The Asian Development Bank (ADB)'s Director General for South Asia, Kenichi Yokoyama, remarked at the bank's two-day country portfolio review meeting last week that improved portfolio performance is key for timely delivery of development results and securing higher and sustained concessional resource allocations.&nbsp;
“Nepal needs to achieve at least $350 million to $450 million disbursement per year to be considered for higher concessional resource allocations based on ADB’s performance-based allocation system,” said Yokoyama.
The Government of Nepal was joint-organiser of the meeting and Finance Minister Prakash Sharan Mahat added, “We appreciate ADB’s support to Nepal’s development over the years. The government is committed to overcome the challenges related to project implementation and disbursements and improve capital expenditure for development impact on the ground for Nepali people.”&nbsp;
Similarly, ADB-supported projects – Urban Water Supply and Sanitation (Sector) Project, Bagmati River Basin Improvement Project-Additional Financing, SASEC Highway Improvement Project, Rural Enterprise Financing Project, and Power Transmission and Distribution Efficiency Enhancement Project – were awarded at a special ceremony for their excellence in effective project management, gender equality, and social inclusion, environmental and social safeguards monitoring at a special ceremony.&nbsp;
Since the start of its operations in Nepal in 1969, ADB has provided about $7.6 billion in financial and technical assistance to the country. As of 31 December 2022, ADB’s active portfolio in Nepal stands at around $3.2 billion, supporting a broad range of key sectors: energy, transport, agriculture, water and urban infrastructure and services, rural development and natural resources, health, and education.&nbsp;
While this number is lower than expected, caused mainly by insufficient project staff and high turnover, challenges in contract management, delays in environmental and land clearances, and disruption of construction supply chain, ADB Country Director for Nepal Arnaud Cauchois added: “Following the review, MOF and ADB will agree on specific actions to overcome the challenges and we are hopeful that project implementation and disbursement will pick up pace.”

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ADB Country Portfolio Meeting

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/63720a149c7e80680e0b557fjpeg.jpg" alt="" width="1500" height="1000"/><figcaption>Photo: AMIT MACHAMASI</figcaption></figure>There is intense international diplomatic pressure for and against a <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">$500 million American project</a>, as Nepal’s main political players try to<a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/" target="_blank" rel="noopener noreferrer"> strike backroom deals</a> ahead of the 28 February deadline for ratification of the compact by Parliament.This being Nepal, lawmakers will be expected to go late into the night to vote. And if they still need more time at the stroke of the midnight hour on Monday, 28 February, they might argue that there is another 12 hours before it is midnight in Washington DC.Whatever happens in the coming days, by playing political ping-pong with the MCC Nepal’s leaders have damaged <a href="https://www.nepalitimes.com/latest/nepal-in-political-and-geopolitical-jam/" target="_blank" rel="noopener noreferrer">Nepal’s international reputation</a> and have come across to both the Americans and the Chinese as being untrustworthy, prone to playing petty party politics to undermine the country’s own national interest.The MCC is a bilateral United States foreign aid agency established by Congress in 2004 to help improve the economies of under-developed countries that have democratic safeguards. Nepal was the only other South Asian country besides Sri Lanka to be offered the grant to ‘maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India’.All agree that those things are needed. The problem has been that rivals of former prime minister K P Oli used his support for the MCC to bring him down, accusing him of selling out the country. It is no secret that <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">Beijing overtly opposed the American project </a>in Nepal, and has used the two Communist parties in the coalition government to reject it.The history of US aid to Nepal begins in the 1950s, and since then it has poured hundreds of millions of dollars into development projects, infrastructure and training. The MCC grant is a continuation of this involvement, and the reason it has become a <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">political hot potato</a> now is because the compact needs Parliament ratification. Ironically, that clause was added because of chronic political instability in Nepal.With growing Sino-US polarity on the global stage, the MCC grant has brought Washington and Beijing on a collision course in Nepal. China is a geopolitical influencer in Kathmandu, and has always been wary of Western support for Tibetan nationalism. The Communist Party of China (CPC) has maintained fraternal relations with Nepal’s Communist parties, and wants them united to reject the MCC.Read also: <a href="https://www.nepalitimes.com/banner/high-tension-in-nepal/" target="_blank" rel="noopener noreferrer">High tension in Nepal</a>, Rabin GiriA fierce power struggle since the 2017 election resulted in a three-way split last year in the once-powerful Nepal Communist Party. Oli’s UML is now in the opposition, while the Maoist Centre led by Pushpa Kamal Dahal and Madhav Kumar Nepal’s Unified Socialists are members of a five-party governing coalition led by Prime Minister Sher Bahadur Deuba of the centre-right Nepali Congress (NC).Deuba has been a vocal supporter of the MCC. So was his predecessor Oli who now sees the project as a wedge to <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">split the coalition</a> ahead of polls. It is an indication of just how high the stakes are that American Ambassador to Nepal Randy Berry met Oli on Tuesday, just weeks after the Chinese Ambassador Hou Yanqi also met him. The UML’s stance will be key to having the MCC passed, although the NC and smaller parties will have enough members for a simple majority if the Communist parties stay away.Democratic disarray in the US since 2016 and the rise of China have made Beijing more assertive in Nepal. China has been the largest source of foreign investment in Nepal for six consecutive years, it has provided large loans for Pokhara airport, and is negotiating another one for the Budi Gandaki dam. The Tibet Railway will arrive at Nepal’s northern border in Kerung by 2025, offering easier overland connectivity to the mainland.The MCC is seen by the Chinese as a direct challenge to its own <a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/" target="_blank" rel="noopener noreferrer">Belt and Road Initiative</a> of which Nepal is a signatory. But many have warned that Nepal might fall into a ‘Chinese debt trap’ similar to the one that has now bankrupted Sri Lanka after it rejected the MCC in 2019.Nepal’s two Communist parties in the coalition contend that the compact is anti-national, allows American law to prevail over Nepal’s law, and lawmakers will have insufficient oversight over the MCC board. They have successfully mobilised the social web to spread fear among Nepalis of American imperialist ambitions to counter China. Following the chaotic withdrawal from Afghanistan and past American misadventures in the Gulf, many on Nepal’s cybersphere say the country could face similar instability with greater American engagement.If Parliament fails to ratify the MCC by the deadline, it could impact not just US-Nepal relations, but also undermine the country’s international credibility, dependence on multilateral agencies, and even Nepal’s peacekeeping operations for which the Americans pick up the tabs.US Assistant Secretary Donald Lu is said to have pointedly warned Nepali politicians in a call this month that Washington would "review its ties with Nepal" if an agreement is not reached, although the US Embassy later clarified that it was up to Nepal to take the grant or not.Read also: <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/" target="_blank" rel="noopener noreferrer">To be or not to be on the MCC</a>, Anil ShahThe most direct consequence of the project being cancelled will be in building a crucial 400kVa transmission line along the Kathmandu-Butwal corridor to evacuate the estimated 3,500MW of electricity that the country will be generating by 2025. Nepal will have to build the transmission line possibly with Chinese loans, which will mean greater cost and further delays.The elephant in the room in all this is India, which has kept out of the debate so far. But it is watching warily since New Delhi and Washington are allies, and yet Nepal's prevarication is a signal of bending towards Beijing. India is Nepal’s biggest trading partner by far, and it will be watching out for Chinese inroads into Nepal’s infrastructure if the MCC is rejected.On the other hand, if the MCC goes ahead it risks China's ire. On 23 February, Chinese Foreign Ministry spokesperson Hua Chunying said Beijing opposes "coercive diplomacy" by the United States in Nepal.Hua added: "How can a gift be sent by an ultimatum? Is it a gift or a Pandora's Box?"In MCC-related posts on the Sina Weibo platform's comments call the MCC a ‘US trap’ and ‘a form of occupation’. Some comments go even further, calling the US a ‘colonist power’. Another post said: ‘Nepal is close to China, that's why the US wants to come here."With geopolitics heating up, Nepal now finds itself caught between two powers like Vietnam vis-à-vis the East China Sea, or the Ukraine crisis. However, Mongolia is an example of a country that has successfully negotiated the MCC despite being squeezed between Washington, Beijing and Moscow. Mongolia is using its $350 million MCC grant for a water supply project in Ulaanbaatar.Whichever way it goes, the MCC will be a tipping point in Nepal’s domestic politics and will have a direct impact on three levels of elections this year.Read also: <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium-2/" target="_blank" rel="noopener noreferrer">The message is the medium</a>, EditorialHoang Chu is a student at Pitzer in Nepal in Claremont, the United States.

