidate a development hank - smashing 'myths' of 'banks' some myths. People used to run after invincibility banks that give higher interest without learning about their fundamentals. By SANJAYA DHAKAL In vestors who blindly put their money on shares of any bank that issue IPO mong the scores of woe-struck "We had asked the NOB one and a s hould also learn lesson from this depositors of the beleaguered halfyears ago to improve their financial episode," said Ani I Shah, CEO ofNabil A Nepal Development Bank health. Instead it deteriorated and Bank and vice president of Nepal (NOB) who thronged at the recently their accumulated loss crossed Bankers' Association (NBA). governor's chamber was a lady who had Rs 680 million forcing us to take this "We regularly bring out financial put all the money her husband earned action," said governor Deependra reports. The banks and institutions also as migrant worker and w ho had Bahadur Chhetri. bring out their annual and periodic obtained compensation for industrial He said lhat once the court gives reports. One should study them before accident. them the go-ahead, the NRB wil l making any decision," Chhetri advised. Like her a number of depositors proceed with liquidation process and Shah says that the NDB episode wailed in front of exasperated officials depositors will be tn::atcd fairly as per should at least cont1ibutc to promote the of Nepal Rastra Bank (NRB) on June the law. The NDB had total of Rs 750 banks who have worked hard and are in 4. million deposits and Rs 400 mil lion excellent financial health owing to their Depositors ofNDB were compelled worth equity shares. strict adherence to prudential norms. to knock the doors of NRB after the As a part of its action the NRB has Otherwise. the wrong ones were getting savings and investments of the frozen the properties and transactions away"' ith lots of mileage, he said. depositors and investors were of the bank. With this decision. the The NOB mess should ring alarm jeopardized after the central bank issued hapless depositors and investors will bells. It was after a couple of banks a 15-day notice asking NOB directors have no option other than to wait. At failed in the united States last year that why the bank should not be liquidated. best. they could realize only a portion triggered the global recession. The depositors were desperate to of their savings. Various reports have Economists point at the need for the learn whether their hard-earned money said that the NDB held Rs 720 million central bank to keep watchful eye on will be returned or not. in total deposits. The big chunk of the the banks and financial institutions to The NRB ollicials arc still uncertain deposits are held by the institutional avoid similar catastrophe. After all, if all the depositors will be able to get depositors such as Employees Provident there is a saying that those who do not back their money. Fund (EPF) and Nepal Army Welfare learn from histories are bound to repeat The loss is too much, they say. fund. them.•

L..______NEW SPOTLIGHT NEWSMAGAZINE IJune 16-2009 I 10 VIEWPOINT Crisis@NDB

Shivanth Pande' & Santosh Pokht~rel Research and Development Department. Nepal Investment Bank Limited

The Nepal Rastra Bank's (NRB) market movement. Katlm1andu, Nepal Development Bank., recent decision to liquidate the Nepal Competent Management Team: National Life insurance Company ) has Development Bank - the first private While the banking sector has seen once again underscored the need for strong sector development bank in Nepal - has tremendous growth in recent years, the corporate governance system to promote put an end to the prevaili ng myth that talent pool of qualified hwuan resources the interests of general shareholders. banking sector in Nepal is perpetually a in banking sector is still very limited. Management of many pub! ic corporations profitable enterprise. The current crisis at Because of this mismatch between in Nepal put their interests first when the N DB has underlined that without demand and supply, there is high attrition making business decisions because the competent management team, adequate rate of staffs in banks and other fmancial corporate govemance practice employed capital base, prudent risk management institutions as there is a tendency among by public companies don't have enough and strong corporate governance, financial banks to lure staffS fi:om rivals' banks by check and balances to ensure that general institutions cannot survive in the long run. offering higher positions and salaries. shareholders' interests are being taken care Moreover, the NOB's debacle will have Moreover, also due to the supply demand of. However, as the recent corporate long term implications for the overall mismatch, individuals without adequate scandals (both domestic and international financial sector of Nepal. experience and qualifications are being such as Satyam) have demonstrated, the Implications for banking sector: assigned higher-up position. current practice of corporate govemance Prudent risk management: However, nmning a bank or financial in many of the domestic corporation The major problem with the NOB was institutions is not an easy job. Strong cannot be sustainable in the long run. their high Non-Performing-Assets (NPA). professional experience coupled with Implications for the domestic equity By offering high deposit rate, the adeq;t;tate educational background is a market development bank was able to attract By offering high deposit rate, the development bank was able to attract depositors, however, due to lack of investment opportunities and to cover their depositors, however, due to lack ofinvestment opportunities and to cover high cost offunds, the bank was lending out their high cost offunds , the bank was lending out money to questionable money to questionable and risky enterprises. and risky enterprises. Over the long run, these risky lending practices led to high accumulation ofNPA perquisite for any managerial position in Over the past decade, investments in and consequently led to the downfall of this a financial institutio n. Financial the stock of financial institutions have development bank. Financial institutions institutions are in the business of risk provided good retums. As such, most of need to Jeam important lesson from this management - they seek returns the individual investors in Nepal are recent banking crisis. commensurate with their risk taking attracted towards investing in the stocks Currently, many of the new ability. Qualified and experienced bankers of financial institutions. However times commercial banks and other financial are in better position to understand and have changed. Due to lack of competition institutions are also offering high deposit mitigate risk factors while seeking higher in the past, many of these financial rate to attract depositors. Similarly, many returns. institutions were able to generate good of these new financial institutions have Strong corJ)Orate governance: profit. But with the entry of so many new heavy exposure to real estate sector. Over A corporation primary objective is to commercial banks and other financia l the past few years, the domestic real estate maximize their shareholder's return. In a institutions, competition will be stiff and sector has witnessed an unprecedented public corporation there are multiple bottom line will be thin. l-Ienee it's now boom and many institutions as well as owners (shareholders) who play little or necessary for investor to analyze the basic individuals have benefitted from this no ro le in the corporation's business fundamentals such as price-to-earning (PI explosive trend in real estate market. decisions and these decisions are left in E) ratio, price-to-book (P!B) ratio, and However, the larger question is how the hand of professional management. dividend yield, among others, of any sustainable is this boom? Going forward, This separation ben:veen the owners and company before investi ng their savings in if the real estate market goes down or even management creates a potential conflict of the stock market. Just blindly putting stagnates, then it wi ll put billions of mpees interests whereby the management may money in stocks of any financial of investment in real estate sector in decide to put their interest first instead of institutions without even analyzing their serious jeopardy. And because many of the general shareholder (this problem is true fundamental picture can lead to these new financial institutions have known as the principal - agent problem). financial ruin, as many of the investors in significant exposure to the rea l estate Because of this principal-agent problem, the NDB can testify. sector, they will have to face the music. strong corporate governance is imperative Moreover, particularly when investing The sub-prime mortgage crisis in the to minimize the contlict of interests. in financial institutions, investors need to Uni ted States is testament of the fact that Recently a wave of problems in the be aware of their capital base because too much exposure to risky assets can led domestic financial institutions and life strong capital base indicates ability to to severe losses when there is adverse insurance companies (e.g. Bank of withstand adverse market movement. • '------NEW SPOTLIGHT NEWSMAGAZINE IJune 16-2009 J11 INTERVIEW Foreign Affairs Is Not Foreign To Me'

