By sacking the person that many Nepalis credit for ending<a href="https://nepalitimes.com/news/power-cuts-are-back-in-nepal"> prolonged daily power cuts</a>, the coalition led by <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister KP Oli </a>has added fuel to the fire as anti-government forces plan protests in the coming weeks. A Cabinet meeting on Monday decided to replace the Executive Director of the Nepal Electricity Authority (NEA)<a href="https://nepalitimes.com/editorial/transformer-man"> Kulman Ghising</a> with Hitendra Dev Shakya. There is a sense of deja vu since both men led <a href="https://archive.nepalitimes.com/news.php?id=9409">the NEA</a> in previous stints. &nbsp;Ghising had been NEA chief in 2016 and again in 2021, when he had replaced Shakya. Ghising is backed by Pushpa Kamal Dahal of the Maoist Centre, which is now in the opposition, and Shakya is regarded as being close to Oli’s UML. Relations between Ghising and Energy Minister Dipak Khadka have been strained for the past year after the NEA cut off <a href="https://nepalitimes.com/news/nepal-electricity-demand-soars">electricity supply</a> to industries for failing to pay dues dating back to 2016. At the time, factories were provided uninterrupted power from dedicated lines, while the rest of the country suffered power cuts sometimes lasting 18 hours a day.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250326070312_593aa13f73deedb75404e18be27a97c718c3486d67ba3bdcc6a9c7aa0405a4d7.jpg" data-media-id="editor_5" data-image-id="20250326070312_593aa13f73deedb75404e18be27a97c718c3486d67ba3bdcc6a9c7aa0405a4d7" data-rendition-name="original" width="1204" height="390" loading="lazy" alt="NEA"> </figure>  Industrialists cried foul and appealed to Minister Khadka and Prime Minister Oli, contesting the NEA’s overdue bill. Khadka, who is from the Nepali Congress (NC), is himself a <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower </a>entrepreneur and his appointment as energy Minister was seen as conflict of interest. <a href="https://nepalitimes.com/latest/kulman-ghising-to-stay-on?fb_comment_id=3199622240152768_3199919450123047">Ghising is largely credited </a>for having ‘ended loadshedding’ because he redirected electricity from industry to households -- even though imports from India and increase in installed capacity worked in his favour. Following Ghising’s dismissal, there were protests at Kathmandu’s Mandala intersection on Tuesday with demonstrators holding placards that read: ‘Kulman Ghising: Architect of a Bright Nepal’. Even members of the coalition government opposed Ghising’s sacking. Information Minister and government spokesperson Prithvi Subba Gurung on Monday said pointedly that he had no knowledge of Ghising’s removal. Read also: <a href="https://nepalitimes.com/here-now/kulman-ghising-s-tenure-at-nea-in-doubt">Kulman Ghising’s tenure at NEA in doubt</a>, Ramesh Kumar Energy Minister Khadka has sought clarification several times from Ghising, accusing him of ‘insubordination’, and his main gripe was that the NEA chief worked ‘arbitrarily’ on back-pay tariffs from industrialists and making <a href="https://nepalitimes.com/news/nepal-india-power-play">energy agreements with India</a> on his own.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100352_3b03eec43ea6d58b854939cb3bccdec627c381d03abc58f3aba333b2c577add2.jpg" data-media-id="editor_10" data-image-id="20250325100352_3b03eec43ea6d58b854939cb3bccdec627c381d03abc58f3aba333b2c577add2" data-rendition-name="original" width="1347" height="923" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  He did not like Ghising going off to India to talk about <a href="https://nepalitimes.com/news/blueprint-for-nepal-india-electricity-trade">power trade</a>, and questioned his authority to make deals bypassing the ministry. The minister even gave Ghising a performance ‘report card’ in which he was given zero out of 100. Speaking in Parliament on Sunday, Khadka warned that Nepalis would <a href="https://archive.nepalitimes.com/article/nation/power-cuts-nepal-here-to-stay,1701">once more have to suffer load shedding </a>because of Ghising. “We are in a situation where households may soon face power cuts. So Kulman isn’t really the hero bringer of light,” said Khadka, in remarks that were lampooned on <a href="https://nepalitimes.com/news/the-social-media-contagion">social media </a>and newspaper cartoons.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_8b8eceb3a1d39f694ba38aba750ada91e648ca0a8451b2071169951d1833f732.jpg" data-media-id="editor_14" data-image-id="20250325100356_8b8eceb3a1d39f694ba38aba750ada91e648ca0a8451b2071169951d1833f732" data-rendition-name="original" width="600" height="514" loading="lazy" alt="Cartoon in Kantipur by Abin Shrestha"> <figcaption>Cartoon in Kantipur by Abin Shrestha.</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_dc19b92815359a91c6daa23d28f89a017af9aca6d97491a276e7d5d19d6fd9b0.jpg" data-media-id="editor_15" data-image-id="20250325100356_dc19b92815359a91c6daa23d28f89a017af9aca6d97491a276e7d5d19d6fd9b0" data-rendition-name="original" width="514" height="600" loading="lazy" alt="Front page of Naya Patrika "> <figcaption>Front page of Naya Patrika newspaper on Monday morning with coverage sympathetic to Kulman Ghising.</figcaption> </figure>  <a href="https://nepalitimes.com/news/nepal-suffers-another-winter-drought">A prolonged winter drought </a>and below-normal precipitation in March means <a href="https://nepalitimes.com/here-now/geopolitics-of-nepal-s-rivers">Nepal’s rivers </a>are running low, reducing the installed capacity of the mainly run-of-river <a href="https://nepalitimes.com/here-now/nepal-s-1st-hydroelectric-plant-is-a-museum-piece">hydropower plants</a> by one-third. In addition some of the bigger plants like the 456MW Tama Kosi were damaged in <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">last September’s floods</a>. The <a href="https://nepalitimes.com/news/spring-returns-to-nepal-s-mountaineering">spring season</a> shortfall coincided with India announcing it could not export electricity to Nepal during peak hours because of its own domestic demand. Ghising and Khadka appeared to be negotiating separately with India on increasing<a href="https://nepalitimes.com/news/balance-of-power"> power export to Nepal</a>, and often seemed to work at cross purposes. Read also: <a href="https://nepalitimes.com/from-the-nepali-press/more-than-half-of-nepal-s-electricity-imported-from-india">More than half of Nepal’s electricity imported from India</a> The NEA under Ghising had been making up for the power deficit by cutting electricity to industries to maintain household supply. This month, industrial corridors in <a href="https://nepalitimes.com/here-now/the-tarai-s-shrinking-forests">the Tarai </a>have been suffering power cuts from 6pm to 6am, forcing them to use diesel generators. These cuts have added to the <a href="https://nepalitimes.com/news/pokhara-s-tourism-woes">woes of powerful businesses</a> which NEA had been pursuing to pay their back dues. Industrialists had been putting pressure on the government to rein in Ghising. Two industries did play part of the sums they owed to NEA last week, just before Ghising got the sack. &nbsp; Ghising had wide support in<a href="https://nepalitimes.com/here-now/nepalis-not-so-unhappy"> Nepal’s public sphere</a>, with some speculating that he may have political ambitions. Which could be another reason that the UML and NC are wary of him, since he could be a Maoist candidate in the next elections. Ghising has said he will contest his dismissal in court.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_1ab203b400602f8780bbffd35970df35f927d2c66fc3c68be67f443f7dcd327b.jpg" data-media-id="editor_26" data-image-id="20250325100356_1ab203b400602f8780bbffd35970df35f927d2c66fc3c68be67f443f7dcd327b" data-rendition-name="original" width="1600" height="1069" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  It was during Ghising’s 2016 stint that he solved, seemingly overnight, debilitating power cuts. No doubt, he had some luck in timing, but being an electrical engineer himself also invested in upgrading transmission and distribution. “Some things were in place when Kulman Ghising came in, but what he did first was to free up 400MW from the dedicated line to <a href="https://archive.nepalitimes.com/news.php?id=9511">industrialists,</a>” recalls energy expert Kumar Pandey. Ghising also benefited from the completion of the 140km transmission line from Dhalkebar to Muzaffarpur in India, which meant Indian exports could make up for the shortfall, allowing NEA to end power cuts to households. Read also: <a href="https://nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages">How they kept Nepal in the dark ages</a> “He also arranged power cables to reroute energy distribution within the country, which was huge,” says Pandey. All of these actions freed up to 700MW in the evening, which Ghising was able to redistribute to the public. Ghising is also credited with effective negotiations with India to increase the export of 1000MW of <a href="https://nepalitimes.com/here-now/nepal-s-precious-electricity-going-waste">Nepal’s surplus electricity</a> in the monsoon – despite India refusing to buy power from plants with Chinese investment or contractors. Electricity exports allowed NEA to go from being a loss-making entity to earning a profit of Rs11.36 billion over Rs53.18 billion in sales. “Bad infrastructure was causing localised power cuts. A transformer in Kohalpur would burn up and wouldn’t be fixed for a month, and we had no spares,” Ghising told a <a href="https://www.youtube.com/watch?v=Xy-yWmi4wCc">YouTube interview</a> two days before his removal. “<a href="https://archive.nepalitimes.com/news.php?id=11138">Loadshedding </a>was also causing more loadshedding because consumption would soar when electricity was restored.” Ultimately, his dismissal reeks of politics, the business interest cronies and clashing egos. The only silver lining seems to be that Ghising’s replacement Hitendra Dev Shakya is also a grid development and power sector expert, and knows the sector well.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250325100356_836599bd3bcdb4d3d8f91d3f74dabe3c2976eb359690920377b7385904946ca7.jpg" data-media-id="editor_32" data-image-id="20250325100356_836599bd3bcdb4d3d8f91d3f74dabe3c2976eb359690920377b7385904946ca7" data-rendition-name="original" width="1419" height="946" loading="lazy" alt="Sacking of NEA chief exposes cronyism"> </figure>  Asking Ghising to ‘explain why he shouldn’t be removed from his position for insubordination’ essentially proved that this was a power play, and the NEA chief had to be removed because he was a ‘Maoist man’. However, the removal of a popular technocrat from the NEA could further anger Nepalis who are already disillusioned with established political parties and their cronyism. &nbsp;One barometer of public frustration is the <a href="https://nepalitimes.com/news/the-ghost-of-monarchy-returns-to-haunt-nepal">growing support on the streets even for pro-monarchist forces</a> led by the RPP and RPP-N who are planning further nationwide rallies next month.

