Govt planning to add 145 MW electricity to national grid soon
Nepalnews.com, 31-Dec-08
A top government official has said that the government is looking to adopt some strategies to decrease load-shedding hours, which if successful will relieve the nation from the power crisis that has direly affected all spheres of public life.
Secretary at the Ministry of Water Resources Shankar Prasad Koirala on Wednesday said that the government has already taken necessary initiative to import power from India in order to decrease the load-shedding hours that is tipped to increase from the existing 12 to 16 hours a day.
Koirala, who was speaking at an interaction programme in the capital, revealed that at least 145-megawatt electricity will be connected to the national power grid till the end of Falgun month, hence significantly reducing "load-shedding" that has also brought the industrial sector into a virtual standstill.
He said that 20 MW of electricity will connect to the national power grid from Tanakpur (India) and from Falgun the transmission line damaged by the Koshi floods will be repaired and 40 MW additional electricity will be imported from India.
Similarly, within Magh 35 MW will be connected to the national power grid. Talks have been initiated to import another 65 MW from Farbesgunj, Sitamani and Jayanagar of India, he said.
Koirala also informed that the government is toying with the idea producing electricity from solar, wind and wastes.
He also said that given the current power crisis the nation will have to face load-shedding for five more years. But he said that the government has also come up with special strategies, which if successful, will end load-shedding for ever.
Speaking at the same programme, Surendra Bir Malakar, president of Nepal Chamber of Commerce, said that the load-shedding regime has spelled disaster for industrial sector and it is now a time to declare "industrial crisis" in the country.
"The industrial sector has been completely ruined because of load-shedding. There's no alternative than to declare industrial crisis," he said, adding that the government should immediately come up with alternative method to decrease the load-shedding hours or see the industrial sector collapse.
He said that 40 percent of the country's industries have closed down their shutters due to load shedding, and said more industries are at the verge of closing down if the government doesn't do anything about it. nepalnews.com ag Dec 31 08
Wednesday, December 31, 2008
Remittance drop to hit land price
Remittance drop to hit land price
ArthaExpress, 30-Dec-08
The zooming price of land will slow down within coming 10 months but not go kaput, predict experts.
“The whopping rise in land prices will slow down in the coming 10 months,” said Ganesh Gurung, a sociologist who has been studying the remittance aspect, at an interaction on ‘Global financial crisis and its impact on Nepali migrant workers’ organised by the Nepal Association of Foreign Employment Agencies (NAFEA) here today.
Land prices in the valley have been climbing up due to violence in the Tarai and the remittances that Nepali migrant workers send home. “Malaysia and the Gulf countries have started feeling the heat of the global financial crisis,” he said adding that big construction companies in the Gulf and garment factories in Malaysia as well as construction, industry and service sectors — supported by foreign direct investment (FDI) — have started laying off unskilled workers, including Nepalis.
“FDI in Malaysia has dropped by 50 per cent and they are laying off unskilled workers like Nepalis,” said Dr Chiranjivi Nepal, an economist and former chairman of Securities Board of Nepal.
“Some of the companies which had sent orders for new workers, are now requesting to delay it,” said an entrepreneur voicing serious concern at the state of the labour market in Gulf and Malaysia and remittance that is the lifeline of Nepal’s economy.
“The government is behaving as if nothing has happened,” accused Dr Nepal adding that even a strong economy like India is also serious about the crisis. It has announced various stimulous packages to mitigate the impact of the global financial crisis.
Dr Nepal said that every country except Nepal has devised its own strategy to cope with this global crisis. Remittance supports over 60 per cent of Nepal’s import. “If the remittance goes down, it will hit imports making it hard for the government to meet the revenue target,” he said.
The government should form a high-level monitoring committee to day-to-day access the remittance flow through the Malaysia-Nepal corridor and Japan-Nepal corridor, suggested Gurung. “As a temporary measure, Nepal can diversify the labour market as the high concentration in the Gulf and Malaysia might have an adverse effect on our economy. Diversifying would cushion the shock,” he added.
NAFEA president Tilak Bahdur Ranabhat dwelt on the various problems the manpower agencies are facing and urged the government to help them sort out problems in the remittance business that contributes around 17.4 per cent to the total gross domestic product (GDP). “The delay in appointing a labour attache has also caused various problems for working in those countries,” he said.
According to official data, 656 Nepalis leave the country every day for greener pastures in other countries, mainly in the Gulf and to Malaysia.
Roughly, Rs 38,90,41,095 flows into Nepal as remittance everyday. Almost 2.5 million Nepalis — 1.2 million official and 1.3 million unofficial figures — work in various countries across the globe, according to Ranabhat.
“Money sent home by one worker maintains a four-member family here. This makes it a total of 10 million people dependent on remittance,” he added.
The 10-year long conflict also played a key role in forcing people to go abroad for jobs.
At the begining of the conflict, per household used to receive Rs 15,160 per month remittance but at the end of the conflict it crossed Rs 34,698, according to Gurung’s study.
ArthaExpress, 30-Dec-08
The zooming price of land will slow down within coming 10 months but not go kaput, predict experts.
“The whopping rise in land prices will slow down in the coming 10 months,” said Ganesh Gurung, a sociologist who has been studying the remittance aspect, at an interaction on ‘Global financial crisis and its impact on Nepali migrant workers’ organised by the Nepal Association of Foreign Employment Agencies (NAFEA) here today.
Land prices in the valley have been climbing up due to violence in the Tarai and the remittances that Nepali migrant workers send home. “Malaysia and the Gulf countries have started feeling the heat of the global financial crisis,” he said adding that big construction companies in the Gulf and garment factories in Malaysia as well as construction, industry and service sectors — supported by foreign direct investment (FDI) — have started laying off unskilled workers, including Nepalis.
“FDI in Malaysia has dropped by 50 per cent and they are laying off unskilled workers like Nepalis,” said Dr Chiranjivi Nepal, an economist and former chairman of Securities Board of Nepal.
“Some of the companies which had sent orders for new workers, are now requesting to delay it,” said an entrepreneur voicing serious concern at the state of the labour market in Gulf and Malaysia and remittance that is the lifeline of Nepal’s economy.
“The government is behaving as if nothing has happened,” accused Dr Nepal adding that even a strong economy like India is also serious about the crisis. It has announced various stimulous packages to mitigate the impact of the global financial crisis.
Dr Nepal said that every country except Nepal has devised its own strategy to cope with this global crisis. Remittance supports over 60 per cent of Nepal’s import. “If the remittance goes down, it will hit imports making it hard for the government to meet the revenue target,” he said.
The government should form a high-level monitoring committee to day-to-day access the remittance flow through the Malaysia-Nepal corridor and Japan-Nepal corridor, suggested Gurung. “As a temporary measure, Nepal can diversify the labour market as the high concentration in the Gulf and Malaysia might have an adverse effect on our economy. Diversifying would cushion the shock,” he added.
NAFEA president Tilak Bahdur Ranabhat dwelt on the various problems the manpower agencies are facing and urged the government to help them sort out problems in the remittance business that contributes around 17.4 per cent to the total gross domestic product (GDP). “The delay in appointing a labour attache has also caused various problems for working in those countries,” he said.
According to official data, 656 Nepalis leave the country every day for greener pastures in other countries, mainly in the Gulf and to Malaysia.
Roughly, Rs 38,90,41,095 flows into Nepal as remittance everyday. Almost 2.5 million Nepalis — 1.2 million official and 1.3 million unofficial figures — work in various countries across the globe, according to Ranabhat.
“Money sent home by one worker maintains a four-member family here. This makes it a total of 10 million people dependent on remittance,” he added.
The 10-year long conflict also played a key role in forcing people to go abroad for jobs.
At the begining of the conflict, per household used to receive Rs 15,160 per month remittance but at the end of the conflict it crossed Rs 34,698, according to Gurung’s study.
Kerosene import highest among POL products
Kerosene import highest among POL products
ArthaExpress, 31-Dec-08
Kerosene is imported in the highest quantity among the petroleum (POL) products. “Kerosene is also the highest sold among POL products,” a report from Nepal Oil Corporation (NOC) said.
A recent data compiled by the NOC reveals that 1,52,167.7 Kiloliter (KL) of kerosene was imported in 2007-08 and 1,55,215.5 KL — a little amazing figure — is sold.
The highest quantity of kerosene imported was during 2001-02, that is 3,90,113 KL and the total sales then was 3,16,381 KL.
According to NOC, the total amount of petrol imported stands at 10,1,624 KL, diesel at 3,03,212 KL and the total Air Turbine Fuel (ATF) import stands at 6,8534.1 KL, while furnish oil (FO) import this year is 2,940 KL, the lowest, and gas import stands at 96,836.8 Metric Tonne (MT). However, the sales figure is amazing as some of the products are sold more than they are imported.
In the year 2007-08 NOC sold 10,0,842 KL petrol; 30,2,706 KL diesel; 15,5,215.5 KL kerosene, 68,938.2 KL ATF; 2,918.78 KL FO and 96,836.8 MT cooking gas.
The total quantity of petroleum products imported in the year 2007-08 stands at 7,25,623 KL and the total sales of the petroleum products stands at 7,27,763 KL that is higher than the total import.
“The difference in quantity between import and sales of petroleum products is due to stocks that NOC maintains,” said Digambar Jha, managing director of NOC.
“Sometimes NOC has stock and it supplies from its stock when necessary,” he added. NOC keeps petroleum products in stock for emergency. “NOC can fulfil the demand when the import is lesser than the supply also due to its stock,” Jha clarified.
“During the month of June and July the import of petrol was less than 50 per cent of the demand and during that period we had stock,” he said adding that such stock is helpful in times of necessity.
ArthaExpress, 31-Dec-08
Kerosene is imported in the highest quantity among the petroleum (POL) products. “Kerosene is also the highest sold among POL products,” a report from Nepal Oil Corporation (NOC) said.
A recent data compiled by the NOC reveals that 1,52,167.7 Kiloliter (KL) of kerosene was imported in 2007-08 and 1,55,215.5 KL — a little amazing figure — is sold.
The highest quantity of kerosene imported was during 2001-02, that is 3,90,113 KL and the total sales then was 3,16,381 KL.
According to NOC, the total amount of petrol imported stands at 10,1,624 KL, diesel at 3,03,212 KL and the total Air Turbine Fuel (ATF) import stands at 6,8534.1 KL, while furnish oil (FO) import this year is 2,940 KL, the lowest, and gas import stands at 96,836.8 Metric Tonne (MT). However, the sales figure is amazing as some of the products are sold more than they are imported.
