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

Fenerbahçe Beko won the Turkish Airlines EuroLeague finals in Abu Dhabi, held 23-25 May, defeating Monaco 81-70 in the final. Olympiacos, who defeated Panathinaikos 97-93, finished the series in third place. The Most Valuable Player (MVP) of the final match, Nigel Hayes-Davis from Fenerbahçe Beko, received a prize of 1,000,000 Miles&amp;Smiles from Turkish Airlines’ Chief Commercial Officer Ahmet Olmuştur. The carrier has been the title sponsor of the Turkish Airlines EuroLeague, a top tier tournament, since 2010.

Turkish Basketball

Thousands of Nepali students dreaming of an American education have been forced to look elsewhere as the Trump administration’s visa restrictions make their future uncertain.
The US was long considered a top destination for higher studies, making Nepal the 10th biggest country of origin for international students in America.&nbsp;
However, that number has seen a significant decline with the total for Nepali students now at 16,482. Some 8,000 Nepali students obtained no-objection certificates to study in the US from the Ministry of Education in the past year.&nbsp;
India, Australia, Canada, South Korea, United Kingdom and Japan are the other popular destinations for Nepali students. There are no clear numbers for Nepalis going to India, but a slight decline was noted this year after the deaths of two female students.
The US State Department has issued a circular to its embassies not to issue new visas to applicants until further notice. US Secretary of State Marco Rubio in the directive stated that the department planned to expand the screening of applicants' social media.&nbsp;
While new applicants are barred including those applying for visitor visas, students with scheduled interviews are allowed to proceed.
“Many of our students are affected by the new restrictions, but those who had applied for student visas earlier have got interview dates,” one Kathmandu-based college counsellor told us.
Meanwhile, even foreign students with spotless records already in the US have not been spared, as visa scrutiny intensifies under the new policy. In a move that underscores the growing sense of insecurity, many US colleges advised international students to carry their passports and documents at all times, even when traveling locally.
“Me and my friends did not go home this summer because we were not sure we would be allowed back, so we just went to Niagara Falls,” said a Nepali undergrad in Ohio, who like many interviewed for this report did not want her name used for fear of repercussion.
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Nepali students have adopted a cautious stance, with many choosing not to return home during summer vacation due to fear of visa revocations as well as travel bans. Meanwhile, over 7,000 Nepalis with Temporary Protected Status (TPS) will have to come back to Nepal by 5 August or face deportation. Thirty-seven were flown back to Kathmandu on Omni Air last week.
“The US is one of the most sought-after destinations for higher education, and the ban will definitely impact bright students,” says Narottam Aryal of the King’s College in Kathmandu.
Indeed, Nepali undergraduates admitted into Ivy League colleges for the 2025 academic year have been asked to look for alternatives. The entire Fulbright Foreign Scholarships Board resigned on Wednesday citing interference from the Trump administration on the selection of this year’s cohort. Some Nepali students already on Fulbright scholarships have noted disruptions, delays and even cancellation of stipends.&nbsp;
The student visa restrictions were initially just for foreign students admitted to Harvard University, but it was later extended to all Chinese students and now to all students. Universities like Columbia which actively recruit foreign students, face sharp enrolment declines, threatening their financial stability and diversity.
An Indian female PhD candidate at Columbia University had her visa revoked by the US State Department, and said she was targeted on the basis of her social media posts on Israeli military attacks in Gaza. Social media vetting of political activism has raised concerns about privacy and freedom of expression in a country where such rights were a given.
Many students have been informed via email that their visas have been revoked for getting speeding or parking tickets, but even others with no criminal record have been affected. The fear of deportation looms large amongst international students, including those from Nepal.&nbsp;
For most Nepalis who migrate to the US for education, the journey is a high-stakes investment. They come largely from middle-class families, often rely on a patchwork of scholarships, work-study programs, loans, or even the sale of family assets to afford fees.
Most Nepali students pursue STEM subjects which offer extended Optional Practical Training (OPT) periods that help fund their education. But with the US backsliding on education and humanitarian matters, countries like the UK and Canada are becoming more attractive despite their own recent stricter controls on student visas.&nbsp;
The UK universities saw a 63% rise in Nepali students’ admissions in 2024. Japan is another popular destination with 64,816 Nepali students enrolled as of 2024.
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Already, China, Hong Kong and Malaysia are poised to benefit from the increased scrutiny of US student visas. Several Hong Kong universities are offering unconditional admission to affected students, while Malaysian institutions are targeting previously US-bound Asian students. China and India have 330,000 and 280,000 students respectively in America, but the numbers for China have seen a sharp drop in the past year.
Elsewhere, branch campuses of American institutions such as NYU in Abu Dhabi, Georgetown in Dubai and Northwestern in Doha are getting more admission applications, and universities in the Gulf region are expanding infrastructure to accommodate those who would otherwise have gone to the US.&nbsp;
Even educational institutions in Nepal are hopeful that the US visa restrictions can be an opportunity to at least keep Nepali undergrads in Nepal, and also attract foreign students from the region.&nbsp;
“Many students might choose to complete their undergraduate degree here in Nepal and then move abroad for their Master’s degree later,” says Aryal of King’s College. “There was a need for quality higher education in Nepal anyway in terms of innovation and opportunities, so this could be the time to reduce our dependence on other countries.”
Nepal’s strategic position between India and China makes it sensitive to US policy shifts. India, a key ally, is also under US scrutiny for potential student travel restrictions. Chinese universities are already offering more scholarships to Nepali talent to capitalise on the US retreat.
American universities have challenged student visa restrictions in the courts. A federal court in Boston revoked the blanket ban on Harvard, and the State Department has ordered the resumption of processing student and exchange visitor visas.&nbsp;
Some are still hoping that President Trump will backtrack on the student visa restrictions, just like he has done with many of his more drastic executive orders.
Even so, the visa see-saw and longer-term uncertainties about living in the United States and its education system means students across the world are making alternative plans.
Says Aryal: “Policies of foreign countries change according to their needs, so excessive dependence was never a good idea. We should work to create different opportunities and choices of higher education within Nepal, so students are retained.” &nbsp;