Vishad Raj Onta

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Sacking of NEA chief exposes cronyism

A cabinet meeting last week appointed former journalist Sharad Ojha as the chair of the Nepal Insurance Authority, the regulator of the sector. Ojha has no qualifications for the post as required by Nepal’s Insurance Act.&nbsp;
His family ties to Nepali Congress president <a href="https://nepalitimes.com/news/deuba-5-qh371fm4">Sher Bahadur Deuba</a> has been cited as the reason he got to bypass appointment criteria.
This is just the latest example. Bending the law to appoint <a href="https://nepalitimes.com/here-now/nepal-s-crony-communism-exposed">cronies</a> and special interest groups to leadership positions in regulatory bodies has <a href="https://nepalitimes.com/editorial/crony-communism">become the norm in Nepal</a>.
Ojha’s predecessor was former Home Secretary Surya Prasad Silwal, who was suspended two months before the end of his term in December after the <a href="https://nepalitimes.com/news/ciaa-traps-small-fish-lets-big-ones-go">Commission for the Investigation of Abuse of Authority (CIAA)</a> filed a corruption case against him in the Special Court. Days after Ojha’s appointment, the court cleared Silwal of corruption charges.
Read also: <a href="https://nepalitimes.com/search?q=corruption+case">Nepal’s corruption carousel</a>
Before Silwal, the Nepal Insurance Authority was led by Chiranjivi Chapagain, a relative of Chandra Dhakal of the IME Group. Chapagain is accused of granting approval to 10 insurance companies under dubious circumstances and favouring <a href="https://nepalitimes.com/business/ime-insurance">IME Life Insurance’</a>s approval.
Meanwhile, intense lobbying by interest groups with ties to both <a href="https://nepalitimes.com/news/nepal-government-changes-again">Prime Minister Oli</a> and PM-in-waiting Deuba allowed Santosh Narayan Shrestha’s appointment as the chair of the Securities and Exchange Board of Nepal (SEBON) in December. Shrestha promptly paid his dues to the groups that put him in office by making preparations to grant them permission to operate stock exchange.
Shrestha was preceded by hotelier Ramesh Kumar Hamal, the recommendation procedure and committee for whom were changed to ensure his appointment.
During his tenure, Hamal hastily amended a law that allowed specific companies to sell premium stocks amid ongoing debates, &nbsp;and another one allowing the operation of stock exchanges with private sector investment instead of public companies. None of this raised eyebrows.
Hamal’s predecessor Bhishma Raj Dhungana, a former Nepal Rastra Bank official, was dismissed as SEBON chair following allegations of irregularities.&nbsp;
Most of these recent individuals were appointed heads of regulatory bodies under PM Oli and Finance Minister Bishnu Paudel and probably at their behest.
The appointments at the Nepal Insurance Authority and SEBON reflect a blatant disregard for the <a href="https://nepalitimes.com/opinion/federalism-rule-of-law-and-the-judiciary">rule of law</a>. Such practice is also rampant in the cooperatives and real estate sectors, where <a href="https://nepalitimes.com/here-now/nepal-risks-being-blacklisted-on-money-laundering">illegal financial dealings</a> and bad faith business is modus operandi.
Meanwhile, Energy Minister Deepak Khadka, also a hydropower entrepreneur, is set on ousting <a href="https://nepalitimes.com/from-the-nepali-press/more-than-half-of-nepal-s-electricity-imported-from-india">Nepal Electricity Authority (NEA)</a> managing director <a href="https://nepalitimes.com/latest/kulman-ghising-to-stay-on">Kulman Ghising</a>. He previously ordered the removal of Dudhkoshi Hydropower Project CEO Bimal Gurung for criticising him on <a href="https://nepalitimes.com/news/no-comment">social media</a>.&nbsp;
The minister has a major conflict of interest because of his involvement in private energy sector, and is pressuring parliamentary committees and regulatory bodies to amend the law to allow the sale of 50% of the shares of <a href="https://nepalitimes.com/multimedia/missing-pieces-of-the-hydropower-jigsaw">hydropower projects </a>during the so-called 'lock-in period', which prevents the sale of promoter shares.
Now, lobbyists have set their sights on the Nepal Rastra Bank (NRB). Maha Prasad Adhikari’s tenure ends in April, and the same groups behind the appointment of the chiefs of regulatory bodies like SEBON and Nepal Insurance Authority are going door to door of governing coalition leaders to have their candidate appointed.&nbsp;
The book Why Nations Fail by Daron Acemoglu and James A. Robinson—co-winners of last year’s Nobel Prize for Economics with economist Simon Johnson—describes how public institutions are misused, weakened, and pushed toward failure by those with access to power.
Regulatory bodies are crucial to maintaining fair competition and ethical market practices. They exist to serve Nepal’s public. However, they are being deliberately undermined by special interest groups paying off authorities for plum positions that will enrich them and their political patrons. &nbsp;
The government ordered the Department of Money Laundering to ‘wait’ as the body sought permission to take action against Ajeya Sumargi for illicit dealing.
It was thus unsurprising that the Financial Action Task Force (FATF) placed Nepal on its grey list in February for failing to take effective and result-oriented action to prevent money laundering.
Read also: <a href="https://nepalitimes.com/news/black-white-and-grey">Black, white and grey</a>, Ramesh Kumar
The international community has raised a red flag against malgovernance, political interference, conflicts of interest, and impunity. The world is watching, but Nepal’s politico-corporate interests are too deep in greed to care.
Ramesh Kumar