In the year 2007-08 NOC sold 10,0,842 KL petrol; 30,2,706 KL diesel; 15,5,215.5 KL kerosene, 68,938.2 KL ATF; 2,918.78 KL FO and 96,836.8 MT cooking gas.
The total quantity of petroleum products imported in the year 2007-08 stands at 7,25,623 KL and the total sales of the petroleum products stands at 7,27,763 KL that is higher than the total import.
“The difference in quantity between import and sales of petroleum products is due to stocks that NOC maintains,” said Digambar Jha, managing director of NOC.
“Sometimes NOC has stock and it supplies from its stock when necessary,” he added. NOC keeps petroleum products in stock for emergency. “NOC can fulfil the demand when the import is lesser than the supply also due to its stock,” Jha clarified.
“During the month of June and July the import of petrol was less than 50 per cent of the demand and during that period we had stock,” he said adding that such stock is helpful in times of necessity.
Tuesday, December 30, 2008
No impact of global meltdown yet: Govt
No impact of global meltdown yet: Govt
ekantipur, 29-Dec-08
While foreign employment agents and economists have been warning that the global financial crisis would severely affect employment of Nepali youths abroad, government officials maintain that the country has not witnessed any impact yet.
Krishna Hari Baskota, revenue secretary at the Ministry of Finance, said on Monday that layoffs in the job destinations had been limited to highly paid employees and workers in the lower rungs were untouched. “As Nepali migrant workers fall under the second category, it is unlikely that they will lose their jobs en masse,” he told an interaction on the global financial crisis and its impact on foreign employment.
He said that the government was watching the developments in the world economy very closely so that it could take appropriate and timely measures. He added that there was no need for panic as the crisis was yet to be felt in Nepal.
However, foreign employment agents said that the situation was beginning to look bad for Nepali workers as companies in the job destinations had stopped giving overtime work, and some had started discharging their employees before their contracts expired.
Talak Bahadur Ranabhat, president of the Nepal Association of Foreign Employment Agencies, said that thousands of foreign workers were being laid off in the Gulf countries and that Nepalis were starting to feel the heat. “As a result of the world financial crisis, the future of foreign employment agencies is also at stake,” he said. He added that the country was receiving Rs. 389 million in remittances daily, and that the economy will suffer if the inflow were to decline.
Ganesh Gurung said that the fallout of the crisis on Nepal's economy would begin from the Gulf and Malaysia with massive job cuts of foreign workers there.
“Its impact will be seen in the transactions of financial institutions and the real estate business as remittances have been one of their main sources of funds,” he said. Explaining the impact of remittances on the livelihoods of people, he said the annual household income from remittances reached Rs. 34,698 at the end of conflict period compared to Rs. 15,160 at its beginning.
Economist Dr. Chiranjeebi Nepal blamed the government for doing nothing to insulate the country from possible impacts of the global crisis.
ekantipur, 29-Dec-08
While foreign employment agents and economists have been warning that the global financial crisis would severely affect employment of Nepali youths abroad, government officials maintain that the country has not witnessed any impact yet.
Krishna Hari Baskota, revenue secretary at the Ministry of Finance, said on Monday that layoffs in the job destinations had been limited to highly paid employees and workers in the lower rungs were untouched. “As Nepali migrant workers fall under the second category, it is unlikely that they will lose their jobs en masse,” he told an interaction on the global financial crisis and its impact on foreign employment.
He said that the government was watching the developments in the world economy very closely so that it could take appropriate and timely measures. He added that there was no need for panic as the crisis was yet to be felt in Nepal.
However, foreign employment agents said that the situation was beginning to look bad for Nepali workers as companies in the job destinations had stopped giving overtime work, and some had started discharging their employees before their contracts expired.
Talak Bahadur Ranabhat, president of the Nepal Association of Foreign Employment Agencies, said that thousands of foreign workers were being laid off in the Gulf countries and that Nepalis were starting to feel the heat. “As a result of the world financial crisis, the future of foreign employment agencies is also at stake,” he said. He added that the country was receiving Rs. 389 million in remittances daily, and that the economy will suffer if the inflow were to decline.
Ganesh Gurung said that the fallout of the crisis on Nepal's economy would begin from the Gulf and Malaysia with massive job cuts of foreign workers there.
“Its impact will be seen in the transactions of financial institutions and the real estate business as remittances have been one of their main sources of funds,” he said. Explaining the impact of remittances on the livelihoods of people, he said the annual household income from remittances reached Rs. 34,698 at the end of conflict period compared to Rs. 15,160 at its beginning.
Economist Dr. Chiranjeebi Nepal blamed the government for doing nothing to insulate the country from possible impacts of the global crisis.
Monday, December 29, 2008
Double-digit growth and the new NPC
Double-digit growth and the new NPC
ekantipur, 28-Dec-08
By Chandra Prasad Bhattarai
Laying foundations for a double-digit growth in Nepal in the next three years is an important vision of the 2008/09 national budget prepared by the current Maoist- led coalition government. Finance Minister Dr Baburam Bhattarai, who hails from the same party, presented this budget at Parliament last September. While discussing the required pace of economic growth, the minister had coined two contrasting approaches: "the crawling of snake" and "leap-frogging." He had referred the former approach to the current sluggish growth, which he wants to be replaced by the latter. The leap- frogging approach, according to the minister, will eventually help the national production grow by at least 10 percent annually.
This ambitious goal of the Finance Minister has since then been viewed skeptically by concerned professionals and Nepal's development partners alike. This unconvinced section's concern is quite obvious when viewed in the context of Nepal's history of 2 percent average annual economic growth in the last five decades. The suspicion itself, rather than the economy, has grown rapidly in the meantime. Several questions are coming forward, the most pertinent of them being what miracle will be done in Nepal to help the country to achieve a double digit growth in three years in such a growth-unfriendly economic environment.
One does not need to be an Einstein to come to a conclusion on how Nepal's economy is performing over the recent years. The economy is unceasingly characterized by deep rooted poverty, stagnant agriculture sector, widespread unemployment and underemployment, excessive dependency on foreign assistance, corruption, and weak service delivery system. The Nepalese industry sector, except for a couple of commodities, has always remained uncompetitive in the world market. Although there is huge potential in the tourism sector, the frequent strikes, closures, conflict of interests between the employers and employees, etc. have affected this sector critically. It is quite interesting to note that while the government constantly talks about private- public partnership in Nepal's development endeavors, the private sector was never ever so frustrated in the country's history.
Institutions and government policies can create rays of hope in such an environment. It has been established that sound policy environment and institutions are crucial for promoting growth. Nepal's immediate neighbors China and India have already shown the world how well an economy can grow if the policies are good and institutions are efficient. In a planned economy the central planning agency is instrumental in formulating appropriate policies that ultimately contribute to economic growth. In its monitoring role this agency attempts also to ensure that government policies, plans and programs are launched in an integrated way.
In Nepal, the National Planning Commission (NPC) is the one with these roles. This institution is in place since the country entered the planned development process in the mid 1950s. The NPC is mandated to provide guidelines, advice and suggestions to sectoral ministries. Its roles are vital and wide-ranging: it formulates the basic development policies, prepares periodic development plans, explores internal and external resources, determines annual budget ceilings for government agencies, formulates annual sectoral development programmes, monitors the implementation of development programmes and projects, and explores innovative approaches to sustainable development.
Immediately after the formation of the coalition government, the then existing NPC Vice Chairman and members had resigned from their respective positions to clear the way for the appointment of a new commission. The government has appointed a Vice Chairman and six Members. The stakeholders in Nepal's development process feel that the government's decision to appoint a competent person like Pitambar Sharma as the Vice Chairman of NPC is highly commendable. However, it’s been widely perceived that the government grossly failed to find real talents for the positions of NPC members. The political parties in the coalition government became totally unaware of the fact that they were supposed to recommend professionals with appropriate backgrounds. The key point is that while the Finance Minister's budget speech has definitely raised the people's aspirations for a better life, no one knows how appropriate economic policies the new Vice Chairman's team will deliver for the country to achieve a double- digit growth in the next three years.
The author is a development economist and can be contacted at cbhattarai@wlink.com.np
ekantipur, 28-Dec-08
By Chandra Prasad Bhattarai
Laying foundations for a double-digit growth in Nepal in the next three years is an important vision of the 2008/09 national budget prepared by the current Maoist- led coalition government. Finance Minister Dr Baburam Bhattarai, who hails from the same party, presented this budget at Parliament last September. While discussing the required pace of economic growth, the minister had coined two contrasting approaches: "the crawling of snake" and "leap-frogging." He had referred the former approach to the current sluggish growth, which he wants to be replaced by the latter. The leap- frogging approach, according to the minister, will eventually help the national production grow by at least 10 percent annually.
This ambitious goal of the Finance Minister has since then been viewed skeptically by concerned professionals and Nepal's development partners alike. This unconvinced section's concern is quite obvious when viewed in the context of Nepal's history of 2 percent average annual economic growth in the last five decades. The suspicion itself, rather than the economy, has grown rapidly in the meantime. Several questions are coming forward, the most pertinent of them being what miracle will be done in Nepal to help the country to achieve a double digit growth in three years in such a growth-unfriendly economic environment.
One does not need to be an Einstein to come to a conclusion on how Nepal's economy is performing over the recent years. The economy is unceasingly characterized by deep rooted poverty, stagnant agriculture sector, widespread unemployment and underemployment, excessive dependency on foreign assistance, corruption, and weak service delivery system. The Nepalese industry sector, except for a couple of commodities, has always remained uncompetitive in the world market. Although there is huge potential in the tourism sector, the frequent strikes, closures, conflict of interests between the employers and employees, etc. have affected this sector critically. It is quite interesting to note that while the government constantly talks about private- public partnership in Nepal's development endeavors, the private sector was never ever so frustrated in the country's history.
Institutions and government policies can create rays of hope in such an environment. It has been established that sound policy environment and institutions are crucial for promoting growth. Nepal's immediate neighbors China and India have already shown the world how well an economy can grow if the policies are good and institutions are efficient. In a planned economy the central planning agency is instrumental in formulating appropriate policies that ultimately contribute to economic growth. In its monitoring role this agency attempts also to ensure that government policies, plans and programs are launched in an integrated way.
In Nepal, the National Planning Commission (NPC) is the one with these roles. This institution is in place since the country entered the planned development process in the mid 1950s. The NPC is mandated to provide guidelines, advice and suggestions to sectoral ministries. Its roles are vital and wide-ranging: it formulates the basic development policies, prepares periodic development plans, explores internal and external resources, determines annual budget ceilings for government agencies, formulates annual sectoral development programmes, monitors the implementation of development programmes and projects, and explores innovative approaches to sustainable development.
