Performance of bridge project exceeds recent records

Ministry of Physical Planning and Works (MoPPW) might have failed to gear up roads and railway project, but its performance on bridge construction this year has well exceeded recent years´ records.

Records at the ministry show, Department of Roads (DoR) that executes bridge projects has already completed 50 bridges on the national strategic road network, and works on 350 other bridges that are under construction is also moving at a good pace. 

“In fact, its performance has been so good that it has already spent Rs 2 billion allocated for the construction and maintenance of bridges, and has placed a demand for additional Rs 2.6 billion for settling payment of contractors,” said an official of the Ministry of Finance (MoF). 

Under the annual budgetary program, the government had assigned MoPPW to handle the construction and maintenance of 400 bridges, including 100 bridges on the national strategic road network and 300 bridges on newly expanded roads, mainly in rural areas.

Of them, Karnali Bridge, Benighat Bridge, Rato River Bridge in Siraha, Pathraiya Bridge in Kailali district, Bahuligat Bridge in Bajhang district, Budikulo Bridge in Bardiya district and Bhusunde Khola Bridge in Gorkha are major projects of strategic importance.

“We have already achieved 50 percent of the task, completing 50 bridges along national strategic road network. Construction works in the remaining projects too are going on at a good pace,” said Krityanand Thakur, project chief of the Bridge Project at the DoR.

What troubles the department and MoPPW now is the lack of budget. As the pace of bridge constructions, which were started since last few years, exceeded the government´s anticipation, the payment liability has far exceeded the amount that MoF allocated for the purpose. 

“Even after spending the allocated Rs 2 billion, we still owe Rs 2.60 billion to the contractors,” Tulsi Prasad Sitaula, secretary of the MoPPW, told Republica.

The Ministry has already apprised MoF of the situation and requested it for the release of additional amount within this fiscal year. “MoF officials have verbally agreed to release the fund,” said Sitaula.

However, other officials at MoPPW said they are skeptic over MoF releasing the promised amount. “We have received informal information that MoF is planning to release us just Rs 1 billion in this fiscal year,” said a source.

Of the 400 bridges handled by the DoR, 340 were projects carried forward from the previous year, while 60 were the newly initiated projects.

“Though we lagged behind on performances of national priority projects, spending on bridge projects have been outstanding,” Sitaula said, adding, “Hopefully, MoF will respond positively to our request so that we could continue the momentum of construction works.” 

According to MoPPW, it would need a total of Rs 22 billion to complete the construction of all the planned bridge projects.

Agricultural production up 9.8%

The overall production of major crops, such as paddy, maize and wheat, has gone up this fiscal year, despite the inability of the government to distribute adequate chemical fertilizers and seeds of cereal crops to farmers in time.

According to the latest statistics released by the Ministry of Agriculture and Cooperatives (MoAC), the total production of major crops is estimated to go up by 9.8 percent and reach 9.45 million tons in the current fiscal year. 

However, the total contribution of cereal crops in the agricultural gross domestic production (AGDP) will post a decline, as the weightage of horticulture in the AGDP basket has gone up to 38.16 percent in the current fiscal year, while contribution of cereal crops has fallen by 8.36 percentage points to 28 percent, Dr Hari Dahal, joint secretary of MoAC, told media persons on Tuesday. 

Dr Dahal, acknowledging shortage of chemical fertilizers and seeds as primary factors that restricted cereal crops production, said: "The timely monsoon and favorable climate were the major reasons that contributed to the growth." This was achieved despite fuel and electricity shortage faced by farmers in the Tarai region and adverse weather condition induced by factors such as hailstorms.

MoAC estimates show that paddy production will go up by 13.7 percent in the current fiscal year to reach 5.07 million tons. Similarly, the production of maize will also rise by 5.4 percent to hit 2.17 million tons. However, the maize production growth rate will be lower this fiscal year compared to that of last year when growth rate was recorded at 11.45 percent.

Production of wheat - seeds of which are distributed by the government - will also rise by 5.7 percent to reach 1.84 million tons. The wheat production growth rate is also expected to go down this year compared with that of last year´s 12.16 percent. 

Despite the rise in agricultural output, the worrisome condition is that farmers have not been able to reap its benefit. 

"The prices of crops and food also have not increased in proportion with the production output," Dr Dahal said, blaming "middlemen for not letting the benefit of higher agricultural production trickle down to farmers"

FNCCI to campaign for peace, harmony

At a time when diverse aspirations over federal structure being discussed at the political level have spitted the Nepali society, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has decided to launch Peace and Harmony Campaign across the country in a bid to promote harmony.