Public-Private Collusion

‘Do you want people to have access to telephony or do you want to fight corruption? If you want to fight corruption, these people will be completely cut off from information highway for the rest of their lives, okay, full stop. Make up your mind.’ British businessman and self-proclaimed ‘thought leader’ Mohamed Amersi sits across from The Guardian journalist Tom Burgis at his lawyer’s offices in London as he makes this matter-of-fact statement.&nbsp; Amersi was referring to the dealings of Nepali businessman and fixer<a href="https://archive.nepalitimes.com/news.php?id=776#google_vignette"> Ajeya Sumargi</a>, one of the many subjects of his 2024 book Cuckooland: Where the Rich Own the Truth. This is Burgis’ third book, and he weaves a fast-paced tale with investigative reporting to chart the deal-making career of Amersi in the global telecommunication industry. The investigation traces Amersi’s backroom deals with associates of Russian president Vladimir Putin to Gulnara Karimova, the daughter of an Uzbek dictator. Inevitably, Burgis follows the trail to Nepal where a former Maoist commander turned prime minister wants to strike a deal with Lars Nyberg of the Swedish-Finnish firm TeliaSonera to break into the emerging market. Burgis' account of Amersi’s dealings in Nepal begins with the<a href="https://nepalitimes.com/here-now/if-birendra-was-alive-nepal-could-still-be-a-monarchy"> royal massacre</a> in 2001 and Gyanendra’s ascension to power. The new king stages a coup in 2005 and reimposes absolute monarchy, and on this new stage enters Ajeya Sumargi.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/nepal-s-richest-man-in-the-pandora-papers">Nepal’s richest man in the Pandora Papers&nbsp;</a> Sumargi starts out a smalltime businessman in Hetauda but soon climbs into the circle of movers and shakers in Kathmandu. He is self-made and has made a vocation out of knowing the right people in right places.&nbsp; And the right person to know in Nepal’s new political landscape was Gyanendra’s son-in-law, for whom Sumargi becomes a fixer, ensuring he becomes indispensable. Eventually this leads into his foray into telecoms just as mobile telephony was making inroads in Nepal. But Nepalis are sick of the conflict that had claimed 17,000 lives and of an authoritarian king. A people’s movement in April 2006 <a href="https://archive.nepalitimes.com/article/editorial/lost-decade-of-post-conflict-transition,2139">forced Gyanendra out</a>, and the Maoists were subsequently elected to a Constituent Assembly.&nbsp; By then Sumargi had switched sides and sidled up to Prime Minister Pushpa Kamal Dahal (aka Prachanda, the Fierce One) Both are pictured, above. He is soon cleaning up illicit funds the Maoists allegedly purloined from stipends meant for former guerrillas in UN-supervised demobilisation camps.&nbsp; Sumargi arranges luxury lodgings in Lazimpat for Dahal in a house purchased in the name of his sister-in-law. Sumargi’s proximity to power earns him a license for Hello Nepal.&nbsp; Enter: TeliaSonera, which at the time also owns and operates Kcell in Kazakhstan and Ucell in Uzbekistan, and Ncell which it acquired in 2008 in Nepal. At a meeting with TeliaSonera boss Lars Nyberg, Prime Minister Dahal suggests purchasing Hello Nepal to make the pesky issue of license renewal go away. Sumargi opens the doors. Telia Sonera opens its wallet. And Sumargi, says the book, coolly pockets $74 million from TeliaSonera’s acquisition of Hello Nepal. He greases the right palms, makes TeliaSonera’s problems go away, and prepares to become an additional $200 million richer.&nbsp; TeliaSonera’s operations in Uzbekistan unravelled after Swedish investigators found it had negotiated with the Uzbek president’s daughter Karimova to obtain licenses and frequencies in return for millions in bribes. Nyberg resigned, and the new management debated whether to pull out of Nepal too.&nbsp; Amersi is unhappy, Sumargi is livid and threatens to sue. Burgis writes that in the end ‘friendship prevails’-- Sumargi is compensated and TeliaSonera’s new directors bury the findings of the investigation into their Nepal operation. After the scandal, TeliaSonera rebranded itself as Telia and divested from Ncell, selling its majority stake to Malaysian conglomerate Axiata for $1.36 billion in 2016.&nbsp; Was Sumargi able to channel the ill-gotten wealth of Maoist leaders through his dealings with Amersi and Co, and if so, how much? Burgis is not able to tell: ‘Whether any of the riches Mohamed Amersi helped to guide towards Sumargi were shared with the Fierce One and the other Maoist leaders, I cannot definitively say.’ In any case, Sumargi offloaded the millions he made from the TeliaSonera deal to his offshore accounts, adding to his considerable wealth, as documented in a 2019 investigation by the International Consortium of Investigative Journalists (ICIJ) and Centre for Investigative Journalists Nepal (CIJ-N). Amersi, meanwhile, went on to speak at a University of Oxford event about tackling <a href="https://nepalitimes.com/editorial/nepal-s-corruption-carousel">corruption</a>. The irony is not lost. He is now among the major donors to the British Conservative Party, and rubs shoulders with the likes of Boris Johnson and King Charles. Much of the book is based on the author’s conversation with Amersi in 2023 at his lawyer’s offices, where he was invited by Amersi himself in order to ‘set the record straight’ after an ex-Conservative Party MP questioned his iffy financial dealings. In words that would prove to be more relevant than ever, Burgis writes . ‘Everywhere, the powerful are making a renewed claim to the greatest prize of all: to own the truth. The power to choose what you want reality to be and impose that reality on the world.’&nbsp; The footnotes in Cuckooland contain Burgis’ often derisive, wry commentary on Amersi’s indignant, expletive-laden interjections during his interviews. The footnotes are as interesting as the book’s revelations about Nepal’s crony communism. &nbsp; ‘Your agenda is biased against me, and so you are looking for skeletons,’ Amersi insists to Burgis during one of his tirades. ‘Write your book and you’ll see what happens to it,’ he says during another. The underworld that Burgis has shined his light on is bleak. The lines between <a href="https://archive.nepalitimes.com/article/editorial/Kleptocracy-kills,3161">kleptocracy</a> and democracy are blurred, corruption runs rampant, and accountability and truth are lost to the wheeling-dealings that enrich oligarchs.&nbsp; Given the apathy and silence that has greeted the explosive revelations in Cuckooland, perhaps Nepalis would rather have access to telephony than fight corruption. &nbsp;&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241220121232_6b15740b65e4feddfc0afc9972cbfcee1852b8442338be2d2d697dc2357c7727.jpg" data-media-id="editor_6" data-image-id="20241220121232_6b15740b65e4feddfc0afc9972cbfcee1852b8442338be2d2d697dc2357c7727" data-rendition-name="original" width="1136" height="702" loading="lazy" alt="Cuckooland"> </figure>  &nbsp;