-SUJATA KOIRALA

If you have made such a big contribution Although there was a controversy when to the party, why such opposition from within Sujata Koirala was nominated to lead Nepali the party'? Congress in the government, she was appointed I don't understand it. There are many who as a foreign minister Being a daughter ofNepali arc jealous of my success in politics. l was not Congress supreme Girija Prasad Koirala, Sujata picked up by anybody. I have own my political has certain political advantages as well. As her role. I have always been a part of Nepali father Girija Prasad Koirala, Sujata is daring as Congress and I took part in all the struggles well as bold to walk in hostile environment. launched by my pa1ty. After Nepali Congress President Koira Ia decided But you lost the Constituent Assembly to send fivl: members team to represent Nepali elections. Did not you'? Congress in CPN-UML led coalition, even The constitution clearly states that anybody senior leaders like Sushi! Koirala, Ramchandra can be appointed as a minister, l don't There Poudel walked out. Whatever one can say about was understand why they arc only pointing fingers her, minister Sujata has built her political clout at me. So far as the election in my constituency no storm as nation-wide working under Sushma Koirala is concerned, they were completely rigged. The Memorial Foundation which has been launching such. Some then election commissioner rejected my request various development programs in far and remote to recount and to conduct re-polls in some parts ofNepal. Active and charismatic. did not like minister booths. Sujata, whether one likes or not, is in the How one can expect the government to it That's alL forefront of party. After appointment of a deliver the goods when it has not even been Foreign Minister, SUJATA KOIRALA gave unable to expand the cabinet for three weeks? But a large lirstexclusive interview to KESHAB POUDEL Of course, there has been a delay. This is at h er residence on :uesd~y morning. Excerpts number ol' because all want to have consensus. This 'J of her half an hour mtervtew: government will be stronger in the coming days youth party Do you realize that the storm over your as all the parties have agreed to back us. We are induction into the cabinet has not died down also trying to bring in the Maoists. Their members are yet. participation is crucial in the constitution There was no storm as such. Some did not happy. making process. We are in dialogue with Maoist like it. That's all. But a large number of youth leaders. We also want the suppo1t of Maoists to pmty members arc happy. They believe that my restore rule of law and stability. Only through appointment opens the way for them in the the active participation of Maoist, you can write Congress politics. T don't care what others say the constitution. The situation is fluid as the about me. All I want is to work for the Nepali peace process is not moving smoothly. people and the Nepali Congress. I have been 1fit takes more than three weeks to give a working for the party for 18 years in different complete shape to the government, how can capacities. I was asked to withdraw my you guarantee that this government will last'! nomination in the Pokhara General Assembly The time does not matter. Had the prime though I was in a firm position to be elected to minister done a poor job in expanding the the Central Committee. Many district presidents cabinet, it may have bitter political results. It have supported me. may take couple of weeks to expand the cabinet Support of the party president and your but will have good results and lead to national father Girija Prasad Koirala was crucial, no'? consensus. Better late than hurry. Of course, I am daughter of Girij a Prasad Maoist leaders have been saying that this Koirala but I have been active in politics for a government will fall within three months. long time. His influence has had nothing to do 1 have not read such statements. Instead. even with my success. I have been working with party Maoist leader Prachanda congratulated me by workers. T have devoted almost all my time to telephone after 1 became minister. I requested the political party. Although as a daughter, l do him to join the government and to make it a have relations with my father. national government.

L______NEW SPOTLIGHT NEWSMAGAZINE I June 16-2009112 INTERVIEW

Don't you think a new alternative alliance Of course, there are challenges. But opportumties wiU be made? as well. I have joined the government with the It is impossible now. intention to bring the peace process to its logical Now you have been appointed to the end. As you know, Girijababu initiated the peace important office of Foreign Minister. How do process, I want to complete it. you plan to go about? As foreign minister, what role do you see for So, foreign affair is not foreign to me. T have yourself in the peace process? As foreign I._ been actively working in the party's foreign affairs As foreign minister, I have a lot of role to play. department for quite a long time and r visited As a foreign minister, I can support the peace minister, I different parts of the world in that capacity. I have process by mobilizing the international community. have a lot of met various leaders and diplomats. We need moral support of international community role to play. What is your priority as foreign minister? to bring peace process to a logical end. My priority will be to strengthen the relations You don't have the experience to run the foreign As a foreign with our neighbors, lndia and China, and to affairs. Do yo u? minister, maintain good relations with all the other You don't necessarily need to be book-worm to be countries. a good foreign minister. Your experience can guide What is the state of relations of Nepal with you. The country's situation w ill tell you how to its two neighbors? work. In this era of globalization, I can do a lot of They are good, friendly a nd cordial. T want to work. As Girijababu declared there is going to be an maintain good and friendly relations with both of all-party committee to guide the government, and our neighbors as in the past. This is also that committee will also guide me. This is a mentioned in the government's common government of consensus and such committee will minimum program. play an important role whenever there are , given the shaky future Isn't that a tall talk misunderstandings. of the government? How can you hope to do your best when This government will last until we make new foreign ambassadors do bypass the foreign constitution. This government has no alternative.

'------NEW SPOTLIGHT NEWSMAGAZINE IJune 16-2009 1 13 told them the government will never allow any anti-Chinese activities in Nepal. Nepal has similar policy regarding India. Nepal will not allow any activities directed at our two neighbors from our soil. The Chinese want to see Nepal as a peaceful and prosperous nation. They are supportive of our peace process. But the C hinese arc c omplaining tha t T ibetans a r e launching a nti-China activities from Nepal. No body will be allowed to conduct any hostile activities against our neighbors. This has always been the policy of Nepal. Of course, epal needs political stability and secure environment. This is the reason we are requesting that even the Maoists join the government. We need unity among all the political parties to bring political stabi lity in Nepal. By establishing political stability, we can assure minister and directly meet prime minister? our neighbors. f Every ambassador can meet prime minister but How do you balance the relations between there should be prior coordination with the ministry the rival neighbors, India and China? regarding such meetings. At least the foreign ministry India and China are our good and friendly I am new in should receive information on what matters they neighbors. We will not play them against each the ministry. discuss. other. We will respect their sensitivities. .ll Do you h ave any plan ...to introduce a n y Beside India and C hina, what is the state of I am S t l mechanism for this? Nepal's relations with other countries? considering I a m new in the ministry. I am still considering We have very friendly relations with all other whether or whether or n ot to create a new mechanism. J don't countries. Recently, the foreign minister from the t t . t want to create mi sunderstandings between my UAE and assistant minister of the United States no 0 crea e ministry and the prime minister regarding such of America visited Nepal. The American minister a new meetings. What 1 am considering is building expressed his desire to support Nepal's mechanism. institutional mechanisms so that there is coordination development and peace process. We have also good I don 't want among us on country's foreign policy issues. relations with European countries. During my What are y our visions in Ministry of Foreign tenure, I will do my best efforts to strengthen to create Affairs? Nepal's relations with all countries. We need misunder 1 want to make my ministry effective in dealing massive support to build our infrastructure which standings with all. our friendly countries. .r want to strengthen was devastated duri ng the conflict. We need the b em bassJCs abroad to protect the mterest of Nepal and support of our friendly countries to increase tJ etween my Nepal is. employment oppo1t unities for Nepalese youth. For ministry How do you sec Nepal's relations with our two all these tlllngs, we need political stabi lity. and the neighbors? Many people say that India and China have . We have two neighbors and we have excellent contradictory interests and that creates trouble prune relations with both of them. for Nepal. Do you a gree'! minister But there is border dispute with India. The relations between India and China are regarding We will settle it through diplomatic means. changing as both countries have made tremendous such Reports s ay, India is encroaching upon Nepali improvements in bilateral trade. This is good news . land. But you have been reported to have g iven a for Nepal. Nepal can benefit a lot if they continue meetzngs. clean chit. Why? to increase their bilateral and trade relations. I havenot saidanythingofthesort. l wasquoti ng Lastly, about th e future of the Nepa li only preliminary reports of the officials. After final Congress. Nepali Congress did poorly in the reports, I will be in a position to give a definitive last elections. Internal dissension is too deep. answer. l have not made any comments on border Can the party survive? issue thus far. Our party has a long history and ideology. We T here have been concerns of our northern have had strong leaders like B.P.Koiraia and GP. neighbor C hina v is-a-vis its security? How do you Koirala and there are tens of thousands of our address their concern? supporter in grass roots. I don't think our party can China is our important neighbor. 1 have already be wiped out. It will strengthen. Just wait and see. •

