<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111124/637217bd9c7e80680e0baa03jpeg.jpg" alt="" width="1802" height="1160"/><figcaption>On 25 June 2021, China inaugurated a 435km section of the Lhasa-Nyingchi Electrified High-speed Rail. The ‘bullet train’ will have a top speed of 160 km/h and bring Chengdu closer to the Nepal border when completed in 2025. Photo: Xinhuanet</figcaption></figure>Nearly a decade since China adopted the Belt and Road Initiative (BRI) and five years after Nepal signed it, the connectivity project is trying to rebrand itself.The $1 trillion program focused on trade, development and connectivity is financed largely by Chinese banks and SOEs.The Green Finance and Development Center of Fudan University says a total of <a href="https://www.sciencedirect.com/science/article/pii/S004016252100740X#bib0154">$755 billion has been spent</a> on BRI projects of which more than 65% has gone into energy and transportation.In 2013, President Xi envisioned the BRI as<a href="https://press-files.anu.edu.au/downloads/press/n9514/pdf/book.pdf"> an aspirational world</a> of peaceful connectivity and friendship — one that is free from conflict. Yet, over the years, its success has also drawn widespread criticism questioning its sustainability.Chinese infrastructure projects in BRI include energy, transportation and real estate require construction inputs — like steel, cement and glass that remain oversupplied in China.For example, the utilisation capacity of the total production of steel and oil refining in China had gone down by <a href="https://onlinelibrary.wiley.com/doi/10.1111/1758-5899.12439">10% from 80 to 70</a>% between 2008 to 2015, signaling bad loans for the banks due to overproduction and negative effects on its overall economy.BRI projects allowed the Chinese government to take steps to ensure that the vast majority of the <a href="http://www.axel-dreher.de/Dreher%20et%20al._Aid_China_Growth.pdf">construction inputs will be sourced</a> from China to offset its industrial overproduction. This allows a large volume of trade to be in China’s favour while creating a huge trade imbalance between China and recipient countries.In 2021, China’s <a href="http://country.eiu.com/article.aspx?articleid=250850808">trade surplus with BRI countries</a> had reached $199.2 billion. For some countries like Italy which saw a rise of exports by 63% in 2021, others like Nepal <a href="https://kathmandupost.com/money/2022/02/05/nepal-s-trade-with-china-going-through-rough-patch">had a trade deficit of Rs232.9 billion</a>, when total exports was only Rs1 billion.One thing has remained clear: while Chinese exports will continue to grow until the BRI projects are completed, countries at the receiving end must bet on export competitive projects that can reduce the trade deficit and ensure sustainability.Secondly, the Chinese <a href="https://madeinchinajournal.com/2021/12/01/builders-from-china-from-third-world-solidarity-to-globalised-state-capitalism/">consider themselves</a> ‘builders’ rather than ‘financers’ projecting their capacity to build projects under the BRI. It is no surprise that China dominates international project contracting. By 2018, <a href="https://www.enr.com/toplists/2019-Top-250-International-Contractors-1">75</a> of the world’s top 250 international contracting firms were Chinese.Most BRI projects have been funded by large state-owned banks of China and implemented by Chinese international contractors and SOEs, at times they have been subject to reproach due to poor labour relations including a lack of awareness of local rules and regulations, and especially on the hiring of Chinese labourers in large numbers instead of locals.Maria Carrai, Professor of China Studies at NYU Shanghai argues in favour of  <a href="https://d1wqtxts1xzle7.cloudfront.net/65743046/WD_1_s2.0_S0305750X20305167_main-with-cover-page-v2.pdf?Expires=1651327708&amp;Signature=OG1O4XNvHSblwIsYUfrb5blQwbiy0b~SuXiq9aKfw-STjlYGahGVTKHwgN7DXOm3WDAerWqfKY0iHspunM2n9IAGOfzYkuZCryKq8eq0PPgvLwdQG6Ufl3HoizzJTEQAHgj3x627V3359aWAyCxLSa-H6SYYTD2VxbkPQpV2vpOrNQ2YzX886Y0NK0t-s9WCt6Lf7ZlMy2evz54aewwDQJvS3Ki-P2ybBibKxQ5mNtJBd1xZYEe19UvN15ZLL3rmNXTCus2QW6mO6BflTSeGGcPbMsOiD-e-977Qh7KUg46GKxIvGJ8houVVqpvyq7-OoDY3nVJVjAgi3NPhOU0yVQ__&amp;Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA">local adaptive governance</a> because the success of BRI projects relies on effective communication of its social responsibilities to recipient countries with their local governments and making sure that working with the contractors or SOEs can enhance good governance.The Addis - Djibouti SGR railway operation and maintenance <a href="https://qz.com/africa/1634659/ethiopia-kenya-struggle-with-chinese-debt-over-sgr-railways/">were awarded to construction contractors with no actual railway operation experience</a> resulting in a lack of adequate technical capabilities to complete the project.Yet, the major challenge is still that Chinese BRI projects are heavily invested in countries that have historically demonstrated poor and weak governance, lack of transparency and are vulnerable to political shocks and instabilities.Since the