Shristi Karki

Nepal’s crony-Communism exposed

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141124/636cfc189c7e80680e0a0b6ajpeg.jpg" alt="" width="620" height="364"/><figcaption>Illustration: NEPALI TIMES ARCHIVE</figcaption></figure>The cause of prolonged political paralysis in Nepal is cronyism, and the only way to uproot it is by tackling its source: vote-buying and campaigns funded by big business.The criminalisation of politics and the politicisation of crime means that it is becoming more and more difficult to separate business and politics. None of the parties are free of this cronyism which fuels corruption, and the business of politics.Those being investigated or convicted by the courts and criminals on the wanted list walk freely in and out of the prime minister’s residence. Lawbreakers become lawmakers. Gangsters become ministers.Post-1990, there have been many ways to get into politics: student union leaders and dropouts become whole-timers, retired bureaucrats try their second innings by joining parties, and the really smart ones take the short-cut to become legislators and ministers without even standing for elections. They buy their way to the top.Idealism has become a fairy tale. Politics without principle is possible, but politics without money is unimaginable. Political integrity has become an oxymoron. No matter how popular or honest politicians may be, they cannot win elections without financial backing. And the cash comes from businesses seeking a healthy return on investment.There are two ways to seek ROI from politics. Firstly, by offering a straightforward donation (a bribe in polite parlance) to a politician standing for elections and demanding a pound of flesh later. The second is to offer an even heftier ‘campaign contribution’ to directly become a nominated MP from that party without ever contesting an election.The constitutional provision to ensure proportional representation for marginalised communities has become the backdoor for tycoons to enter the House chambers.Education entrepreneur Umesh Shrestha became an MP through proportional representation, and he is now state minister for health.This was one of Sher Bahadur Deuba’s first ministerial appointments after assuming office two weeks ago, and one he took without consulting his party or coalition members, and it has understandably been met with much flak.Shrestha is a self-made but wealthy man, and has announced he will not take a salary as minister. Unlike politicians, he may be less tempted by petty payoffs. However, appointing someone who is setting up a chain of private hospitals to the Health Ministry is akin to putting a fox in charge of the chicken coop. The conflict of interest has sent a clear message to the public: anything goes in Nepal’s crony capitalism.Deuba had earlier appointed Shrestha as MP from the Nepali Congress reserve quota after the second Constituent Assembly election in 2013, and the private school operator sat in the Education Committee of the legislature.The prime minister has not been able to give a clear rationale for appointing Shrestha, and after widespread criticism of the move, he said rather ambiguously: “It won’t happen again.” It is clear that Shrestha is being rewarded for being a major party donor.This week, the Ministry of Health under the new businessman-turned-state minister announced that the private sector can import Covid-19 vaccines. How does this make sense when there are G2G agreements in place, COVAX doses are in the pipeline, and private importers will be competing with the government for vaccines from the same global supply chain?We can give Shrestha the benefit of doubt, and argue that the boy who came from Bhojpur to Kathmandu in his flip-flops to build a business empire, may be better at managing healthcare delivery than clueless and corrupt politicians who have been ministers before.In fact, if there is blame to be placed on anyone, it should be on an expensive system that allows greedy political actors to elevate their cronies to important positions in government.Who is next, Nepal’s richest man <a href="https://en.wikipedia.org/wiki/Binod_Chaudhary" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://en.wikipedia.org/wiki/Binod_Chaudhary&amp;source=gmail&amp;ust=1628230509987000&amp;usg=AFQjCNHy8AJanSbKIsOE1kgjHV6i5VpGaQ">Binod Chaudhary</a> who is also a NC donor and MP?All this is nothing new, of course. Prime Minister K P Oli also promoted his favourite cronies, and appointed industrialist Moti Dugad minister. Cronyism was also in full display in the Gandaki Province drama last month: Dobate Biswakarma was all set to become the only Dalit minister in the provincial government, but he was suddenly supplanted by Bindu Thapa, a Deuba loyalist rewarded for his generous contributions to the party.When Nepal’s development is driven by sand mining magnates, quarry tycoons, and infrastructure contractors, it is no surprise that politics is also contracted out. This is why for politicians, ‘prosperity’ is measured by highways, bridges, view tower contracts, and not by quality schools, accessible health care and meaningful jobs for young Nepalis.<a href="https://archive.nepalitimes.com/article/from-nepali-press/Elected-contractors,4182" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/article/from-nepali-press/Elected-contractors,4182&amp;source=gmail&amp;ust=1628230509987000&amp;usg=AFQjCNFjiW9tcKmZX0bJuBB7Bmhx_i7SCA">An investigation in this paper</a> after the 2017 elections showed that up to 40% of elected local government representatives were contractors who now rent out their own excavators and tipper trucks to themselves. This is behind the recent spurt of destructive road-building and unregulated natural resource exploitation.The way to address this rot is to stop allowing Nepal’s richest businessmen from using the quota for indigenous and ethnic minorities to become unelected ministers. The ballot box is not a cash box, and for Nepal’s equitable progress, the next election must stop votes being bought with notes.Transliteration of Shekhar Kharel’s <a href="https://www.himalkhabar.com/news/125267" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.himalkhabar.com/news/125267&amp;source=gmail&amp;ust=1628230509987000&amp;usg=AFQjCNFdMPoAPlyZ3H5OCibSylDZy-9_mA">original op-ed in Himal Khabar</a> by Aryan Sitaula.