NEW SPOTUGHT NEWSMAGAZINE I June 16-2009114 FACE TO FACE " So when they part with it, I believe they have reasons to do so"

-Dr Bipin Adhikari

D r. Bipin A dhika ri is a senior parliamentary system. ll has conti nued to lawyer. The model constitution for Nepal accept cabi nel government and that he drafted and submilled to the parl iamentary democracy as the form of Consti tuent Assembly last month has government under the new constitution. become a point of reference for many However, provinces will have a system of members of the Constituent Assembly and government with presidential fearures. its thematic committees. Dr.Adhikari Why provinces s ho uld have a spoke to NEW SPOTL I G H T about system of government with presidential several aspects of his draft constitution. features? -- and any feedback that he might have ln the framework that has been received from the lawmakers in this suggested, a provincial government with regard. Excerpts: presidential features can provide the W hy a model constitution? required level or stability, and also give A model constitution is an i mportant opportunity to a ppoin t a n expe rt tool when there is no model on the table government, w hich can cater to t he to start with. After al l, writing a development needs of the local people. A constitution is a tough task. It must directly elected executive with a fixed I believe so. Several committees have respond to all the critical issues and needs tenure. who can appoint his cabinet discussed its formulations. For example, that come up in the constitution writing colleagues according to his own policy I myself was invited recently by the process. A model constitution gives a basis choices, is the best answer to the question Committee on Fundamental Rights and to build on. of self-government, development and Directive Principles to discuss my You said you are proposing it for accQ.untability. propositions under their terms ofreference. discussion at the Constituent Assembly. What do the indigenous people, T hey have fou nd some provisions very Docs it mean you will not take a stand dalits and other minorities get from helpful, and sought some clarifica tions as on any issue that you have proposed? your draft? well. Some politi cal parties have asked for Yes, it will serve well if it becomes a Their ri ghts of non-discrimination, extra copies. There is a lot of interest. basis to move on. l do not claim th at what affirmative acti on, reservation policies and What about the bureaucrats at the I have suggested as a response to many social inclusion have been guaranteed. C onstituent Assembly Secretariat? constitutional issues has al l the right Their language, religion and cultures have Some of the secretaries ofthe thematic answers. There could be scvera 1 other been protected. The state is secular. committees are in touch with me regarding competing positions. If there are better What about the e lectoral system several provisions that I have resolutions, l encourage my friends in the that you have proposed ? recommended. The model constitution is Constituent Assembly to ignore my An electoral system employed at all in the hands of the members of the house. formulation. What i s important to levels ensures that they are inclusive in T hey arc also making queries as to th is understand i s that I am not a pol itician, a ll the ir p urposes a nd procedures. with their in-house legal experts . and L do not h ave any constituency to Especially, a system of group member What negative comments you have ma intain . constituencies employed for the e lection received so far'? • What are the strengths of your to the House of Representative at the I have not received serious comments formulations? center makes sure that elections produce from any quarter so far. If you take it to My formulations are expert not just a stable government, but also radical communists, they are sure to fonnulations, but we need to keep in mind ensure proportionate representation in a describe it as a bourgeois document. Ifyou that the new constitution has to be not only competitive setting. Powers have been take it to ethno-centric people. they arc up to the modern constitutional values and devolved to the provinces in a significant sure to say that this constitution is bad procedures, but a lso respond to the sense. What else you recommend, then? because it docs not accept ethnicity-based concerns of our people. They need be Wby there is no separate chapter provincial boundaries. It is natural. My workable in our socio-pol itical on socio-economic and cultural rights? fo rmulations have democrati c, liberal environment, and the geostrategic position Ldid not consider it necessary. r have backgrounds. So 1 take these comments that Nepal is in. So when t hey pa rt with r e-phrased some existing ri ghts, and added for granted. it, I bel ieve they have reasons to do so. some new rights but all enforceable rights, What about the comments from What are the majorfeatures of your whether they are civi 1 or political. or your own professional circle? draft? economic, social or cultural, have been I have not heard anything from the It is a moderate document. It builds grouped together. Those which are not legal community. The model constitution on Nepal's constitutional experiment with enforceable, they find their place in the is already in the hands where it should be. parliamentary democracy and pub I ic Chapter on State Obligations. Directive But nobody reads a constirution as a novel. institutions. At the same time, it has tried Principles and policies. This is what has People look at it when they try to find to learn from recent practices in several been done. answers to the question in their mind. o ther constitutional democracies. Do you think it has been in use at Comments w ill come with as people especially those m ode led a long the the Assembly? progress in their work.• '------NEW SPOTLIGHT NEWSMAGAZINE I June 16-2009115 COVER STORY World Environment Day Special ate Change

Although poor Nepalese only contribute a very negligible amount of Green House Gases to the atmosphere, they are among the people most affected by the extreme weather patterns caused by climate change. Climate change has already altered their agriculture, health and life style and these consequences are unavoidable. As a country with such geological diversity, Nepal is very • vulnerable to climate change. Whatever bleak scenario is be predicted, poor people don't have any other options but to live in the new situation. As Nepal recently celebrated World Environment Day, this year's message was that we should unite to fight the climate change. The inception of National Adaptation •). Plan of Action (NAPA) gives a new hope that despite what changes lay ahead, the government has programs and policies

By KESHAB POUDEL As flood rages in the western regions All th is shows that Nepal is highly and drought plagues the east and central vulnerable to the adverse impacts of regions, it is getting harder to dismiss the climate change. Rises in temperature scientists who claim that the weather is related to global warming are associated becoming not only warmer but more with changes to rainfall patterns, such as extreme. Both of these trends, each i.n its less frequent but more intense rainfall own way, have ominous implications for events, increasing frequency and intensity the life of poor people living in various of floods, changes in monsoon on and parts ofNepal. offset, longer dry spells and drought Floods devastated the property of events, increasing storms and a growing millions of rupees in mid-western plains threat from Gl acial Lake Outburst in Banke, Bardiya and Dang two years (GLOF). ago. Last year, the same occurred in far Weather Threatening Life Style western region where excessive ra ins and As it is predicted, the weather is going flooding caused more than l 00,000 people to change affecting adversely i.n the to lose their homes. livelihood of the poor people living in the People ofKanchanpur and Kailali, two rural parts of Nepal. Along with facing districts of far western region, are yet to natural disasters, there i.s an increased risk make up their minds as to weather they of infectious disease. should return. Memories of the "The studies have shown that Neal is devastation which they encountered are very vulnerable to cl imate change and this fresh and the farmers are yet to clear their pattern. Nepal's whole agricultural system is the real ity for om future," said Umesh Mainali, secretary of Ministry of agTicultmalland which is covered by sand. is under the threat as the weather patterns Environment, Science and Technology. The prolong drought of thish year as continue to change. "We have already started to Prepare already created havoc among the farmers As the weather is getting warmer, the National Strategy for Plan of Adaptation; who just switched to alternative people li ving in the plains are also facing we will receive international support to agriculture. Known as a successful model the rise of mosquito born diseases such as for poverty alleviation, the future of off Malaria. These trends, each in its own cope with the situation." seasoned vegetables is under threat. These way, have ominous implications for the According to scientists, the change in cl imate affects the earth's atmosphere in vegetables rely upon a predictable ra in spread of infectious disease.

