Rajkarnikar pulls out of prez race

KATHMANDU, JUL 01 - Two days ahead of the election for the President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI ), Bhaskar Raj Rajkarnikar, one of three candidates for the top post, pulled out of the race on Tuesday.

Annoucing his withdrawal from the presidential election, Rajkarnikar expressed his support to Pashupati Murarka for the top post. The decision to quit the race was taken to maintain solidarity within the FNCCI , according to Rajkarnikar. “At the time when FNCCI ’s role is being increasingly questioned, my withdrawal from the nomination could help the institutional unity of the private sector’s apex body,” said Rajkarnikar at a press meet in Kathmandu on Tuesday.

Along with Rajkarnikar and Murarka, Bhawani Rana had filed nomination for the FNCCIpresidency on Saturday.

During the press meet, Rajkarnikar stressed on the need to pick a unanimous candidate to head the umbrella body of the business fraternity. “I wish another candidate in the fray [Rana] also supports Murarka,” he said.

Former FNCCI President Suraj Vaidya had held meetings with all three candidates on Tuesday where he persuaded Rajkarnikar to withdraw his nomination and also urged Rana to withdraw her candidacy, according to informed sources. Several other former FNCCIpresidents had also called for a unanimous president at a recent press meet.

Rana is likely to announce her withdrawal from the election on Wednesday, paving the way for Murarka to be the next FNCCI head by a unanimous vote, a source said. Rana was not immediately available for a comment.

The top FNCCI post has remained vacant since Pradeep Jung Pandey was sentenced to jail on March 18 over a three-decade old corruption case. In the last FNCCI Executive Committee election, Rajkarnikar had lost the battle to Pandey. Subsequently, the Rajkarnikar panel filed the case against Pandey.

The federation’s executive committee meeting on May 28 removed Pandey from the post and called a fresh election.

Maintaining that he had no personal vendatta against Pandey, Rajkarnikar said the decision to remove Pandey was taken as per the FNCCI statute that bars any person facing a criminal charge from holding the top position in the federation. He claimed that the district chambers were also in favour of a unanimously nominated president.

Murarka brushed off suggestions that he had patched up with Rajkarnikar because of political pressure. “Being a senior, I will always consider Rajkarnikar’s advice for a way forward in the coming days,” he said. Should Murarka win a unanimous decision, he will hold the top position for 21 months.

Praising Rajkarnikar for his gesture, the immediate past president of FNCCI Vaidya urged Murarka to lead the umbrella organisation by accommodating everyone from the private sector.

Murarka had defeated Rana for the post of senior vice-president in the last election. The election is scheduled on Friday.

Experts say Nepal tourism will need time to recover

KATHMANDU, JUL 01 - Nepal tourism will need time to recover from the direct hit it took from the April 25 earthquake, travel traders said.

The tourism industry has been hard at work staving off negative publicity and trying to convince potential travellers that a majority of the destinations in the country are safe to visit. A few countries have toned down their travel advisories, encouraging international tour operators to observe that there is every reason for Nepal to be confident in its tourism future.

Speaking at an interaction on Tuesday entitled Turning Point in Tourism: The Role of National and International Tour Operators jointly organized by the government and Samarth, a flagship UKAid-funded initiative in Nepal, they said that it might take a little longer for Nepal to win the confidence of travellers due to the travel warnings issued by many source countries and the perception foreigners have towards Nepal following the disaster.  But Nepal should move aggressively with branding and promotional activities to assure visitor safety and security, the participants said.

“Nepal used to be our best selling destination, but numbers have been on a declining trend after the Maoist insurgency,” said Jo Chaffer of the UK-based tour operator KE Adventure. Soft adventure activities are the major attractions for British travellers in Nepal.

“The April 25 earthquake has further changed the perception of visitors due to massive media coverage on Nepal’s devastating earthquake,” Chaffer said, adding that the British people were currently not in a travel mood in Nepal. “Nepal needs to improve its quality and assure safety standards to woo back tourists.”

However, Japan has not changed its travel advisory to visit Nepal. “Only one-fourth of the trip bookings made with our agency have been cancelled,” said Sonia Miyahara, operator of Mountain Travel Japan.

“Nepal needs to provide information regarding the safety status of its destinations. Such assurances from the government will help us bring Japanese tourists to Nepal.” She said that 80 percent of the sales of her agency are focused on Nepal.

Meanwhile, Mads Mathiasen, operator of Denmark-based Himalaya Trails, said Danish visitors had declined since the Maoist insurgency. He, however, said that travel warnings had become a major issue for Danish visitors after the earthquake, but once they are out, demand for Nepal would jump significantly.

“Based on the current bookings, autumn is really looking to be bleak,” he said, adding that trip bookings for Nepal were expected to drop 85 percent within the next few weeks because negative perceptions still remain among visitors in Denmark. He, however, said that if the Nepal government assured highly safety standards, things could be better in the near future.