The apex body of Nepali private sector has also appealed to all political and ethnic groups to refrain from organizing general strikes and banda that affect people´s life and hurt economy badly. Instead, it has requested the agitating groups to resort to peaceful protests while fighting for their rights and sit for talks to deal with their issues.

"We respect everyone´s sentiment and aspirations to secure their rights. But strike is not the way to go as it inflicts huge loss on national economy," said FNCCI Senior Vice President Bhaskar Raj Rajkarnikar.

Talking to the press on Tuesday, FNCCI denounced the culture of banda and strike. "We simply can not bear the loss that the present division can inflict on the country," Rajkarnikar stated. 

Given the situation, he said FNCCI was soon organizing a campaign across the country to foster harmony among all the communities and also morally convince all to change their ways of protest.

"We will decide what exactly we will do under the campaign after discussing the programs with all the stakeholders," said Rajkarnikar. 

FNCCI that held its standing committee´s meeting on the day has assessed that current split seen among different groups in the name of federalism can make disastrous impact on the country. "Hence, the committee has decided to appeal to the government to make special efforts to pacify the agitating groups,” he said. 

“We fear the activities witnessed over the past few days could lead to communal violence," said Rajkarnikar, adding that those activities should be stopped immediately and that the government must take some concrete steps in order to maintain peace and harmony in the country.

Private firm to develop Kathmandu-Hetauda tunnel highway under BOOT

It has finally become clear that much-talked about, but not so prioritized Kathmandu-Kulekhani-Hetauda tunnel road project would now be developed under public-private joint investment model.

The clarity emerged after the government on Monday signed a preliminary agreement with Nepal Purwadhar Bikas Company (NPBC), allowing it to construct and operate the tunnel road in public-private partnership as per the build-own-operate-and transfer (BOOT) Act. 

NPBCL, which is assigned to carry out a complete feasibility study and construction, has assured that it would finish the construction in 4 years. If it manages to translate its plan into reality, it would reduce the travel distance between Kathmandu and Hetauda to just 50 km. 

The government had decided to handover the project to the NPBC through a cabinet decision in April. 

Kush Kumar Joshi, president of the NPBCL and Ramesh Raj Bishta, joint secretary of the Ministry of Physical Planning and Works (MoPPW) signed the project execution agreement in the presence of Prime Minister Babu Ram Bhattarai at the National Planning Commission (NPC).

“We will complete feasibility study within six months and complete construction in three-and-a-half years. That means the whole project will be completed within 4 years,” Joshi said. 

The company has estimated its total cost at around Rs 20 billion, and has planned to raise the fund also by issuing bond to the people. 

"We will need to deploy international technology for construction, but in terms of finances it will be a project that will typically have Nepali investment alone," Joshi said, requesting all Nepalis to invest in the project that will yield a long term returns. 

The complete picture of financing needs and ways to realize them will be designed once feasibility study is completed, he stated. 

PM Bhattarai termed the project as a stepping stone of the new Nepal in a real sense. "This will be a landmark project in the history of Nepal," he said." It´s not just a construction of road but also a construction of New Nepal." He assured the government will provide all support to the project to ensure its smooth implementation and said the government will not tolerate unnecassary disturbance in any development works. 

The company has already formed various committees at the local levels to ensure their participation in the project. 

Monday´s agreement made clear the government will handover the track of the tunnel road to the NPBCL for its development, but it is still not clear whether the government will provide any financing support in the project.

"Today´s agreement highlights government´s faith in the private investors," said Tulsi Prasad Sitaula, secretary at the ministry. "We are hopeful they will meet the expectations."

FNCCI to promote investment year in USA

A team of Federation of Nepal Chambers of Commerce and Industry (FNCCI) led by its President Suraj Baidha left for the United States on Sunday to promote Nepal Investment Year 2012/13.

According to a press release, the team of 11 members will meet various US officials, including officials of Bureau of Energy Resources Office of Alternative and Renewable Energy US, Department of State, Export-Import Bank of the US, US Trade and Development Agency, National Hydropower Association (NHA), Energy and Environmental Industries, US Department of Commerce, International Trade Administration (ITA) and Transportation and Machinery, among others. 

During the meeting, the team will highlight latest policies and priorities set by the government for attracting foreign investment, and also shed light on areas in which the country has huge business prospect and return like hydropower, tourism, agriculture and infrastructure sector.