L______NEW SPOTLIGHT NEWSMAGAZINE IJune 16-2009 ! 16 COVER STORY various ways. The tracks of the cyclones and extra tropical disturbances will be influenced by the changing weather pattern. for the country like Nepal, there is no easy way out. Nepal will need to spend bi II ions of rupees to prepare for the effects of climate change, for example to build the infrastructure to prevent devastation caused by flooding in the western regions and the cost of massi\ c people resettlement projects. "Extreme events like floods and landslides will generate forced migration as well as adverse environmental impacts like loss of bio-diversity. T he water stresses will have greater burden on the poorer sections of the l'Ociety who are a lready i n more vulnerable socia l and economic conditions," said former director general of Dcpat1mcnt of Hydrology and Meteorology Adharsha Pokharel. "The studies show that there will be decreasing low [lows during the non-monsoon seasons in the river as a resu lt of cli mate change." Fluctuations of Weather Annual temperature is rising at a rate of 0.06 degree Celsius per year (1977- 2000). Days and nights are becoming Himalayan River: Under threat warmer. Days of rain are decreasing but the number of rainy days over 100 extreme higher in the Himalayas then in Himalayas," said former director general millimeters is increasing. Rainfall patterns the lower elevations and this has become of Hydrology and Meteorology Adharsha are changing (season, duration and a major concern. P. Pokharel. Potential GLOfs may damage amount). After successfully climbing Mt. lives, property and environment along the According to Batu Krishna Uprery, Everest 18 times this year, veteran river valley hundreds of kilometers u nder secretary in the Ministry of mountaineer Appa Sherpa revealed that he downstream from the GLOF source." Environment, Science and Technology, the had not seen snow along the way to Mt. According to the study conduced by Green House Gas emissions of Nepal i s Everest which he is used to seeing during P.K. Moo I, S.R. Bajracbarya and S.P. Joshi only 0.025 percent of the global total and his previous journeys to world 's hi ghest in 200 I fo r ICTMOD, in Nepa l's pe r capita e mi ssions are just 2 tons. peak. l limalayas, there are 3252 glaciers with a However d espite not contributing to the "The snow h as disappeared in many surface area of 5323 square kilometers problem, Nepal will be greally affected by places and alll have seen i s black rock (almost 3.7 pereent of Nepal's total surface climate c hange as it disrupts snowmelts, instead ofw hite snow," said Appa Sherpa, area). Similarly, there are 2323 glacial • glaziers and creates major changes in the while addressing the press after hi s lakes indentified so far, out of whic h 20 rain pattern. "The rise in the temperature successful 18th time summit to world's are identifi ed as the most dangerous ones will increase the precipitation which could tallest peak. with potential risks of GLOFs. lead to major changes in rain pattern." The high Hima layas have huge Adaptation Is Key According to Meteorologists, one can amounts of snow and many glaciers wh ich Although vari ous organizations have see extreme weather pattern in the various is an important source of fresh water, been launching programs to cope with parts ofNepal. After torrential rain at the especially in the non monsoon months. extreme weather, there are only a few end of September, there was no rain Any fast depletion of snow and glaciers organizations are successful in addressing recorded in most of the country until the will have major effect in the livelihood of the situation by encouraging the people to May. Department of Hydrology and people in Nepal, and elsewhere. cope with change. Meteorology's data indicates that the "Observational records and climate Launched by Practical Action, temperature is rising and it is going to have change projections have revealed that community based early warning systems substantial impact in all economic sectors, water resources are highly vulnerable to have been implemented in Banke and especially water resources, agriculture and climate change with wide-ranging Bardia districts to help local people to cope tourism. consequences on human societies and with floods. Using various communication More Problems in Himalaya ecosystems. Water related disasters such channels including local FM Stations and One visibly sees the efTeels of climate as floods, landslides reduced low flows are community based organizations; there are change. The highest temperature in all associated with climate change. now mechanisms to disseminate the Kathmandu is increasing with the rate of Likewise, increasing temperature information about rainfall and water 0.06 decrees Celsius per decade. Further enhances the likelihoods of Glacial Lake levels. Tf there is heavy rain in the the r ise in temperature is even more Outburst Floods (GLOFs) in Nepal's upstream river basin, the i nfo rmation is

L..______NEW SPOTLIGHT NEWSMAGAZINE I June 16-20091 17 COVER STORY disseminated to down stream areas. lf people are given accurate "We will prepare in schedule date" infonnation on with plenty of time before Purushottam Ghimire the floods come, it will save peoples lives. If information is successfully PURUSHOTTAM GHIMIRE, joint disseminated in time, people may not be secretary at Ministry of EnvironmenL, able to rescue everything but they will save Science and Technology and National their children and family members. Program Director of National Adaptation Similarly, Practical Action bas also Program of Action Project (NAPA) project launched a program in J ugedi of Chitwan to cumate change, is taking part i11 various district offering fanners alternative crops national and international programs and patterns to replace their traditional regarding climate change. In the context of produce. After the intToduction of the World Environment Day, Ghimire spoke to program, farmers in Jugedi are now planting a crop wruch can survive even in New Spotlight on various issues regarding a changing weather pattern. the inceptiOJJ of NAPA and government's As the weatherpattem is in the process policy. Excerpts: of changing, what is required now is to Is there any different to celebrate the implement effective strategies for World Environment Day in Nepal this year? adaptation. These changes will effect, Yes. It is matter of great satisfaction for agriculture, health and weather patterns, all of us to say that we are now in the process and as Nepal is unable t prevent these ofpreparing the NAPA. After the completion collect possible inputs of various partners changes, we must leam to adapt to them. of NAPA, we can seek. funding for the during NAPA preparation and thirdly to NAPA adaptation projects in Nepal. lt took us identify important areas for that the NAPA For Nepal, since its greenhouse gas several years to start the NAPA process. should COJlSider during its formulation. em iss ions are negligible on a global scale, How long it will take to prepare NAPA? How do you formulate NAPA? there is no significant advantage in We have already kicked off the project We have planned to prepare our NAPA responding to climate change issues by cotJducting an inception workshop, but though consultative process. This is in the through intensified mitigation approaches. we are y>et to prepare a schedule. spirit of the NAPA preparation guidelines Ne pal cannot escape from the How many countries have prepared it? adopted by the seventh session of the consequences of climate change and has As the end of April 2009, 40 countries Conference ofthe parties to the UNFCCC. recognized the need to take concrete steps out of 48 LDC parties to the Convention In order to prepare a practical and to adapt to its adverse effects. have already prepared and submitted the i.mplementable NAPA, we will take into For the vulnerable country like Nepal, NAPA to the UNFCCC Secretariat. considerations the major constraints and developed countries have expressed their However, only few countries have received opportunities faced by other LDCs. We wi II commitment to meet the costs for andior are in the process of receiving share the major initiatives and project adaptation. To qualify for funding Nepal funding from the LDC Fund for the highlights to establish linkages between needs to develop NAPA. Once we develop implementation of their priority adaptation NAPA and other initiatives in the technical more practical and implementable projects. sessions. adaptat ion projects, taking into What i~ the state of Nepal? How do you see the impact of climate consideration the NAPA documents of As a LDC party to the UNPCCC, Nepal change in Nepal? other LDCs, the government ofNepal w ill has just started the NAPA preparation Studies have already shown that Nepal make every effort to channel funding for process. Nepal considers NAPA preparation is in very vulnerable situation. From their implementation. as an opportunity to streamline climate agriculture to health. the impacts of climate Supported by DANIDA, DFTD, GEF change programs. The Ministry of change will make difficulties in the lives and UNDP-Nepal, the NAPA Project­ Environment, Science and Technology- the of millions of Nepalese. The extreme which is in the process ofpreparation, wilJ UNFCCC focal point for Nepal- has secltred weather patterns have already started to open an enom1ous door to Nepal to get funding for the preparation of the NAPA hit the life of common people. Climate the funding for its adaptation programs along with the development of climate Change is going to have long term as well and projects. change knowledge, management and as short term impacts to Nepal. This is the The development of a NAPA to learning platform and also the development reason we me formulating NAPA. climate change has been recognized as an How do· you relate this year's slogan important p1iority and a starting point for of multi-stakeholder framework of action. of World Environment day to your vulnerability reduction in climate sensitive Who supports the project? programs? sectors and sub-regions. Nepal being a For this project, we have received The message of World Environment Day LDC party to the UNFCCC and the Kyoto generous financial assistance from is clear as it says you need to unite to Protocol has to prepare NAPA to access DANIDA. DFID, GEF and UNDP. combat climate change. Not only with the funding for adaptation programs. You have recently organized a At a time when the poor of Nepal have workshop, what was its objective? government ministries, have we had vety been facing the consequences of extreme One of the objectives of the workshop is clear cut policy that even we are ready to weather, minimizing the impacts through to provide au opportuni ty for various work with bi lateral and multilateral adaptation is key to Nepal. As the NAPA stakeholders to understand and provide agencies, Jntemational Non-governmental process kicks off, there is hopeful sign that feedback on the projects' outputs, targets organiz.:1tions and local NGOs. Through the more funding will be provided to develop and activities. Secondly, to build a common support and cooperation from all sides. we adaptation programs in different parts of understanding about the NAPA process and really can make a lot of difference. • Nepal. '------NEW SPOTLIGHT NEWSMAGAZINE IJu ne 16-2009 1 18 FORUM Indigenous Knowledge: Old Practice in New Horizon