start of the BRI in 2013, more than 80% of total Chinese foreign assistance <a href="https://www.cgdev.org/blog/three-key-shifts-development-cooperation-chinas-2021-white-paper">has gone to low-income countries</a>, and for some like Angola, and Montenegro the BRI loans continue to risk having an <a href="https://www.cgdev.org/sites/default/files/examining-debt-implications-belt-and-road-initiative-policy-perspective.pdf">unfavorable degree of dependency</a> on China as its prime creditor.Despite this, BRI in itself has gradually undergone reform over the years. From its lofty and vague ambition in early 2016 that did not indicate its focus, we now know its priority areas.President Xi during the 2nd Belt and Road Forum in 2019 <a href="https://www.business-humanrights.org/de/blog/chinas-white-paper-and-the-bri-can-we-expect-china-to-deliver-on-the-sdgs/">called for cleaner, greener, high-quality infrastructure projects</a> that are “sustainable, affordable, inclusive and accessible”.Chinese-backed projects have previously been under heavy scrutiny due to a lack of transparency and growing debt burden. A 2021 white paper on Belt and Road highlights the need for high-quality sustainable projects and the 2022 MOFCOM’s ‘Guidelines for ecological environment protection of foreign investment cooperation’ stresses the need for Chinese investments to meet international standards of environmentally sustainable projects.In 2021 China declared to <a href="https://greenfdc.org/wp-content/uploads/2021/07/21_07_22_BRI-Investment-Report-H1-2021.pdf">not to invest in coal-power plants</a> and also to cut funding for loss-making projects. Regulatory scrutiny has forced Chinese contractors under BRI to significantly up their game, which means we will see it focusing on smaller and fewer projects of higher quality, particularly in areas of the green and sustainable energy sector.It has been five years since Nepal signed the MoU but has so far seen little in terms of the impact. The BRI projects use the <a href="http://www.edcnepal.org/wp-content/uploads/2018/11/DAY-4-LECTURE-5-NHDP_Hydropower-Financing-Traditional-Project-Finance-EPC-and-EPC-F_2018-11-29_FINAL.pdf">Engineering, Procurement, Construction and Financing (EPC-F)</a> used in infrastructure projects and are particularly preferred in developing countries where debt markets are less mature and there may be wide variations in the availability and cost of debt financing.The EPC contractor will be responsible to finance a large portion of the project and the government has to provide a sovereign guarantee to safeguard lenders’ interests and provide payment security guarantees on behalf of off-taker, usually government-owned entities.This has generated controversy for the huge risk involved to the host country. The selection process tends to be restrictive to a particular country or set of manufacturers, in this case only to Chinese contractors.For example, only a few weeks back the government of Nepal <a href="https://myrepublica.nagariknetwork.com/news/china-miffed-with-deuba-govt-s-decision-to-deny-chinese-company-to-develop-budhi-gandaki-hydro-project/">revoked the license</a> issued to the Chinese state-owned China Gezhouba Group Corporation (CGGC) for the development of the Budi Gandaki Hydropower Project under the EPCF modality with a total cost of around <a href="https://www.hindustantimes.com/world-news/nepal-refuses-china-s-offer-to-fund-multi-billion-dollar-power-project/story-cfRJPHSKJkn2gqyon7anUL.html">$2.73 billion.</a>After the 2017 BRI agreement, for the first time, Nepal developed a project under the EPC financing modality of $88 million financed by China and with MoU between Nepal’s People’s Energy and China’s Chongqing Water Turbine Works Co. Ltd.The agreement was to develop a 48.8 MW Khimti-2 hydropower project on the border of the Ramechhap and Dolakha districts in Province 3. However, the project suffered a major setback: 500 Chinese workers were prevented from coming back to Nepal due to the Covid-19 outbreak. Similarly, the EPCF model requires the contractors to be present in the project while the main construction takes place.The high-interest rates associated with BRI loans with a relatively short payback period is another drawback for Nepal which prefers grants. Furthermore, in BRI projects there is a right to bid reserved exclusively for Chinese firms, but the Nepali side demands to be open to all.Back then the BRI used to run projects on an ad-hoc basis but by 2022 it has undertaken various reforms to properly guide sustainable infrastructure development.Because the BRI is enshrined into the CCP’s constitution, there is no question regarding its sustainability, but as BRI puts its focus on environmentally friendly infrastructures, countries like Nepal should prioritise projects that can yield better results and help strengthen Sino-Nepal relations.Abiral Khatri is with the NIFRA bank and is a research scholar based previously at Erasmus University Rotterdam, IIM Bangalore and Renmin University of China. Raunab Singh Khatri is the co-founder of The Araniko Project and is a Yenching Scholar in Chinese studies at Peking University.

