PM, PRACHANDA MEET; OTHER DETAILS

By Bhola B Rana

Kathmandu, 18 Feb.: Hours after Maoists decided not to join the Jhalanath Khanal government Thursday, the prime minister and Maoist Chairman Prachanda were huddled in discussions Friday morning at official residence of the government chief.
A steering committee of the premiers UML party which he chairs Thursday aborted Khanal’s attempt to form the country’s first majority communist government with Maoist support.
Maoist steering committee Thursday decided to lend the Khanal government outside support while Maoist strongman accused foreigners and left reactionaries and leftists at home for strangling a baby government soon after birth.
Prachanda asked YCL to mobilize against and fight ‘reactionaries’.
UML Thursday formed a four-member dialogue team headed by the premier with former Prime Minister Madhav Kumar Nepal, KP Oli and Secretary Ishwor Pokhrel to talk with other parties, including NC, to expand the two-week cabinet which has only four members from UML.
The talks are being held with parties before UML politburo and central committee meet Sunday and Tuesday respectively to settle the dispute in the party.
He talks team will discuss government expansion and even the previously secret and controversial seven-point between Khanal and Prachanda.
UML standing committee Thursday decided to retain home, finance and education ministries.
Deputy Prime Minister Bharat Mohan Adhikari has already been appointed finance minister; home ministry has been set aside for Bishnu Paudel and the education ministry for Ganga Lal Tuladhar.
Meanwhile, TMLP-N of Mahendra Prasad Yadav has decided not to join the Khanal government and opted to join a 14-party alliance developed by the NC against the government.
TMLP-N, which split from TMLP, was toying with the idea of joining the government.
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CASINOS BEING OPENED FOR RICH NEPALIS

Kathmandu, 18 Feb.: Government is opening casinos for rich Nepalis after 44 years, Nagarik reports.
Casinos were out of bounds for Nepalis when the first casino was opened at Soaltee Hotel.
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NEPSE GAINS 2.75 POINTS THURSDAY

Kathmandu, 18 Feb.: Nepse gained 2.75 points Thursday on the last day of five-day weekly trading and closed at 408.19 points.
Stock prices increased for the third consecutive day.
Altogether 69,093 shares worth Rs.6.9 million were traded in 1,700 transactions.

NEPAL PLAYS THAILAND IN ACC WOMEN’S T20 CHAMPIONSHIP 2011

Kathmandu, 18 Feb. Nepal plays Thailand in its first ACC Women’s T20 Championship 2011 cricket tournament Friday in Kuwait.
Nepal is participating in the third edition of the championship after 2007 and 2009.
Nary Thapa is captaining the team.
Nepal is in Group B along with Thailand, Malaysia, UAE and Kuwait.
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MEDIA GOOGLE

“Sushilji, Surya Bahadurji, Majatoji, Gachedharji, Pashupatji, Kamalji are all in there. Only Madhaji and Oliji aren’t inside.”

(Two persons talking outside the gate of a conference hall, cartoon in Nagarik, 18 Feb.)
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POLICE CONFIRM SUPPRESSION OF TIBETAN FIGHTERS

Kathmandu, 18 Feb.: Nepal police has cracked down on an organisation looking after Tibetan resistance fighters, who fought a long guerrilla war against the Chinese invasion and annexation of their country in the 1950s and 1960s, without any provocation, a New York based rights group said on Thursday, The Kathmandu Post reports.

Nepal Police on Sunday stopped local elections for the leadership of the Chushi Gangdruk, a Tibetan community group principally looking after the welfare of veterans of the Tibetan resistance force that battled the Chinese People's Liberation Army from 1958 to 1974, the New York-based International Campaign for Tibet (ICT) said on Thursday.

According to the ICT, police on Sunday raided three locations where the voting was taking place in Swoyambhu, Jawalakhel and Bouddha areas in Kathmandu.

Superintendent of Police Pushkar Karki, in-charge of the Metropolitan Police Range, Kathmandu, confirmed that the police had "intervened" in the Tibetans' election on the ground that those in the refugees status should abide by the laws of the land.