"The team will discuss on investment prospects in sectors like energy and agriculture and shed light on investment climate in Nepal," reads the release. 

The team comprises of representatives from agriculture, banking, carpet, tea, garment and hotel sectors of Nepal.

"The five-day visit will focus on highlighting positive and developing situation of Nepal among officials and private sector leaders is US," states the release.

Govt prepares action plan for economic diplomacy

In order to strengthen international trade and make sound policy on economic diplomacy, the government has prepared an action plan to enhancing the capacity of exiting economic consular offices and establish other.

“We have prepared an action plan and submitted to the Ministry of Foreign Affairs (MoFA),” Toya Narayan Gayawali, joint secretary of the Ministry of Commerce and Supplies (MoCS) told Republica. This action plan aims to modernize the working style of the existing consular offices and embassies in different countries. 

According to Gayawali, the action plan prepared by the MoCS seeks to utilize the diplomatic missions to promote and advertise the Nepali products in the international market. MoFA, which is compiling all the action plans from different ministers related to the economy such as, Ministry of Agriculture and Cooperatives (MoAC), Ministry of Tourism and Civil Aviation (MoTCA) and Ministry of Finance (MoF), will soon finalize the draft of the policy. 

MoCS, for its part, has prepared an action plan that is solely connected to the trade and commerce. “Our action plan is for promotion of Nepali goods and services in the international market,” the official said, “More than that the diplomats should put effort on expanding Nepali business interests in other countries.” 

Moreover, MoCS has also accommodated a task in the action plan to incorporate the Nepal Trade Integration Strategy (NTIS) - 2010. “MoCS is also anticipating the diplomats to support NTIS -- a blueprint that was prepared by government to boost export of certain goods and services that have comparative advantage -- and enhance the market potentials of the goods and services that it has identified,” an official said. 

Broadly, economic diplomacy is supposed to negotiate with other trading partner and countries on issues related to tariff and non-tariff. “Market accesses for domestic products, lobbying for removal of tariff and non-tariff barriers, transport and transit, border management are the major issues that should be considered by economic diplomats,” Gayawali said, “We are also working here to make those arrangement coherent.” 

Economic diplomacy became a buzz in Nepal after 1990. “However, it has not materialized or practiced properly in our case,” on official at the MoCS said, “It´s good that steps have been taken in that direction no matter how late.”

Special govt program for ginger farmers soon

In the absence of proper processing and storage facilities, ginger farmers in the country for a long time had been compelled to sell their produces at low prices, but this is changing soon.

The Ministry of Commerce and Supplies (MoCS) has confirmed that it is soon launching a special program targeting exclusively the ginger producers. Under the program, the government will set up ginger porcessing units in various ginger-producing districts and a storage facility in Jhapa. 

Jhapa, Sunsari, Ilam and Morang are major ginger producing districts in the country.

"We have earmarked Rs 110 million for the purpose," said Toya Narayan Gyawali, joint secretary at MoCS. The ministry is launching the project with support from the World Trade Organization (WTO) under the bank´s Enhanced Integrated Framework (EIF) initiatives.

MoCS is the implementing agency for EIF, which is an initiative of WTO for the Least Developed Countries (LDCs). 

The government is launching the special program for ginger farmers mainly as EIF reckons ginger as a produce with huge export potential and by systematically supporting the farmers and developing the value chain, the country can tread on the path of sustainable export growth. 

Nepal is the fourth largest producer of ginger in the world; however, it has grossly been failing to realize revenue accordingly through its trade. 

Figures at the Trade and Export Promotion Centre (TEPC) show that Nepal earned meager Rs 281.94 million from ginger export in fiscal year 2010/2011. Despite being high in demand, ginger exported during the year was 38.2 percent less than what was recorded in 2009/2010. 

Nepali ginger is exported mainly to India, Japan, the USA, the UK and Germany, among others.

By supporting ginger producers, the government aims to give impetus to trade growth and help reduce poverty. 

Gyawali disclosed that the farmers have already expressed their readiness to provide necessary land for developing infrastructure such as storage houses. 

The project would be implemented jointly by the MoCS, Ministry of Agriculture and Cooperatives (MoAC), Ginger Producers´ Association (GPA) and United Nations Food and Agriculture Organization (FAO), among others.

The program is being implemented as part of the assistance that MoCS received under tier II of EIF. Under tier I, MoCS has been implementing various capacity building programs.