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BRI enters the tenth year

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25309c7e80680e0439b5jpeg.jpg" alt="" width="716" height="1000"/><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25329c7e80680e0439b6jpeg.jpg" alt="" width="657" height="1000">Nothing has exposed the ideological chasm between the ex-UML and ex-Maoist components of the ruling Nepal Communist Party (NCP) more than the two widely divergent statements issued on Venezuela this week.Who would have thought that the Bolivarian Republic of Venezuela would loom so large in exposing fissures in a government of a country on the other side of the world with which the Federal Democratic Republic of Nepal has no real strategic interests.Read also:<a href="https://www.nepalitimes.com/?p=20802&amp;preview=true" target="_blank" rel="noopener">Nepal now has to balance not just India and China, but also the West</a>, Bhairaja Pandey<a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://www.nepalitimes.com/?p=20801&amp;preview=true" target="_blank" rel="noopener">Eminently beneficial for India and Nepal</a>, Ajit Baral<a href="https://www.nepalitimes.com/here-now/hitching-our-wagon/" target="_blank" rel="noopener">Hitching our wagon</a>The Co-chair of the NCP and prime minister-in-waiting Pushpa Kamal Dahal fired off a statement in full support of the glorious revolutionary comrades under Nicolas Maduro, and denounced US intervention.It has to be said that the US has indeed come across, as it has in the past, as a global bully throwing its weight around with sanctions and threats against a poor and badly-governed country. When will America learn to pick someone its size?But Dahal made a boo-boo by aligning his party, and by association Nepal, needlessly in a power struggle reminiscent of the Cold War.There were two problems with the NCP statement. First was the timing: why would Dahal want to issue it while his party co-chair Prime Minister K P Oli was in Davos trying hard to make a good impression on foreign investors?Oli had admitted before he left that his job was to convince the international community and multinational companies that his government was ‘Communist’ only in name, and that Nepal was open for business. Even if Oli had been only partially successful in removing the stigma, Dahal’s communique firmly identified Nepal as an adherent of an obsolete ideology and a relic of the past.The only explanation we can give to this juvenile behaviour is that Dahal has a sad case of FOMO. By launching a heat-seeking missile aimed at no one in particular, Dahal may also have been trying to re-establish his rather frayed Communist credentials. But the unnecessarily strong language denouncing American 'imperialism' which was creating 'chaos and violence’ was inappropriate, undiplomatic and counterproductive.Oli looked uncharacteristically flummoxed when asked about Dahal's missive when he returned from Davos. The statement also came less than a month after Foreign Minister Pradeep Gyawali’s meeting with US Secretary of State Mike Pompeo in Washington DC during which the two discussed implementation of America’s $500 million assistance through the Millennium Challenge Corporation (MCC) Nepal Compact for road and power connectivity.The two are also understood to have discussed America’s <a href="https://www.nepalitimes.com/editorial/between-two-oceans/" target="_blank" rel="noopener">Indo-Pacific Strategy</a> which, together with the MCC, are seen as a counter by China as a challenge to its Belt Road Initiative (BRI) which Nepal has signed on to. Gyawali trod a tightrope to balance the geostrategic interests of the two global powers, and clarified that Nepal was not going to join any US-led alliance in the Indo-Pacific.The renaming of the US Pacific Command into Indo-Pacific Command last year, designating India as a <a href="http://archive.nepalitimes.com/regular-columns/del-ktm /obor-or-not-obor-china-india,1051" target="_blank" rel="noopener">Major Defence Partner</a>, the joint Malabar 2017 exercise in the Indian Ocean involving the navies of India, Japan and the US, the revival of the Quad Alliance of Japan, Australia, the US and India as an effort to 'contain' China, are all indications that Sino-US competition is heating up in the region.Asian countries may be nervous about <a href="https://www.nepalitimes.com/editorial/what-china-really-wants/" target="_blank" rel="noopener">China’s growing economic and political clout</a>, but Beijing feels it is being encircled by America and its allies. Still, many Southeast and South Asian countries do not want to be forced to choose between America and China.Which is what makes Dahal’s statement on Venezuela so damaging for Nepal at a time when the Foreign Ministry is trying to steer a <a href="https://archive.nepalitimes.com/article/editorial/Equidistance-or-asymmetry-nepal-geopolitics,3850" target="_blank" rel="noopener">neutral course</a> that would benefit Nepal’s trade, investment and infrastructure. The Ministry's damage control this week was with a much more balanced statement saying Nepal respected the democratic will of the people of Venezuela, and opposed foreign interference.During the war, as Chairman Prachanda Dahal famously paraphrased King Prithvi Narayan Shah to say that Nepal was “a dynamite between two boulders”. It seems he has not outgrown his penchant for hyperbole.There was a time when Nepal just had to worry about balancing its giant northern and southern neighbours, but the world is now multi-polar and getting to be a much more complicated place. Our neighbours are drawn into a global power struggle, and being <a href="http://archive.nepalitimes.com/article/nation/the-triangular-relationship,3332" target="_blank" rel="noopener">a yam between three boulders</a>, Nepal has to be careful about how <a href="http://archive.nepalitimes.com/article/nation/a-trump-world-us-nepal,3359" target="_blank" rel="noopener">America’s increasingly erratic behaviour </a>will affect its precarious equidistance between India and China.A place to start would be to forge a united and coherent foreign policy strategy that prevents outside powers from using one or other party or faction in Nepal to push their strategic agenda.<h2>10 years ago this week</h2>Just as issue of Nepali Times deals with Nepal’s geopolitical dilemma, ten years ago in <a href="http://archive.nepalitimes.com/issue/436" target="_blank" rel="noopener">issue #436 of 30 January - 5 February  2009</a> Prashant Jha <a href="http://archive.nepalitimes.com/news.php?id=15620" target="_blank" rel="noopener">reported from New Delhi</a> about how India had a ‘wait-and-watch’ policy towards the newly-elected Maoist government led by Prime Minister Pushpa Kamal Dahal. Excerpt:'India is getting increasingly concerned about the slide in Nepal, but doesn't think it warrants a policy shift just yet. Indian officials admit that they are unhappy with the Maoists: "They have not delivered on their promises,"one official told us, "their commitment to democracy seems doubtful. They are warming up to China. Not good signs."            But sources insist India continues to support the peace and constitution writing process and will not destabilise the present arrangement. "It will be good if non-Maoist actors add pressure on the Maoists. But we will not back any effort to topple the government right now," one senior official told Nepali Times.’<a href="http://archive.nepalitimes.com/issue/436"><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221108101144/636a25359c7e80680e0439b7jpeg.jpg" alt="" width="510" height="815"></a>