It’s decision time

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141152/636d02bb9c7e80680e0a3698jpeg.jpg" alt="" width="3000" height="1668"/>The Millennium Challenge Corporation (MCC) Compact was signed in September 2017 between the US aid agency and the government of Nepal promising $500 million worth of funding, with Nepal matching another $130 million.Its stated objective is to ‘increase the availability of electricity and lower transportation costs —helping to spur investments, accelerate economic growth, and reduce poverty’. Over the last four years of contentious debate and polarising ideological arguments, it continues to await endorsement by Parliament.If endorsed, it will be the biggest grant aid Nepal has ever received and the MCC’s first such ‘compact’ in South Asia. <a href="https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/mcc-ball-in-nepals-court/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNEn9pZ2ftNIdRYkKF4uVeDFtcX2tg">MCC vice-president Fatema Z Sumar</a> and deputy vice-president Johnathon Brooks made a much photographed visit to Kathmandu, meeting senior political leaders from both ruling and opposition parties.What are the two sides to the debate?As in earlier debates on foreign aid, political and public arguments for and against the MCC have been <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNHCP2aK4ngIh6ls7tdgbqhTCLRHpw">polarised</a> between those who see it as a valuable investment in Nepal’s development, and those who view it as an expression of <a href="https://www.nepalitimes.com/opinion/sino-nepal-ties-in-the-post-afghan-era/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/sino-nepal-ties-in-the-post-afghan-era/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNHKeftS2HWq64fyZRKW769ovm4MJg">US geopolitical interest</a> in the region.It is difficult to ignore the fact that the MCC Compact coincides with <a href="https://www.nepalitimes.com/latest/nepal-stuck-between-rock-and-hard-place/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-stuck-between-rock-and-hard-place/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNFczIUC71Eb-Lo4-YdAkRlE_xuqQw">China’s global rise</a>, and its own massive programme for infrastructural investment through the <a href="https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/bri-and-trans-himalayan-connectivity/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNE537hynIdQB3W7k9FSrlePGF4bFg">Belt and Road Initiative (BRI)</a>.In Nepal, some view the MCC as a magic bullet to reduce poverty through economic growth and investment in infrastructural development. This view, whilst largely held by Nepal’s notable economists and policy advisors, ignores the wider political-economic context of the MCC.It also overlooks the fact that investments like MCC often produce unequal benefits and contribute to growing inequality. It tends to ignore the seven decade long history of foreign aid funded development in Nepal, which has not only failed to reduce inequality, but has further widened it — arguably contributing to increased corruption, as aid is often implicated in political patronage, benefitting some while excluding others.On the other hand, there are those who oppose the MCC as an expression of US hegemony and imperialism, and as effectively undermining Nepal’s sovereignty. In a country once described by Prithivi Narayan Shah as ‘a yam between two boulders’ (India and China), nationalistic sentiment and appeals to the need to defend sovereignty often triumph.This view considers the dangers of accepting this Compact as self-evident, and fails to even consider any possibility of positive change through aid funded development.Given the impasse, the Nepal government sent a letter signed by Finance Minister Janardan Sharma to the MCC on 3 September 2021 that contained <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/editorial/just-do-it/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNF8carBnFEfGpAbc7CrtEB2L673wQ">17 clarificatory questions</a>.Within five days, the MCC’s Vice President Sumar <a href="https://np.usembassy.gov/response-to-the-goverment-of-nepals-september-3-2021-letter-requesting-clarifications-on-the-mcc-nepal-compact/?fbclid=IwAR0spr_QApmzFFoBDNP3QLxzJ8MNfhdwsrXtyDwMBVXwSbjz09gNlgBLgJ4" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://np.usembassy.gov/response-to-the-goverment-of-nepals-september-3-2021-letter-requesting-clarifications-on-the-mcc-nepal-compact/?fbclid%3DIwAR0spr_QApmzFFoBDNP3QLxzJ8MNfhdwsrXtyDwMBVXwSbjz09gNlgBLgJ4&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNHD1ck0ZPXsZFxHdZGwZzG9Aq4EmQ">sent a reply</a> just before her arrival in Nepal. A few issues stand out: Nepal seems to seek assurance that MCC is ‘selfless’ and has no hidden objective, whether and how it is based on Nepal’s priorities, whether it contracts Nepal’s law and constitution, whether it undermines Nepal’s sovereignty, and assurance that it is not a part of the Indo-Pacific Strategy.There is a question on tax exemption, international remuneration and benefits, intellectual property, terms of withdrawal, audit, and whether and how it might impact Nepal’s relationship with other countries.To an observer, Nepal’s direct questions are more telling than the diplomatically toned answers offered by MCC. Yet, it is disappointing to see that this Q/A and the wider debate on MCC fail to engage with some of the most pertinent questions.What is missing?Very few of those involved in the debate over the MCC look at the political-economic context of Nepal in the contemporary world, or at the political economy of aid and development.Firstly, it would be naïve to think that MCC is a selfless investment by the United States. It is very much part of the developing contest between the US (possibly ‘the West’) and China. But this is an inevitable component of the dynamic of global capitalism, and not specific to the MCC. Nepal cannot avoid this.While the instrumental use of foreign assistance in the service of political, economic or military agenda is nothing new, it is increasingly met with domestic resistance in the form of nationalistic and sovereignty based discourses in countries like Sudan, Sri Lanka, Burma — even in Nepal that has been relying heavily on foreign aid since the United States made its debut in 1951.‘Donors’ have not only been criticised for promoting their interests, but also for undermining state sovereignty. One particular implication of such discourse, however limited it may be, is that although the aid is generally welcomed, ‘donors’ can no longer work without considering how their work is perceived locally.The declaration ‘we are here to help’ is no longer enough, as donor activities have important political consequences as well as a political rationale. Given the history of foreign aid and an overwhelming presence of donors as well as emerging systematic criticisms against donors, Nepal offers some insights on how aid is perceived locally and resisted on sovereignty grounds.Secondly, Nepal’s history of foreign aid shows that aid funded development has tended to benefit a minority of people in Nepal and has failed to reduce inequalities – arguably it has deepened them.The implied linear relationship between investment in infrastructural development on the one hand, and economic growth and poverty alleviation on the other, is misleading. Infrastructure is not neutral, it does not benefit all equally.Ever since the 1970s, studies made it clear that roads were not enough to promote development, and that transport infrastructure brought change that was more beneficial to some than others, deepened inequality and even disadvantaged some directly.The debate and critical scrutiny of the MCC should focus on who will benefit in Nepal and, more specifically, whether investment in the proposed infrastructure will benefit the poor. This is a fundamental question given that both vertical and horizontal inequalities have been key concerns in Nepal, and the questions of equality, dignity and rights have been central to the country’s progressive socio-political movements and transition since the 1990s.It is positive that the implications of agreeing to accept the MCC has been so widely debated. But the existing public debate has been largely misplaced, and misses the critical questions. While one side appears adamant to resist it on sovereignty grounds, the other seems complicit in ignoring the most important aspects of any development investment.<a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNFDV78GJJzzNLNZFV0Jn7PyAED0rw">Dr Jeevan R Sharma</a> is at the University of Edinburgh, and is author of many publications on migration, development and social change in Nepal.<a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/&amp;source=gmail&amp;ust=1632275354128000&amp;usg=AFQjCNFDV78GJJzzNLNZFV0Jn7PyAED0rw">Dr David Seddon</a> is Director of Critical Faculty, author and co-author of many publications on Nepal. Both are currently working on a book on the political economy of aid and intervention in Nepal.

