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.

Railway dept won't get a single penny in 2012/13

Though the government plans to lay down 4,000 km railway lines across the country within the next 20 years, it has not allocated even a penny for the Department of Railway (DoR) - the implementing agency - for the coming fiscal year 2012/13.
“Our parent ministry, the Ministry of Physical Planning and Works (MoPPW), has not arranged budget for us for the upcoming fiscal year. I have been asked to get budget from the Department of Roads,” Ram Prasad Lamsal, director general of DoR, told Republica.
The government had formed DoR in June last year with an aim to speed up the process of laying down railway lines.
Minister for Physical Planning and Works Hridayesh Tripathi, however, said the government has allocated budget for DoR. “The only thing is that it hasn´t been allocated under a separate heading due to some technical reasons,” Tripathi said.
Sources at the finance ministry, which is in the process of planning budget for the next fiscal year, admit that there has been no budgetary allocation for DoR. “We allocate budget as per the request of the concerned ministry,” Lok Darshan Regmi, joint secretary of Ministry of Finance said. “MoPPW didn´t propose separate budget for DoR for the coming fiscal year.”
The government had allocated Rs 7 million to DoR as recurrent expenditure in the current fiscal year. It had established the department with a vision of developing 4,000 km railway line across the country, including the East-West Railway, Kathmandu-Pokhara Railway, Kathmandu-Tibet Railway and railway lines that connect major bordering towns of India and Nepal, within 20 years.
Moreover, it is supposed to oversee management of railway, metro rail, ropeways and cable car lines in the country.
“If we are to get budget from the Department of Roads, what is the point behind forming a separate department,” Lamsal said.
Ironically, the government has identified East-West Railway as a national pride project and most of the railway projects are in the government´s first priority (P1).
Minister Tripathi, who said DoR was not allocated budget due to technical reasons, throughout the week was lobbying with the government through parliamentary committees to allocate budget for Jayanagar-Bijulpura railway.

Trade policy expert wing in MoCS

Acknowledging the fact that handling issues related to trade and its dynamism is beyond the capacity of civil servants, government has decided to set up Trade Policy Analytical Wing (TPAW) in the Ministry of Commerce and Supplies (MoCS).
The wing comprising experts on trade policy and development will support the World Trade Organization (WTO) division and trade related issues at the MoCS.
“Analyzing the trade issues and policies is definitely beyond the capacity of administrative staffs,” Toya Narayan Gyawali, joint secretary of the ministry said. “It was decided to establish the TPAW in order to fill that gap.”
According to Gyawali, the United States Agency for International Development (USAID) has agreed to assist the ministry in this regard. “The wing will be completely under the WTO division of the ministry,” he said, “The purpose of establishing the wing is to be more efficient and prepare ourselves for bilateral and multilateral negotiation.”
Nepal which became a WTO member in 2004 has no such body in the ministry till the date. Referring to the frequent transfer of the staffs in the ministry, Gyawali said, “The wing of experts will always be there to support anyone that comes to work here.” The wing will have a maximum of 3 people, according to Gyawali.
Government prepared a Nepal Trade Integration Strategy (NTIS) 2010 -- a blueprint to boost the country´s export -- is looking forward to various bilateral and multilateral trade talks in different forums.
“We also need feedback from experts to know the trend of global trade before sitting for negotiations with different countries and agencies,” said Gyawali, who is also the chief of the WTO division. “Wing´s main responsibility will be to make a sound base for negotiation and provide feedback for decision making.”
The government is preparing to have regular bilateral talk with countries like the US, China and Bangladesh in the near future.
“The wing will be established now in the temporary basis,” Gyawali said, “We might think of making it a permanent body of the ministry after some time.” The government has completed the trade policy review of the country under WTO norms in March.