By: Kamal Maden' Introduction: Indigenous signatory of Convention of Biological framework for conservation and Knowledge (IK) is the knowledge Diversity (CBD) in 1992. Similarly, sustainable usc of the genetic resources. produced by a particular cultural group Ministry of Forest and Soil The Article 8 (j) of the CBD assures on or any loosely defined resource users Conservation is the national focal point the equitable sharing of benefits group in a given area. It is a body of to administer the convention. The CBD resulting from the use of IK or local historically constituted (ernie) commands its party members for knowledge. Likewise, Article 5(1) of the knowledge instrumental in the long­ enactment of the national act on draft bill 2006 states that the authority term adaptation of human groups to the Indigenous Knowledge and associated of traditional knowledge would remain biophysical environment. In contrast to biological resources to preserve the TK with particular local communities and paid knowledge professionals such as and share the benefit of genetic Article 5(2) prioritize the indigenous scientists, fK is the informally practice reSO LLrces on Fair and Equitable Sharing people on resource conservation and ski ll by working directly with the basis. So Nepal should also fo llow this benefit sharing of genetic resources on resources. Moreover, such knowledge notion. the basis of the traditional knowledge is rooted and embedded in the socio­ Tn tbis regard, Kamal Maden and persists in indigenous peoples. economically underprivileged groups of the team carried out research on TK of Likewise, Ministry of Forest & Soil rural area of the Third World societies. Kirat, the ancient natives ofNepal. The Conservation and World Conservation Nowadays, IK is recognized worldwide study was conducted between the Kirat Union (IUCN Nepal) prepared an because of its intrinsic as well as clans - Rai, Yakba and Limbu -of inventory list in the report titled "To potential instrumental value to science Bhojpur, Sankhuwasabha and Protect Biodiversity and Indigenous and conservation. Taplejung districts. This research was Rights through Documentation and TK is also often referred as first of its kind and was based on Fair Registration ofTraditional Knowledge" Traditional Knowledge (TK) which and.Equitable Benefit Sharing Issue. on the basis of 2002's draft bill on "encompasses the content or substance The objectives of the research were to: Access to Genetic Resources and of traditional know-how, innovations, i) Explore the existing indigenous Benefit Sharing . However, Nepal information, practices, ski ll s a nd knowledge, skills and practices ofKirat Federation of Tndigenous Nationalities learning of TK systems such as nationalities associated with biological (NEFIN) strongly criticized the IK traditional agricultural, environmental resources; ii) Document the indigenous documentation and registration process or medicinal knowledge." Such knowledge, practices and skills of Kirat as well as the draft bill (2002) as being knowledge which is also considered as incomplete. NEFIN was also not Cultural identity, generally develop The article 27 of the draft bill consulted during all these processs. through local culture and has the provision to form a Council Nevertheless, the formulation of the environmental experience so it plays an at the central level which will draft bill was a pioneering effort of the important role in the livelihood of the register the documented biological government for protecting indigenous majority people globally. LK is re,~ources and associated IK and knowledge as it initiated to identify and important for the food security and also deal with the royalties. document the fK or TK by involving health of mi llions of peoples in the various indigenous nationalities or developing and developed countries. So, nationalities; and iii) Recommend for ethnic groups. But there are less benefit reorganization such knowledge of the Indigenous and documentation of form the above mentioned pioneering Kirat's indigenous knowledge, Peoples (IPs) or ethnic people must be skills work of Min is try and IUCN because the honored like knowledge developed via and practices associated with biological draft bill is not approved by parliament research studies. resources. This article will highlight which consequently makes this work of Stylish Fact of Nepal: Nepal is a some important finding of this research no use. Himalaya Kingdom, with biologically Research Findings: Kirats of the The article 27 of the draft bill has diversified ecosystems that produce a surveyed districts are found to use 212 the provision to form a Council at the types of plant and an imal wide range of unique and valuable species for central level which will register the medicinal plants. Indigenous the treatment of 18 different types of documented biological resources and ailments, namely: gas Nationali ties ofNepal have been using tri c, injuries, associated IK and also deal with lhe jaundice, paras i tcs, these resources since the time pneumonia, royallics. The draft bill has made fractured and skin problems, immemorial. The researches have found and others. following provision in term of right to In that around 1,600 plant species have plant species, fruit, leaves and root use generated fund are the most used been used for the treatments of diverse part for medical lf the resource owner is Nepal treatment Likewise, 130 ailments and that Kirat Nationalities wild plant government then: 50 percent will be species are used for edible alone usc about 4 hundred medicinal fruit, curry. allocated to Nepal Government; 30 species and other plant species for treatment. Government various livelihood percent will be allocated to National of Nepal is cognizant to preservation purposes. Council; and 20 percent will be of county's bio-diversity so Nepal is a ln order to protect the T~ of Kirats allocated to local community, individual and the others, the CBD prov1des a legal or institute ,______NEW SPOTLIGHT NEWSMAGAZINE IJune 16-2009 j 19 FORUM ·If the resource owner is a local practices. Indigenous peoples and their Social Exclusion and community, individual or institute then: organizations should be aware about the 51 percent will be to local community, benefit sharing issues for which they Inclusion Practices of Nepal individual or institute; 29 percent wi ll should be technically equipped so that By: Mohan Das Manandhar be allocated to National Council; 20 they can properly rev iew the proposals Rojan Bajracharya' percent will be allocated to Nepal of new policies and law. They should Government also be involved in awareness programs Nepal is a IK is generally transferred orally on sustainable use of biological culturally and between generations as there is no resources associated with lK. ethnically mixed proper documentation of IK. So, many ·Other organizations: In the spirit a n d of such knowledge are in the stage of ofCBD provision which gotlegitimized geographically extinct and many have already died. 16 years ago, the issue of benefit sharing diverse country. Further, Biodiversity Registration (BR) has not been fu II y understood by The social is also essential to conserve those lK as different levels of stakeholders. · "II h b fi 1 lnternational non-government scientists argue It Wl assure t e ene It to know edge that there are more than hundreds caste holder/ owners via royalties. organizations (INGOs) need to launch Further, Government has also awareness programs about IK, skills and ethnic groups in the country and . s l"o d·~ t t k 1 ld alli ed language dialects. However, enacted Patent Design and Trademark a nd tprac 1ce r 1aeren s a e 10 crs Act, 1965 (with further amendment) to and this should b eg in with capacity Nepal has always remained in the systematized the use and sell of building programs for Biodiversity hegemony of specific caste and ethnic invention's right or title as per Registration. INGOs can also play the group since ancient past nurturing the international conventions, treaties and important role of facilitator between social exclusion practices in the the provisions of government agencies and indigenous country's cultural, social, politico • agreements. However, this act are not in accordance to organizations in order to enact structure.Thecountry'sstateinstitution international standard. appropriate laws and ensure their has been structured and maintained by Conclusions: The review of proper implementation. They can also (i) systematically dispensing various li teratures reveals that there are many advocate for such laws and policies to mixes of economic and cultural assets/ convince the government. o o t ·t·es a d d · t" t policy level gaps to maintain the proper PP r un1 I n epnva 1ons o documentation of IK, skill s and ·Government ofNepal: The existing different communities and (i i) practices. Nepal has incorporated some policy and legal environment is endowing religious and ideological inadequate to document or protect IK, s t"fi ..:o of s h d" · policies in its national plans following anc J ca .. n uc tspensanons. the ratificaticm of the CBD but the s kills and practices associated with the Starting with the centuries old biological resources. Specifically, h. t th · t M 11 1 fN 1 corresponding laws sti II remain to be IS ory, e anc1en a a ru er o epa government needs to enact and properly 1 ·t· · d H" d b d h. h enacted. Nepal does not have laws on egt1m1 ze 111 u ase caste terarc y implement the Access to Genetic · h f h Access to Genetic Resources and system Wit enactment o t en country Resources Act. The Article 35 (18) of d (M 1 k" A" ) · hi B 1 · which assure co e u u 1 10 ill w ch ra 1mm Benefit Sharing Interim Constitution also support this ( · ) d C indigenous peoples' right to the recommendation which states that the Pnest an hettri (Warriors) were ranked highest in level followed by knowledge, skills and practices in state s h all fiollow a special policy of Baishay (Trader, Farmers and Other essence of globali zation approach of 1d· ent1·fy· 10g and protecting, existing World Trade Organization. It is also skills and practices. Likewise, Skilled and Unskilled worker) and important to note here that Nepal is government needs to enact the Genetic Sudra/ Dalits (Untouchables and member of World Trade Organiz