Missing links in Nepal’s MCC debate

<figure><img width="1050" height="655" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4659c7e80680e073666jpeg.jpg" alt=""/><figcaption>Prime Minister K P Oli launching the sale of shares for the Trisuli B hydroelectric project in March 2019, the first in the government’s Nepal’s Water, Nepalis’ Investment initiative. Energy Minister Barshaman Pun is on the right. Photo: PMO</figcaption></figure>Nepal’s hydropower sector, already stymied <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-hydroelectricity-sector-gets-covid-19-shock/&amp;sa=U&amp;ved=2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAEegQIAxAC&amp;usg=AOvVaw0B_tYwmRm1tHBUVUnLifjc" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-hydroelectricity-sector-gets-covid-19-shock/%26sa%3DU%26ved%3D2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAEegQIAxAC%26usg%3DAOvVaw0B_tYwmRm1tHBUVUnLifjc&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNEMkbfjV65U5ipi9fjYZ4myWul1Bg">by decades of construction delays </a>and budget constraints, is seeing its flagship Nepal’s Water, Nepalis’ Investment initiative pushed back further due to this year’s destructive monsoon rains and the economic fallout of the COVID-19 crisis.The initiative was part of the government’s ambitious masterplan to generate 15,000MW in ten years from 21 hydroelectric projects, and raise the income of Nepali shareholders in the process.“Nepal will have an energy surplus and see its economy grow, while the projects will bring the public quick rewards and allow them to prosper as well,” said the Energy Minister while launching the initiative in March last year.  <figure><img width="1500" height="839" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4689c7e80680e073667jpeg.jpg" alt=""><figcaption>Some of the proposed projects under the Nepal’s Water, Nepalis’ Investment which will offer shares to the public to invest in: 1st row, left-right: Ghunsa Khola (72MW), Simbuwa Khola (70MW), Tamakosi-5 (96MW) Upper Trisuli 3-B (27MW). 2nd Row: Kimathangka Arun (482MW), Upper Arun (725MW), Ikhuwa (30MW), Arun 4 (372MW) 3rd row: Budi Gandaki Gwar Khola (60MW), Budi Gandaki Prok 1 (100MW), Budi Gandaki Prok 2 (240MW) Budi Gandaki A (75MW)</figcaption></figure>It was a bold target and a challenging task to sell shares to the public, but it was an attempt to make up for lost time on power projects delayed by the 2015 earthquake and the Indian Blockade. However, no one could have predicted that the country would face an even more serious crisis this year with the global pandemic.While landslides and flash floods this monsoon as well as the COVID-19 lockdown have taken a year off construction schedules, the global economic downturn is also expected to reduce the public's ability to invest in shares and attract foreign joint ventures in the hydropower projects. Even so, CEO Chhabiraj Pokharel of the Hydropower Investment and Development Company Limited (HIDCL) says the plan is to start construction on all 21 projects in the next four years so as to meet the intrim target of generating 3,500MW in five years.Despite his optimism, only one of the projects, the Upper Trisuli-3 (60MW), which went into operation in November, has been commissioned in the past year-and-half since the initiative was launched amidst much fanfare by Prime Minister Oli.The 111MW Rasuwagadi and 57MW Upper Sanjen are nearing completion, and have released shares to employees. Another project is halfway, but the other 14 have not gotten off the ground.  <figure><img width="1631" height="550" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba46b9c7e80680e073668jpeg.jpg" alt=""><figcaption>Rasuwagadhi Project site (111MW) on the Trisuli River, where construction has begun. </figcaption></figure>Even though many of these projects were delayed due to existing bureaucratic and technical hurdles, the government is blaming the COVID-19 crisis. Says Madhu Prasad Bhetuwal, convenor of the Nepal’s Water, Nepalis’ Investment initiative: “All the projects had been pushed back by six months already due to the COVID-19 crisis, and another six months because of the rainy season.”Nevertheless, the government’s plan is to begin construction on Upper Arun (725MW), Kimathangka Arun (482MW), Phukot Karnali (492MW), Tamakosi-5 (96MW), Chainpur Seti (201MW), and Jagadulla (157MW) as soon as the monsoon is over. Of these, Tamakosi-5 is putting shares up for sale to the public, now that its engineering and design work is complete. The modalities for the Rs33 billion Bheri-Babai Diversion Multipurpose Program are also complete. This project will irrigate 51,000ha in the eastern Tarai, while also generating 48.6MW of electricity. Five percent of the shares of this project will be open to local people, Karnali provincial government will have 20%, the project itself will have 26%, and the central government will have majority shares of 49%.  <figure><img width="1500" height="834" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba46e9c7e80680e073669jpeg.jpg" alt=""><figcaption>Bheri-Babai tunnel that will irrigate 51,000ha in the western Tarai, and generate 48MW of electricity.</figcaption></figure>The government’s plan is that 51% of the Nepal’s Water, Nepalis’ Investment initiative will be funded by the government, while 49% will have the public’s investment. Of this, 70% will be loan financed, while 30% will be paid for by investment in equities. Of that 30%, a little more than half will be bought up by the government while 49% will be public.Government agencies are also being directed to allocate funds for the initiative. The Employees’ Provident Fund, Citizens Investment Fund, HIDCL, Nepal Telecom, National Insurance Institute, Nepal Police, Nepal Army and the Armed Police Force have all been directed to invest Rs1-6 billion per year in the initiative. The total cost of the 21 projects is estimated to exceed Rs700 billion -- which is equal to more than half the annual national budget of Nepal. Banks and financial institutions have a 10% ceiling on hydropower investment in their total portfolio, and this is enough to only fund 50MW production every year. This means the most serious obstacle to the initiative will now be the funding crunch. This has been exacerbated by the fall in government revenue due to the pandemic, as seen in this<a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/&amp;sa=U&amp;ved=2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAFegQIARAC&amp;usg=AOvVaw0IyIrqaRrWGvlcvL74WQUS" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-unveils-covid-19-budget/%26sa%3DU%26ved%3D2ahUKEwjFu_bFg__qAhUF_XMBHfAqAvUQFjAFegQIARAC%26usg%3DAOvVaw0IyIrqaRrWGvlcvL74WQUS&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNF97_uq5VhqvzbTa4EA79zdsQsuyQ"> fiscal year’s budget.</a> The government could rely on foreign loans and multilateral creditors, but they are also affected by the global recession.Normal hydropower regulations only allow for shares to be released once construction is half-complete. Under the provisions of the initiative, shares and IPOs (Initial Public Offerings) can be released once 10% of project funding is used.  <figure><img width="600" height="677" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/2022110914110/636ba4759c7e80680e07366ajpeg.jpg" alt=""><figcaption>Construction site of the Upper Trisuli 3B (37MW), one of the projects delayed by the COVID-19 lockdown.</figcaption></figure>Convenor Bhetuwal says construction of the 21 hydropower projects were deliberately staggered, keeping in mind the rise in nationwide energy demand. He adds: “Generating 3,500MW at once will lead to a glut in the market, may overwhelm consumers and waste energy, that is why projects are going into production in a phase-wise manner.” This is a legitimate concern, because national demand for electricity has dropped during he lockdown, prompting Nepal Electricity Authority Director Kul Man Ghising to call out the government on its U-turn on encouraging demand for electricity consumption, <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/&amp;sa=U&amp;ved=2ahUKEwjm3tT5g__qAhWd8HMBHRiHBzkQFjAAegQIBRAC&amp;usg=AOvVaw1WVWH_378BaBmM7FzPie46" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-takes-3-steps-back-on-e-cars/%26sa%3DU%26ved%3D2ahUKEwjm3tT5g__qAhWd8HMBHRiHBzkQFjAAegQIBRAC%26usg%3DAOvVaw1WVWH_378BaBmM7FzPie46&amp;source=gmail&amp;ust=1596609376589000&amp;usg=AFQjCNHFj7LD-yfyCCJ0ZeVWqLFX6NH2zw">including a hike on e-vehicle taxes. </a>