America no longer prime destination for Nepali students

While Nepal was hosting the Sagarmatha Sambaad international climate conference in Kathmandu this month, on Mt Everest it was pretty much business as usual.&nbsp; The signs of climate breakdown are all there: a river now runs through Base Camp in summer, the Khumbu Icefall is more unstable, and there are more &nbsp;frequent avalanches. When expeditions arrived in March, the mountains were bare: it had not snowed since September, but then blizzards dumped unseasonal snow in May. And despite climate worries, such is the pull of Himalayan mountaineering that the Everest Industry showed no signs of slowdown. More than 600 international climbers and their Nepali guides had made it to the summit of the world’s highest mountain. At one point there were an estimated 2,000 people in the tent city on the Khumbu Glacier. All the ropes and ladders on the Icefall came down on Thursday, marking the official end of the spring climbing season, and just in time to avoid a monsoon cyclone approaching from the Bay of Bengal. It has been an action-packed season. One factor could be that Everest fees will go up from September: each foreign climber needs to pay a $15,000 royalty, up from the present $11,000. The cost for a Nepali climber on the South Col route will also go up: from Rs75,000 to Rs150,000.&nbsp; The fee to climb Everest in autumn is $7,500 (up from $5,500), but most climbers still prefer spring. Winter permit fee (December-February) is only $3,750 per person and the mountain is now also open for monsoon (June-August) climbs, when the fee is ever lower at $2,750. The revised rule also makes it mandatory for every two climbers on an 8,000m peak to hire one Nepali mountain guide.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025053004050_67f856fe52714e4bdcf21ae7d45c6f18c82117b9d0a5f73ed1efa04c96de1046.jpg" data-media-id="editor_0" data-image-id="2025053004050_67f856fe52714e4bdcf21ae7d45c6f18c82117b9d0a5f73ed1efa04c96de1046" data-rendition-name="original" width="931" height="732" loading="lazy" alt="The Everest Industry graph 1"> </figure>  In addition, climbers also have to pay for porters and guides, equipment, Base Camp costs, Ice Fall and fixed rope team fees, so climbing Everest does not come cheap. But such is the draw of climbing the world’s highest peak that some say the increased fees will not diminish the crowds next year. The government has tried to spread expeditions out to other seasons and other 8,000ers, but with not much success. Earlier this year, Nepal unilaterally increased the number of 8,000m peaks to 14 by adding six more sub-summits to broaden the choice for climbers. Added were: Yalung Kang (8,505m), Yalung Kang West (8,077m) &nbsp;Kangchenjunga Central (8,473m), Kangchenjunga South (8,476m), Lhotse Middle (8,410m) and Lhotse Shar (8,400m).&nbsp; The announcement could go against the accepted topographic criteria that a stand alone peak has to be at least 300m higher than an adjoining prominence, and at more than 3km isolation from it. The UIAA (Union Internationale des Associations d'Alpinisme) still recognises only 14 mountains as eight-thousanders, and only eight of those are in Nepal, or on the border with China. Nepal’s revised mountaineering regulations also increased the insurance coverage of high-altitude workers to protect porters and high altitude guides who usually take more risks on the mountains. Rescue teams and clean-up campaigners to collect trash and remove bodies of dead climbers up to Camp IV of Mt Everest do not need permits.