The business of politics in Nepal

With Saturday's deadline on Malaysia’s announcement of new criteria for selecting private recruiting agencies for migrant workers having lapsed, Nepal and Bangladesh have rejected the conditions.
The Malaysian move three weeks ago came in the aftermath of deadly GenZ riots in September, when Nepal’s interim government does not have designated heads in the Foreign Ministry and the Labour Ministry.
Interim Prime Minister Sushila Karki instructed the Labour Ministry to examine the implications of the standards and recommend appropriate steps to address them, but it has said it cannot send Nepali workers to Malaysia based on those criteria.
“In line with Nepal’s foreign employment policy and regulations, we are currently unable to accept or implement the proposed criteria,” says Pitambar Ghimire, spokesperson at the Ministry of Labor, Employment and Social Security in Kathmandu.
In response to the government’s request for their opinion on the Malaysian stipulation, the Nepal Association of Foreign Employment Agencies (NAFEA) has also flatly rejected the criteria, saying it could create a harmful syndicate and restrict fair competition, violate Nepal’s Constitution and laws, and increase recruitment fees that workers must pay.
On 25 October, the Malaysian Ministry of Foreign Affairs sent letters to the governments of Nepal, Bangladesh, Burma, Pakistan and India with 10 criteria meant to ‘rationalise the number of licensed private recruitment agencies permitted to facilitate recruitment and placement of workers to Malaysia’.
The proposed criteria include: at least five years of operating experience, deployment of 3,000 workers in the past three years of operation, experience sending workers to at least three countries, valid licenses and good conduct certificates, five employer testimonials, operating their own training and accommodation centres, and even a requirement for the staffing agency to have a 10,000 sq m office maintained for three years.
“We have communicated our views to the Ministry of Foreign Affairs, and have proposed discussing various labour related matters with our Malaysian counterparts diplomatically through bilateral dialogue and negotiations including renewal of the Nepal-Malaysia labour agreement,” Pitamber Ghimire said.
NAFEA has urged the government to prevent this measure from moving forward using diplomatic channels, and has held &nbsp;several gatherings and press conferences opposing the proposal since the Malaysian letter was received three weeks ago.
“We have taken commitment letters from members that they will not be engaged in activities related to the syndicate,” said Sujit Shrestha of NAFEA. “And if they break the commitment, they will face consequences including the revocation of their NAFEA membership. These letters also send a strong message to the government that this is irrevocably and collectively rejected by the industry.”
Bangladesh has also not accepted the proposal despite the 15 November deadline to send a list of recruiters that meet the criteria. That in itself would have been an impossible task to complete to begin with even if the government had accepted the proposal.&nbsp;
According to media reports, Bangladesh has sent a letter to the Malaysian government requesting that three of the proposed criteria be relaxed. This includes flexibility regarding the requirements for a 10,000 sq ft office, a dedicated training center, and the condition of having deployed 3,000 workers in the last five years. Despite the official request to Malaysian authorities, the Bangladeshi Government has also been collecting applications from recruiters who meet Malaysia’s proposed criteria, raising confusions about the contradictory stance.&nbsp;
Just like NAFEA, the recruitment association in Bangladesh, the Bangladesh Association of International Recruiting Agencies (BAIRA) has also outright rejected the proposal including in a letter to the Bangladeshi government, calling the criteria ‘unprecedented and exclusionary, unreasonable, discriminatory and syndicate-driven &nbsp;that would effectively disqualify 99% of legitimate agencies from participation’.&nbsp;
Now that the ball is back in Malaysia’s court and the proposal has not gained much support from two of the major origin countries, it will be interesting to see how they respond.

