Govt's laxity hinders Tarai road project

The Tarai Road Project, which aims to develop 19 feeder roads linking headquarters of around a dozen districts to southern part of Tarai, is not gaining momentum in the lack of proper coordination among line agencies to facilitate India that is supporting the project.
Though it has already been six years that Nepal and India signed formal agreement to implement the project, the project is moving at a slow pace due to the government´s failure to acquire required land.
“We failed to acquire land for the project on time,” Hariom Srivastav, joint secretary at the Ministry of Physical Planning, Works and Transport Management (MoPPWTM), said.
The Indian government had agreed in principle to develop and upgrade the link roads in Tarai region in 2004. It had signed Memorandum of Understanding (MoU) to implement the project in June, 2006.
As per the MoU, Nepal has to arrange land required for the project. It also has to make bridges on the proposed roads. India has agreed to extend financial and technical support for construction of roads.
In the first phase, the project aims to construct and upgrade around 600 roads. It envisages constructing a total of 1,500 km link roads under three phases. A total of 19 feeder roads, including Janakpur-Bhittamod, Lamahi-Koilabas, Nawalpur-Malangwa and Janakpur-Jatahi, are to be developed and upgraded in the first phase.
“Despite our slow work progress, the Indian government has already awarded tenders to develop the link roads in different Tarai,” Srivastav said.
Meanwhile, a bi-lateral meeting of Project Steering Committee (PSC) has been scheduled for Wednesday to review the project status and identify reasons behind the delay in project implementation.
“Basically, there are problems in our part. However, we will discuss all the issues related to the project,” Srivastav, who is also leading the Nepali side in the joint-secretary level meeting, said.
Akhilesh Mishra, joint secretary at India´s Ministry of External Affairs (MoEA), is leading the Indian delegation in the meeting.

CACCI conference concludes with new investment commitments

The three-day regional conference of Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) concluded here on Friday with investors announcing investment commitments in a number of sectors such as hydroelectricity, agricultural and food processing.
“I am investing US$ 5 million in Nepal´s hydropower sector,” announced Ambassador Benedict V Yujuico, a Pilipino investor and president of CACCI. His investment, according to Yujuico, would come in Upper Mai Hydroelectric Project (9.98 MW), which is being developed by High Himalaya Hydro Company.
Pradeep Kumar Shrestha, former president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI), who is also involved in High Himalaya Hydro, said the two sides are yet to sign a formal deal. “But expect that to happen soon,” he told Republica.
Similarly, investors from Taiwan and South Korea also announced that they would make investment in agricultural and tourism sector, respectively.
Top businessmen of the region, who gathered in Kathmandu for the 26th conference of CACCI, admitted there were structural problems in Nepal´s hydropower sector.
“But still we want to make the investment and become part of country´s development,” said Yujuico, who has investment in countries like the USA, Singapore and the Philippines. Yujuico even appealed all the investors attending the conference to invest in Nepal.
FNCCI officials said numerous Nepali entrepreneurs have received strong commitments from investors from South Korea and Taiwan for new investments.
“We had appealed to the business leaders from Taiwan to invest in food processing and packaging industry,” said FNCCI President Suraj Vaidya. “Their responses have been positive.”
On the day, FNCCI also signed memorandum of understanding (MoU) with Chinese International Economic Cooperation, Taiwan and Iran Chamber of Commerce, Industries and Agriculture (ICCIA) aiming to lure more investment from the respective countries. “These MoUs will lead us to more cooperation and communication and ultimately new investment,” Vaidya stated.
During the sideline meetings with the FNCCI, the investors from the region expressed concerns over Nepal´s legal framework on protecting foreign direct investment (FDI).
Investors from Taiwan, Russia and Turkey had mainly raised those concerns, but FNCCI officials informed them that the government was reframing the policies and laws, making them more investor friendly.
Later, addressing the closing ceremony, Finance Minister Barsha Man Pun too promised protection of foreign investment. “We have various sectors such as hydro, tourism and agricultural, among others, waiting for massive investment. We welcome you to be a development partner of this Himalayan country.”
The last day of the conference had revolved around specific sectors such as hydro, construction, alternative energy, small and medium enterprises, tourism, health and education, among others.
“There are security risks in the project sites in Nepal. Volatile political situation is always a threat for us to work here,” Dilip Singh, general manager of Himal Hydropower Company, said in a panel discussion.
Furthermore, a delegation of CACCI led by Yujuico met with President Dr Ram Baran Yadav and Prime Minister Dr Babu Ram Bhattarai on the day.
“President Yadav and PM Bhattarai both appealed the business leaders to come in Nepal with investment,” FNCCI said in its press statement. “The country is on the way to have a new constitution and I assure that your investment will be safe in Nepal,” Bhattarai told the CACCI delegates, according to the statement.
Around 300 business leaders from 21 countries across the region participated in the conference.