Immediately after the formation of the coalition government, the then existing NPC Vice Chairman and members had resigned from their respective positions to clear the way for the appointment of a new commission. The government has appointed a Vice Chairman and six Members. The stakeholders in Nepal's development process feel that the government's decision to appoint a competent person like Pitambar Sharma as the Vice Chairman of NPC is highly commendable. However, it’s been widely perceived that the government grossly failed to find real talents for the positions of NPC members. The political parties in the coalition government became totally unaware of the fact that they were supposed to recommend professionals with appropriate backgrounds. The key point is that while the Finance Minister's budget speech has definitely raised the people's aspirations for a better life, no one knows how appropriate economic policies the new Vice Chairman's team will deliver for the country to achieve a double- digit growth in the next three years.
The author is a development economist and can be contacted at cbhattarai@wlink.com.np
Sunday, December 28, 2008
Govt agrees on NC demands, Maoist-seized properties will be returned
Govt agrees on NC demands, Maoist-seized properties will be returned
Nepalnews, 28-Dec-08
The government has decided to facilitate the process of returning the properties seized by the Maoists during the decade-long insurgency.
The decision to this effect was taken at the cabinet meeting held Sunday which had approved some of the key demands put forth by Nepali Congress (NC) including return of properties seized by the Maoists, allowing the displaced to return to their villages and removing illegal YCL camps from all government and private owned building in Kathmandu.
As per the decision, the government will send circulars to all the District Administration Offices (DAOs) directing them to facilitate in the aforementioned process.
Similarly, a parliamentary committee headed by the Constituent Assembly (CA) chairman will be formed to monitor the entire procedure.
The decision has finally opened doors for the resumption of legislative parliamentary sessions which had remained disrupted due to NC's boycott. The main opposition party had on Thursday boycotted the legislative-parliament session for the fourth consecutive time citing government lackadaisical approach towards fulfilling the 9-point demands it had put forth.
Earlier today, Nepali Congress leaders had agreed not to boycott today's session of the parliament after Maoist leadership assured them in a meeting at the Prime Minster's residence in Balwuatar that some of its key demands will be approved by the cabinet meeting.
Nepalnews, 28-Dec-08
The government has decided to facilitate the process of returning the properties seized by the Maoists during the decade-long insurgency.
The decision to this effect was taken at the cabinet meeting held Sunday which had approved some of the key demands put forth by Nepali Congress (NC) including return of properties seized by the Maoists, allowing the displaced to return to their villages and removing illegal YCL camps from all government and private owned building in Kathmandu.
As per the decision, the government will send circulars to all the District Administration Offices (DAOs) directing them to facilitate in the aforementioned process.
Similarly, a parliamentary committee headed by the Constituent Assembly (CA) chairman will be formed to monitor the entire procedure.
The decision has finally opened doors for the resumption of legislative parliamentary sessions which had remained disrupted due to NC's boycott. The main opposition party had on Thursday boycotted the legislative-parliament session for the fourth consecutive time citing government lackadaisical approach towards fulfilling the 9-point demands it had put forth.
Earlier today, Nepali Congress leaders had agreed not to boycott today's session of the parliament after Maoist leadership assured them in a meeting at the Prime Minster's residence in Balwuatar that some of its key demands will be approved by the cabinet meeting.
"Corruption and insecurity" the twin challenges for Nepali business
"Corruption and insecurity" the twin challenges for Nepali business
NepaliTimes, Issue #431 (26-Dec-08 to 01-Jan-09)
Volker Kleinn is a retired European executive who worked in senior management positions in companies such as Apollo Computer, Autodesk and PSInet. After retirement, he has worked as a business volunteer in Bosnia, Romania, Bulgaria and Nepal. He was in Kathmandu in November as a consultant to Himalmedia and other companies. Below is an extract of a conversation I had with him.
How did you get started on advising private businesses in developing countries?
Volker Kleinn: When I retired in 1999, I registered with the German Senior Expert Services (SES) and with the Swiss Senior Expert Corps (SEC), a branch of Swisscontact. These organisations offer an opportunity for retired professionals to share their experience and expertise with companies and individuals in developing countries on a voluntary basis. The 'veterans' offer their time free of charge, the German or Swiss tax payers contribute to travel expenses and the organisation that is asking for advice is supposed to cover expenses for accommodation and meals. My first assignments were in Bosnia in 1999.
What are some of the 'evergreen' business problems in developing countries?
Because of my experience and background in general management, I normally work with the CEO and his team on business processes, organisation and strategy. One topic that is always 'recurring' is measurement. It is my conviction that you can only manage what you measure, and measurement is only possible if there are goals and plans in place. Most of the companies that I have worked with in developing countries did not have formal budgets and goals, neither for revenue nor for expenses.
How would you evaluate the dynamism or lack thereof of the Nepali private sector?
Based on my experience over the last six years, I have observed a deficit of entrepreneurial behavior in Nepal. One of the prerequisites of management is initiative and drive. These attributes are underrepresented in the companies I have worked with. Furthermore I have experienced a reluctance of managers to subject themselves to measurements. This leads to a lack of accountability within an organisation.
What have you seen as Nepal's challenges for entrepreneurship and business growth in times ahead?
In all developing countries there are two major obstacles for development, investment and business growth. These are a) corruption and b) insecurity, unreliability and unpredictability of the legal system. These two hurdles make the life of entrepreneurs very difficult in Nepal as well. The result has been a withdrawal of foreign investment from the country. The main challenge of the private sector in Nepal will be to pressure the government to put an end to corruption and to provide assurance that the legal system will enforce the law.
Businesses are under attack in Nepal. How should Nepali businesses communicate what they do to the public?
The current demographic data suggest that many young people will enter into the 'working' age over the next few years. The public needs to understand that companies can only offer jobs if they are profitable. Profitability is an economic sign of health for a company. A company making losses will go bankrupt sooner or later and destroy jobs. Only in a positive business environment will entrepreneurs invest in order to create jobs.
You've worked in Asia, Europe and America. What differences have you found in these three regions when it comes to doing business?
One of the major differences I have observed is the time horizon. In America, the business is driven with a very short term view, ie to produce results this quarter. Although a lot of European companies are following this trend there is still a somewhat long-term view in European businesses. In Asia, especially in Japan, business people take a long-term view in their expectations of results. In addition, I have noted that the business environment in America is very homogeneous in comparison to Europe and Asia. This is amongst other factors due to which the US is one country with one language and one currency. Europe and Asia are much more diverse and heterogeneous.
NepaliTimes, Issue #431 (26-Dec-08 to 01-Jan-09)
Volker Kleinn is a retired European executive who worked in senior management positions in companies such as Apollo Computer, Autodesk and PSInet. After retirement, he has worked as a business volunteer in Bosnia, Romania, Bulgaria and Nepal. He was in Kathmandu in November as a consultant to Himalmedia and other companies. Below is an extract of a conversation I had with him.
How did you get started on advising private businesses in developing countries?
Volker Kleinn: When I retired in 1999, I registered with the German Senior Expert Services (SES) and with the Swiss Senior Expert Corps (SEC), a branch of Swisscontact. These organisations offer an opportunity for retired professionals to share their experience and expertise with companies and individuals in developing countries on a voluntary basis. The 'veterans' offer their time free of charge, the German or Swiss tax payers contribute to travel expenses and the organisation that is asking for advice is supposed to cover expenses for accommodation and meals. My first assignments were in Bosnia in 1999.
What are some of the 'evergreen' business problems in developing countries?
Because of my experience and background in general management, I normally work with the CEO and his team on business processes, organisation and strategy. One topic that is always 'recurring' is measurement. It is my conviction that you can only manage what you measure, and measurement is only possible if there are goals and plans in place. Most of the companies that I have worked with in developing countries did not have formal budgets and goals, neither for revenue nor for expenses.
How would you evaluate the dynamism or lack thereof of the Nepali private sector?
Based on my experience over the last six years, I have observed a deficit of entrepreneurial behavior in Nepal. One of the prerequisites of management is initiative and drive. These attributes are underrepresented in the companies I have worked with. Furthermore I have experienced a reluctance of managers to subject themselves to measurements. This leads to a lack of accountability within an organisation.
What have you seen as Nepal's challenges for entrepreneurship and business growth in times ahead?
In all developing countries there are two major obstacles for development, investment and business growth. These are a) corruption and b) insecurity, unreliability and unpredictability of the legal system. These two hurdles make the life of entrepreneurs very difficult in Nepal as well. The result has been a withdrawal of foreign investment from the country. The main challenge of the private sector in Nepal will be to pressure the government to put an end to corruption and to provide assurance that the legal system will enforce the law.
Businesses are under attack in Nepal. How should Nepali businesses communicate what they do to the public?
The current demographic data suggest that many young people will enter into the 'working' age over the next few years. The public needs to understand that companies can only offer jobs if they are profitable. Profitability is an economic sign of health for a company. A company making losses will go bankrupt sooner or later and destroy jobs. Only in a positive business environment will entrepreneurs invest in order to create jobs.
You've worked in Asia, Europe and America. What differences have you found in these three regions when it comes to doing business?
One of the major differences I have observed is the time horizon. In America, the business is driven with a very short term view, ie to produce results this quarter. Although a lot of European companies are following this trend there is still a somewhat long-term view in European businesses. In Asia, especially in Japan, business people take a long-term view in their expectations of results. In addition, I have noted that the business environment in America is very homogeneous in comparison to Europe and Asia. This is amongst other factors due to which the US is one country with one language and one currency. Europe and Asia are much more diverse and heterogeneous.
‘There is no control over labour’
‘There is no control over labour’
ekantipur, 26-Dec-08
Sanjiv Keshava is managing director of Surya Nepal Pvt. Ltd. He has been with ITC of India, which owns 59 percent of Surya Nepal, since 1989. Before he came to Kathmandu in May, he set up ITC's Wills Lifestyle business. He talked to The Kathmandu Post about the company's garment business, labour and power problems and expansion plans. Excerpts:
Besides cigarettes, you are also involved in garments. Tell us about it.
We have a garment factory in Biratnagar. We export garments to India, which at the moment is the biggest market for us. We have also started exporting to Europe and the U.S.A. We also manufacture garments for the domestic market. We have two brands here - John Players and Springwood. It is very difficult to find out our share of the Nepali market because there is so much inflow from China and Thailand. That is really the unbranded segment, and we don't have statistics on that. According to our estimates, we have a 5 percent market share.
It's doing well because our factories are managed wonderfully. We have invested in technology. We provide continuous training to our labour force to upgrade their skills. We concentrate on high productivity. We have 330 workers directly employed and 300 who are contracted.
What are your expansion plans?