Likewise, Mick Chapman, operator of Australia-based Himalaya Guides, urged Nepal to focus on free independent travellers or backpackers as they look for cheaper destinations. “After the earthquake, we have already observed a 70-75 percent drop in Australian visitors due to negative travel advisories.”

He said that tourists from Australia were down 30-35 percent during the Maoist insurgency period but recovered quickly. “It might take Nepal a little longer to woo tourists due to changed visitor perceptions towards Nepal after the earthquake.”  The Russian market has also seen a significant drop in advance reservations. Sergey Vertelov, operator of Himalaya Club Russia, said they had observed 60 percent fewer bookings for Nepal. He said that Nepal should emphasize those places which are safe to visit.

Meanwhile, initial concerns seem to have receded and the desire to visit Nepal has bounced back among tourists.

“I’ve been going back and forth on whether it’s ethical for us to visit Nepal, so this gave me some peace of mind,” says one would-be British traveller Ailish Casey in a tweet.

“The Case for Planning a Trip to Nepal. I’m sold, I agree. Let’s help rebuild Nepal’s Tourism,” a Canadian Mariellen Ward tweeted. Meanwhile, the Post-Disaster Needs Assessment report has estimated that the overall impact to the Nepali tourism industry will be a reduction of about 40 percent over the next 12 months, and a 20 percent reduction in the following 12-24 months. Tourist numbers plunged 90 percent during the period May to July.

With regard to trekking, the report said that high-end segments were more likely to cancel their trips to Nepal and the impact of the earthquake on this group was expected to be a 70 percent reduction over a 12-month period.

However, the number of low-end trekking groups is expected to recover quicker with an estimated reduction of 20 percent over a 12-month period.

WB okays $300m loan for quake recovery

KATHMANDU, JUL 01 - The World Bank has approved two credits totaling $300 million to rebuild houses in poor, rural areas of Nepal and provide cash for the government’

s budget to help the country recover from the devastating earthquake, the global lender said Tuesday.

The loans, which have been approved by the bank’s Board of Executive Directors, are part of a package worth up to half a billion dollars pledged last week by the World Bank at an international conference in Kathmandu for Nepal’s reconstruction.

The bank approved $200 million as housing credit and another $100 million budget support which the government can invest wherever it deems appropriate.

The housing reconstruction credit is from the International Development Association (IDA), the World Bank’s fund for the poorest countries. It will provide grants to homeowners to rebuild about 55,000 houses for the poor in rural areas.

It will be extended on standard IDA terms with a maturity period of 38 years and a six-year grace period.

The budget support approved is an IDA credit to help the Nepal government to expand relief and recovery efforts while also

supporting policy measures to strengthen the country’s financial sector, which has weakened along with the economy. It will be on standard IDA terms.

“With the swift approval of these credits, the WB is striving to fulfill its commitment to the people of Nepal to help them in this difficult time by putting in place credible recovery efforts that target support at those most in need,” said Annette Dixon, World Bank Vice-President for the South Asia Region of the World Bank.

“The impressive pledges at last week’s donor conference show that Nepal’s partners are there when the country needs them, and it will now be important to follow through with effective implementation that is transparent and accountable to the Nepalese people.”

The bank has also announced the creation of a Multi-Donor Trust Fund to enable Nepal’s donors to coordinate their finance for housing reconstruction.

Additional support for housing reconstruction will be necessary to help

rebuild the more than 500,000 homes destroyed in the earthquakes, the multilateral donor said.

“These credits will enable the Nepal government to start work on financing reconstruction of houses to ensure they are rebuilt in a disaster resilient way,” said Takuya Kamata, World Bank Country Manager for Nepal.

“The housing reconstruction credit draws on lessons learned in India and

Pakistan to channel funds through house-owners while ensuring that building standards are met and funds accounted for.”

Apart from the approved credits, the World Bank said that the remaining $200 million would be redirected from existing World Bank projects in Nepal and invested in reconstruction efforts.

“Any reallocated money will be replaced with additional funds,” said the lender.

Five farmers awarded for stand-out performances

KATHMANDU, JUL 01 - Five farmers have received the President’s Outstanding Farmers

 Award for their contribution to the agriculture sector and achievements in adopting modern farm practices.

The awards were conferred on Kalu Hamal of Kailali, Chandra Lal Tamang of Dhankuta, Chhyam Bahadur Thapa of Kaski, Chhaya Dutta Bhusal of Bardia and Prakash Panta of Chitwan on the occasion of the 12th National Paddy Day on Tuesday. Minister for Agricultural Development Hari Prasad Parajuli and Secretary Uttam Kumar Bhattarai presented the honours amid a programme at the Nepal Agricultural Research Council.  Among the recipients, banana farmer Hamal has been named the best farmer of the year. He also received a cash prize of Rs200,000. Hamal has invested Rs16.8 million in banana farming so far and now earns Rs20 million annually. His farm employs 35 people.

He started with 10 banana trees three decades ago, and has expanded his farm to 10 bighas. Hamal also owns a banana resort in Tikapur and has been promoting agro tourism.

His resort offers delicacies made of bananas.