Russian private sector interested in hydropower, aviation

Visiting Russian business representatives on Tuesday expressed their interest to invest in Nepal in sectors like hydroelectricity, agriculture and aviation, saying that they want to be a partner in the development of the Himalayan country.
They even noted that they were not that worried about the political uncertainty, but sought strong assurance on basic issues like protection of investment from threats such as labor stir and policy inconsistency.
“The Russian business community is interested to invest in Nepal, but we need some basic environment to do so,” said Legchilina Tatjana, deputy director of the Department of Foreign Connections and Work with Business Councils, who is also leading a delegation of Russian business community in the 26th annual conference of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI).
The delegation comprises promoters of top Russian multinational companies such as Balashikha Casting-Mechanical Plant and Bento Group Minerals, among others.
Interacting with the Nepali business community and media persons, Tatjana said that the Nepal should be ready to attract a huge amount of investment from Russia.

"The knowledge about the Russia´s ability to invest is pretty low in this country," Sergey V Velichkin, ambassador of the Russian Federation to Nepal said at the program. "We have a lot to offer. Investors from Russia are looking forward to invest in Nepal."
Welcoming the Russian delegation, Jiba Lamichhane, president of the Non-Resident Nepali Association (NRN) highlighted history of Nepal-Russia friendship. "We have a long history, but this is the time to materialize a business relationship," said he, appealing the Russian business community to invest in Nepal.
"I am sure the government here will cooperate with the foreign investors in order to protect their investment," Lamichhane said.
Industry Minister Anil Kumar Jha too committed strong measures from the government to protect the domestic as well as foreign investment in the country. "The government has set up Investment Board and introduced several other measures to facilitate the foreign investors," Jha said, requesting the Russian business community to invest in Nepal without any fear.
Shedding light on the business climate, Upendra Mahato, former president of the NRN, said that the political instability is not always a problem for genuine investors. "Several other countries are going through upheavals. Business people just look for return and government´s support to protect their investment," Mahato said.

26th CACCI conference kicks off

The 26th conference of Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) kicked off in Kathmandu on Wednesday aiming to unleash new potentials through renewed partnership among governments and private sectors of 26 member countries.
The conference has been attended by more than 300 business leaders from 21 countries of Asia-Pacific region and through the next two days, they aspire to identify ways to boost investment and trade in the region and discuss on models to propel regional economic growth.
As the CACCI conference is taking place on the eve of the Investment Year 2012/13, which the government is preparing to announce, the Nepali government and private sector has pinned high hope on it in terms of promoting Nepal as a lucrative investment destination and attracting investors.
"The conference is important not just for Nepal but also for the entire region," Suraj Vaidya, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said.
President Dr Ram Baran Yadav, who inaugurated the conference, welcomed the business delegates saying that the private sector has a larger role to uplift the country´s economy. "It´s a great opportunity for us to welcome business leaders from the region," Dr Yadav said. "This is the turn of Asia-Pacific region to prosper and utilize its huge resources for a shared prosperity."
In his address, Dr Yadav highlighted political developments in Nepal. "Nepal is passing through a transitional politics. Though delayed, we are in the process of having a new constitution in the near future," he stated.
Dr Yadav also appealed all the business leaders to invest in Nepal. "Regional integration should be among people, institutions, private sectors and governments of different countries."
Rona Yircali, chairman of World Chambers Federation (WCF), too urged all member countries to work together for winning prosperity for their people. "The road to prosperity is full of challenges. We have to work together in order to overcome these challenges," he said.
He noted that energy security, poverty reduction and identifying new growth models should be the agendas of the conference at this time.
K K Modi, president emeritus of CACCI, said Nepal, though small in size, is strategically important for all the countries to make investment.
"There are imbalances around the world not only in the Middle-East but around the world. These imbalances demand our joint efforts to fix them," Supachai Panitchpakdi, secretary general of United Nations Conference on Trade and Development (UNCTAD) said. "A single model may not work for all of us. But we have to work together."
FNCCI, the host organization of the conference, has put effort in place to make this platform to have business to business meetings among private sectors of the different countries.
Additionally, interested member chambers will also have the opportunity to sign memorandum of understanding (MOU) with FNCCI and other CACCI members, defining possible areas of cooperation during the conference period.
CACCI is a regional grouping of apex national chambers of commerce and industry, business associations and business enterprises in Asia and the Western Pacific.
The 25th conference was held in Istanbul in 2011. According to a press release issued on Wednesday, FNCCI has signed MoU with The Union of Chambers and Commodity Exchanges of Turkey and Georgian Chambers of Commerce and Industry.