A YAM BETWEEN 3 BOULDERS

Energy is a critical ingredient for prosperity, and can be a catalyst for deeper regional integration. Energy security is a critical issue for <a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">South Asia</a>, which is home to nearly one-fourth of the world’s population and where economies are growing by an average of nearly 7% each year.But South Asia’s GDP per capita is less than one-third of the global average, and per capita energy consumption is far below the rest of the world, hinting at unmet need in spite of increasing economic growth, industrialisation, an increasing population, and accelerating urbanisation. All of these changes increase the <a href="http://article/nation/nepal-india-thermal-power,3570" data-wplink-url-error="true">demand for electricity</a>.There have been several positive developments in energy cooperation: the 2014 SAARC Framework Agreement on Energy Cooperation and the Power Trade Agreement between India and Nepal. Bilateral frameworks between India and Bangladesh, as well as India and Bhutan, have also been strengthened. Currently, around 2,300MW of power are traded in this BBIN sub-region.These demonstrate win-win benefits for all South Asian countries. For example, Bhutan’s surplus hydropower exports to India account for 25% of its GDP. Bangladesh began importing 500MW of power from India in 2013, helping it reduce load-shedding by 70% and generate annual savings of around $500 million. India also gains by earning revenue from electricity exports.A 2015 World Bank study found that regional electricity cooperation in South Asia could lead to savings of $19 billion per year over the next 25 years. A 2017 study by the USAID-funded South Asia Regional Initiative for Energy Integration (SARI/EI) showed that accelerated power trade between India and Nepal could increase Nepal’s GDP by over $120 billion in the next 30 years.Energy cooperation is therefore not just about increasing integration but also an essential building block for regional prosperity. The US government actively supports regional energy integration in South Asia. We are committed to fostering connections from Central Asia to Southeast Asia, and everywhere in between – through increased physical infrastructure, coordinated regulatory and trade institutions, and human and digital connectivity.<a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">Regional integration</a> is not just good for South Asia, it is good for the world, including the United States. A more stable, prosperous, and integrated South Asia is more likely when countries of the region are linked through trade agreements and have greater physical infrastructure connections. Our activities include technical training on power contracts, procurement, regulation, and electricity system modeling as well as physical infrastructure – such as the planned 300 km of electricity transmission lines in MCC’s Nepal Compact.International experience has shown that most cross-border power trade begins with bilateral interactions which provide a foundation for multilateral arrangements and transactions. South Asia is moving along this path, and the next step is to coordinate regional energy regulations and policies by:Building strong and effective regulatory regimesDesigning competitive market pricing mechanismsDeveloping solid contracts and agreementsSetting up dispute resolution mechanisms, andSupporting a technical regional coordination agency to facilitate regional planning and development.The United States looks forward to working with both the public and private sector, as well as multilateral organiations, to em-power South Asia. Pun intended.Alaina B. Teplitz is the United States Ambassador to Nepal. This Guest Editorial is adapted from her speech to the 6th SAARC Business Leaders Conclave in Kathmandu on 17 March.Read also:<a href="https://www.nepalitimes.com/editorial/shared-futures/">Shared futures</a>, EditorialDifferent regionalisms,  Kanak Mani Dixit<a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Forget SAARC</a> ,  Pradumna B Rana<a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">Reimagining South Asia</a>,  Anurag Acharya

Em-powering South Asia

Mention the acronym <a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">SAARC</a> and eyes glaze over, people stop reading editorials like these and they turn the page – as some of you probably already have. The South <a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Asian Association for Regional Cooperation</a> has been a regional talk shop ever since it was set up more than 40 years ago, unable to fulfill many of the promises it made about co-prosperity, cooperation, poverty alleviation, energy self-sufficiency, and environmental protection.Unlike ASEAN or the EU, SAARC is hobbled by its asymmetry. One member state has 1,000 times more people than the two smallest countries in the grouping. That gravitational pull, and India’s aversion to multilateralism in dealing with neighbours (combined with a chronic lack of political will among those neighbours to make SAARC work) has hobbled the organisation. There is cynicism about SAARC, even officials from member states publicly poke fun at it. But, like the United Nations, SAARC can only be as effective as its members want it to be.Sub-regional groupings like <a href="http://archive.nepalitimes.com/article/nation/connecting-Bangladesh-China-India-Nepal,2966">BIMSTEC</a> (Bangladesh, India, Sri Lanka, Thailand, Myanmar Economic Cooperation) and the Bay of Bengal Initiative are somewhat more tangible. There are also Track 2 think-tanks and private sector initiatives to get the SAARC juggernaut to roll.The 6th SAARC Business Conclave this week in Kathmandu was one such exercise where, besides the usual lament about unfulfilled aspirations, there was networking and useful sharing of ideas. As in all such SAARC-related events, the elephant in the room was India, and the need to balance its size with its status as an equal member state.However, the dragon in the room was China. How can these economic behemoths be hitched to pull in the same direction, and take South Asia along? So far, Beijing's foray into trade, investment and connectivity in South Asia have been bilateral, but its Belt Road Initiative hopes to go regional with the possible extension of the <a href="http://archive.nepalitimes.com/article/nation/Tibet-train-Nepal,3102">Qinghai-Tibet railway through the Himalayan Range</a>, and across Nepal to India.SAARC has been held hostage by politics, specifically the strained relations between its two biggest members, for far too long. Trade, investment in energy, river sharing and better connectivity within South Asia could help bind the countries more closely, and build on existing bilateral agreements, as US Ambassador Alaina B. Teplitz argues in this week’s <a href="https://www.nepalitimes.com/opinion/guest-editorial/em-powering-south-asia/">Guest Editorial</a>.It is incongruous that intra-SAARC trade constitutes only 5% of the international trade of countries in the region. Of all international investment in the region only 7% is between SAARC members. It is absurd that in this day and age the world’s most deprived region should not be working together to raise the living standard of its people.Read also:<a href="https://www.nepalitimes.com/opinion/guest-editorial/em-powering-south-asia/">Em-powering South Asia,</a> Alaina B. Teplitz<a href="http://archive.nepalitimes.com/regular-columns/image/Chief-of-Indian-Army-Staff-General-Dalbir-Singh-in-Kathmandu,987">Different regionalisms</a>,  Kanak Mani Dixit<a href="http://archive.nepalitimes.com/regular-columns/image/photo-exhibition,402">Forget SAARC</a> ,  Pradumna B Rana<a href="http://archive.nepalitimes.com/regular-columns/image/Cycling-Kathmandu-Lhasa,396">Reimagining South Asia</a> ,  Anurag Acharya