Nepal, Bangladesh reject Malaysian conditions

The very first frame in The Lama’s Son starts with a vision of Shangrila and the quest of a mythical utopia in the Himalaya when the rest of the world is crumbling away. It is also the personal search of filmmaker Kesang Tseten, but what he finds there are adherents of the Bon Po faith clinging to the last remnants of a culture as it erodes away like the sandstone cliffs of Mustang. “It was while editing the documentary that the story became distilled: how does what we see in the high Himalaya relate to the notion of the Shangrila idyll that especially the West ascribed to them,” asked Tseten during a recent trip to Kathmandu from Berne where he now lives. He continued: “Often and perhaps rightly criticised as an orientalist construct, I wondered if there was any basis at all to the Shangrila notion, and I hung the film on that idea.”&nbsp; Tseten takes us to the vast vistas of Mustang and Dolpo, a landscape of his Tibetan ancestors. This is as much an intimate documentation of families on Nepal’s Himalayan rimland torn between remoteness and globalness as it is about Tseten’s own quest for rootedness.&nbsp; We start from Lubra, a 3,000m village in Mustang the 15 households of which follow the Bon faith. Lama Tsultrim is from a 900-year-old lineage of the animist faith and an exponent of the tradition that is slowly being subsumed first by Buddhism and now modernism. For Tseten, the material is familiar, and not at all exotic as it is for non-Nepalis and indeed for many urban Nepalis. Bon, founded in Tibet, predates Buddhism, but over time, the two religions have come to resemble each other.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45.jpg" data-media-id="editor_0" data-image-id="20251113111156_ecf8148fbaa17b93c81ddfa3ed244bed266e3ef6af0cd5e6ca7b64c181b97d45" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  ‘Both believe in karma, rebirth, and that humans can become enlightened. Nature and spirits are predominant in Bon, and rituals are what keep them benign and alight,’ says Tseten, who rarely narrates in his documentaries. “This is not really a personal film as such, but it has a point of view,” Tseten said. “I decided to have a voice-over on this one and cast my presence in the film.”&nbsp; Lubra's Lama Tsultrim is called upon to perform rituals from Kagbeni and other villages, but there is no one to continue the tradition after him, which is passed from father to son. Lama Tsultrim’s son (hence the title of the film) is a sushi chef in New York and has been gone for 20 years. “The Lama is like a setting sun, his son should come back and take over his father’s responsibilities,” says a local youngster chatting with friends. “If he dies tomorrow, where do we go? We can’t just light butter lamps ourselves to the gods.” It is not only the Lama’s son who has left. The village is nearly empty, and more are planning to leave. One of them is Chimi, a teacher who will be joining her fiancé who is an Uber driver in New York. Her brother is already in Hong Kong. In Lo Manthang a local is back home for a three-month vacation after being in New York for 12 years. A shopkeeper was in Japan for several years, and has returned. “Everything has changed, our language, our tsampa, our religion. We used to work and live together, now the children live separately,” says a middle-aged woman. “There are roads now, and vehicles stop right outside our house, but what’s the point? No one stays home.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c.jpg" data-media-id="editor_1" data-image-id="20251113111156_47b4c4984fa33e42791b16dba1f078aaa7f9d8bd51ca3bfd5415b436c3a0bf2c" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  Like most of Tseten’s films, The Lama’s Son is an honest documentation of a place and people whose lifestyle, culture and heritage cling precariously to the past. In Dri village we come across local women filling their buckets with water. Tseten asks them why the village is so empty: “Where is everyone?” The women reply that they are “here, there and everywhere”. Then it is their turn to ask Tseten about where he lives and what he is doing in their village. Migration is a recurring theme in Tseten’s documentaries from We Corner People, In Search of the Riyal, or Saving Dolma. His previous film Diversity Plaza documented the lives of Nepali and Tibetan emigrants in Jackson Heights in the borough of Queens in New York.&nbsp; Diversity Plaza was shown at DOC NYC in 2023, and The Lama’s Son will be one of only two Asian films shown next week at one of the biggest documentary film festivals in the world.&nbsp; “The Lama’s Son is not loud, not attention grabbing but intimate, so I was surprised they chose a quiet film for a big, flashy event,” Tseten told us. In Lama’s Son, we also see how climate breakdown is impacting Nepal’s trans-Himalayan regions. Lama Tsultrim shows us the aftermath of a recent glacial flood that swept away houses and fields. The debris-covered farms are as hard as cement.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff.jpg" data-media-id="editor_2" data-image-id="20251113111156_c82126a3c2dc4577b99beb9bef20aafa16f532a3f41e59caea17c93914c59fff" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  The nearby village of Dhey at 3,900m is a high and dry cold desert. Farmers get one crop in a year, but the springs have gone dry and there is no snow in winter. So they are relocating to New Dhey, closer to the road. We follow Kesang Tseten to Samling in Dolpo, which at 4,200m is another Bon village. Locals are preparing for the Walchu festival in which Lama Sherrab carries out elaborate rituals to appease spirits that can turn malevolent. But unlike Lama Tsultrim in Lubra, Lama Sherrab has a community of lamas to help him, including two sons, one of whom will eventually take on his role. We move on to the adjacent village of Bicher and listen in as locals talk about how despite being dirt poor, they thrive in scarcity and are resilient. “We wear sheepskin, eat stew and yak meat, and drink wine. But we are very poor, we have nothing. Look at how dirty our clothes are. We may be dirty, but we have few illnesses,” says one. But even here in Upper Dolpo, a week’s walk from the nearest road, things are changing. There are mobile phones, readymade clothes and instant noodles.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78.jpg" data-media-id="editor_3" data-image-id="20251113111156_d1472165cfa9ffa6edbf72de59167e8cbddcc2bf4a7928f7830e099966259a78" data-rendition-name="original" width="1920" height="1080" loading="lazy" alt="The periphery cannot hold NT"> </figure>  At the Walchu ritual, Tseten watches men and women with hand-woven blankets and down jackets sing and dance after the main ceremony. He narrates: “Bon is sustained by a way of life that fosters a fine but fragile balance between nature and people, where humans come before gods. This is what lies at the heart of Shangrila if there is such a thing.” The film then takes us half-way around the world to a Bon centre in New York, but (spoiler alert) the eponymous Lama’s son never appears. He did not want to be filmed, but it makes for a more powerful portrayal of the life of emigrants forever trapped between two worlds. “Bon villages may be in danger, but the Bon has spread widely across the world,” narrates Tseten, a director who likes to call his storytelling ethnographic, and avoids coming to an apt conclusion. Lama Sherrab’s words after the Walchu ritual is a perfect segue:&nbsp; “Whether you say om mani padme hum (in Buddhism) or matri mi yu (in Bon) they are the same. When you go up, it’s the same heavenly realm. If you go down, it’s still the lord of death who awaits. There isn’t a separate heaven and hell for Buddhists and Bon, it has to be the same for both.” &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d.jpg" data-media-id="editor_4" data-image-id="2025111312110_82817ef48840bb6baa1732d5b0b90c90ead2f9bd9eb0c289940fa61d8058de8d" data-rendition-name="original" width="7087" height="10004" loading="lazy" alt="The Lama's Son NT"> </figure>  The Lama’s Son by Kesang Tseten, 2025 Shunyata Films To be screened at DOC NYC 16 November at 2:05PM local time, Online: 17-30 November Details <a href="https://www.docnyc.net/film/the-lamas-son/">here</a>.