I fer documentary is the fruit of two years of tireless efforts. Rana visited Gaida Wild li fe Camp and Tiger Tops Jungle lodges to monitor the infestation. Everywhere inside the reserve from deep inside the national park to the banks of the Narayani River and the wetlands of the national park including Beesh Hazari Tal, a world renowned wet land, there is wide spread infestation. "I collected information about the infestation by meeting representatives of buiTer zone management committees, park managers, resort owners and local villagers," said Rana. ''lt has seYercly affected the habitat as well as the rhino population," said Rann who has already completed a case study on Air Pollution and its impact on health of children and the general public and hospital waste CHANDA RANA management. Produced under the direction ofRana, ·on To Save Chi•twan the documentary is about the severity of Missl .I.l infestation at Chitwan National Park. Going into depth, she also exposed the After making Kathmandu green, executive chairperson ofSEF Chanda sources of infestation and the way to Rana is now launching campaign to save Chitwan National Park control it. "Considering the threat of Rhino habitat after coll ecting infonnati on, By A C ORRESPONDENT I contacted Zoological Society of London Representatives who were doing research n the last fifteen years, under the term actions are required on Rhino preservation," said Rana, who leadership of Chanda Ra na, Save "The documentary h ig hli ghts the involves in preservation of Chitwan I the E nv ironment Foundation severi ty of infestati on at Chitwan National Nati onal Park and its surrounding since (SEF) has law1ched some major Park and the objective of the campaign is 2002. programs in the capital and to draw the attention ofconcerned national "During the visit with them in the outside the valley. From planting green authorities and international Zoological Society's London Office and trees along the main roads of Kathmandu conservationists to act immediately to here in Nepal, I met Sir John Chapa I, valley, Rana is now concentrating her control the devastating infestation in director Richard Kock and field officer J tJ, efforts to preserve Chitwan National Park Chitwan National Park," said Rana who Am in. I informed them how infestation is -one of the world's natural heritage sites, is a member of the Earth day Network threatening the Rhino habitat," said Rana, from infestation by the weed Mikkenia USA, the Leaonardo Decaprio foundation vice president Environmental Committee, Mcrantha. and an active member of Green Peace and Nepal Chamber of Commerce. After more than two years of in tensive A mste rdam. She is also member o f A lthough the situation is alarming, the research and field visits, she is releas ing LS WA, the lnternational Soli d Waste concerned authori ties are yet to take a documentary Mile a Minute: A Serious Association various other renowned measures. "As r first noticed trees are Threat to Chitwan National Park. The wild international organizations. being trapped mercilessly by noxious wild climbing weed locally termed as banmara "When 1 visited Chitwan National weed forming a canopy circling from Iaha ra is found to have been invading the Park in 2007, the areas where [saw severe bottom to up seeing those dead dried ups flora community of the Chitwan National infestation have spread and now reach t rees. I felt choked. This situation awakens Park. different parts of the national park. I have met t o contribute to preserve Chitwan After receiving information about the been involved in the preservation of National Park," said Rana who received infestation of this wild weed in 2005, Rana Chitwan for the last eight years and T Environmental Preservation Award from and a team of professionals, visited the handed over a memorandum to the then M ini stry of Environment in 1999 and national park and observed th e situation. prime minister Surya Bahadur T hapa 2003. Rana realized that in order to save the against growing industrial poll uti on in the A ftcr the release of Ran a's ecosystem ofChitwanNational Park from Naryani river and haphazard documentary, the painful situation of the deadly invasion of the killer weed urbanization," said Rana, member of the Chitwan National Park will be made Mikania micrantha long-tem1 and short Environment Committee of FNCCl public. • '------NEW SPOTLIGHT NEWSMAGAZINE I June 16-20091 22 ARTICLE WlllTHER BIJULI ADDA- One

=SB Pun, Bhadra 2050 {August 1993)