We have also entered the match sector - Teer. We have set up different standards for quality matches. We do not have the capacity to sell all over Nepal. And we are examining other sectors - food and personal care which includes cosmetics. We are examining a whole host of product categories to see their viability. That is still under consideration. There are many categories under food. We had a plan to get a hotel. We are still looking around for one.
You are at present facing a lot of problems with labour.
The major issue is that there is no control over labour. We are probably the highest payers in the country as far as labour is concerned. If you examine all the other industries, the average labour payout for skilled factory labour is almost Rs. 20,000 a month. That is a huge amount. Despite that the government announced minimum wages, and all our workers came back and wanted a minimum wage increase across the board. As you know, the Simara factory was closed for six days over the same issue.
The demands were unreasonable and illegal because we are already paying above the minimum wage table. It's a minimum wage revision. For workers earning below the minimum wage, the table has been increased. But for a person who is already earning Rs. 15,000 to 20,000 per month, why should he get a minimum wage revision? He is governed by the long-term agreement that the company has signed with him. And he is already getting an increment every year - a natural increase in the salary. Despite that they put forward various demands. They shut down the factory. Negotiations are still on. We are not going to give in to the minimum wage demand. We are looking at signing a new long-term agreement with labour. Labour is the biggest challenge at the moment.
How does it affect you expansion plans?
Definitely, it will slow down the entire expansion plan because unless this issue is resolved I don't think any investment is going to come to Nepal. The government needs to have some control over labour, they need to have some discipline, they need to have good arbitration, strengthen existing laws and create an investment friendly climate. It is one thing to say come and invest, but why should anyone invest when they are held to ransom?
You are also facing problems with power.
There is no power. Power is a major mismanaged issue. That puts a huge financial burden on us because we run on capital power. The differential in diesel generated power and hydropower is huge. Unless the government looks into this very seriously, there is no scope for any industrialisation happening in Nepal.
People who work in your marketing section are sought after. Why is this so?
I think it's the way we operate, the training we provide our people. The systems and processes we have are extremely strong. That is a very sought after quality. At the end of the day, an organization only consists of human resources.
How has working in Nepal been like?
It is a very rewarding experience. Nepal has its problems like any other country, but it also has its potentials. There is a lot that can be done to exploit that potential. It's a land with water and natural resources. I think all these can be worked with to create wealth. It's got tourism which is a major industry.
How do Nepali professionals compare with others you have worked with?
Perhaps the level of exposure and education here is not as high. India is a far more industrialised country. To that extent, the exposure to the global market is higher, there is more investment in technology and infrastructure is far more developed. There are very well educated Nepali resources available. I think your management and engineering schools are doing a wonderful job.
ekantipur, 26-Dec-08
Sanjiv Keshava is managing director of Surya Nepal Pvt. Ltd. He has been with ITC of India, which owns 59 percent of Surya Nepal, since 1989. Before he came to Kathmandu in May, he set up ITC's Wills Lifestyle business. He talked to The Kathmandu Post about the company's garment business, labour and power problems and expansion plans. Excerpts:Besides cigarettes, you are also involved in garments. Tell us about it.
We have a garment factory in Biratnagar. We export garments to India, which at the moment is the biggest market for us. We have also started exporting to Europe and the U.S.A. We also manufacture garments for the domestic market. We have two brands here - John Players and Springwood. It is very difficult to find out our share of the Nepali market because there is so much inflow from China and Thailand. That is really the unbranded segment, and we don't have statistics on that. According to our estimates, we have a 5 percent market share.
It's doing well because our factories are managed wonderfully. We have invested in technology. We provide continuous training to our labour force to upgrade their skills. We concentrate on high productivity. We have 330 workers directly employed and 300 who are contracted.
What are your expansion plans?
We have also entered the match sector - Teer. We have set up different standards for quality matches. We do not have the capacity to sell all over Nepal. And we are examining other sectors - food and personal care which includes cosmetics. We are examining a whole host of product categories to see their viability. That is still under consideration. There are many categories under food. We had a plan to get a hotel. We are still looking around for one.
You are at present facing a lot of problems with labour.
The major issue is that there is no control over labour. We are probably the highest payers in the country as far as labour is concerned. If you examine all the other industries, the average labour payout for skilled factory labour is almost Rs. 20,000 a month. That is a huge amount. Despite that the government announced minimum wages, and all our workers came back and wanted a minimum wage increase across the board. As you know, the Simara factory was closed for six days over the same issue.
The demands were unreasonable and illegal because we are already paying above the minimum wage table. It's a minimum wage revision. For workers earning below the minimum wage, the table has been increased. But for a person who is already earning Rs. 15,000 to 20,000 per month, why should he get a minimum wage revision? He is governed by the long-term agreement that the company has signed with him. And he is already getting an increment every year - a natural increase in the salary. Despite that they put forward various demands. They shut down the factory. Negotiations are still on. We are not going to give in to the minimum wage demand. We are looking at signing a new long-term agreement with labour. Labour is the biggest challenge at the moment.
How does it affect you expansion plans?
Definitely, it will slow down the entire expansion plan because unless this issue is resolved I don't think any investment is going to come to Nepal. The government needs to have some control over labour, they need to have some discipline, they need to have good arbitration, strengthen existing laws and create an investment friendly climate. It is one thing to say come and invest, but why should anyone invest when they are held to ransom?
You are also facing problems with power.
There is no power. Power is a major mismanaged issue. That puts a huge financial burden on us because we run on capital power. The differential in diesel generated power and hydropower is huge. Unless the government looks into this very seriously, there is no scope for any industrialisation happening in Nepal.
People who work in your marketing section are sought after. Why is this so?
I think it's the way we operate, the training we provide our people. The systems and processes we have are extremely strong. That is a very sought after quality. At the end of the day, an organization only consists of human resources.
How has working in Nepal been like?
It is a very rewarding experience. Nepal has its problems like any other country, but it also has its potentials. There is a lot that can be done to exploit that potential. It's a land with water and natural resources. I think all these can be worked with to create wealth. It's got tourism which is a major industry.
How do Nepali professionals compare with others you have worked with?
Perhaps the level of exposure and education here is not as high. India is a far more industrialised country. To that extent, the exposure to the global market is higher, there is more investment in technology and infrastructure is far more developed. There are very well educated Nepali resources available. I think your management and engineering schools are doing a wonderful job.
Saturday, December 27, 2008
Nepal's largest paper factory shut down
Nepal's largest paper factory shut down
ekantipur, 26-Dec-08
BINOD TRIPATHI
Workers of Bhrikuti Pulp and Paper factory have stopped work from Thursday demanding a hike in wages as per the agreement signed between the government, industrialists and trade unions.
The pact has fixed the minimum monthly salaries for unskilled, semi-skilled, skilled and highly skilled labourers at Rs. 4,600, Rs. 4,650, Rs. 4,760 and Rs. 4,950 respectively.
The factory workers spent the entire day Friday soaking in the sun. Bhrikuti, the country's largest paper factory, employs about 1,000 persons.
Bhrikuti management said that the factory was incurring a loss of Rs. 5 million per day. It has been plagued by constant labour strikes.
The trade unions representing the workers have formed a joint struggle committee to conduct their agitation. Committee coordinator Lalit Shrestha said that they had to go for a strike as the management didn't address their demands.
“Our only demand is that the wages be adjusted as per the tripartite agreement,” he added.
Ram Sharma, a member of the committee, said that they had to stop work as the management didn't respond to their repeated calls for adjusting the salaries as per the accord.
“We have not obstructed the import of raw materials or the export of finished products,” he added.
Bhrikuti management claimed that the workers went on strike despite its readiness to increase their pay.
Saroj Sharma, administrative chief of the factory, said that management had decided to implement the salary hike gradually.
“We are not in a position to increase the wages right away,” he added.
He said that a solution could be reached through a dialogue and not through agitation. The two sides have met twice this week in the presence of representatives of the Parasi Chamber of Commerce and Industry, but the talks ended inconclusively.
The Golchha Organisation took over Bhrikuti 16 years ago after the government decided to privatise it. The factory produces 70 tons of paper daily. According to Sharma, 70 percent of its output is exported to Japan and the rest consumed in Nepal and India.
ekantipur, 26-Dec-08
BINOD TRIPATHI
Workers of Bhrikuti Pulp and Paper factory have stopped work from Thursday demanding a hike in wages as per the agreement signed between the government, industrialists and trade unions.
The pact has fixed the minimum monthly salaries for unskilled, semi-skilled, skilled and highly skilled labourers at Rs. 4,600, Rs. 4,650, Rs. 4,760 and Rs. 4,950 respectively.
The factory workers spent the entire day Friday soaking in the sun. Bhrikuti, the country's largest paper factory, employs about 1,000 persons.
Bhrikuti management said that the factory was incurring a loss of Rs. 5 million per day. It has been plagued by constant labour strikes.
The trade unions representing the workers have formed a joint struggle committee to conduct their agitation. Committee coordinator Lalit Shrestha said that they had to go for a strike as the management didn't address their demands.
“Our only demand is that the wages be adjusted as per the tripartite agreement,” he added.
Ram Sharma, a member of the committee, said that they had to stop work as the management didn't respond to their repeated calls for adjusting the salaries as per the accord.
“We have not obstructed the import of raw materials or the export of finished products,” he added.
Bhrikuti management claimed that the workers went on strike despite its readiness to increase their pay.
Saroj Sharma, administrative chief of the factory, said that management had decided to implement the salary hike gradually.
“We are not in a position to increase the wages right away,” he added.
He said that a solution could be reached through a dialogue and not through agitation. The two sides have met twice this week in the presence of representatives of the Parasi Chamber of Commerce and Industry, but the talks ended inconclusively.
The Golchha Organisation took over Bhrikuti 16 years ago after the government decided to privatise it. The factory produces 70 tons of paper daily. According to Sharma, 70 percent of its output is exported to Japan and the rest consumed in Nepal and India.
Fuel prices cut
Fuel prices cut
ekantipur, 26-Dec-08
Nepal Oil Corporation (NOC) on Friday reduced the prices of petroleum products for fourth time in three weeks. It cut price per cylinder of cooking gas by Rs 50. Now on, a cylinder of cooking gas will cost Rs. 1150 throughout the country except in the Tarai, where it will cost Rs. 1130.
The price per litre of petrol has been reduced to Rs. 80 from Rs. 85. Price per litre of diesel and kerosene has gone down to Rs. 59.50 from Rs. 60.50 in the Kathmandu Valley. Now on, domestic airliners will have to pay Rs. 85 for a litre of aviation fuel, which used to cost Rs. 90. For international airlines, per kilolitre of aviation fuel will cost US$ 1,000. Earlier, it used to cost US$ 1,200.
ekantipur, 26-Dec-08
Nepal Oil Corporation (NOC) on Friday reduced the prices of petroleum products for fourth time in three weeks. It cut price per cylinder of cooking gas by Rs 50. Now on, a cylinder of cooking gas will cost Rs. 1150 throughout the country except in the Tarai, where it will cost Rs. 1130.