Likewise, Tamang has been awarded for outstanding performance in large cardamom and tea production. He grows large cardamom on 30 ropanis of land and maintains a large cardamom nursery on 10 ropanis. He also grows tea on 60 ropanis.

Tamang has made an investment of Rs900,000 and earns Rs3.35 million annually. His income from large cardamom alone comes to Rs3.05 million.   

Thapa is involved in pig farming. He started pig farming 10 years ago with two pigs and now owns more than 1,400 animals on his farm that has expanded to 52 ropanis. His investment has reached Rs17.7 million, and his annual income stands at Rs1.72 million. He employs 24 people on his farm.

Similarly, Bhusal produces 250 tonnes of fish and 1.5 million fingerlings annually on his farm that is spread over 121 bighas. He has spent Rs11 million on his farm and earns Rs5 million per year. He has given jobs to 2,000 persons. Panta started floriculture one and a half decades ago. His farm has expanded to 15 bighas during that time. He has invested Rs30 million and earns Rs4 million annually. His farm employs 1,500 people.

Price-mark provision likely to be expanded next fiscal

KATHMANDU, JUL 01 - More imported merchandise may be required to be marked with the maximum retail price (MRP) from the next fiscal year 2015-16. Currently, traders are required to have price-mark labels on 12 products.

Jyoti Baniya, a consumer rights activist, said that there had been an understanding between the Department of Customs, representatives of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Nepal Chamber of Commerce and consumer rights activists to price-mark 12 more products.

“We reached an understanding at Monday’s meeting,” said Baniya. Among the products that will come under the MRP rule are drugs, medical devices, cosmetics, mobiles and packed food, among others, according to Baniya.

Currently, televisions, washing machines, microwave ovens, energy drinks, marble, granite tiles, cooking ranges, chimneys, digital cameras, video cameras and automobiles are required to have price-mark labels.  

Last week, the Department of Commerce and Supply Management (DoCSM) decided to ask manufacturers and importers of packaged essential goods to send them to market only after marking the MRP on them.

The department said that it would give traders and manufacturers a three-month deadline to comply with the instruction. The directive also covers life saving drugs and surgical devices.

According to the department, many of these products, especially surgical devices imported from India, Malaysia, the US and Europe, do not state the MRP.

The price-mark provision does not apply to perishable goods such as vegetables and fruits whose prices vary on a daily basis and are distributed in bulk, according to the DoCSM.  

However, the Department of Customs said that no concrete decision on expanding  the list of products required to have the price-mark had been taken so far.

“We have been conducting an effectiveness analysis of the MRPs fixed on certain products so far,” said Sishir Dhungana, director general of DoC. “The report is expected come before the budget presentation for the next fiscal year, and we will then take the necessary decision on expanding the list.”

He said that the weaknesses in the MRP system would be evaluated and the necessary steps taken to remove them while adding other products to the list.

The DoCSM aims to intensify market inspection to make sure the MRPs are consistent with the actual production costs, overhead costs and profit margin.

Nepal Water gives $400k for quake relief

KATHMANDU, JUL 01 - Nepal Water and Energy Development Company has announced a gift of $400,000 to provide temporary accommodation, food, schools, health posts, latrines, drinking water, solar lamps and mobile health camps to the internally displaced persons of Haku, Ramche and Dhunche VDCs of Rasuwa district.

Bishnu Prasad Koirala, local development officer of Rasuwa, and Hong Seok Bin, CEO of the company, signed a memorandum of understanding amid a function in Dhunche recently. The company is implementing the 216 MW Upper Trishuli-1 hydro project located in Rasuwa district.  The devastating earthquake of April 25 and constant aftershocks inflicted severe damage to property and claimed the lives of over 600 people in Rasuwa.

Immediately after the tremor, the company had rescued 67 injured persons by helicopter and provided immediate relief materials including food, tarpaulins, blankets and utensils worth $68,000. On May 21, the company also handed over $50,000 to the Nepali ambassador in Seoul.

In order to successfully implement the aid accord, the company will manage

financial resources from KOSsEP of South Korea, Daelim and Kyeryong of South Korea, IFC and

DEG of Germany.

Budget session begins

KATHMANDU, JUL 01 - The budget session of Legislature-Parliament that commenced on Tuesday was adjourned without entering into business.

The Speaker read a letter from President Ram Baran Yadav summoning the budget session. On the recommendation of the Cabinet, President Yadav, as per Article 51(1) of the Interim Constitution, called the session on Friday.

Starting on Wednesday, there will be pre- budgetdiscussion. Lawmakers will participate in discussions related to the upcoming budget after Finance Minister Ram Sharan Mahat tables a proposal at 11:30am.

In discussions that are likely to continue for a week, lawmakers will suggest the government on the budget priorities. President Yadav will present the government’s programmes and policies for fiscal year 2015-16 as pre- budget discussions end.

The budget will be presented by mid-July, following the endorsement of the policies and programmes. The budget is likely to be as big as Rs840 billion and will focus on reconstruction of the property destroyed by the devastating earthquakes.