Generating electricity (and cash) for Nepalis

<img width="1050" height="603" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141136/636bad529c7e80680e077f89jpeg.jpg" alt=""/>Already affected by years of construction delays, the expected increase in Nepal’s<a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/opinion/decentralising-hydropower/&amp;sa=U&amp;ved=2ahUKEwiPyeSb5M7qAhWfzzgGHXb1CbYQFjAAegQIAhAC&amp;usg=AOvVaw0AmUvu1OVzkySyzObKdjlg" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/opinion/decentralising-hydropower/%26sa%3DU%26ved%3D2ahUKEwiPyeSb5M7qAhWfzzgGHXb1CbYQFjAAegQIAhAC%26usg%3DAOvVaw0AmUvu1OVzkySyzObKdjlg&amp;source=gmail&amp;ust=1594890800618000&amp;usg=AFQjCNFkN7M3P6PBVCV3_VD2lzpQJO8zxw"> hydroelectricity generation capacity</a> is now going to be delayed because of the COVID-19 crisis as well as heavy flooding. The lockdown has also lowered demand for electricity because of the closure of factories, reducing revenue for power producers. Completion of 24 hydropower projects with a net output of 1,200MW is expected to be pushed back at least two years because of the lockdown. In addition, the half-complete Middle Bhotekosi (102MW) project site was seriously damaged by the 5 July flash flood in Jhambu of Sindhupalchok. The high flood waters and sediment load also forced the Nepal Electricity Authority (NEA) and private operators to shut turbines this week. The Kali Gandaki A (144MW) was closed on 10 July, and generation was reduced by 500MW, forcing NEA to import electricity from India.<a href="https://www.nepalitimes.com/here-now/the-cost-of-light/">The cost of light</a>, Om Astha Rai“Aside from the bureaucratic and other delays in project initiation, the lockdown and floods have delayed projects that would have started within the coming year,” says Shailendra Guragain of the Independent Power Producers Nepal (IPPAN).The Ministry of Energy says the losses from delays due to the lockdown to new projects in the past six months alone will amount to Rs13 billion, and even existing hydropower plants have not been able to operate because of the lack of maintenance, spare parts and transport of materials.Longer term projects worth 300MW are also stuck at the financial closure stage because of the pandemic. Then there are other private sector projects totalling 18,000 megawatts which are awaiting a Power Purchase Agreements (PPA) that are entangled in bureaucracy.  Private sector hydropower projects were expected to increase generation capacity by 12% this year, and that is unlikely to happen. Meanwhile, the clock is ticking on bank interests for loan repayment even as work has stopped in many of the projects.  Private sector projects have borrowed Rs750 billion for ongoing construction of plants to generate up to 3,000MW all over Nepal. There is commitment from banks for another R300 billion worth of hydroprojects in the pipeline. <a href="https://www.nepalitimes.com/here-now/an-energy-windfall-for-nepal/" target="_blank" rel="noopener noreferrer">An energy windfall for Nepal?</a>, Kushal Gurung“These costs of construction will now rise by an additional 15-20%, so there will likely be no profit margin for private producers,” says Guragain.All the projects under construction are run-of-river schemes, meaning they are not dams that store water in reservoirs. Energy Secretary Dinesh Ghimire says Nepal will soon face a shortage of power in winter when there is peak demand and low supply, and there will have to be a switch to storage projects.   In theory, a two-way system exists between the government and private sector under the PPA: the private sector receives compensation for any project delays on the government’s side and vice versa. Citing the unusual and urgent circumstances brought on by COVID-19, the private sector has been demanding compensation and relief from the government for project delays. Private power producers also want a two-year deadline extension for projects stalled by financial reasons, inspection and environmental impact assessment. Another demand is a 1% customs tariff on construction material instead of the current 5%.  <a href="https://www.nepalitimes.com/opinion/12-full-opinion/mustering-the-energy-to-save/" target="_blank" rel="noopener noreferrer">Mustering the energy to save</a>, Anil ChitrakarGuragain is critical of the government’s “neglect” of private producers who have been taking all the risks, but facing delays and obstacles at every step from government agencies. Now, on top of all that there is the lockdown and floods.“The private sector is indispensable to development activities and contributes significantly to the government’s kitty,” says IPPAN’s Kumar Pande. “The private sector also has a major role in the government’s ambitious target to generate 3,000MW in the next ten years.”There are now 90 private hydropower projects producing 618MW of electricity, while the NEA’s plants produce 572MW. On average about 110MW used to be imported from India to meet the shortfall before the lockdown reduced demand.  The pandemic has <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/nepal-power-glut-with-covid-19-shutdown/&amp;sa=U&amp;ved=2ahUKEwi2wIfj487qAhUezjgGHSiMBMcQFjAEegQIBBAC&amp;usg=AOvVaw29hDOy7uc7x8pneM8LmbKX" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/nepal-power-glut-with-covid-19-shutdown/%26sa%3DU%26ved%3D2ahUKEwi2wIfj487qAhUezjgGHSiMBMcQFjAEegQIBBAC%26usg%3DAOvVaw29hDOy7uc7x8pneM8LmbKX&amp;source=gmail&amp;ust=1594890800618000&amp;usg=AFQjCNGAglpPhq2pBii5M9DjcDPe4p0UCg">slashed demand for electricity</a> across the country, representing steep losses for the private sector and the Nepal Electricity Authority (NEA). Appeals to the government to introduce electricity-intensive policies, such as <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/&amp;sa=U&amp;ved=2ahUKEwi2wIfj487qAhUezjgGHSiMBMcQFjAIegQICBAC&amp;usg=AOvVaw3IUIaT_rn7x22GGahsO_D1" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/here-now/an-electric-shock-to-nepals-energy-future/%26sa%3DU%26ved%3D2ahUKEwi2wIfj487qAhUezjgGHSiMBMcQFjAIegQICBAC%26usg%3DAOvVaw3IUIaT_rn7x22GGahsO_D1&amp;source=gmail&amp;ust=1594890800618000&amp;usg=AFQjCNFeRaKsHVRtfh7llW7XImymK7s1ug">increased e-car usage</a>, have so far gone unanswered.Predicting a rise in <a href="https://www.google.com/url?client=internal-element-cse&amp;cx=011870630917993763279:opm7uqsat-4&amp;q=https://www.nepalitimes.com/latest/saving-energy-to-survive-post-pandemic-nepal/&amp;sa=U&amp;ved=2ahUKEwj_roqM487qAhUZyjgGHcb8Bb8QFjAEegQIAxAC&amp;usg=AOvVaw3iGubm1ayv_x6sS1rs4VwO" data-saferedirecturl="https://www.google.com/url?q=https://www.google.com/url?client%3Dinternal-element-cse%26cx%3D011870630917993763279:opm7uqsat-4%26q%3Dhttps://www.nepalitimes.com/latest/saving-energy-to-survive-post-pandemic-nepal/%26sa%3DU%26ved%3D2ahUKEwj_roqM487qAhUZyjgGHcb8Bb8QFjAEegQIAxAC%26usg%3DAOvVaw3iGubm1ayv_x6sS1rs4VwO&amp;source=gmail&amp;ust=1594890800618000&amp;usg=AFQjCNHwAapxl2GKa4DTMCp6VSXJTS6qig">consumption</a>, the government set aside Rs20 billion to purchase electricity from the private sector. However, figures from the Electricity Regulatory Commission show a decline in demand for private-produced electricity by 344 million units. Read also:<a href="https://www.nepalitimes.com/banner/from-a-fossil-past-to-an-electric-future/" target="_blank" rel="noopener noreferrer">From a fossil past to an electric future</a>, Om Astha Rai<a href="https://www.nepalitimes.com/latest/why-nepal-needs-to-restore-ev-tax-subsidy/">Why Nepal needs to restore EV tax subsidy,</a> Raunab Singh Khatri