The price per litre of petrol has been reduced to Rs. 80 from Rs. 85. Price per litre of diesel and kerosene has gone down to Rs. 59.50 from Rs. 60.50 in the Kathmandu Valley. Now on, domestic airliners will have to pay Rs. 85 for a litre of aviation fuel, which used to cost Rs. 90. For international airlines, per kilolitre of aviation fuel will cost US$ 1,000. Earlier, it used to cost US$ 1,200.
Friday, December 26, 2008
Marshyangdi generating only 4 MW
Marshyangdi generating only 4 MW
ekantipur, 24-Dec-08
PREM KUMARI GHALE
Despite formal inauguration of the 70 MW Mid-Marshyangdi Hydro Electricity Project (MMHEP) a week ago, the power house has only generated a total of 4 MW till date, according to officials.
The 4 MW power was generated at the time Prime Minister Pushpa Kamal Dahal inaugurated the project on December 14, 2008. Out of the total 70 MW power of MMHEP, only 35 MW line was connected to the national grid on the day of inauguration.
Sunil Dhungel, project manager of MMHEP said, "Power generation work at MMHEP has stopped as tests that have to be carried out at the initial phase of every hydro project remain incomplete."
According to him, it will take another three weeks to generate 35 MW of power daily from MMHEP as testing was halted after workers took leave for Christmas and New Year.
Officials said though MMHEP will start its daily power generation from the third week of January, the power house will at first generate 70 MW for five hours and 35 MW for the remaining hours of the day.
"The 75 MW MMHEP will generate full capacity from the first week of February, 2009," said Dhungel.
Meantime, locals are visibly agitated by the increase in load shedding hours despite construction of a 70 MW project, the second largest hydro project in their vicinity.
ekantipur, 24-Dec-08
PREM KUMARI GHALE
Despite formal inauguration of the 70 MW Mid-Marshyangdi Hydro Electricity Project (MMHEP) a week ago, the power house has only generated a total of 4 MW till date, according to officials.
The 4 MW power was generated at the time Prime Minister Pushpa Kamal Dahal inaugurated the project on December 14, 2008. Out of the total 70 MW power of MMHEP, only 35 MW line was connected to the national grid on the day of inauguration.
Sunil Dhungel, project manager of MMHEP said, "Power generation work at MMHEP has stopped as tests that have to be carried out at the initial phase of every hydro project remain incomplete."
According to him, it will take another three weeks to generate 35 MW of power daily from MMHEP as testing was halted after workers took leave for Christmas and New Year.
Officials said though MMHEP will start its daily power generation from the third week of January, the power house will at first generate 70 MW for five hours and 35 MW for the remaining hours of the day.
"The 75 MW MMHEP will generate full capacity from the first week of February, 2009," said Dhungel.
Meantime, locals are visibly agitated by the increase in load shedding hours despite construction of a 70 MW project, the second largest hydro project in their vicinity.
Wednesday, December 24, 2008
Interview with Room to Read's John Wood
Room to Read's John Wood: Bringing the Power of Education to Children around the World
Knowledge Wharton, 23-Dec-08
After a trek in the Himalayas brought him face-to-face with extreme poverty and illiteracy, John Wood left his position as a director of business development at Microsoft to found Room to Read, an award-winning international education organization. Under his leadership, more than 1.7 million children in the developing world now have access to enhanced educational opportunities. Room to Read to date has opened 725 schools and 7,000 bilingual libraries, and funded more than 7,000 scholarships for girls. Wood talked with Knowledge@Wharton about the launch of Room to Read, the book he wrote called Leaving Microsoft to Change the World and his personal definition of success ...
Knowledge Wharton, 23-Dec-08
After a trek in the Himalayas brought him face-to-face with extreme poverty and illiteracy, John Wood left his position as a director of business development at Microsoft to found Room to Read, an award-winning international education organization. Under his leadership, more than 1.7 million children in the developing world now have access to enhanced educational opportunities. Room to Read to date has opened 725 schools and 7,000 bilingual libraries, and funded more than 7,000 scholarships for girls. Wood talked with Knowledge@Wharton about the launch of Room to Read, the book he wrote called Leaving Microsoft to Change the World and his personal definition of success ...Monday, December 22, 2008
Mid–Marshyangdi goes operational
Mid–Marshyangdi goes operational: Relief from outage still far away
ekantipur, 14-Dec-08
Prime Minister Pushpa Kamal Dahal inaugurated the Mid-Marshyangdi Hydro-power Project (MMHP), the second largest power project of the country, amid a function here Sunday.
The much awaited 70 MW-capacity power project finally became operational Sunday. However, only one of the two 35 MW turbines is operational at present, generating merely 10 percent of its total capacity. The generated electricity has been linked to the 132 KV national transmission grid.
"The power project will be generating 10 percent power in its first phase. Power production will be 25 percent and cent percent respectively in the second and third phase," said MMHP project manager Sunil Dhungel.
The project was launched in 2001 and was scheduled for completion by Dec. 2004. However, it was delayed by four years due to some problems, including security related ones. The project management informed that construction work was obstructed for about two years at different times in the past.
German Development Bank has invested 178.26 million euros, Nepal Electricity Authority invested 67 million euros and the government, 61 million euros.
The project is arguably Nepal's most expensive hydropower project in terms of per unit cost.
Meanwhile, leaders of political parties and locals demanded of the prime minister that Lamjung should be a load shedding free district since it has the second largest hydroelectricity project here.
Power tariff hike likely
Even after the commencement of MMHP, people may not be able to breathe a sigh of relief immediately, said an official of Nepal Electricity Authority (NEA) on Sunday.
These days, the country is facing severe power cuts, a 45-hour-week load-shedding schedule.
"There is no possibility of reducing the power outage immediately," said Sher Singh Bhat, director at NEA Systems Operation Department.
Currently, the country has a demand of 750 MW, but NEA has been supplying only 420 MW. MMHP, which has a maximum 70 MW generation capacity, will generate 35 MW before it reaches full capacity.
"We have not yet tested the capacity of this project. The machines don't produce exactly the same amount of energy as mentioned by the project," he said.
Still, Nepal is unable to import 60 MW electricity from India as the transmission towers, swept away by the Koshi flood, have not yet been repaired.
Bhat also said that during the dry months of March and April, the load-shedding schedule may go up.
Officials have said electricity tariff may rise as NEA has been bearing huge loss. The cabinet formed a five-member Electricity Tariff Fixing Commission led by former secretary Mahendra Nath Aryal on Dec. 3 to review the electricity tariff.
"NEA is at present bearing a loss of 70 Paisa per unit," said Shankar Prasad Koirala, Secretary at Ministry of Water Resources. "As the electricity tariff has not been reviewed since 2001, the commission may increase it." Koirala said NEA spends Rs. 7.40 for a unit of electricity, but it's selling price is Rs. 6.70 per unit.
An NEA official told the Post that it has been regularly pressuring the government to increase tariff.
"The NEA has incurred a loss of nearly Rs. 5 billion. So there is no option but to hike the tariff to make up for the loss," he said.
ekantipur, 14-Dec-08
Prime Minister Pushpa Kamal Dahal inaugurated the Mid-Marshyangdi Hydro-power Project (MMHP), the second largest power project of the country, amid a function here Sunday.
The much awaited 70 MW-capacity power project finally became operational Sunday. However, only one of the two 35 MW turbines is operational at present, generating merely 10 percent of its total capacity. The generated electricity has been linked to the 132 KV national transmission grid.
"The power project will be generating 10 percent power in its first phase. Power production will be 25 percent and cent percent respectively in the second and third phase," said MMHP project manager Sunil Dhungel.
The project was launched in 2001 and was scheduled for completion by Dec. 2004. However, it was delayed by four years due to some problems, including security related ones. The project management informed that construction work was obstructed for about two years at different times in the past.
German Development Bank has invested 178.26 million euros, Nepal Electricity Authority invested 67 million euros and the government, 61 million euros.
The project is arguably Nepal's most expensive hydropower project in terms of per unit cost.
Meanwhile, leaders of political parties and locals demanded of the prime minister that Lamjung should be a load shedding free district since it has the second largest hydroelectricity project here.
Power tariff hike likely
Even after the commencement of MMHP, people may not be able to breathe a sigh of relief immediately, said an official of Nepal Electricity Authority (NEA) on Sunday.
These days, the country is facing severe power cuts, a 45-hour-week load-shedding schedule.
"There is no possibility of reducing the power outage immediately," said Sher Singh Bhat, director at NEA Systems Operation Department.
Currently, the country has a demand of 750 MW, but NEA has been supplying only 420 MW. MMHP, which has a maximum 70 MW generation capacity, will generate 35 MW before it reaches full capacity.
"We have not yet tested the capacity of this project. The machines don't produce exactly the same amount of energy as mentioned by the project," he said.
Still, Nepal is unable to import 60 MW electricity from India as the transmission towers, swept away by the Koshi flood, have not yet been repaired.
Bhat also said that during the dry months of March and April, the load-shedding schedule may go up.
Officials have said electricity tariff may rise as NEA has been bearing huge loss. The cabinet formed a five-member Electricity Tariff Fixing Commission led by former secretary Mahendra Nath Aryal on Dec. 3 to review the electricity tariff.
"NEA is at present bearing a loss of 70 Paisa per unit," said Shankar Prasad Koirala, Secretary at Ministry of Water Resources. "As the electricity tariff has not been reviewed since 2001, the commission may increase it." Koirala said NEA spends Rs. 7.40 for a unit of electricity, but it's selling price is Rs. 6.70 per unit.
An NEA official told the Post that it has been regularly pressuring the government to increase tariff.
"The NEA has incurred a loss of nearly Rs. 5 billion. So there is no option but to hike the tariff to make up for the loss," he said.
Himalmedia attacked again, dozen injured
Himalmedia attacked again, dozen injured
Nepalnews, 21-Dec-08
Twelve staff of Himalmedia, including Nepali Times editor and publisher Kunda Dixit and CEO Ashutosh Tiwari, were injured in an attack by pro-Maoist workers at the organisation’s office in Hatiban, Lalitpur, at noon on Sunday.
About 50 attackers barged into the office of Himalmedia, publisher of widely-read Himal Khabarpatrika fortnightly magazine, Nepali Times weekly, Wave monthly and Himal Southasian - and resorted to vandalism and beating. They also threatened other editorial and administrative staff, saying they had written anti-Maoist stories.