"Police did not use force but convinced them to follow the government policy as they had not taken permission from the local administration," Karki said. As per the country's rules, Tibetans are prohibited from taking part in any election.

A member of the Chushi Gangdruk election committee, whose name was not disclosed, told the organisation that the voting was to choose local community representatives so that "when someone is sick, we can take them to the hospital or when someone dies we can take the corpse to the graveyard."

The organisation said it helps poor and homeless people, cleans the streets and looks after the environment in the Tibetan community.

The new crackdown came even as the US Under-Secretary of State for Democracy and Global Affairs, Maria Otero, who is also the special coordinator for Tibetan issues, was on a three-day visit to Kathmandu.

During her visit, Otero met Tibetan refugees and urged Nepal's government to allow them free passage to India without restrictions.
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PADT AWAITS CABINET FOR MAHA SHIVARATRI COMMITTEE EXPANSION



















Kathmandu, 18 Feb.: - The Pashupati Area Development Trust (PADT) has failed to form a Mahashivratri main organising committee owing to the delay in the formation of the new cabinet, The Rising Nepal reports.
The Hindu festival of Mahashivaratri is approaching near but all task of preparation at the Pashupati area has not just kicked off properly. This year the Mahashivrartri festival falls on the 2nd of March.
PADT have to arrange several things to mange thousand of devotees on this day but it was waiting for the formation of the council of ministers to form several of committees including the main organizing committee to manage the day at the Pashupati area.
Hundreds of Hindu Sadhus (mendicants) will pay their visit to the Pashupati during the Mahashivratri. Some of them have already arrived here. Thousands of the Hindu devotees from India would flock the Pashupati Temple few days day before the festival and would stay for some days after the festival.
High security measures will be put in place during the festival to manage the traffic and to set up rest rooms, emergency primary health post, and procure firewood to the Sadhus.
According to executive

director of PADT, if the cabinet is not formed soon, then we will collaborate directly with the prime minister. "All tasks are to begin after the cabinet’s approval."
The trust is working for manage short routes for those devotees who don’t have to stand in long queues. PADT will also distribute passes to the people who could not stand in queues.
PADT also adding to the number of rest rooms for this festival and the Bagmati River and river banks are also being cleaned.

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CHNESE BANK TO IMVEST IN POWER PROJECT

Kathmandu, 18 Feb.: After a six-year long process, Nepal and China Exim Bank are finally signing a loan agreement for 60MW Upper Trishuli 3A Hydropower Project, The Kathmandu Post reports.
The two sides are scheduled to sign Rs 100 million loan agreement on Feb. 28. An Exim bank team is arriving Nepal on Feb. 26 for the purpose.
The Chinese bank has pledged US$ 200 million for Upper Trishuli and Pokhara Regional International Airport. “But this time, only Rs 100 million agreement will be signed for the production and supervision of the project,” said a Finance Ministry official. “Agreement for rest of the amount will be signed on project basis.”
The two sides will also sign another agreement for transmission line of the Upper Trishuli. Interest rate on the loan is 1.75 percent and repayment period is 20 years with a grace period.
As work on the project has already started with the appointment of contractors, the signing of the agreement will eliminate doubts that that the project might not get enough resources.
Exim is a key lender in East Asian countries and other parts of the world and this is the first time that it is lending in Nepal.
“The advantage of this loan is the bank has not put forth any conditions before us,” said a ministry official.
The Cabinet will have to approve the deal prior to its signing. “The deal will be signed after the next Cabinet meeting approves it,” said a senior ministry official.
Nepal has also requested the bank to provide $1 billon for various projects including Nalsyagugad Hydropower Project. “They are yet to agree in this regard,” said the official.
The government had sought $600 million for the construction of Nalsyagugad Hydropower Project located in the mid-western region. The 400 MW storage-type project requires a 30-km access road to link the powerhouse and district headquarters.
Recently, Sunkoshi hydro project (10MW) has been completed with Chinese grant assistance. Chinese private sector is also eyeing investment in Nepal’s hydropower sector. During the 11th meeting of Nepal-China Non-Government Cooperation Forum held here in September 2010, they had expressed their interest in investing in Nepal’s hydropower sector.
Several Chinese contractors are working in hydropower projects in Nepal. Upper Tamakoshi (456MW), Chamelia (30MW), Kulekhani III (14MW), Trishuli 3A, Lower Indrawati (4.5MW) and Madi (20MW) are some projects in which Chinese contractors are involved.
Similarly, Chinese companies Sinohydro and Hydrochina Corporation are developing Upper Marshyangdi (50MW) and Trishuli 2 (102MW), respectively. According to the ministry, Chinese firms supply equipment to many projects.
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NA HAS DESPOSITS IN TROUBLED FINANCIAL INSTITUTIONS
Kathmandu, 18 Feb.: Every time the central bank declares any financial institution is in bad shape, Nepal Army´s Welfare Fund is the name that consistently appears among depositors facing risk of losing money, Milan Mani .Sharma reports in Republica.