Shared futures

The newly-formed Himalayan Art Council is set to launch Nepal’s National Art Protection Platform that seeks to preserve <a href="https://nepalitimes.com/banner/the-history-of-heritage">Nepal’s unique cultural heritage </a>using<a href="https://nepalitimes.com/here-now/artificial-censorship"> AI-powered tools</a>. The Council seeks to safeguard <a href="https://nepalitimes.com/banner/nepali-art-going-places">Nepali art works</a> from neglect, theft and counterfeiting as well as preserve existing artwork and celebrate living masters by giving them a cultural space to continue the <a href="https://nepalitimes.com/banner/sacred-survival">sacred art traditions</a>. "We are introducing a new digital platform designed to preserve, verify and elevate <a href="https://nepalitimes.com/banner/nepals-new-generation-of-alternative-artists">Nepal’s art for generations to come,</a>” says a statement from the Council, adding that the digital platform will use AI told for authentication and blockchain to keep track of works of art. Artists can now be protected by <a href="https://nepalitimes.com/multimedia/ayo-ai?fbclid=IwAR1uwmTVq4gUB70ljfRezjzukD9ArWXPuMnUikopeQ8PoiZMjicToPSwhKE&amp;=1">AI tools</a> that detect forgeries, identify their work even when unsigned, and ensure they receive proper recognition and credit. The archives will be searchable with translated inscription and interactive guides. Says curator Meena Lama: “AI and blockchains are tools that give us the power to detect fakes and identify unsigned paintings and track every piece. With these tools we can restore trust, secure authorship and give artists the dignity they deserve.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250514170544_2ab58f6313c0458f75114a692b0016bd9efb3b59d5f8f07f0da72e1e37b82f53.jpg" data-media-id="editor_6" data-image-id="20250514170544_2ab58f6313c0458f75114a692b0016bd9efb3b59d5f8f07f0da72e1e37b82f53" data-rendition-name="original" width="1300" height="1000" loading="lazy" alt="Artwork at the Traditional Art Exhibition at Patan Museum."> <figcaption>Artwork at the Traditional Art Exhibition at Patan Museum.</figcaption> </figure>  The Council is also holding an exhibition of Nepali cultural masterpieces with 50 historical <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Buzz-the-art,671">thangka and paubha </a>by past masters and <a href="https://nepalitimes.com/review/between-the-sacred-and-everyday">contemporary works by current artists</a>. This curated collection is a living tribute to <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">Himalayan culture</a> with economic depictions of deities, mandala and sacred narratives. The exhibition at <a href="https://nepalitimes.com/multimedia/a-portal-into-patan-s-past-and-present">Patan Museum</a> also provides an opportunity to meet painters and custodians of art and culture. Read also: <a href="https://nepalitimes.com/review/golden-deities">Golden deities</a>, Sewa Bhattarai ‘The exhibition is only the first step in a long journey to ensure that Nepali art is no just seen but fully understood, <a href="https://archive.nepalitimes.com/article/nation/Narratives-of-Faith-and-Memory-Remembering-the-Lost-Sculptures-of-Kathmandu-exhibition,987">protected and remembered</a>,’ the Council says. Artist Kailash K Shrestha of Artudio has spent decades promoting thankha and paubha traditions because of their beauty and devotional meaning. But he also says artists are underpaid, exploited and ignored. He adds, “AI and blockchain are not just buzzwords, they are powerful tools that can protect Nepal’s artists from fraud, verify authenticity and build a permanent record of provenance.” Traditional Art Exhibition Till 17 May Patan Museum