Nepal hydroelectricity sector gets COVID-19 shock

https://www.youtube.com/watch?v=UIdbmBlnVZI&amp;feature=youtu.beNearly 25 years after it was first mooted, there is light at the end of the tunnel for Melamchi, Nepal’s biggest and most expensive infrastructure project that will pipe glacier water from Langtang National Park to Kathmandu Valley.The $800 million undertaking has been near completion several times, but government interference, corruption and extortion have taken their toll. The headworks construction is now half finished here at Ambathan 70km by road north of Kathmandu where the roar of the Melamchi River drowns out the sound of excavators that will allow the water into the tunnel.On Sunday, the project sent water 800m down the tunnel to its first adit tunnel as a test from the overflow reservoir at Ambathan. At this rate, project officials say the first Melamchi water could flow down to Melamchi by September.  They say 99% of the 26.5km long tunnel and the treatment plants at Sundarijal in Kathmandu Valley are complete.  Kathmandu <a href="http://nepalitimes.com/article/nation/Melamchi-flows-to-Kathmandu,3397">roads have been dug up</a> and used to be <a href="http://nepalitimes.com/page/every-breath-you-take-air-pollution">shrouded in a perpetual pall of dust</a> as new water mains were laid to distribute the water when it arrives. <a href="https://archive.nepalitimes.com/page/melamchi-coming-to-kathmandu">Melamchi not a mirage anymore</a>, Sonia Awale <figure><img width="1580" height="908" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac6f9c7e80680e077f30jpeg.jpg" alt=""/><figcaption>With 99% of the tunnel and the treatment plants at Sundarijal now complete it may be possible to send water to Kathmandu by September. All photos: SURENDRA PHUYAL</figcaption></figure>The new target date for consumers to actually get Melamchi water flowing through their pipes is late 2020, but even that could be delayed due to the COVID-19 lockdown. The Melamchi Water Supply Project is the largest infrastructure scheme in Nepal today, and with a $800 million price tag, including the future extension, the costliest as well. Its 26.5 km long and 3.7m wide tunnel in Phase 1 is the second longest tunnel for water supply in Asia.It is being built with a soft loan from the Asian Development Bank (ADB) and will bring 170 million litres a day to Kathmandu. A proposed Phase 2 of the project could also connect the Yangri and Larke Khola through two more tunnels and nearly triple the daily water flow (see map).The project has been plagued by chronic delays due to <a href="http://nepalitimes.com/issue/350/Nation/13560#.WMEfpPInLK8">political meddling</a>, the 2015 earthquake, the Indian blockade and most recently by the COVID-19 lockdown.  It was 2010 when a Chinese contractor finally started digging the tunnel but could only finish 6.4km in three years. It was  replaced by the Italian CMC di Ravenna company which took over where the Chinese had left off. The earthquake and blockade led to more delays. <a href="http://archive.nepalitimes.com/article/nation/dont-wait-for-melamchi-nepal,3765">Don't wait for Melamchi</a>, Tyler McMahon <figure><img width="1641" height="920" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109141132/636bac729c7e80680e077f31jpeg.jpg" alt=""><figcaption> </figcaption></figure>But the project could not meet its completion date of March 2018 because the government cancelled CMC di Ravenna’s contract, reportedly because it refused to <a href="https://www.nepalitimes.com/from-the-nepali-press/melamchi-delayed-by-government-extortion/" target="_blank" rel="noopener noreferrer">pay extortion</a> to bureaucrats in Singha Darbar. China’s SinoHydro then took over, and had been rushing to catch up with the schedule when the COVID-19 lockdown hit.  Contrary to popular belief, the water will not be gushing through the tunnel. In fact, it has a gradient of only 8m between the intake in Melamchi and the outlet in Sundarijal giving it a water velocity of only 0.5m/second which means it will take 45 hours for the water to complete its underground journey.  This is the monsoon, and the water flow in the Melamchi makes it a raging torrent. However, in the dry season flow goes down to 2.4 cubic meters per second (cumec) of which only 2 cumec of water will be diverted into the tunnel. There are 1.5 km of access tunnels located near the intake in Ambathan, in Gyalthum and Sindhu.  On 5 July, the first water was let into the tunnel amidst a religious ceremony. Tiresh Khatri of the Melamchi project said: "This is a milestone, we will be doing more tests and hopefully water will reach Kathmandu by September."However, engineer Shekhar Khanal said there still a lot of unfinished work that will take months. His estimate for water to reach Kathmandu: early 2021. <p style="letter-spacing: normal; margin: 0in 0in 8pt; padding: 0px; border: 0px; outline: 0px; font-size: 11pt; font-family: Calibri, sans-serif; vertical-align: baseline; line-height: 15.693333625793457px;">Read also: <a href="http://archive.nepalitimes.com/article/nation/renew-commitment-to-preserve-ancient-water-spouts,2931">Going with the flow</a>, Liew Yu Wei