This happened when Nepal Rastra Bank decided last year to liquidate Nepal Development Bank (NDB). It has happened again in the case of Samjhana Finance Company that the central bank decided to liquidate last week.

"NA could again lose Rs 17 million in Samjhana Finance," said an NRB source.

NA Welfare Fund had deposits of Rs 180 million in NDB when it was subjected to liquidation. Even though the Fund recovered Rs 10 million, the fate of the remaining Rs 170 million remains unclear.

That is not all. United Development Bank, which was also declared as troubled bank on the same day NRB decided to liquidate Samjhana Finance, too has deposits of Rs 70 million of the NA Welfare Fund.

NA has deposits of 140 million in Nepal Sri Lanka Merchant Bank, which is currently not in a position to repay its depositors. Even though the merger of bank with Nepal Bangladesh Bank has raised hopes of recovery, NA has not recovered Rs 80 million deposited in Amarawati Cooperatives.

"Name any troubled or sick institution and one will find NA deposits there. This had happened in the past and is still happening despite repeated assurances by the NA that it has taken all possible steps to safeguard the fund´s money," said an official at the central bank.

There are other institutional depositors as well, but why does this happen all the time only to the NA? Clearly, it could happen if the Welfare Fund managers are not competent enough to identify which financial institution is safe. Ramindra Chhetri, NA spokesperson, however rejects incompetence of fund managers.

"The deposits were kept in those financial institutions when the development banks and finance companies were in good health. But the condition of some of the institutions deteriorated sharply later. We could not do anything in such a situation," said Chhetri said.

Such situation can happen also if officials managing Welfare Fund show laxity in selecting financial institutions. "In NA´s case, the present condition has largely to do with unfair practices and corruption by the fund managers," said an official at Ministry of Finance.

Bankers told Republica that, some of the banks and financial institutions in a bid to lure institutional depositors into depositing money offer ´incentives´ to the fund managers. While such ´incentives´ paid to the deposit providers remain unaccounted for, the bank and financial institutions pay only regular interest on the deposits.

Purna Chandra Thapa, director of NA Welfare Fund admitted that some Rs 490 million worth of deposits maintained by NA at different financial institutions are at risk. He, however, ruled out any foul deals and practices behind the situation.

"NA has always taken sincere steps for recovery of its deposits from all troubled and liquidated banks. We never keep our money in troubled financial institutions," he stated.

NRB officials, however, said NA had renewed its deposits in NDB even when the bank was known to be in poor financial health.

Thapa said that NA presently has deposited its Welfare Fund´s money in commercial banks and is enjoying annual interest return of 12 percent. "Together, we earn annual interest worth Rs 930 million from those fixed savings," he stated.

NA has a total of Rs 16.50 billion in its Welfare Fund. It also has additional Rs 3.80 billion to be received from the UN. The fund established more than three decades ago was developed from 22 percent worth of salary contribution made by Nepali soldiers serving in UN peacekeeping missions. Army personnel deployed in other missions abroad too contribute 5 percent of their allowances to the fund.

The fund has some 700,000 beneficiaries and the money is spent for the welfare of the army personnel and their dependents.
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