6 7 10 Writer 's note: This article was wrilfen Kilburn , Ganguly, Thulo Baje , Kasaj u staff strength is about 9,000 • By the year for Nepal Electricity Authority:~ (NEA) and Sanu Baje became in 2019 Nepal 2000, even with the implementation of the magazine 'Vidhyut' sixteen years ago. As Electricity Corporation and Electricity load management measures, NEA's peak the writer was still with NEA, he has at Department. The Electricity Department demand is expected to be 447 MW and a the end of1h e article stated !hat the views was entirely a wing of IIMG headed by a gross generation requirement of 2,018 expressed were entirely his own. The Chief Engineer responsible for GWH. article did ruffle the feathers at the investigation, feasibility, planning and D. WHITHER NEA? : Ministry of Water Resources (Minister LP construction. Initially ED carried out Now having discussed its ancestry, its Ghimire, Secretary SN Upadhyaya and operation and maintenance as well but ancestral property and legacy, NEA EDC Chief VS Shrestha). In reprinting later these activities were handed over to presently is in a very confused state. Some this article, the writer reji-ained from the the Nepal Electricity Corporation. The even go to the extreme and state that temptation to 're-touch 'what he had then Corporation had a General Manager 11 and NEA's funeral pyres are being prepared • writ/en. The only additions to this arlicle the NEC Board was cha ired by the The NEA Act of 2042 has been amended are the explanatory footnotes. Secretary of the Ministry. Over the years, in 2049 and the major thrust of this A. TECHNICAL BACKGROUND: like ladies fashion ideas change and the amendment is the participation of the The era ofBijuli Adda dawned in I 9 I I post of General Manager was upgraded private enterprises in the power sector. with the commissioning of the 500 kW to Executive Chairman. This was With the government hard pressed for Pharping Hydro Plant. This was experimented for sometime and the augmented in 1934 by the 800 kW government again reverted to the post of funds, and the continuing load shedding, Sundarijal Hydro Plant. With the General Manager and the Secretary as the this is definitely a very welcome step. We, commissioning of the I ,600 kW Chairman. With the donor agency exerting in NEA, have to readjust ourselves so that Mahendra Diesel Plant for the coronation its powerful influence on the power sector, the private sector also gets seats. But what of His Majesty King Mahendra in 1956, a major decision was made by HMGwhen we in NEA can not comprehend is the the diesel era unfortunately started- Teku in 2042 it merged the 4,200 NEC staffs formation of the Electricity Development 500 kW, Lainchaur 500 kW, Naksal 500 with I ,400 ED staffs to form NEA. This Centre within the ministry. Are we taking kW, Bhaktapur 250 kW, Patan I ,500 kW, was a painful process, but as one of the a great leap to the pre-2042 era of Birgunj 500 kW and Hetauda 4,500 kW. covenants of the much needed Marsyangdi Electricity Department and Corporation? On the eastern region, though Morang loan8, HMG took that painful decision. A look at Electricity Development Hydro came strongly in 1943 with the The irony of this decision is that though Centre's organizational chart does not 1 1,600 Kw Sikarbas Hydro Plant , this had the Marsyangdi covenant forced the imbibe much confidence to us. The Centre a premature death in 1961 when a land formation ofNEA, the Marsyangdi Project has three departments: a) Investigations, slide totally damaged it. Despite the name never came under the purviewq ofNEA. It Feasibility and Planning b) Privatization Hydro, generation in Biratnagar was was operated by a difTerent Board under c) Inspectorate. Inspectorate has long been entirely diesel through the I ,000 kW diesel the chairmanship of the Minister. NEA dead for decades and the revival is a engine. The era also saw the cropping up was and still is one of the largest public welcome step. As earlier stressed, of a number ofprivate sector ventures that sector undertakings in Nepal; it was privatization is also a very welcome step. ran diesel engines: 220 kW Oharan flouted to have one of the most powerful But th e bone of contention for NEA is the Electric Company, I 00 kW Birgunj Boards with five IIMG Secretaries. With formation of the department for planning Electric Supply Company2 and the recent changes in the Electricity Acts and investigation. Does • Nepalgunj's 120 kW Jaya Bageshwari and emphasis on the role of privatization, this mean that 3 NEA prepares its two Engineering and Rlectric Company • With the emergence NEA Board now has only two HMG of 18,000 kW, Trishuli and 10,000 kW Secretaries and four members from the Planning Directorates for the ·'A,yaghat"? Sunkoshi in the late 1960's and early 70's, general public. ot many arc aware of the fact that, as the hydro era became predominanL. C. ~£A'S STOCK TAKING: per the agreement between HMG and Another dominant entry into the Power Except for the 5 MW Andhi Khola NEA, the local cost for construction is Sector was the donor agencies like IDA, Plant operated by Butwal Power being shared. For 2050/2051 NEA bears ADB, JlCA, Kfw, French, Finnida etc. Company, NEA has been operating all the 55% of the cost and IlMG 45%. and each They were principally responsible for the 270 MW Hydro and Thermal Plants. In year this proportion increases by 5% until 12 60,000 kW Kulekhani l, 32,000 kW F!Y 1991 /92 it had a peak demand of216 NEA is made to bear 75% . This policy Ku lckhan i 11,69,000 kW Marsyangdi, the MW, gross generation of985 GWH, a sale of IIMG to wean away NEA from its 132 kV grid nehvorks from Anarman i in of 730 GWH and a loss o r 24.5%. ll has resources is undoubtedly a good one. Now the cast to Mahendranagar in the west. Tn 356.0'00 number of consumers which what will IIMG do to EDC? a humble and silent way, Butwal Power means only 10% of the population of E. CONCLUSION: Company came up with the 3-staged Nepal have access to electricity. Its With the birth of Electricity generation of the 1.000 kW Tinau llydro revenue of 143 crorcs consist of the 13 Development Ccntrc • it is not only the Plant•. But somewhere something went domestic category 38%, the industrial role of '\EA but also that of Water and a'HY and the diesel era bas no" cropped 30%. commercial 8 °/o, non-commercial Energy Commission Secretariat that has up its ugly hcad5 once again. 9% and export to India I 0%. It has a net to be demarcated. In this context. it is B.INSTITUTIO:\AL asset of 2,294 crorcs, the long tem1 loan expected that HMG's POWER SECTOR BACKGROUJ\'D: being 1,077 crores and annually pays an DEVELOPMENT STRATEGY The Bijuli Adda of the ·'Angrcj" interest of 63 crores lo II MG. The present will help