Light at the end of the Melamchi tunnel

Nepal’s only international aviation gateway, at Kathmandu airport, will cut night-time operation hours to allow construction of taxiways, and airlines have been told to curtail flights. This is expected to lead to more than normal chaos during the height of peak autumn and spring tourist seasons at an airport that is congested even at the best of times. The airport will close from 10PM to 8AM from 8 November-31 March 2025. The taxiways will now connect to the thresholds at both ends of the runway, making the airport more efficient in handling higher frequencies of landings and takeoffs. The parallel taxiway extension will allow international flights to land every 4 minutes instead of the current every 7 minutes. At present planes have to wait to land until a plane taking off backtracks along the runway.&nbsp; Kathmandu is Nepal’s only airport with international operations, and it has only one runway that is only one way in from the south over the mountains. With the taxiway improvement, the airport will be able to handle 42 aircraft landings and takeoffs per hour — double the current capacity.&nbsp; The Civil Aviation Authority of Nepal (CAAN) has been trying to entice international airlines to also start flying to and from the other two international airports at Pokhara and Bhairawa (Lumbini) by slashing landing and handling charges. But so far only Nepal Airlines operates a weekly flight to Bhairawa from Kuala Lumpur.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32.jpg" data-media-id="editor_0" data-image-id="20241018161016_046569e53d1d66cd445cc66c697c0ef724810aec9f54bdf827481e3cd6b80c32" data-rendition-name="original" width="2356" height="1134" loading="lazy" alt="Kathmandu airport expansion"> <figcaption>Kathmandu Airport Expansion plan with extension of taxiways to the thresholds of runways 02 and 20 that will limit airport operations from 8 November 2024 - 31 March 2025. Areas in blue are existing structures, including the international terminal which in future will be the domestic airport, and the new international terminal near the north end of the runway,</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a.jpg" data-media-id="editor_1" data-image-id="20241018121028_6e17cc2ee87c1b02d78cb54905825b7aa15299b7a00f5eddb01a59579ab85c1a" data-rendition-name="original" width="1353" height="1328" loading="lazy" alt="Kathmandu airport NT"> </figure>  CAAN has reportedly told international airlines to cut their flight frequency to Kathmandu citing the shorter operation hours and has told budget airlines to shift some of their flights to Pokhara or Bhairawa, or face cuts. Many airlines currently operate regular flights to and from Kathmandu between 10PM and 8AM: Air Arabia to Sharjah, Fly Dubai to Dubai, Jazeera Airways to Kuwait, Cathay Pacific to Hong Kong, Singapore Airlines, several Nepal Airlines flights, and one of four daily flights by Qatar Airways to Doha. Jazeera Airways, FlyDubai, and Thai AirAsia have applied and got permission from CAAN to begin regular flights to Bhairawa’s Gautam Buddha International Airport. Starting 9 November, FlyDubai will start making a stopover in Bhairawa before flying on to Kathmandu. Immigration, customs and security are all fully functional in Bhairawa. In Kathmandu, the next phase of the airport upgrade includes converting the current international terminal for domestic operations, the construction of a new international terminal where the domestic departure area is now, as well as moving the hangars and the Nepal Army Air Wing to the eastern side of the runway. The apron area will also double its parking space for widebody jets. This is part of a Airport Capacity Enhancement Project that was initially funded through a $80 million loan from the Asian Development Bank (ADB), and the entire masterplan is expected to cost $800 million. This project is the latest upgrade to Nepal’s only international airport since it saw its first flight in 1949. The current international and domestic terminals are too small to handle the current annual traffic volume of 8.5 million passengers a year that is growing at 20% a year.

Kathmandu airport to cut flight hours

As Kathmandu becomes more congested and polluted, and with remote online work becoming the norm, many professional Nepalis are planning to retire in Pokhara, or move there.&nbsp; With its stunning mountain panorama, balmy winters and proximity to a profusion of wilderness areas, builders are responding to this demand with new townhouses, housing development and apartments. One such block of flats is the 10-storey <a href="https://sungavaapartment.com/">Sungava Apartment</a> located at Phulbari above the Seti River, near the point where it flows into and under Pokhara. The imposing structure near Manipal Hospital is almost complete, and on a recent visit the site was strewn with huge boulders unearthed while digging the foundation.&nbsp; The Seti brought down these boulders during a gigantic flood that geologists estimate happened 800 years ago when a chunk of Annapurna IV broke off and ploughed into the glacier below. Today, Sungava (means ‘orchid’) sits safely on a high terrace, 100m above the blue-green Seti and commands a view of Dhaulagiri, Annapurna South, Machapuchre, Annapurna III and IV.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9.jpg" data-media-id="editor_1" data-image-id="2024102411104_5f8fc736c86ea3c08d7bef43bb727081d3cc1a2caa55ae2b441717e6044de7e9" data-rendition-name="original" width="2016" height="1512" loading="lazy" alt="High living below the Himalaya NT"> </figure>  The soil here is conglomerate that has solidified like concrete, and the boulders were extracted by heavy earthmovers. It is intriguing to think that these metamorphic rocks as big as cars, rounded by glacial grinding, were once a part of a much higher Annapurna IV. Even for those with little interest in geology, Sungava is an ideal place to contemplate the tectonic forces that pushed these peaks into the sky to be sculpted into delicate shapes by wind, snow, earthquake and avalanche over millions of years. The view of the Himalayan panorama from Sungava’s many balconies are breathtaking when not obscured by clouds, or the haze that drifts in from across the southern border. On most days, just watching the towering pyramid of Machapuchre (Tamu name: कतासुँ क्लिको) play hide and seek with the clouds is mesmerising. There are rocks aplenty at Phulbari, and it is probably the flowers that grew along the flat terraces e that gave the place its flowery name. The boulders will hopefully be turned into a rock garden while landscaping. An nearby restaurant complex is making the best use of the stones in its design, using flat rocks as outdoor benches and tables. Sungava was designed by the husband-wife architect team of Deepak Sherchan and Jyoti Joshi of <a href="https://thedarkmermaidamarbshrestha.blogspot.com/2013/12/creative-builders-collaborative-cbc.html">Creative Builders Collaborative (CBC)</a>, which also built Heritage Plaza, Indreni Apartment and numerous other projects in Nepal. Sadbhavana retains CBC’s trademark Newari-style masonry and here it borrows from the orange brickwork of the old town of Pokhara, integrating it with modern design elements. A few of those heritage houses are still standing in Ganesh Tole and Ram Krishna Tole in Pokhara’s old quarter.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab.jpg" data-media-id="editor_3" data-image-id="2024102411108_5eb64a4885961b6d30781cefeb1e8a313da313ac5227c7a66b60f0c7d48d6fab" data-rendition-name="original" width="1362" height="595" loading="lazy" alt="High living below the Himalaya NT"> </figure>  About 400m from the apartment past a bend on the river, and down below three tiers of terraces in the canyon is a suspension bridge. Below it, the Seti is still swollen with post-monsoon flow as it tumbles away in a hurry to head down south.&nbsp; Back at the apartment, it is quiet, far away from the hubbub of Lakeside a 15 minute drive away, and in the lap of greenery. There are 52 units at Sungava and it already has a close-knit prospective community of professionals, including doctors, publishers, engineers, and businesspeople from the renewable energy and IT sectors.&nbsp; Some residents say they opted for a second home in Pokhara to make it a ‘base camp’ to explore the Annapurnas with its many hiking trails made newly accessible with new roads. With the NRN citizenship law, overseas Nepalis can now also buy the flats. &nbsp; The floor plans include options for north and south-facing 3-bedroom apartments with verandas, and the facility has underground parking has EV charging, heated pool, sauna and gym. There are still some unsold apartments with panoramic views of the mountains and one can imagine oneself at the kitchen with its huge window, humming a ditty while preparing breakfast: “खाना पकाउँ हिमाल हेरेर...”