Though most were wearing mask to conceal their identity, some of the attackers were identified as pro-Maoist workers of the organisation and were led by Ramesh Babu Panta and Ramesh KC.
Panta is central member of Maoist-aligned All Nepal Trade Union Federation and central chairperson of Hotel and Restaurant Workers Union while K.C is with the Media and Press Union, Lalitpur unit.
The latest issue of Himal Khabarpatrika and Nepali Times have investigative stories about, as what Himalmedia claims, “extremist behaviour” of Maoists who are threatening businesses and the media.
A cover-story titled “Hooliganism of Maoist trade union” published in Himal Khabarpatrika and a front-page report – abridged version of the same Himal story - published in the Nepali Times criticizse the anarchic act of Maoist–affiliated labor unions which has forced factories to close down, harmed workers and “threatens to unravel the party’s own plan to boost investment and create jobs”. It further adds that though the unrest is made to look like a labour issue, it is in fact “a guise to extort money, get jobs for cadres and relatives and a strategy to control the business sector”.
In another piece, Himalmedia also criticized the Maoists of disrupting the publication and distribution of its magazines and newspapers with the use of hooligans and their cadres.
The exclusive report also attempts to lay bare by citing various past incidents of politics played by Maoist affiliated trade unions in the name of working for the rights of the workers.
The report is especially critical of Salikram Jamarkattel, Maoist lawmaker and head of the Maoist trade union, who the report claims of heading this campaign of intimidation. According to it, Jamarkattel was involved in “extorting money from businesses, bombing and kidnapping owners who refused”.
Accusing Maoists of giving rise to militant labour, the reports also says that the Maoist trade union headed by Jamarkattel has been targeting multinational companies, forcing many to close shop while PM Dahal appears to be either unable or unwilling to control it.
Sunday's attack is the latest in a series in the past month during which the Maoists vandalised an office vehicle, set fire to copies of Himalkhabarpatrika and threatened to kill staffers.
Other injured staffers include finance manager Bindira Shakya, Himal Khabarpatrika editor Kiran Nepal, special correspondent Damber K Shrestha and administrative manager Surendra Sharma.
"This is not a labour issue, this is a press freedom issue," said Nepali Times editor Kunda Dixit, "The Maoists want to control the media."
Attack condemned
Various media rights groups, human rights organisations, political parties and lawmakers have denounced the attack on Himalmedia.
National Human Rights Commission (NHRC) in a release described the attack as an act of direct interference in the freedom of the press and asked the government to guarantee security to media houses and journalists.
“NHRC urges the Nepal government to make necessary arrangement to safeguard media institutions including Himalmedia and provide security to journalists,” NHRC said.
Similarly, the Office of the High Commission for Human Rights in Nepal (OHCHR-Nepal) dubbed the attack as an attack against freedom of expression.
OHCHR-Nepal further asked the Nepal Police to complete its investigation into the incident as swiftly as possible so charges could be laid, urging state authorities to take all steps necessary to ensure that the media has a secure environment in which to do its work.
Likewise, CPN (UML) also condemned the attack and asked the government to initiate action against the culprits.
Other organisations condemning the attack on Himalmedia included Federation of Nepalese Journalists (FNJ), Broadcasting Association of Nepal (BAN), Informal Sector Service Centre and Centre for Human Rights and Democratic Studies (CEHURDES). The pro-Maoist Revolutionary Journalists Association also condemned the attack and called for legal action against those involved in it.
Meanwhile speaking in the parliament today, lawmakers from various parties deplored the attack, describing it as an attempt to muzzle the independent media.
Lawmakers condemning the attack and seeking government’s attention towards such incidents included UML’s Pradeep Gyawali, Lalman Lal Karna of Nepal Sadbhawana Party and Hridayesh Tripathi of Terai Madhesh Loktantrik Party.
Nepalnews, 21-Dec-08
Twelve staff of Himalmedia, including Nepali Times editor and publisher Kunda Dixit and CEO Ashutosh Tiwari, were injured in an attack by pro-Maoist workers at the organisation’s office in Hatiban, Lalitpur, at noon on Sunday.
About 50 attackers barged into the office of Himalmedia, publisher of widely-read Himal Khabarpatrika fortnightly magazine, Nepali Times weekly, Wave monthly and Himal Southasian - and resorted to vandalism and beating. They also threatened other editorial and administrative staff, saying they had written anti-Maoist stories.
Though most were wearing mask to conceal their identity, some of the attackers were identified as pro-Maoist workers of the organisation and were led by Ramesh Babu Panta and Ramesh KC.
Panta is central member of Maoist-aligned All Nepal Trade Union Federation and central chairperson of Hotel and Restaurant Workers Union while K.C is with the Media and Press Union, Lalitpur unit.
The latest issue of Himal Khabarpatrika and Nepali Times have investigative stories about, as what Himalmedia claims, “extremist behaviour” of Maoists who are threatening businesses and the media.
A cover-story titled “Hooliganism of Maoist trade union” published in Himal Khabarpatrika and a front-page report – abridged version of the same Himal story - published in the Nepali Times criticizse the anarchic act of Maoist–affiliated labor unions which has forced factories to close down, harmed workers and “threatens to unravel the party’s own plan to boost investment and create jobs”. It further adds that though the unrest is made to look like a labour issue, it is in fact “a guise to extort money, get jobs for cadres and relatives and a strategy to control the business sector”.
In another piece, Himalmedia also criticized the Maoists of disrupting the publication and distribution of its magazines and newspapers with the use of hooligans and their cadres.
The exclusive report also attempts to lay bare by citing various past incidents of politics played by Maoist affiliated trade unions in the name of working for the rights of the workers.
The report is especially critical of Salikram Jamarkattel, Maoist lawmaker and head of the Maoist trade union, who the report claims of heading this campaign of intimidation. According to it, Jamarkattel was involved in “extorting money from businesses, bombing and kidnapping owners who refused”.
Accusing Maoists of giving rise to militant labour, the reports also says that the Maoist trade union headed by Jamarkattel has been targeting multinational companies, forcing many to close shop while PM Dahal appears to be either unable or unwilling to control it.
Sunday's attack is the latest in a series in the past month during which the Maoists vandalised an office vehicle, set fire to copies of Himalkhabarpatrika and threatened to kill staffers.
Other injured staffers include finance manager Bindira Shakya, Himal Khabarpatrika editor Kiran Nepal, special correspondent Damber K Shrestha and administrative manager Surendra Sharma.
"This is not a labour issue, this is a press freedom issue," said Nepali Times editor Kunda Dixit, "The Maoists want to control the media."
Attack condemned
Various media rights groups, human rights organisations, political parties and lawmakers have denounced the attack on Himalmedia.
National Human Rights Commission (NHRC) in a release described the attack as an act of direct interference in the freedom of the press and asked the government to guarantee security to media houses and journalists.
“NHRC urges the Nepal government to make necessary arrangement to safeguard media institutions including Himalmedia and provide security to journalists,” NHRC said.
Similarly, the Office of the High Commission for Human Rights in Nepal (OHCHR-Nepal) dubbed the attack as an attack against freedom of expression.
OHCHR-Nepal further asked the Nepal Police to complete its investigation into the incident as swiftly as possible so charges could be laid, urging state authorities to take all steps necessary to ensure that the media has a secure environment in which to do its work.
Likewise, CPN (UML) also condemned the attack and asked the government to initiate action against the culprits.
Other organisations condemning the attack on Himalmedia included Federation of Nepalese Journalists (FNJ), Broadcasting Association of Nepal (BAN), Informal Sector Service Centre and Centre for Human Rights and Democratic Studies (CEHURDES). The pro-Maoist Revolutionary Journalists Association also condemned the attack and called for legal action against those involved in it.
Meanwhile speaking in the parliament today, lawmakers from various parties deplored the attack, describing it as an attempt to muzzle the independent media.
Lawmakers condemning the attack and seeking government’s attention towards such incidents included UML’s Pradeep Gyawali, Lalman Lal Karna of Nepal Sadbhawana Party and Hridayesh Tripathi of Terai Madhesh Loktantrik Party.
Nepse Plunge Belies Investment Myths
Nepse Plunge Belies Investment Myths
ArthaExpress, 21-Dec-08
The whopping fall in the index of commercial banks, development banks and finance companies group -- considered blue chip shares -- in recent weeks belies the belief that financial institutions are goldmines.
This week, commercial banks lost 31.03 points to slide to reach 1694.17 points, development banks lost 45.63 points to slide to 1094.89 points, finance companies lost 22.69 points to stop at 971.04 points, hydropower companies lost 4.72 points to go to 918.82 points and insurance companies lost 19.88 points to go to 731.34 points, respectively. They also pulled down the Nepal Stock Exchange (Nepse) index down by 22.73 points to 720.52 points from last week´s closing of 743.25 points.
While stock markets are known for their irrational exuberance the domestic secondary market seems to be in correction mode over the recent months, compelling investors to be more circumspect. One should attach place importance to the company, its background and promoters, financials and valuations before investing in its shares.
This week, the total transaction dropped by 20.95 per cent to tumble to Rs 352.85 million from last week´s Rs 446.37 million. Around 82 companies´ scrips were traded in the secondary market where the group-A companies contributed 56.08 per cent to the total trading from last week´s 39.87 per cent. Nepse ended in negative territory for all five days of this week.
The hype surrounding the secondary market is cooling down as the float index - calculated on the basis of real transactions - lost 2.37 points to 69.74 points from last week´s closing of 72.16 points. Similarly, the sensitive index - a barometer of group-A companies - also plunged by 7.07 points to slide down to 188.40 points from last weeks´ closing of 195.47 points.
This week, Siddhartha Bank (with Rs 44.64 million), Nepal Development and Employment Promotion Bank (with Rs 29.16 million), Standard Chartered Bank Nepal (with Rs 24.04 million), IME Financial Institution (with Rs 21.76 million) and Annapurna Bikas Bank (with Rs 20.34 million) were the top scorers.
In terms of numbers of share units traded, Siddhartha Bank topped the chart with 41,000-unit shares while in terms of number of transactions Nepal Development and Employment Promotion Bank topped the chart with 653 transactions.
ArthaExpress, 21-Dec-08
The whopping fall in the index of commercial banks, development banks and finance companies group -- considered blue chip shares -- in recent weeks belies the belief that financial institutions are goldmines.