Japan signals support to private sector development

Japan, a major development partner of Nepal, has hinted at the introduction of assistance for private sector development in Nepal through its official development assistance (ODA).
“We want private sectors of both Nepal and Japan to work together and series of meetings have already been held so far to seek areas of cooperation for the development of Nepal´s private sector. We are also interested to support private sector in Nepal through ODA,” said Kunio Takahashi, ambassador of Japan for Nepal.
In a meeting with the private sector leaders on Sunday, Takahashi said that the Japanese government has been evaluating the effectiveness of existing ODA for Nepal.
Ambassador Takahashi also revealed that Professor Ryokichi Hirono of Seikei University of Japan was carrying out the evaluation of the ODA.
The Japanese embassy had initiated process of establishing a forum of private sector of the two countries few months back. However, the process couldn´t go ahead after abrupt political change in Nepal following the dissolution of Constituent Assembly in May.
“We are again working on establishing a forum for private sectors of the two countries,” Takahashi said.
A meeting held among Takahashi, Prog Hirono and Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) focused on the role of private sector and prospects of investment in the country.
On the occasion, Professor Hirono, called for increased saving at people level to increase investment source within the country as evidenced in Japan,Singapore and Thailand.
“There should be saving in people´s side and that should come as a sustainable investment source in the country,” Hirono said.
He categorically identified five core areas-- political stability, investment in human capital development, saving of the people, policy consistency in the government and collaboration among stakeholders of development as the crucial sector for development.
He also stressed on the need for collaboration among five major stakeholders such as government, business people, labor unions, consumers and academics to successfully implement the development efforts.
Vaidya, said the government should bring a full-fledged budget irrespective of any political situation in the country to ensure the proper utilization of foreign assistance.
Prof Hirono also suggested that the government issues national bond in order to utilize the remittance that the country receives from overseas workers.
“Issuing national bond could be a better instrument to streamline the remittance money in the productive sector of the country,” Hirono said.
Japan government, through Japan International Cooperation Agency (JICA) has been assisting Nepal in areas such as infrastructure development, power generation, water supply, improving public administration, education and health among others.
According to Ministry of Finance, Japan extended cooperation worth Rs 30 billion during 2001 to 2010 in three sectors-to support transport infrastructure, power generation and water supply in Nepal

26th CACCI conference to kick off on Wednesday

The 26th annual conference of Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) is scheduled to start in Kathmandu from Wednesday. Around 300 business people and government officials from the Asia-Pacific region are expected to take part in the conference.
The conference, a common platform to discuss and share ideas for economic development, with a theme ´A Vision for Shared Prosperity´ will focus on how Asian governments and private sectors can work together to achieve sustainable development.
According to a press release issued on Sunday by Federation of Nepalese Chambers of Commerce and Industry (FNCCI), which will be hosting the conference, it will also be a platform to have business to business meeting among private sectors of different countries.
“The conference aims to provide a platform for CACCI members to share their ideas on how they can help their respective countries, and the Asia-Pacific region as a whole, in strengthening and spreading the benefits of regional cooperation,” said the release.
Additionally, interested member chambers will also have the opportunity to sign memorandum of understanding (MOU) with FNCCI and other CACCI members defining possible areas of cooperation during the conference period. “There will be time allocated for MOU signing during the two-day event,” the statement said.
CACCI is a regional grouping of apex national chambers of commerce and industry, business associations and business enterprises in Asia and the Western Pacific.

Jute factories get 70% discount on electricity for another year

The government has decided to continue providing 70 percent discount on electricity tarrif to the jute producers - one of the largest foreign currency spinner industries in the country.
The government had provided 70 percent off on total electricity bill to the jute industries in 2008/09 in order to support the industry, which provides jobs to around 20,000 people, saying that the facility will hold good for for three years.
As the term of the facility was expiring soon, the Cabient decided to continue the facility last week, said a senior Ministry of Industry (MoI) official. "The facility has been extended for a year," Bishnu Dhakal, under secretary at the MoI told Republica.
The government´s decision will benefit nine jute factories operating in the country at present, enabling them to reduce the cost of production.
The MoI, entrusted to work with the private sector and industrialists to uplift the country´s industrial sector, has said that it was working on providing five percent cash incentives to jute producers who export to India. So far, such incentive is arranged for the third country exports only.
"The jute producers have demanded for five percent cash incentive in ratio of export even to India," Dhakal said. "However, no decision has been made so far to this effect but we are considering their proposal positively."
MoI officials view that extending cash incentive to third country exports, but excluding exports to India makes no sense, especially given that their earnings have been enabling the country to manage the Indian currency needs.
"It is true, chances of leakage of this facility is high. As a state, we must have the confidence that we will be able to plug its leakage," said another MoI official.
Beside, he argued that earning of Indian currency (IC) was no different than USD earning, particularly as the Nepal Rastra Bank (NRB) has been fulfilling IC supply by buying it against USD.
Data of NRB show, Nepal exported jute products worth Rs 4.06 billion to India in fiscal year 2011/12.
Prime Minister Babu Ram Bhattarai in May had said he was positive toward providing cash incentive on exports made to India by the industries employing a large number of workers. He had even assured of providing four percent cash incentive to jute factories through the new budget of 2012/13.
However, the government has failed to live up to the commitment as it failed to announce full-fledged annual budget due to deepening political rift.