High living below the Himalaya

When the United Nations held its Summit of the Future at its headquarters in New York in September, many world leaders, including Nepal’s Prime Minister K P Oli, highlighted the effect of climate breakdown in increasing the frequency and intensity of natural disasters. What did not get as much attention was the long term impact of the climate crisis on food production. In fact, heat stress, weather extremes and the consequences on rain-fed agriculture is already being felt worldwide, undermining the chances of the <a href="https://unstats.un.org/sdgs/">UN’s Sustainable Development Goals (SDGs)</a> being met by 2030.&nbsp; The SDG’s 17 targets commit countries like Nepal to reduce poverty and inequality, end malnutrition, protect the natural environment, and ensure that citizens all enjoy health, justice and prosperity without leaving anyone behind.&nbsp; However, besides the impact of climate breakdown on agricultural production, in Nepal the area under cultivation is impacted by urban expansion, falling productivity and the need for expensive inputs like fertiliser and pesticides.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62.jpg" data-media-id="editor_1" data-image-id="20241019041052_626413c5baf4dae407ac9579231b41daeb51510aa636b75aeb7489d94cca6a62" data-rendition-name="original" width="999" height="1500" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Kathmandu's urban sprawl is eating into its fertile cultivable lands. Photo: TAYLOR MASON</figcaption> </figure>  Now, a new study led by Nepali researcher Prajal Pradhan at the University of Groningen in The Netherlands looks at how urban agriculture may offer a solution to falling food production and meeting SDG targets. The researchers evaluated 1,450 publications exploring the contributions of urban agriculture with both positive and negative effects, and published their findings in the journal Cells Report Sustainability. Urban agriculture can help achieve 17 SDGs, positively influencing 81 targets. However, it could also undermine 51 goals.&nbsp; Read also: <a href="https://nepalitimes.com/here-now/the-vanishing-land">The vanishing land</a>, Taylor Mason “Urban agriculture offers immense potential for sustainable development, but realising this potential depends crucially on adopting practices that minimise its adverse effects while maximising its benefits,” Pradhan explains. Urban agriculture can substantially enhance urban food security, provide employment to the urban poor, serve as ground water recharge in built-up areas, and preserve open spaces that can serve as safe havens during disasters like earthquakes. However, it also presents problems like the potential health risks from contamination and the need for expensive inputs. &nbsp; “Urban agriculture plays a definitive role in advancing the SDGs, but achieving this requires tailored, context-specific solutions that address the unique challenges of different regions,” says Yuanchao Hu of Wuhan University in China and who is a researcher at the Potsdam Institute for Climate Impact Research. “But it needs equitable access and rigorous management of environmental risks.”&nbsp; Rapid urbanisation is eating into Nepal’s most fertile agricultural land, which means farming in remaining open spaces inside cities can be a viable alternative, especially as food prices rise.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8.jpg" data-media-id="editor_3" data-image-id="20241019041052_7b7c9413086226fbdc630d45acf772cfa1ced77a8970b9056ec5ec7e5226fdf8" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>A vegetable patch in between new houses in Thimi. Photo: TAYLOR MASON</figcaption> </figure>  “The conversion of Nepal’s most fertile land into cities is a severe problem,” Pradhan told Nepali Times. “Crop cultivation, horticulture, agroforestry, beekeeping, livestock rearing, or aquaculture can all be farming activities within and around cities.”&nbsp; The study makes recommendations for sustainable practices that build on the positive aspects of urban agriculture while mitigating the downsides, thereby promoting more resilient cities in future. Research shows that urban agriculture has been helping many countries attain SDG targets by enhancing food security and biodiversity while helping education and preservation of open spaces.&nbsp; Indeed, many farmers from the hinterland who have settled in Kathmandu Valley or other urban areas of the country have been practicing urban agriculture, leasing neighbourhood patches or cultivating roof gardens both out of necessity because of inflation and falling income to grow their own food, and also as a fulfilling hobby. Saurav Dhakal, a sustainability advocate with Story Cycle and now research fellow at the Asian Institute of Technology in Thailand, says there are socio-economic and environmental benefits of urban agriculture. “It provides benefits to all urban dwellers, regardless of their income status,” says Dhakal, “families get fresh food, and there are many other benefits like water retention, heat regulation and biodiversity. These are all public goods, so special government incentives may be needed.” It is not unusual to see vegetable patches and even paddy fields within inner city Kathmandu where an older generation of farmers are using available fertile land and <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/rooftop-gardens-kathmandu,1415">roof gardens to produce fresh, nutritious food </a>to reduce their dependence on food items that have to be bought after being trucked in from large distances.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77.jpg" data-media-id="editor_5" data-image-id="2024101905100_1291ce98dbbb8caed8702ac4b1d469b3e13016d7ecaaf3bfd5f91c974d3c0c77" data-rendition-name="original" width="1500" height="999" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>An older generation of farmers are using any available fertile land to continue farming but it is getting more and more difficult. Photo: TAYLOR MASON </figcaption> </figure>  Nepal’s urban population grew rapidly from only 3.6% in 1991 to 25% today. There is large outmigration from the mountains to peri-urban areas of the Tarai, to Kathmandu Valley and Pokhara, with many young men then moving abroad for work. Kathmandu Valley’s population has swelled to nearly 3 million, and is growing at 6.5% a year. Dilip Shrestha, 71, used to work for Nepal Food Corporation, so he knew firsthand about inflation, shortages and vegetables with pesticide residue. So, when he designed his new house in Kathmandu, he built a spacious roof where he grows cucumber, ginger, garlic, coriander, onions, tomatoes, chili, beans, okra, pumpkin and lettuce. His family eats healthier, and he has reduced dependence on the market.&nbsp; The co-author of the Cell Reports Sustainability journal article, Daya Raj Subedi who is a PhD candidate at Beijing Forestry University, says urban agriculture also promotes inclusion and psycho-social wellbeing.&nbsp; He says, “A crucial finding of the study is the identification of opportunities and challenges associated with urban agriculture, it can promote sustainable transformation of society.” In Banepa, 55-year-old Bijaya Manandhar in her lifetime has watched the fertile farms of her neighbourhood that used to supply vegetables to Kathmandu, now completely built up with no open space left. The pandemic lockdown prompted her to turn to the family’s <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world">ancestral livelihood by growing food</a> not on terrace farms, but on the roof terrace. Manandhar is now a part of <a href="https://nepalitimes.com/banner/rooftop-agriculture-on-the-roof-of-the-world%5C%5C">कौसी खेती र करेसाबारी क्रान्ती</a> (Rooftop Farming and Garden Revolution) which has an online membership of 52,000, and awards annual prizes to women who excel in urban agriculture.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d.jpg" data-media-id="editor_8" data-image-id="20241019041052_7257f5def8f823f35a799fa6f6825e153f2ffa406ac11325d4fe74049b79e96d" data-rendition-name="original" width="1600" height="736" loading="lazy" alt="urban agriculture in Kathmandu"> <figcaption>Rooftop farming is gaining popularity as a form of urban agriculture. </figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed.jpg" data-media-id="editor_9" data-image-id="20241019041052_beff1a4494ce896dd8fd383ee1f518e5448bcf7ea8bb138255391c7bcb9769ed" data-rendition-name="original" width="4000" height="3000" loading="lazy" alt="urban agriculture in Kathmandu"> </figure>  Pradhan says the challenge now is to upscale such examples of successful urban agricultural practices so they support Neal’s efforts to meet SDG targets. He adds, “Crop cultivation around cities can be protected by land use plans and regulations. Promoting community-based agriculture, including rooftop gardens, requires community engagement and public-private partnerships across the food value chain.”&nbsp; Such support would accelerate the popularity of existing rooftop farming and community gardens in Kathmandu Valley, or kitchen garden initiatives in Pokhara, and building on traditional farming practices that are preserved and integrated into urban settings like in Bhaktapur and Banepa. In Lalitpur, the Women Entrepreneurship Facilitation Center promotes urban farming enhancing both sustainability and empowerment.&nbsp; Another co-author of the report, Yuanchao Hu from China says followup research of the team will aim to identify good practices in local urban agriculture practices. He adds, “There are examples of urban agriculture that optimise sustainability, ensuring that it remains a viable solution for cities globally while countries try to meet SDG targets.” Prajal Pradhan, Daya Raj Subedi, Kshitij Dahal, Yuanchao Hu, Prakriti Gurung, Sijal Pokharel, Sagar Kafle, Biplav Khatri, Sudeeksha Basyal, Monika Gurung, and Aruna Joshi. Urban Agriculture matters for sustainable development. Cell Reports Sustainability, 1:100217, 2024. [DOI: 10.1016/j.crsus.2024.100217] Prajal Pradhan (<a href="mailto:p.pradhan@rug.nl">p.pradhan@rug.nl</a>) 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/20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758.jpg" data-media-id="editor_14" data-image-id="20240630110640_30c3782f9c09219bf1c249b51483a3cfb7a53a06d117d2aebd23ca7080d12758" data-rendition-name="original" width="680" height="103" loading="lazy" alt="SDG logo"> </figure>

