German Ambassador Frank Meyke with Vice President of Nepal Paramananda Jha at the reception held to celebrate the Day of German Unity.

WTO Assistance on Herb Exports

The World Trade Organization (WTO) is providing financial assistance to the government to ease the exports of Nepali medicinal herbs to the international market. "The Enhanced Integrated Framework (EIF) of WTO has assured us assistance for the international marketing of herbs," informed Toya Narayan Gyawali, Joint Secretary at the Ministry of Commerce and Supply (MoCS). Nepal Trade Integration Strategy (NTIS) 2010 is gearing to submit a proposal to the EIF in order to get its assistance for improvement of forward and backward linkages. The financial aid received from EIF will be utilised for enhancement of international market prospects, to increase the capacity of farmers and entrepreneurs, and for designing of products and packaging. After ginger and pashmina, the Nepali medicinal herb is the third product to seek EIF assistance to prosper linkages. The ministry is looking for EIF assistance to propel Nepali medicinal herbs and the Government of Nepal has already received Rs 110 million from EIF to enhance production and processing of ginger, Gyawali said. According to the statistics of Trade and Export Promotion Centre (TEPC), Nepal exported medicinal herbs worth Rs 710 million in fiscal year 2010/11. Nepali medicinal herbs have found a few lucrative destinations for the exports in USA, France, Germany, Vietnam, Singapore, Japan, Italy, Russia, Belgium and South Korea.

Foreign Investors Upbeat about Hydropower Sector

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have informed that investors from Korea, Philippines and Taiwan have shown interest to invest in the hydropower sector. "The recently concluded three-day regional conference of Asia- Pacific Chambers of Commerce and Industry (CACCI) provided a platform to know about the foreign investors' interest in Nepal's hydropower sector,” said Gyanendra Lal Pradhan, Chairperson of Energy Committee at FNCCI.

President Dr Ram Baran Yadav had inaugurated the conference and acknowledged the private sector's role in strengthening the country´s economy. He further made an appeal to all the business leaders to invest in Nepal. "The conference is fruitful not just for Nepal but also for the entire region," said Suraj Vaidya, President of the FNCCI. At the conference, Benedict V Yujuico, an investor from Philippines and the President of CACCI, said he is investing US$ 5 million in Nepal´s hydropower sector. His investment would be in Upper Mai Hydroelectric Project (9.98 MW), which is being developed by High Himalaya Hydro Company. Top–notch businessmen of the region, who gathered in Kathmandu for the 26th conference of CACCI, admitted there were structural problems in Nepal´s hydropower sector. “There are security risks at the project sites in Nepal. The volatile political situation is always a big threat for us to work,” said Dilip Singh, General Manager of Himal Hydropower Company, during a panel discussion.

At the conference, Benedict V Yujuico, an investor from Philippines and the President of CACCI, said he is investing US$ 5 million in Nepal´s hydropower sector.

Four Hydro Projects’ PDA to be Signed

Investment Board (IB) is all set to sign Project Development Agreement (PDA) with four hydropower projects. According to a release from the Board, a meeting held between the Board and project promoters concentrated on the legal provisions of the agreement. Earlier, the Board had handed over the draft of the agreement over to the project promoters.

The promoters, who have been demanding the Board for the PDA for some time now, expressed their individual views on the shortcomings of the draft in the meeting. The project promoters said that the indecisiveness of the government is impeding the projects. "The interruption in the PDA has delayed the construction of the project by one and a half years," said one of the promoters. He further said that the tender process for constructing road to the project site has also been interrupted due to the delay in PDA. The Board is preparing to sign PDA with Tamakoshi III (650 MW), Upper Karnali (900 MW), Upper Marsyangdi (600 MW) and Arun -III (900 MW) hydro projects. The government took more than two years to prepare the draft of the PDA.

The signing of the PDA will facilitate the production of 3,000 MW electricity from four big projects put forth by the board. The government has prepared the draft after foreign investors expressed their insecurities over their investment. The investors have grown insecure owing to the frequent changes in laws and policies regarding hydropower.

The government had taken the cabinet decision in April 2010 regarding the preparation of the PDA draft of the projects and appointed Harvard Smith, a British law consultant for the purpose. The PDA model incorporates the provisions for free energy, incentives for the state, facilities to be provided by the state, and security among various other aspects.

Cabinet Shuffles Secretaries

The government has promoted some joint secretaries and transferred secretaries at various ministries and government offices through a cabinet meeting held on October 18.