Digital protection for Nepal’s art

India and Pakistan are twins separated at birth. Tensions between them have been at a hair trigger ever since independence and has erupted into full scale conflict at least four times in the past 80 years.
The 22 April terrorist attack in Kashmir that killed 25 Indian tourists and a Nepali citizen, threatens to escalate tension between the two nuclear-armed nations. India has squarely blamed Pakistan for the attacks, and Prime Minister Narendra Modi has given his military “operational freedom” to respond. Pakistan has said it has credible intelligence of an Indian military strike and its officials have promised a “full spectrum” response — a code for a <a href="https://nepalitimes.com/editorial/thinking-the-thinkable">nuclear retaliation</a>.
For Nepal, the killing of its national in the Pahalgam attack comes as another stark reminder that in conflicts from Afghanistan to Iraq, from <a href="https://nepalitimes.com/opinion/how-to-agree-an-armistice-in-ukraine">Ukraine</a> to Israel, <a href="https://nepalitimes.com/news/10-nepalis-from-one-town-fighting-in-ukraine">Nepalis are getting caught in the crossfire</a>. The last time full-scale fighting broke out between <a href="https://nepalitimes.com/opinion/peacemongers-at-india-pakistan-border">India and Pakistan</a> on Kargil in 1999, at least 22<a href="https://nepalitimes.com/here-now/india-s-trial-by-fire-for-soldiers-from-nepal?%27%5C%22="> Nepalis fighting for the Indian Army</a> were killed in action.
Three of Nepal’s immediate neighbours (China, India, Pakistan) have nuclear weapons, and they do not have good relations. With China supplying weapons, <a href="https://nepalitimes.com/editorial/war-and-warming">missile technology</a> and other support to Pakistan, this triangular friction could set off a regional conflagration.&nbsp;
<a href="https://www.nature.com/articles/s43016-022-00573-0" target="_blank">Research at Rutgers University</a> has calculated that even a week-long tactical nuclear exchange between India and Pakistan would throw up so much smoke and debris into the atmosphere that it would block out the sun for years, and lead to a collapse of the <a href="https://nepalitimes.com/news/grow-nourish-sustain-together-world-food-day">global food system</a>. This does not take into account the radioactive fallout that prevailing winds would blow up to <a href="https://nepalitimes.com/here-now/lives-on-the-line-in-the-himalaya">the Himalaya</a>, contaminating glaciers that are the sources of <a href="https://nepalitimes.com/here-now/saving-what-is-left-of-himalayan-rivers">Asia’s main rivers</a>.
The impact of <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">climate breakdown </a>on High Asia was already ringing alarm bells about its <a href="https://nepalitimes.com/news/himalayan-icecap-melting-faster-than-thought">shrinking ice cap</a> reducing the dry season flow of water downstream. Water was going to be the next strategic commodity, geopolitical experts warned, and the next wars in Asia would be over water.
That water war is already happening. India retaliated to the Kashmir attack by suspending the <a href="https://www.nytimes.com/2025/04/24/world/asia/india-pakistan-indus-waters-treaty.html" target="_blank">Indus Waters Treaty</a> of 1960 mediated by the World Bank that has withstood at least three wars between India and Pakistan. The treaty gives India control over the three eastern tributaries of the Indus (<a href="https://en.wikipedia.org/wiki/Beas_River" target="_blank">Beas</a>, <a href="https://en.wikipedia.org/wiki/Ravi_River" target="_blank">Ravi</a> and <a href="https://en.wikipedia.org/wiki/Sutlej" target="_blank">Sutlej</a>), while Pakistan got water from the Indus and two of its western tributaries (<a href="https://en.wikipedia.org/wiki/Indus_River" target="_blank">Indus</a>, <a href="https://en.wikipedia.org/wiki/Chenab_River" target="_blank">Chenab</a> and <a href="https://en.wikipedia.org/wiki/Jhelum_River" target="_blank">Jhelum</a>.
Pakistan was assured of 70% of the annual flow, and India could use a reasonable amount of water for<a href="https://archive.nepalitimes.com/news.php?id=15231"> irrigation and hydropower</a>. &nbsp;Within days of its threat, India stopped water flowing down to Pakistan from the Chenab river and is reportedly preparing to do the same on the Jhelum.
The sabre-rattling has reached a crescendo. Besides threats and counter-threats there are also symbolic drills, with the Indian Air Force practicing landing on an expressway in Uttar Pradesh by its Rafale, Su-30 and Jaguar fighter jets to demonstrate ‘operational readiness’. In response Pakistan test-fired its Abdali ballistic missile that can carry a nuclear warhead and has a range of 450km.&nbsp;
The danger is that with ultra-nationalist rhetoric and the beating the war drums by both sides, India’s government and Pakistan’s military may have to ‘do something’ to appease domestic public opinion. But any tactical strike, an artillery exchange, or territorial incursion could quickly escalate out of control.
Expecting an Indian retaliation for the Pahalgam killings, Pakistan is using<a href="https://nepalitimes.com/opinion/interfaith-collaboration-for-nuclear-disarmament"> nuclear deterrence </a>and warning of “catastrophic consequences”. The two neighbours came close to a nuclear exchange in 2019 after an attack on the Indian military in Kashmir, and prompt international intervention led by the United States cooled tensions.&nbsp;
This time, the <a href="https://nepalitimes.com/news/trump-shock-wave-hits-nepal">Trump administration</a> is too distracted and not as engaged. Pakistan has denied it was responsible for the terrorist attack and called on Washington to stop a possible Indian retaliation. India and Pakistan have stopped overflights by each other’s airlines, and some international carriers have even stopped flying over Pakistan fearing an air war.
Washington, Beijing, the UN and the EU have all urged restraint. Iran, which has good relations with both India and Pakistan has sent its foreign minister to urge both countries not to go into a tit-for-tat war. Iran has its own nuclear flashpoint to worry about with tensions in Israel, &nbsp;Yemen and Syria.
India and Pakistan both share similar problems of joblessness, <a href="https://nepalitimes.com/here-now/why-nepal-s-poverty-rate-is-stuck">poverty </a>and <a href="https://nepalitimes.com/here-now/climate-change-new-threat-to-nepal-s-rhinos">environmental threats</a>. Neither side needs the threat of a senseless war, and we in the neighbourhood do not need it either.&nbsp;
Kunda Dixit
This Editorial is brought to you by <a href="https://nepalitimes.com/" target="_blank">Nepali Times</a>, in collaboration with <a href="https://inpsjapan.com/en/" target="_blank">INPS Japan</a> and <a href="https://sgi-peace.org/" target="_blank">Soka Gakkai International</a>, in consultative status with UN ECOSOC.