This week, commercial banks lost 31.03 points to slide to reach 1694.17 points, development banks lost 45.63 points to slide to 1094.89 points, finance companies lost 22.69 points to stop at 971.04 points, hydropower companies lost 4.72 points to go to 918.82 points and insurance companies lost 19.88 points to go to 731.34 points, respectively. They also pulled down the Nepal Stock Exchange (Nepse) index down by 22.73 points to 720.52 points from last week´s closing of 743.25 points.
While stock markets are known for their irrational exuberance the domestic secondary market seems to be in correction mode over the recent months, compelling investors to be more circumspect. One should attach place importance to the company, its background and promoters, financials and valuations before investing in its shares.
This week, the total transaction dropped by 20.95 per cent to tumble to Rs 352.85 million from last week´s Rs 446.37 million. Around 82 companies´ scrips were traded in the secondary market where the group-A companies contributed 56.08 per cent to the total trading from last week´s 39.87 per cent. Nepse ended in negative territory for all five days of this week.
The hype surrounding the secondary market is cooling down as the float index - calculated on the basis of real transactions - lost 2.37 points to 69.74 points from last week´s closing of 72.16 points. Similarly, the sensitive index - a barometer of group-A companies - also plunged by 7.07 points to slide down to 188.40 points from last weeks´ closing of 195.47 points.
This week, Siddhartha Bank (with Rs 44.64 million), Nepal Development and Employment Promotion Bank (with Rs 29.16 million), Standard Chartered Bank Nepal (with Rs 24.04 million), IME Financial Institution (with Rs 21.76 million) and Annapurna Bikas Bank (with Rs 20.34 million) were the top scorers.
In terms of numbers of share units traded, Siddhartha Bank topped the chart with 41,000-unit shares while in terms of number of transactions Nepal Development and Employment Promotion Bank topped the chart with 653 transactions.
Tuesday, December 09, 2008
Nepal Festival New York 2008 on the anvil
Nepal Festival New York 2008 on the anvil
ArthaExpress, 8-Dec-08
Ad and Event Management Nepal Pvt Ltd in collaboration with Nepali Public Relations Committee America (NPRCA) will organise a grand exhibition ‘Nepal Festival New York 2008’ from December 20 to 23.
The Nepal Festival at New York 2008 will have a grand exhibition of Nepali Industry, Tourism, Culture and Natural Products, according to the organisers. Mingmar Sherpa, coordinator and vice-president of the Nepalese Public Relations Office of the organising committee, USA, met United Nations’ General Secretary Ban Ki Moon and the US House speaker Nancy Palosi and briefed them severally about the Nepali Festival.
According to the organising committee, the grand festival is supposed to promote tourism, culture, trade and foreign direct investment (FDI) opportunities and foster stronger bilateral relations between Nepal and the USA.
Nepal Tourism Board, Nepal government, Nepalese Embassy in USA, Trade and Export Promotion Centre, Federation of Nepalese Chambers of Commerce and Industry (FNCCI),
Nepal USA Chamber of Commerce and Industry, the US government, Nepalese citizens of USA, Nepal Association of Travel Trade Agents (NATTA), Trekking Agencies Association of Nepal (TAAN), Hotel Association Nepal (HAN), and different trading companies and exporters are supporting the event.
ArthaExpress, 8-Dec-08
Ad and Event Management Nepal Pvt Ltd in collaboration with Nepali Public Relations Committee America (NPRCA) will organise a grand exhibition ‘Nepal Festival New York 2008’ from December 20 to 23.
The Nepal Festival at New York 2008 will have a grand exhibition of Nepali Industry, Tourism, Culture and Natural Products, according to the organisers. Mingmar Sherpa, coordinator and vice-president of the Nepalese Public Relations Office of the organising committee, USA, met United Nations’ General Secretary Ban Ki Moon and the US House speaker Nancy Palosi and briefed them severally about the Nepali Festival.
According to the organising committee, the grand festival is supposed to promote tourism, culture, trade and foreign direct investment (FDI) opportunities and foster stronger bilateral relations between Nepal and the USA.
Nepal Tourism Board, Nepal government, Nepalese Embassy in USA, Trade and Export Promotion Centre, Federation of Nepalese Chambers of Commerce and Industry (FNCCI),
Nepal USA Chamber of Commerce and Industry, the US government, Nepalese citizens of USA, Nepal Association of Travel Trade Agents (NATTA), Trekking Agencies Association of Nepal (TAAN), Hotel Association Nepal (HAN), and different trading companies and exporters are supporting the event.
Sunday, December 07, 2008
Next three years critical for hydropower
Next three years critical for hydropower
ekantipur, 6-Dec-08
Gyanendra Lal Pradhan, is one of the most vocal advocates of developing major hydropower projects in the country for the prosperity of its people. He has been campaigning for a hydropower revolution in Nepal for the last two decades. Given the new target set by the government producing 10000MW of power within the next decade, he has been working to convert this dream into reality. An electrical engineer from Maulana Azad College of Technology, India, he is the managing director of Trishakti Cable Industries. He is also the chairman of Nepal Hydro and Electric Pvt. Ltd. and Khudi Hydropower Ltd. He is one of the directors of Butwal Power Company and an executive member of Independent Power Producers Association in Nepal. Pradhan was also conferred with the 'Best Manager of the Year 2006' award by Management Association of Nepal and 'Best Entrepreneur' by Boss Business Magazine. He talked to Prithvi Man Shrestha of The Kathmandu Post about the current situation, prospect and strategies to be taken in the hydropower sector for larger development of the country.
Do you think the target of developing a 10000 MW hydropower project, is feasible or attainable in a decade?
There has been a national consensus among the political parties for the first time about the importance of developing the hydropower sector. It is one the few sectors, that has attained national consensus. Nepal has a huge potential of hydropower development and the desired market is just next door. Investors from around the world are ready to invest in the sector. In order to do so, the government has to try and create an investment friendly environment. Preparations for constructing a 3300MW plant have already started. If the government is able to retain investors' confidence for the next three years, then I don't think anyone can stop us from constructing such a big project. Therefore these three years are crucial in terms of determining the future of hydropower development in Nepal.
It has been a trend here for 'investors' to hold licenses for power projects that they don't make an attempt at developing. What do you think has to be done?
It is due to the government's weak policies of renewing such projects even when the construction companies have not started work. The government has the authority to revoke their licenses if they don't work. But, they should be allowed to take time until their license period is expired as per the law.
Why do you think the Nepali private sector is not enthusiastic in hydropower, even when there are foreign companies who are willing to invest?
The government needs to create a conducive environment for both domestic and international investors. The Nepali people are forced to live through extended periods of power cuts while Nepal Electricity Authority (NEA), a government entity, does not even rush to sign the Power Purchase Agreement (PPA) with the private investors. Last year, the authority signed an application for 7 MW against an application for 180 MW. Why will the private sector invest in projects if the power they generate is not purchased?
As an advocate of power export prospects of Nepal, what do you have to say about people who state that the country cannot prosper by exporting power so it should look at producing power for internal consumption only?
We have a potential of developing 200000MW hydropower. I don't support the idea that we are capable of producing just 84000MW. We will not require more than 20000MW by 2050. So what do we do about the surplus power? I support the idea that we need to ensure more domestic consumption first but we should also not rule out the export prospects.
Nepal's electricity is considered to be one of the most expensive in the world despite it being rich in water resources. Why?
The fault lies in the donor driven policy that rules us. When projects employ foreigners and massively use imported materials, the power will not be cheap. It might have been a necessity initially to employ foreigners just to transfer their skills and expertise. But, we have failed to learn their expertise and build up our own capability to develop the project. Another reason behind the expensive electricity can be the undersized projects in the country. For example, Likhu was initially licensed for 51MW. Now an Indian investor has licensed the same project for 121MW. It is not necessary to construct a big dam for a big project, but we need to focus on changing the size of machines used at the dam side. We need to focus on making the project as big is possible. Another factor to be taken under consideration is time management, if we complete the project before time or on time, then the project cost will definitely come down and result in lower electricity charges. The operation cost of power projects usually go down in later days unlike in other industries.
How are your companies, especially those related to the hydropower sector performing?
Butwal Power Company is doing good and we plan to develop projects of 100MW. We have established a new firm called 'Hydro Solution' which aims to develop many power projects by generating resources domestically and internationally. Hydro Solutions has set targets of completing works in 300MW projects within the next five years. We are planning to get involved in developing 10000MW within the next decade.
How has global recession affected investment in this sector?
Global recession has presented a golden opportunity
for hydropower developers as their project costs have decreased by 20 percent due to the fall of prices of steel rods and copper wires.
ekantipur, 6-Dec-08
Gyanendra Lal Pradhan, is one of the most vocal advocates of developing major hydropower projects in the country for the prosperity of its people. He has been campaigning for a hydropower revolution in Nepal for the last two decades. Given the new target set by the government producing 10000MW of power within the next decade, he has been working to convert this dream into reality. An electrical engineer from Maulana Azad College of Technology, India, he is the managing director of Trishakti Cable Industries. He is also the chairman of Nepal Hydro and Electric Pvt. Ltd. and Khudi Hydropower Ltd. He is one of the directors of Butwal Power Company and an executive member of Independent Power Producers Association in Nepal. Pradhan was also conferred with the 'Best Manager of the Year 2006' award by Management Association of Nepal and 'Best Entrepreneur' by Boss Business Magazine. He talked to Prithvi Man Shrestha of The Kathmandu Post about the current situation, prospect and strategies to be taken in the hydropower sector for larger development of the country.Do you think the target of developing a 10000 MW hydropower project, is feasible or attainable in a decade?
There has been a national consensus among the political parties for the first time about the importance of developing the hydropower sector. It is one the few sectors, that has attained national consensus. Nepal has a huge potential of hydropower development and the desired market is just next door. Investors from around the world are ready to invest in the sector. In order to do so, the government has to try and create an investment friendly environment. Preparations for constructing a 3300MW plant have already started. If the government is able to retain investors' confidence for the next three years, then I don't think anyone can stop us from constructing such a big project. Therefore these three years are crucial in terms of determining the future of hydropower development in Nepal.
It has been a trend here for 'investors' to hold licenses for power projects that they don't make an attempt at developing. What do you think has to be done?
It is due to the government's weak policies of renewing such projects even when the construction companies have not started work. The government has the authority to revoke their licenses if they don't work. But, they should be allowed to take time until their license period is expired as per the law.
Why do you think the Nepali private sector is not enthusiastic in hydropower, even when there are foreign companies who are willing to invest?
The government needs to create a conducive environment for both domestic and international investors. The Nepali people are forced to live through extended periods of power cuts while Nepal Electricity Authority (NEA), a government entity, does not even rush to sign the Power Purchase Agreement (PPA) with the private investors. Last year, the authority signed an application for 7 MW against an application for 180 MW. Why will the private sector invest in projects if the power they generate is not purchased?
