NEA SUNSARI OFFICE BOMBED

BOMB EXPLOSION AT NEA SUNSARI OFFICE

Kathmandu, 5 Aug.: A bomb exploded at the entrance of the Nepal Electricity Authority (NEA) at Itahari,Sunsari, at four in the morning Friday.
It wasn’t known who planted the bomb.
The building was damaged slightly.
A pressure cooker bomb was defused by a Nepal Army team at the entrance gate of district forest office in Gaidhat, Okhaldunga, Fridaymorning.
Leaflets of Khumbuwan Mukti Morcha Samyukta (KMMS) was recovered.
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SECURITY OF FAR-WEST DISCUSSED

Kathmandu, 5 Aug.: A meeting to review security in the districts of the far-West began in Dhangadi, Kailali, Friday morning.
Home Secretary Lilamani Pokhrel inaugurated the meeting.
Regional security review meetings started when Krishna Bahadur Mahara was deputy prime minister and home minister.
New Home Minister Narayan Kazi Shrestha earlier launched the review of security of 15 districts on the mid-West in Nepalgunj.
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RPP-NEPAL ANNOUNCES ANTI-GOVT. PRESSURE PROGRAMMES
Kathmandu, 5 Aug.: RPP-Nepal will launch 13-day anti-government public pressure campaign from 18 August for a fresh mandate for a constituent assembly.
The party demanded fresh elections for constituent assembly for peace and democracy.
RPP-Nepal chaired by Kamal Thapa has concluded a constitution won’t be promulgated in less than one month.
The party supports monarchy and a Hindu state for which a referendum has been demanded.
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UML PREPARES TO RECALL PM KHANAL
Kathmandu, 5 Aug.: Furious at what they call an increasingly defiant party chief, a faction of the CPN-UML led by Madhav Kumar Nepal and KP Sharma Oli is likely to table a proposal to recall Prime Minister Jhala Nath Khanal and unseat him from the party chairman’s position in a meeting of the Central Committee slated for Saturday, Bhadra Sharma writes in The Kathmandu Post reports.

Party spokesman Pradeep Gyawali told the Post that a majority of the CC members are prepared to push for a “strong disciplinary action” against Khanal and that it could be a decision to recall him from the government and strip him of the chairman’s post.

Khanal’s rivals observe that given the latest erosion of his strength, especially after Monday’s Cabinet reshuffling which is said to have pushed him to an absolute minority in the CC, Saturday’s meeting could be very costly for the party chief.

UML leaders close to Oli and Nepal—who remained busy throughout Thursday in closed-door meetings to set their strategy to remove Khanal—sounded confident and claimed a majority in the CC.

“We have decided to focus on two major agendas in the next meeting—resignation of the prime minister and disciplinary action against him,” Gyawali said. “We will stick to our agendas. There is no need to talk about the relevancy of the government at this moment. What is important is the discussion on how to replace it.”

The Oli-Nepal faction has grown increasingly intolerant of Khanal’s “defiance” of party policies, especially his decision to hand over the Home Ministry to the Maoists and reshuffling of the Cabinet to induct Maoist ministers. The party had warned Khanal against taking such decisions.

Minister for Prime Minister’s Office Affairs Ghanshyam Bhusal, however, said the efforts to remove Khanal would prove futile as there is no provision in the party statute to remove an elected chairman. “It is a conspiracy hatched in collusion with the rightists,” Bhusal said.

Apprehensive of a blow from the rival faction, Khanal supporters also kept themselves busy in factional meetings in a bid to foil the effort to remove Khanal. They said they are prepared and fearless.

“It was the prime ministers’ privilege to reshuffle the Cabinet. The party cannot take action in such a case. However, that is not an issue. The PM will float a proposal to complete the peace process and ensure party unity,” Yogesh Bhattarai, a leader close to Khanal said.

However, leaders from the Oli-Nepal faction said nothing will stop them from taking action against Khanal as the party’s Central Disciplinary Commission and the Standing Committee have pointed out his “mistake” in appointing the Maoist ministers.
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HIMAL POWER TO ISSUE FOREIGN CURRENCY DEBENTURES
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Kathmandu, 5 Aug.: For the first time in the country’s financial history, foreign currency debentures are being issued, The Kathmandu Post reports.

Himal Power Limited (HPL), owner and operator of the country’s first private hydropower project—60 MW Khimti—on Thursday said the company is preparing to raise $60 million from the Nepali financial market.

Ace Development Bank Limited has been appointed as issue advisor, whereas Ace Capital Limited will undertake the responsibility of issuing the debentures.

The proposed debentures bear a coupon (interest) of 6 percent per annum payable semiannually for a 5-year period with a roll over option to be declared in 2013. HPL plans to invest the raised amount in its projects in Nepal.

After the Nepal Rastra Bank (NRB) through the new monetary policy allowed banks and financial institutions (BFIs) to buy such instruments, HPL declared its plan to issue the foreign currency debentures. Earlier, Ace Development Bank had requested the central bank for such a provision a few months ago.

“We could have gone anywhere to raise the fund, but we choose the local market,” said Carl Martin Faannessen, general manager of Himal Power. “It will bring the Nepali capital market a step ahead and also prove the strength and ability of Nepali financial system to finance large projects locally.”

Siddhant Raj Pande, CEO of Ace Development Bank, hoped that the issuance of the debentures will bring about $780 million in the domestic market that has been parked in the foreign treasury market, and will also contribute to the country’s balance of payment situation.

“Given the foreign treasury market offering very low interest rate on deposits of Nepali banks, the interest offered by HPL is comparatively higher,” he said.

Currently, commercial banks have liquid assets worth Rs 54.62 billion in foreign banks as of the first 10 months of the last fiscal year.

HPL has assured that the proposed debenture will be fully secured by the cash flow of HPL which is in US dollars, as it sells electricity to the Nepal Electricity Authority in dollar. The company said the debentures will be offered through private placement mechanism to institutional investors as per existing regulations. “Such an issuance will be offered via private placement mechanism to institutional investors as per the prevailing regulation,” said Pramod Pandeya, managing director of Ace Capital.

According to issue manager Ace Capital, the debentures will be listed in over the counter (OTC) market so that subscribers could trade them for their benefit. Pandeya said they would design an in-house market (within Ace capital) to make it more easily tradable if the regulator approved such a measure.

Sandip Shah, board member of Himal Power, said the capital raised from the debenture issuance will be used locally to invest in projects undertaken by the company in Nepal.
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