Nukes in the neighbourhood

Most Nepalis thought they had seen the last of it after <a href="https://nepalitimes.com/news/11-56-25-april-2015-wkc9q2an">the 25 April 7.8 magnitude </a>earthquake ten years ago. But the Himalaya had more surprises in store. On 12 May, another 7.3 magnitude tremor that some said was an aftershock, but was strong enough to itself be a major earthquake, struck Dolakha.&nbsp; Not many people had heard of Singati till then — a cluster of houses by the Tama Kosi River along a narrow gorge that is the roadhead to Rolwaling Valley.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110520_57b6e316656851f71eca56ca6f98d9bbcc820c1a00d62af3c990725b4361244d.jpg" data-media-id="editor_1" data-image-id="20250508110520_57b6e316656851f71eca56ca6f98d9bbcc820c1a00d62af3c990725b4361244d" data-rendition-name="original" width="1000" height="1500" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110520_016534fb2b6a79957402281cda768efb83a146786377e39e11df3e251d37159e.jpg" data-media-id="editor_2" data-image-id="20250508110520_016534fb2b6a79957402281cda768efb83a146786377e39e11df3e251d37159e" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> </figure>  It was here that dozens were killed on 25 April in the first earthquake. Hundreds of <a href="https://archive.nepalitimes.com/article/nation/Singati-rising-from-rubble-rebuilding,3703">Singati survivors</a> had lined up for food and relief supplies in the morning of 12 May when the second earthquake triggered a rock slide that buried a nearby camp. At least 50 people were killed. &nbsp; Three hours later, a US Marine Corps UH-1Y Venom helicopter landed in a nearby cornfield to pick up the wounded, and flew off. The aircraft lost contact with air traffic control in Kathmandu and its wreckage was located high on Kalinchok four days later. Six American servicemen, two Nepal Army soldiers, and five wounded civilians from Singati were killed. Today, Singati bears little physical scar of the multiple tragedies that struck the town ten years ago. Most <a href="https://nepalitimes.com/multimedia/bungamati-builds-back">houses have been rebuilt</a> as urban-style concrete structures, and Singati has become an economic hub on the road leading up to several hydropower plants and a<a href="https://nepalitimes.com/banner/off-the-beaten-trek-in-nepal"> popular trekking destination</a>.&nbsp; The town looks less like a village and more like a suburb of the Dolakha district headquarter of Charikot, 47km away.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110520_196f341d1df1403ba133e5dfeb837eec20d7cbcb4c8c56b17cc5598810de5df2.jpg" data-media-id="editor_6" data-image-id="20250508110520_196f341d1df1403ba133e5dfeb837eec20d7cbcb4c8c56b17cc5598810de5df2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110524_ae66c4a92430f67db51b5e11e017059eedfbac4cb18c8e073f2a50cca1fe904e.jpg" data-media-id="editor_7" data-image-id="20250508110524_ae66c4a92430f67db51b5e11e017059eedfbac4cb18c8e073f2a50cca1fe904e" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> </figure>  “The demand for construction material, cement, iron rods and bricks peaked after the earthquakes,” says Suresh Khadka, who owns a hardware business here and now supplies material to the 456MW Upper Tama Kosi hydropower project that is undergoing repairs after it was damaged by a landslide last year. The demand for cement boomed since most residents believe, not necessarily correctly, that <a href="https://nepalitimes.com/banner/in-a-disastrous-state">cement houses are safer</a>. Although Khadka did well selling construction material after the earthquake, he worries that most new structures do not follow seismic-resistant building codes.&nbsp; The construction boom financed by bank loans has in turn forced many from Singati to <a href="https://nepalitimes.com/banner/making-overseas-migration-better">migrate overseas for work</a> so they can service their debt.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110524_50caa4530bd5ff9120cf7ab70a62173846d337ef448ff8bac339f3faa375a9e2.jpg" data-media-id="editor_10" data-image-id="20250508110524_50caa4530bd5ff9120cf7ab70a62173846d337ef448ff8bac339f3faa375a9e2" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> <figcaption>Suresh Khadka</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110520_ef8b7d3993fc3b5df852bbf952feb3fbabc96d6883b0d5eb74ee5c60f4123b83.jpg" data-media-id="editor_11" data-image-id="20250508110520_ef8b7d3993fc3b5df852bbf952feb3fbabc96d6883b0d5eb74ee5c60f4123b83" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> <figcaption>Phu Doma Sherpa (right)</figcaption> </figure>  “My family had no choice but to borrow money to rebuild our home since the government compensation was not enough, and ten years later we are still paying off the loan,” says Phu Doma Sherpa, 60. Because of the shortage of qualified masons and proper seismic engineering, <a href="https://nepalitimes.com/here-now/structural-problems">many of the buildings are of questionable building standards </a>and the traditional architecture has been abandoned, admits Kul Bahadur Budathoki, deputy chair of the municipality. “But these buildings were more expensive than what the government grants could cover, many people here are heavily in debt and the men have <a href="https://nepalitimes.com/here-now/every-day-is-closer-to-pay-day">migrated to the Gulf to pay their loans</a>,” Budathoki says.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250508110520_32f89e97b7e757fc9286c0bbb671f48ea8d4468e9634fa646d7247c650ad8480.jpg" data-media-id="editor_14" data-image-id="20250508110520_32f89e97b7e757fc9286c0bbb671f48ea8d4468e9634fa646d7247c650ad8480" data-rendition-name="original" width="1501" height="1079" loading="lazy" alt="Climate magnifies earthquake risk in Nepal village NT"> <figcaption>Kul Bahadur Budathoki</figcaption> </figure>  Singati is in a multi-hazard zone. The <a href="https://archive.nepalitimes.com/article/nation/Singati,3091">12 May 2015 earthquake </a>could have led to the collapse of Nepal’s largest glacial lake, <a href="https://nepalitimes.com/here-now/stairway-to-heaven">Tso Rolpa</a>, upstream. Due to global warming, the glacier has turned into an expanding lake 3.5km long, and its collapse would have unleashed a catastrophic Himalayan tsunami down the Tama Kosi Valley, with Singati directly in its path. Singati has literally risen from the ashes of 2015, with its residents beginning to recover from the trauma and financial toll. But it is not out of danger as <a href="https://nepalitimes.com/news/climate-breakdown-linked-to-thame-flood">climate breakdown </a>magnifies the risk from future earthquakes.