~------NEW SPOTLIGHT NEWSMAGAZINE JJune 16-2009J23 OPINION to define the role of WECS, EDC, NEA and Private Sector so that the present China and Nepal always respect each other confused atmosphere will be much clearer. It is also expected that those responsible By Qiu Guhong, Chinese ambassador to Nepal for formulating this strategy will not be looking at any one institution with a Master Buddhabhadra is the earliest jaundiced eye. In the interest of the envoy in C hina-Nepal friendly Nation's power development process if exchanges which have lasted for NEA has to be made a sacrificial goat, we thousands of years. As early as 1600 in NEA would readily assent. But in the years ago, he traveled to China through name of improvement, let there be no experiments that toy around with a long distance and against all odds; employees' careers, with institutions and received disciples inclusively, delivered most importantly with the countty's power the Buddhist principles truly, gave sector. lectures widely, translated hundreds of NOTE:- Buddhist scriptures into Chinese The views expressed in this article are languages painstakingly, and finally entirely that of the writet: passed away in China after v isit many parts of vast country. He has made During that period, Built b\· Padma Suudar Mal/a at tile hcif{ht ofthe Second important contributions for China­ World War with Escher rJ~·es turbines .from Zurich and Master Faxian and Xuanzang visited Gt-m:ral Elec:trit; guherators ant/ ltansfurmt:rs f rom Nepal cultural exchanges and his story Scltenecwdv!New f(Jrk. PS Malia ;.v tlte fir.'\/ (ather of Lumbini of Nepal, the sacretl place of Nepnlese h;:dro and Or. Oambor Bohculur itlepa!l fiJI/mo,;e(l has become indelible memory i11 China­ in Ms footsteps with the 22 A/IV Chi/ime ,·ecently- the two Buddhism, Chinese Tibetan King rare Blmmipurras o.f N(•pa/ese hydro.' Nepal friendship. 2 Birgunj Eleclric Suppl>• Company was actual/\• csmblishcd China-Nepal friendship has been Songsten Gampo married the Nepali dw·ing the Rana regiinl! in /949. Bageshwari Electric: Cmnpan.•• ~,~a$ cswhli.thed b)' Bi:~lmu constantly renewed and consolidated Princes Bhrikuti and the Nepalese Prasad UpadhyayQ thr()ltg}t NIDC lCJan. Some \'UY the compmty S inslal/(~d capocuy was JOO k W. These ww/1 over the past 1600 years. During that architect Arniko supervised the prh•ate electric companies all withued because of the. gowtrnmem S strict 'Jmnds off the private sec1or 'policy to period, Chinese Master Faxian and comtitution of the White Pagoda in jltvaur public: sector underwkings tluJt 1vas 1hen irt vogue bttt;trnatifmally. Xuanz~i1g visited Lumbini ofNepal, the Miaoyng Temple in Be~iing. Through the efforts ofUnlted Mlssmn to Nepal~· Od /Jofiun, a Norwegifln in Nepal sinc.e the lat.: 1950s, who (1/so sacred place of Buddhism, Chinese fittht!red the 5.100 kW Andhi Kho/o hyd''O power plant in Tibetan King Songsten Gampo manied common interests in economic growth, /986. 5 Not an ttttfami/iur scene to the prt:senl /6 hour per tla_v the Nepali Princes Bhrikuti and the improvement of people's livelihood. }(wd shedding ert1. replete wi1h 250,0()0 kW ofdiesel plant inltlally now apprmmt(v replaced by 250,000 kW rif Jndiun Nepalese architect Arniko supervised China cheris hes the traditional import on 'long term commercial arrangement 'to eradicme it. lndto terms the Kos; power tariff now over IC Rs 2.50 the constitution of the White Pagoda in friendship and cooperation with Nepal per unit 'concessional' and the 70 million free units from 1Cmakpur 'goodwill gc.wtre ' Iowards Nepal. M iaoyng Temple in Beijing. These and is ready to work with Nepalese side 4 Sardar Bhim Bahadur Pande in l:is 1'es /Jaklwt ko Nepal much told tales are still very popular in to further strengthen and upgrade the indicates that this 'angrej · wa.\ one tlj tire initiators ofthe 22 MW Gaidakot hyd,.o-plant ofAJ) 1949. estimated"' Rs both China and Nepal. good- neighbourly partnership featuring I .8 crores by fhe British cotJslllting firm, Percydrew & Co. Mohan Slmmshere shot down this Gaidakot project on the Since the establishment of diplomatic everlasting friendship to benefit two adl'icc of tite indian ambassador. CPN Singlt Sing promi.\·ctl Mohan a muc h cbeaper powt:r from Kosi relations between China and Nepal in peoples. Tt is consistent with the Barahc;hhetra High Dam - l paisa 1•ersu.t Gaidt1knt :f 6 palsn per unltl Nepal did get the Kosi/Katat)•a power from 1955, the bilateral relations have fundamental interests of two countries !97/ but (11 IC 10 paisa pe.runlt, and two peoples, and conducive to the Thulo Baje Surya }•lath. Smw Baje Lokshmcm Prasad as achieved new and substantial also Gyan Moni and Lalit Mani Baje.s/ development and withstood the test of regional pace and stability. 8 Actually it was ADB :S cove1JGIII in rile Founh Power ProJccr that stipulatetl ·creation of a new institJitional structflre changes in international situation and Last, but not the least, T would like acceptable /tJ I he Bank '. The World Bank :5 Mar.\'yungdl covenant merely dittoed 1he AD!l \· c ovenant on time. No matter what changes occuned to take this opportunity to thank Mr. institutional strucmre. 9 In an informal talk with this writer, 1/Clrshoman Shrestha, in the nations conditions of both China Min Bahadur Shakaya again for his 1he first JIJ(maging Dirc~clor of NEA. did admit it was a mistake. Htt feltthf! 'crnuracting hassles • ofthe _.~1orsyangdi and Nepal, two nations always respect, wide citation and reference in this book Projet:t will inUt-ljere hi.\' efforts to transform NEA iwo a to recur the valuable historical moments strong enlily. trust and help each other, and treat each 10 Within five yearJ· by 1990. the employees m /\lEA bdlocmed other as equals. Fruitful outcomes have in China-Nepal friendship,. My thanks from 5.600 to 9.000- the 'bharil kendra ' of the powers tltm bf!.1 In 2008. NEA employees' stren:trth stjl/ remains ar been yielded in exchanges and also got to China Study Center-Nepal around 9.000. J J 11te debate now is 0\'i'r Unbundling NEA into Generation. cooperation in various fields including for their cooperation in the publication Tran.·wtiS$iOn and Distribution entities that is proposed ln the flew Electru;lty Act. It was on the udvir:e of the politics, economy, trade and culture and of the book. Thanks again for the multiiQterol institutions that our power sector wa:o bundled in 1985 011d everybody is crying hoarse for NEA etc. Our two counhi es have set a good friends who have contributed a lot for unbundling. The recent collapse of large banks and motor example of peaceful coexistence and hinging out this book. I am convinced companies in the "'estern world and the measures adopted to prop them up through government imerv£>nrions in the common development between countries that with the joint efforts of friendship g uise of recapltaliwOon and fiscal :oinwlus .'W thai their citiZeiiS rio not Jos e their .thirts should be an e:}'e opener of different size and social systems. from both China and Nepal, China­ for all our own policy mokers. The proverbial lean anti thin· mantra. in a developing under·paid country like Nepal wiih Nepal is an important neighbour of Nepal relations will grow vigorously no new job opportunilitts or rmemployment doles. needs to be chewed wl1h a good pinch ofso/I! China. Two countries are linked by and China-Nepal friendship will pass 12 So that the government :r burden fi>r new construe/ion will on from generation to generation. be ultimately limited to on(·f 25%. mountains and rives, and dependent on 13 In less than a decade. Electricity Development Centre each other by sharing common border Excerpts of the statement delivered by (EDC) flowered into the Deporrment of Electriclty Chinese ambassador QTU GUHONG in a Development (DO!iD) with considerable resource inplils line extending for more than 1400 [rQm USA/D. Uke NEA, DOED i.f under public scrutiny for ceremony organized by China Study Center to issuing 'othnra basna ko lagi matra · project Ucense$ and kil.ometres. Both China and Nepal are launch the book "The Life ofNepa lese Buddhist for lirt/e or no electricity-developmenl contribution that l.t mmrifcsied by 1he ongoinK. heavy load sheddlng. • developing countries, enjoying broad Master Buddhabhadra. •

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