As an advocate of power export prospects of Nepal, what do you have to say about people who state that the country cannot prosper by exporting power so it should look at producing power for internal consumption only?
We have a potential of developing 200000MW hydropower. I don't support the idea that we are capable of producing just 84000MW. We will not require more than 20000MW by 2050. So what do we do about the surplus power? I support the idea that we need to ensure more domestic consumption first but we should also not rule out the export prospects.
Nepal's electricity is considered to be one of the most expensive in the world despite it being rich in water resources. Why?
The fault lies in the donor driven policy that rules us. When projects employ foreigners and massively use imported materials, the power will not be cheap. It might have been a necessity initially to employ foreigners just to transfer their skills and expertise. But, we have failed to learn their expertise and build up our own capability to develop the project. Another reason behind the expensive electricity can be the undersized projects in the country. For example, Likhu was initially licensed for 51MW. Now an Indian investor has licensed the same project for 121MW. It is not necessary to construct a big dam for a big project, but we need to focus on changing the size of machines used at the dam side. We need to focus on making the project as big is possible. Another factor to be taken under consideration is time management, if we complete the project before time or on time, then the project cost will definitely come down and result in lower electricity charges. The operation cost of power projects usually go down in later days unlike in other industries.
How are your companies, especially those related to the hydropower sector performing?
Butwal Power Company is doing good and we plan to develop projects of 100MW. We have established a new firm called 'Hydro Solution' which aims to develop many power projects by generating resources domestically and internationally. Hydro Solutions has set targets of completing works in 300MW projects within the next five years. We are planning to get involved in developing 10000MW within the next decade.
How has global recession affected investment in this sector?
Global recession has presented a golden opportunity
for hydropower developers as their project costs have decreased by 20 percent due to the fall of prices of steel rods and copper wires.
Tuesday, December 02, 2008
Nepal Electricity Authority Increases Power Cut
Nepal Electricity Authority Increases Power Cut
Himalayan Times, 2-Dec-08
The Nepal Electricity Authority (NEA) has decided to increase the weekly load-shedding hours with effect from today. The increase would be up to 45 hours from the present 35 hours in parts of the country.
"There will be 45 hours of power cut in a week for all consumers living between Lahan [Siraha District, eastern Nepal] and Lamahi [Dang District, western Nepal]," said a source close to the NEA.
Presently the NEA is facing a power deficit of 80 MW of electricity.
Himalayan Times, 2-Dec-08
The Nepal Electricity Authority (NEA) has decided to increase the weekly load-shedding hours with effect from today. The increase would be up to 45 hours from the present 35 hours in parts of the country.
"There will be 45 hours of power cut in a week for all consumers living between Lahan [Siraha District, eastern Nepal] and Lamahi [Dang District, western Nepal]," said a source close to the NEA.
Presently the NEA is facing a power deficit of 80 MW of electricity.
Monday, December 01, 2008
Remittance inflow jumps 80.7 percent
Remittance inflow jumps 80.7 percent
ekantipur, 30-Nov-08
Inflow of remittance from Nepali workers in foreign countries shot up by 80.7 percent during the first three months of the current fiscal year, according to a central bank report released Sunday.
Remittance growth in the first quarter of the previous fiscal year was 17.2 percent, Nepal Rastra Bank (NRB) said.
The big jump in remittance also helped boost the country's overall balance of payments (BOP) during the period pushing it into positive territory after a long time, the report said.
According to the quarterly report on the current macroeconomic situation of the country, Nepal's BoP recovered from a deficit of Rs. 5.6 billion recorded in the first quarter of Fiscal Year 2007/08 to a surplus of Rs. 7.7 billion in the first three months of Fiscal Year 2008/09.
Similarly exports witnessed an upsurge of 27.1 percent during the first quarter of the current fiscal year against a mere 4.3 percent rise in the corresponding period last year. NRB said that exports to both India and third countries swelled this year.
It said exports to India during the period increased by 10.1 percent against a 0.6 percent rise recorded during the corresponding months last year. Likewise, exports to countries other than India swelled by 58.3 percent compared to an increase of 11 perrcent last year.
Exports to India increased due to a rise in export of readymade garments, shoes and sandals, polyester yarn, copper wire rods and G.I. pipes. An upsurge in export of pulses, woolen carpets, pashmina, herbs and tanned skin mainly contributed to an increase in overall exports to third countries.
Meanwhile the country imported 30.6 percent more in the first quarter this year. In the corresponding period last year, imports had gone up 13.1 percent.
Imports from India went up 19.3 percent in the review period, compared to a 13.7 percent rise in the corresponding period last year. NRB attributed the growth to rise in petroleum imports and higher import of vehicles and spare parts, cold rolled steel in coil, hot rolled sheet in coil and cement among other from India.
On the other hand imports from other countries jumped 48.5 percent in the three months while it had grown just 12.1 percent during the corresponding period last year. NRB said higher inflow gold, MS billet, telecom equipment and parts, computers and related products, and polythene granules among others from these countries contributed to the big surge.
During the first three months of the current fiscal year, total government spending decreased by 2.4 percent to Rs. 29.3 billion compared to an increase of 53.7 percent in the corresponding period last year.
The government's failure to make both recurrent and capital expenditures at significant levels resulted in the decline of overall expenditures. Given the relatively huge size of the budget, spending money has remained a big challenge for the government.
Recurrent expenditures increased by 13.2 percent to Rs. 18.5 billion compared to an increase of 35.6 percent in the corresponding period last year.
The government's budget deficit stood at Rs. 2.9 billion compared to a deficit of Rs. 9.4 billion in the corresponding period last year.
At the same time revenue collection saw an increase of 16 percent during the review period to Rs. 22.3 billion. The Ministry of Finance has said on Nov. 21 that revenue collection increased by 35.5 percent between mid-October and mid-November this year. It said Rs 32.97 billion had been collected in revenue in the first four months of this fiscal year. The government aims to increase revenue by 31.7 percent to meet its target of Rs. 142 billion, set for this year.
Domestic credit claims by non-financial government enterprises increased by 6.2 percent over the period compared to a decline of 17.3 percent in the corresponding period last year.
Higher credit claims by government enterprises like Janakpur Cigarette Factory, Nepal Oil Corporation, Nepal Airlines Corporation, Janak Education Material Center and Nepal Electricity Authority contributed to the increase, NRB said.
However, claims on government financial institutions declined by 6.7 percent in the review period. Meanwhile, overall domestic credit increased by 6.8 percent during the period against 6.9 percent recorded in the corresponding period last year.
Gross foreign exchange reserves stood at Rs. 230.8 billion in mid-October, an increase of 8.5 percent compared to a decline of 4.1 percent in the corresponding period last year. The current level of reserves is adequate for financing merchandise imports for 10.1 months, and merchandise and service imports for eight months, according to NRB.
ekantipur, 30-Nov-08
Inflow of remittance from Nepali workers in foreign countries shot up by 80.7 percent during the first three months of the current fiscal year, according to a central bank report released Sunday.
Remittance growth in the first quarter of the previous fiscal year was 17.2 percent, Nepal Rastra Bank (NRB) said.
The big jump in remittance also helped boost the country's overall balance of payments (BOP) during the period pushing it into positive territory after a long time, the report said.
According to the quarterly report on the current macroeconomic situation of the country, Nepal's BoP recovered from a deficit of Rs. 5.6 billion recorded in the first quarter of Fiscal Year 2007/08 to a surplus of Rs. 7.7 billion in the first three months of Fiscal Year 2008/09.
Similarly exports witnessed an upsurge of 27.1 percent during the first quarter of the current fiscal year against a mere 4.3 percent rise in the corresponding period last year. NRB said that exports to both India and third countries swelled this year.
It said exports to India during the period increased by 10.1 percent against a 0.6 percent rise recorded during the corresponding months last year. Likewise, exports to countries other than India swelled by 58.3 percent compared to an increase of 11 perrcent last year.
Exports to India increased due to a rise in export of readymade garments, shoes and sandals, polyester yarn, copper wire rods and G.I. pipes. An upsurge in export of pulses, woolen carpets, pashmina, herbs and tanned skin mainly contributed to an increase in overall exports to third countries.
Meanwhile the country imported 30.6 percent more in the first quarter this year. In the corresponding period last year, imports had gone up 13.1 percent.
Imports from India went up 19.3 percent in the review period, compared to a 13.7 percent rise in the corresponding period last year. NRB attributed the growth to rise in petroleum imports and higher import of vehicles and spare parts, cold rolled steel in coil, hot rolled sheet in coil and cement among other from India.
On the other hand imports from other countries jumped 48.5 percent in the three months while it had grown just 12.1 percent during the corresponding period last year. NRB said higher inflow gold, MS billet, telecom equipment and parts, computers and related products, and polythene granules among others from these countries contributed to the big surge.
During the first three months of the current fiscal year, total government spending decreased by 2.4 percent to Rs. 29.3 billion compared to an increase of 53.7 percent in the corresponding period last year.
The government's failure to make both recurrent and capital expenditures at significant levels resulted in the decline of overall expenditures. Given the relatively huge size of the budget, spending money has remained a big challenge for the government.
Recurrent expenditures increased by 13.2 percent to Rs. 18.5 billion compared to an increase of 35.6 percent in the corresponding period last year.
The government's budget deficit stood at Rs. 2.9 billion compared to a deficit of Rs. 9.4 billion in the corresponding period last year.
At the same time revenue collection saw an increase of 16 percent during the review period to Rs. 22.3 billion. The Ministry of Finance has said on Nov. 21 that revenue collection increased by 35.5 percent between mid-October and mid-November this year. It said Rs 32.97 billion had been collected in revenue in the first four months of this fiscal year. The government aims to increase revenue by 31.7 percent to meet its target of Rs. 142 billion, set for this year.
Domestic credit claims by non-financial government enterprises increased by 6.2 percent over the period compared to a decline of 17.3 percent in the corresponding period last year.
Higher credit claims by government enterprises like Janakpur Cigarette Factory, Nepal Oil Corporation, Nepal Airlines Corporation, Janak Education Material Center and Nepal Electricity Authority contributed to the increase, NRB said.
However, claims on government financial institutions declined by 6.7 percent in the review period. Meanwhile, overall domestic credit increased by 6.8 percent during the period against 6.9 percent recorded in the corresponding period last year.
Gross foreign exchange reserves stood at Rs. 230.8 billion in mid-October, an increase of 8.5 percent compared to a decline of 4.1 percent in the corresponding period last year. The current level of reserves is adequate for financing merchandise imports for 10.1 months, and merchandise and service imports for eight months, according to NRB.
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