Climate magnifies earthquake risk in Nepal village

The streets of Patan are alive this month with lavender jacaranda trees under rain-washed skies as <a href="https://nepalitimes.com/banner/the-red-god-rises-again-in-patan">the chariot of Rato Matsyendranath</a> is pulled across town. This is the festival of the rain god, and inevitably the heavens opened up and pre-monsoon showers pelted the chariot as it started being pulled in Pulchok last week. Thousands of devotees, onlookers and the chariot procession organisers thronged the streets on the first day last week. The rhythmic cymbals and drums exuded a vibrant energy as the enormous four wheels turned and the chariot lurched.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025051007050_81df97744db16f732a419dc1f1579d235ce3df37642b078f50b83bd4bd026688.jpg" data-media-id="editor_1" data-image-id="2025051007050_81df97744db16f732a419dc1f1579d235ce3df37642b078f50b83bd4bd026688" data-rendition-name="original" width="1000" height="1503" loading="lazy" alt="Divine chariot"> </figure>  The<a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Red-rain-god,3141"> red rain god</a> has Hindu and Buddhist antecedents, alternatively called Bungadya and<a href="https://nepalitimes.com/here-now/kathmandu-s-gravity-defying-chariot-festival"> Karunamaya</a> — reflecting Kathmandu Valley’s syncretic mixture of the two religions.&nbsp; “Bungadya is a profoundly <a href="https://nepalitimes.com/opinion/12-full-opinion/marketing-the-intangible">intangible form of heritage</a>,” explains heritage expert Monalisa Maharjan. “It embodies traditional knowledge,<a href="https://nepalitimes.com/multimedia/reviving-nepal-s-craft"> artisanal skills passed down through generations</a>. Local communities and specific families have specified roles in being custodians of the heritage, ensuring their survival over the centuries.” There are many legends and stories about this annual tradition. Lichhavi king Narendra Dev is supposed to have brought Rato Matsyendranath from Assam to Kathmandu Valley to convince Guru Gorakhnath to lift a spell that created a two-year drought in Kathmandu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250510050520_347a9a398f8a9abc4a7fb4e2774fde8264cccbdce8bdab23851ab3f0e73c3e8a.jpg" data-media-id="editor_6" data-image-id="20250510050520_347a9a398f8a9abc4a7fb4e2774fde8264cccbdce8bdab23851ab3f0e73c3e8a" data-rendition-name="original" width="1503" height="1000" loading="lazy" alt="Divine chariot"> </figure>  Matsyendranath was Gorakhnath’s mentor, and upon seeing him, the serpents were released, unleashing the rains. The chariot festival honours the return of this life-giving rain. The deity is seen as an icon for thriving agriculture, t<a href="https://nepalitimes.com/here-now/before-the-next-monsoon">he arrival of monsoon</a> showers, and the welfare of the community. Read also: <a href="https://nepalitimes.com/opinion/the-reign-of-the-god-of-rain">The reign of the god of rain</a>, Vidhu Prakash Kayastha Till this day, the Rato Matsyendranath festival is no ordinary celebration. Patan does not sleep for a month as the chariot is pulled through various neighbourhoods. It unfolds at a state level with the president (formerly the king) attending the climax of the Bhoto Jatra in Jawalakhel later this month.&nbsp; The intergenerational transmission of tradition is unique in the world, and the reason the festival is one of the most vibrant cultural expressions that thrives despite inroads of modernity. The other unique aspect is that it is a transnational festival, binding Patan with Guwahati in the Indian state of Assam.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025051005058_8bc685ada13045d863b28e3eed91c931da2b510714586af6fd7eb5d1e298a24a.jpg" data-media-id="editor_9" data-image-id="2025051005058_8bc685ada13045d863b28e3eed91c931da2b510714586af6fd7eb5d1e298a24a" data-rendition-name="original" width="1000" height="1503" loading="lazy" alt="Divine chariot"> </figure>  “Unlike Nepal, where the deity commands grandeur and devotion, many in Assam are unaware of Rato Matsyendranath,” says Khagen Sharma of Gauhati University, which convened <a href="https://nepalitimes.com/news/nepal-assam-connection-revived">a symposium in February in Guwahati on the rain god</a>. Attending was a delegation led by Lalitpur Mayor Chiribabu Maharjan, organisers of the festival, and builders of the chariot. After the symposium, a committee was formed to explore and revive the tradition in Assam as well. Although the team had planned to visit Nepal this month, logistical challenges delayed the trip. Still, there are plans to build a Guru Matsyendranath statue in Assam to reestablish regular worship practices in the Guwahati shrine.&nbsp; The vines used to build the chariot in Patan are sourced from the jungles of Assam. But Sharma notes that in recent years unclear regulations have blocked the official import of the vines, although they are still brought to Nepal informally. The <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/makers-of-machhindranath,2204">chariot making</a> has also had a taste of modernisation in recent times. In the past, even a single nail or piece of steel was avoided. But over time, the wooden structure, particularly the shaft between the wheels, has been replaced with bronze. When that too proved unstable, metal clamps were introduced, which have become a pragmatic compromise.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250510050524_b2a819a5791612f14c81d30fc393dbd3f99f0c64b90a9110e8b0855d944bfa93.jpg" data-media-id="editor_12" data-image-id="20250510050524_b2a819a5791612f14c81d30fc393dbd3f99f0c64b90a9110e8b0855d944bfa93" data-rendition-name="original" width="1500" height="998" loading="lazy" alt="Divine chariot"> </figure>  Another welcome change is the focus on safety. Builders climbing the chariot’s tower now wear harnesses and there are efforts in crowd control. The most visible change in recent years has been the involvement of Patan’s enthusiastic youth in the festival — the tradition is now passing to a new generation. Says Matsyendranath expert Vidhu Kayastha: “There is more energy, the young people in red t-shirts this year were very organised, these modern touches aren’t diluting our culture, they’re keeping it alive in new forms.” He adds, “We are <a href="https://nepalitimes.com/here-now/searching-for-a-homeland-away-from-home">reconnecting with our roots</a>, we have more resources, more awareness than ever before. We must not be swept away by western values that may not serve us, and in some ways, cause more harm than good. We must revive our own culture.”&nbsp;

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