The periphery cannot hold

Nepal’s September protests and regime change created two major unexpected costs that Prime Minister Sushila Karki’s interim government is scrambling to deal with: reconstruction of destroyed government buildings, and holding elections on 5 March.
The buck stops at the desk of economist and former bureaucrat Minister of Finance Rameshore Khanal about where and how to spend limited resources.
“Rameshore-ji is a fresh face and the right person for the role. He is capable and interested, and he knows the system,” says Kalpana Khanal of the Policy Research Institute (PRI).
But Minister Khanal has to grapple not just with the immediate budgeting needs for elections and reconstruction, but also initiate longer term measures to restore investor confidence badly dented by arson and vandalism of 9 September, and mend the economy.
Immediately after taking office, he had set up a three-member task force to cut programs and free up budget to meet immediate expenses.
“We have to hold elections and we have to reconstruct. Both need money, and they are equal priorities for us,” said Ministry of Finance spokesperson Tanka Prasad Pandey. “It is important to find these funds internally, and not look to aid from abroad.”
But Minister Khanal flew into heavy flak last week for his decision to restore investor confidence by giving a strategic capital gains tax break to Nepal’s only foreign private equity fund.
The Mauritius-based Dolma Impact Fund has invested venture capital into Nepal’s hydropower, construction and biotech sectors as well as solar farms and hospitals. It said in a statement that its capital gains are only taxable in Mauritius as per its double-taxation avoidance agreement with Nepal, which predates and overrides the Income Tax Act of 2002 subsequent to the Treaty Act 1990.
“When you have investors from all over the world, you have to choose a domicile and Mauritius is probably the most popular for development finance institutions due to strong governance, AML, and treaties with developing countries like Nepal,” Tim Dolma Investment told Nepali Times on the phone from London.
He added: “Last June we applied for the government to uphold its treaty with Mauritius which under all country laws including Nepal treaty act supersedes any disagreement with domestic laws. But there were delays. It was when the new government decided to uphold the treaty that the whole hoo-hah started.”
Leaks to the media possibly by bureaucrats fearful of being hauled over the coals by the CIAA has set financial circles abuzz for the past week. The Internal Revenue Office refused to grant the exemption, citing the 2002 Act.
Prime Minister Sushila Karki asked Chief Secretary Eaknarayan Aryal for clarification, and learnt that the Cabinet’s decision was not official since it was not recorded in the minutes.
“We were raising a fund that could have brought $1 billion in for energy and we had to stop it due to the reputational damage to Nepal by not upholding an international treaty,” said Gocher.
Gocher added: “Under Nepal’s Treaty Act, if there is ever disagreement between an international treaty and domestic law, then international treaty takes precedence so it is crystal clear and the way international treaties are dealt with all over the world.”
Some experts worry that gifting the fund such perks can set a dangerous precedent and a loss in tax revenue. Professor and economist Pushkar Bajracharya says: “The most important thing is to have a consistent policy about tax cuts and not do it piece-by-piece. Besides, the evidence just isn’t strong that tax cuts lead to higher investment, or more jobs.”
Others hark back to the capital gains dispute of the sale of Ncell ownership, which went to the Supreme Court and all the way to the international tribunal in The Hague.
Khanal has said privately that he is responding to the damage to Nepal’s investment climate from the dramatic visuals beamed worldwide of an international hotel chain and government buildings set ablaze in September. Western embassies are also said to be lobbying to allow Dolma tax exemption and smooth profit repatriation.
There are tradeoffs. Private equity funds like Dolma could funnel foreign funds more efficiently towards successful Nepali companies than the government, which is slowed down by many layers of bureaucracy. The downstream multiplier effect of such investments would outweigh taxes to the government since much of it is misused and wasted.
For example, the government is not taxing income in FY 25/26 generated by the US-funded $697 million Millennium Challenge Corporation (MCC) projects to build transmission lines and upgrade highways.
Strategic tax exemptions do provide incentives to investors, to make sure these projects are carried out effectively, which in turn helps Nepal’s development which has been affected by corruption and mismanagement.
The main demand of the GenZ protests that led to the downfall of the government coalition two months ago was to control corruption and make government more efficient so there is investment and job creation. The interim government seems to be responding to that sentiment.
The Dolma issue has distracted from the larger and longer-term need to reform the country’s financial systems and streamline public expenditure. How to reduce corruption and spur development is going to be the main agenda for elections, and the criteria by which voters will select candidates and parties.
TASKED FORCE
Shortly after Rameshore Khanal was appointed he set up a three member task force made up of the heads of Budget and Program, Foreign Aid, and Revenue Management Divisions. The team sent through the budget culling items DOGE-style — projects deemed ‘inadequately prepared,’ ‘fragmented,’ or ‘included through political pressure.’
Khanal hoped to save up to Rs100 billion by cutting all projects less than Rs30 million. However, such a slash and burn method would hurt rural and remote area projects for health and education more, and much bigger corruption-ridden infrastructure projects would be unscathed.&nbsp;
Says Bajracharya, “There are thousands, maybe hundreds of thousands of low-return programs in the budget that are there because of political or personal influence. But the criteria for cutting them needs to be properly defined. Doing it arbitrarily is unacceptable.”&nbsp;
Kalpana Khanal of the Policy Research Institute was involved in the taskforce, and explains: “The decision to mobilise internal funds is a pragmatic move to fund elections and reconstruction.”
However, she also singles out the massively-funded Ministry of Physical Infrastructure and Transport as being particularly problematic: “Time and cost overruns are historically the norm, and many are ‘vote bank’ projects that are politically motivated rather than done for return on investment.”
For example, politicians use their influence to build roads to their home districts to secure popularity even if the funds would have been better spent elsewhere.
“Another problem is the amount of funds that are transferred randomly for things that outside the budget,” continues Khanal.
Bajracharya adds, “While reconstruction and elections are big financial commitments, Nepal could easily find the funds. Cancelling low impact programs is a good move by the ministry of finance, and another option could have been to raise customs or taxes by a few percent. The main problem is that a huge amount of funds are lost to corruption.”
Kalpana Khanal and Dilli Raj Khanal co-authored a technical report last year titled Improving Public Expenditure System in Nepal: Critical Areas of Reform which did a forensic examination of such wasteful projects.
The conclusion: recommendation to have stricter accountability measures in place to check the actual use of funds and merit-based appointments in the National Planning Commission, Ministry of Finance, and the CIAA.
The technocrats in Prime Minister Karki’s cabinet resonate with the latter point. Nepal is so entrenched in the ‘afno manche’ culture of nepotism and connections that it has become the norm.
The report also refers to the well-known off-budget ‘re-allocations’ of big outlays during the seventh and first months of the fiscal year that undermine in-built check and balance. Almost a quarter of the budget is spent in the last month, which results in low quality and low impact work.
The authors call for reward and punishment systems to prevent these practices. The CIAA could also be supercharged to build transparency into the digital Line Ministry Budget Information System, instead of being an agency for political vendetta.