Back to the land in the cities

The 700-year-old Lakshmi Narasingha temple in Bhaktapur houses a rare half-lion and half-human incarnation of Lord Vishnu carrying the Goddess Lakshmi. The temple was destroyed in the 1934 mega earthquake that killed 10,000 people and destroyed many monuments in Kathmandu Valley. It was rebuilt by a German project in the 1980s, but as a single-storey structure instead of its original two-tier pagoda design.&nbsp; With new findings from in-depth research, Bhaktapur municipality began re-restoring the temple in 2021, preserving its original architecture.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18.jpg" data-media-id="editor_0" data-image-id="20241017131016_2fae38cce543ad7b1f6de632feb3e212e08ed1acedd747830e949d7b8e878f18" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “Our temples and heritage sites hold deep meaning. It is disheartening to witness how often they lose their original elements, whether by design or accident,” explains Kumar Chawal of the Consumer Committee of Bhaktapur. “There is a need to preserve our architecture and protect its historical value for future generations. Otherwise, we risk losing a vital part of our identity.” The Laksmi Narsingha restoration is similar to the Bhai Dega temple in Patan Darbar Square which also collapsed in 1934, but was rebuilt with a Moghul-style dome by the Rana government at the time. Only two months before the 2015 earthquake, heritage conservationists had started to rebuild Bhai Dega as the original three-tier based on early photographs. But priorities shifted when four other temples in the square were brought down by the 7.8M earthquake on 25 April 2015.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130.jpg" data-media-id="editor_1" data-image-id="20241017131016_697ea707d9ad163be5de5f2efbf5b70d3cab771adcc22f0fae6bf937c6cb0130" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  This showed how damage to monuments in Kathmandu Valley spanned from one earthquake to the next. Bhai Dega restoration remains half-complete to this day because money for its restoration ran out.&nbsp; Whereas Bhai Dega restoration was done by the Kathmandu Valley Preservation Trust with grants from western embassies and international foundations, in Bhaktapur it is the municipality itself that allocated the Rs30.7 million needed to restore the Lakshmi Narasingha temple. The expected date of completion is early 2025. The municipality and local communities are focusing on two main aspects: preserving the past and promoting localisation. The restoration team has designed a blueprint for the temple by using historical photographs and insights from older generations.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30.jpg" data-media-id="editor_2" data-image-id="20241017131016_182882fdc393c99e70d1d0490319e415229563666c4934e3a582426ebf00ca30" data-rendition-name="original" width="1200" height="560" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “At first, the Lakshmi Narasingha temple had only one entrance, but during the demolition process, we uncovered the foundations of four doors. Now, we are restoring all of them. This is an example of how our ancient structures have changed over time, often without our knowledge,” says Chawal. “Constructing temples is not like building houses. They carry historical and spiritual values, which is why they hold a special place in our hearts,” he adds. By replicating ancient design elements and rebuilding the temple as accurately as possible to its original form, the team has stayed true to Bhaktapur’s soul. But the restoration also revived ancient techniques that were in danger of being forgotten, generating employment for woodcarvers, masons, and contractors. The community of Bhaktapur’s Gahiti neighbourhood near the famous Nyatapola Temple has also set aside specific days for locals to volunteer in the reconstruction work. This has encouraged young people to take pride in ownership of their heritage. Families have also supported the effort by donating funds for bells, the temple pinnacle, and other structural features to the temple.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6.jpg" data-media-id="editor_3" data-image-id="20241017131016_db850ec0c084cdbe54f65bee92dad2ad8122d20fd60ec87ec086fbb9d2f72bd6" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="In with the old in Nepal NT"> </figure>  “I feel at peace knowing I have contributed my sweat to restoring this temple,” said one volunteer. “It is our duty to preserve our temples and heritage. The Nyatapola area will look magical once this temple is completed.” Community mobilisation is a long-standing tradition in Bhaktapur. In the past, locals have actively participated in the restoration of other temples in the city, such as Bhairav and Nyatapola fostering a strong sense of ownership. This collective engagement has not only been crucial in preserving the city's historical monuments but also in strengthening the bond between local communities and their heritage, says officials at the municipality. While securing funding is essential, and the municipality showed it values heritage conservation, the Lakshmi Narasingha restoration is proof that active involvement and sense of responsibility of the local community is as important, if not more. Local involvement also means that the monuments will be cared for into the future, When locals take ownership of these efforts, the restored monuments are not only protected in the present but are also cared for in the future.

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