Nepal needs to use its money better

At the opening plenary of COP30, which stands for the convolutedly named 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Belém on Tuesday, Nepal brought up the threats to the Himalayan watershed. Nepal’s delegate Rajendra Prasad Mishra, Secretary at the Ministry of Foreign Affairs, also spoke on behalf of Bhutan and Bangladesh after the three countries formally called for tripling grant-based adaptation financing from 2015 levels to at least $120 billion per year by 2030, and to ensure a more simplified, scaled-up access to finance their National Determined Contributions (NDCs) to reduce emissions and adapt to climate impacts. “Bhutan has already graduated from Least Developed Country (LDC) status, while Bangladesh and Nepal are in the process of graduation,” said Mishra. “Graduation reflects development progress, but does not reduce our climate vulnerability nor the scale of support required to safeguard development gains.” The Loss &amp; Damage Fund is also finally coming into effect, so countries can now apply for $5-20 million to make up for damage from climate impact. But claiming damage and linking disasters to climate breakdown has not been an easy process. “When a 200MW hydropower plant is destroyed by a glacial flood, it is a big loss for Nepal’s GDP. Every megawatt costs us $20 million to build,” says energy entrepreneur Kushal Gurung. “Our lobbying should be top-notch, and hydropower can make a good case for us.” Belém marks the tenth anniversary of the Paris Agreement that brought the world together to pledge to keep global average temperature to ‘well below’ 2°C above pre-industrial levels and limit it to 1.5°C.&nbsp; COP has also returned to Brazil after 30 years of the Rio Conference in 1995. Since then there have been numerous summits, which have been criticised for being just hot air and being hosted by fossil-fuel exporting countries like UAE and Uzbekistan. Belém was selected because it is a gateway to the Amazon, but Brazil has now also become a major oil producer after new offshore finds. A recent report shows that compared to 2019, the world is set to reduce its emissions by 12% in 2035 if countries are to implement their Nationally Determined Contributions even though the figure needs to go up to 40% to meet temperature targets. There has been progress. Before the Paris Agreement the world was on a path for 4°C increase during this century, and this has now come down to 2.5°C because of the clean energy transition. But a lot more needs to be done to meet the Paris 1.5°C target. “This progress is proof that multilateralism is working, it is delivering,” Manjeet Dhakal of the Climate Analytics South Asia told us from Belém. “Having said that, it is simply not enough. Emissions need to go down much further, and a lot of it is tied to developed countries providing climate finance to do so.” Many developing countries have adopted ‘conditional NDCs’ which means their emission reduction targets cannot be met without international climate finance. In its third NDC, Nepal set a target of a 17.1% reduction in net greenhouse gas emissions and 26.8% by 2035. But achieving that has a price tag of &nbsp;$73.74 billion, with much of it from international climate finance. UNDERFINANCED However, the climate for climate finance is getting worse. The United States has exited from the Paris Agreement for the second time under President Trump, and there are cutbacks in foreign aid by European funders. Even so, the EU has committed to reducing its emissions by 90% in the next 15 years, 85% of which will be domestic emission cuts. The silver lining in all this is that the leadership in climate action is increasingly being taken by Nepal’s neighbours China and India with both investing heavily in renewable energy. China is the world leader in solar panels, wind turbines and electric vehicles, and Nepal has already taken strategic advantage of this.&nbsp; With expensive hydropower plants increasingly at risk from glacial lake outburst floods, experts say Nepal must diversify its energy mix and invest in solar power which has 10 times more potential than hydropower at 432 gigawatts with over 300 days of sunshine a year. Solar farms can also power pump storage, which are cheaper and quicker to build.&nbsp; China has drastically reduced the cost of photovoltaic cells, making such schemes more feasible. Nepal just needs to ease up its restrictive domestic energy policies, boost investment and resist geopolitical pressure on electricity generation. “First, we need to increase the cap on solar energy from 10% to 30%, and next, the bidding process should be made easier, or just have the first past the post system like that for hydropower,” says Kushal Gurung. The disadvantage of solar power is that it generates only daytime energy, but this can be solved with grid-scale battery storage or pump storage. But first, the government needs to fix the rate for solar purchase so that entrepreneurs are incentivised. “This is not happening because our government officials and engineers are comfortable dealing with hydropower, and are not just updated about the latest advances,” says Gurung. “As a result, we have no clear policies when it comes to solar.” Hydropower has become one of the biggest industries in Nepal with an installed capacity of over 3,400MW and the government’s target is to produce 28,500MW in the next ten years. But the recent climate disasters have made it clear that relying only on hydropower alone is too risky. The Nepal-Tibet glacial flood in July destroyed and damaged four hydropower plants and substations along the Bhote Kosi, and last September’s floods slashed the country’s total generation by half. Nepal now needs to build on the widespread adoption of battery-powered vehicles by extending it to electric public transport and for household appliances like stoves, rice cookers and refrigerators. Not only would this reduce Nepal’s per capita carbon footprint, but it would also reduce the country’s annual Rs300 billion petroleum import bill. At global platforms like UNFCCC, it is easy even for individual developed countries to get lost without an alliance. Now that Nepal is graduating from LDC status, it needs to have strong partners with a common goal to move forward in international negotiations. Says Kushal Gurung: “We won’t have privilege that came with LDC status anymore, which means climate finance will be even more limited. But there are a few things we can urgently do on our own like regulating the carbon credit market.”&nbsp; This article 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.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_3" data-image-id="20251118101116_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="Nepali Times SDG"> </figure>

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