&nbsp; The Sagarmatha Pollution Control Committee is now using drones to fly down trash in 20kg sacks. Each climber is also required to bring down at least 6kg of waste and not just their own, but this rule is erratically enforced. With five fatalities on Everest and Lhotse, Spring 2025 had a historically low death toll. Another five climbers died on Annapurna, Kangchenjunga and Makalu.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025053004050_38681de22f0fefb6faa12b01755566d09c5064d0ff84e12ccc7b5d68ea9ba38a.jpg" data-media-id="editor_1" data-image-id="2025053004050_38681de22f0fefb6faa12b01755566d09c5064d0ff84e12ccc7b5d68ea9ba38a" data-rendition-name="original" width="665" height="740" loading="lazy" alt="The Everest industry graph 2"> </figure>  Journalist Ben Ayers who ran the Everest Live social media channel from Everest Base Camp with daily updates credited the low death rate to dramatic rescues of climbers from the ‘Death Zone’ by their Nepali guides and longline helievacs — the visuals all uploaded on YouTube.&nbsp; “Ironically, this perception of safety is bringing more and more inexperienced climbers to the mountain, and they need more rescues,” Ayers said in one of his dispatches.&nbsp; American expedition chronicler and summiteer Alan Arnette suspects there is a lot of under-reporting given that the jet stream and storms were lashing Everest even till late in the season. He told us: “I heard a lot about frostbite and rescues that were not made public. It’s become practically impossible to cover the details on Everest. All the teams report nice news, and they don’t talk about bad stuff to avoid hurting businesses.” Although trash on Nepal’s mountains makes headlines, what does not receive as much attention is the climate impact of so many expeditions. The Sagarmatha Sambaad conference sidestepped this issue, which is ironic given that the impact of climate breakdown is most evident on Himalayan peaks and their glaciers.&nbsp; <h2>Need for Speed</h2> The big stories this year have been about speed-running from their home cities to the top of Everest. Ukrainian entrepreneur Andrew Ushakov flew out of JFK on 15 May at 10:15AM Nepal time, and was on the summit 3 days, 23 hours, and 7 minutes later on 19 May at 9:22AM.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250601080640_1c5cc6fc991307861768f07037ed9d30930fb20f35dbb57dc31c9a92a9e1a885.jpg" data-media-id="editor_2" data-image-id="20250601080640_1c5cc6fc991307861768f07037ed9d30930fb20f35dbb57dc31c9a92a9e1a885" data-rendition-name="original" width="1440" height="1800" loading="lazy" alt="The Everest Industry"> <figcaption>Andrew Ushakov at the summt. Photo: ELITE EXPED</figcaption> </figure>  “I could never find the time for the traditional 40-50 days of acclimatisation,” Ushakov explained matter-of-factly. His ‘Everest Sea-to-Summit’ climb was possible because he spent 400 hours in hypoxic sleep tents over the past four years in New York. However, Ushakov did use ropes already fixed, hired four Nepali guides, helicoptered to Base Camp, and used much more oxygen than an average climber. And after the climb, Ushakov was arrested at Kathmandu airport for being in possession of $20,000 of undeclared cash and spent a night in jail and fined $60,000.&nbsp; The other speedsters were Garth Miller, Alastair Cairns, Anthony Stazicker, and Kev Godlington, all former British Army commandos. They left London and summited five days later on 21 May, and flew right back. They also used hypoxic tents to simulate the thin air high on Everest.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250601080644_90c8dd5cc07b4b43f2989b1dc0c0650ab80f10ebb06680c25a6909c519957bd8.jpg" data-media-id="editor_3" data-image-id="20250601080644_90c8dd5cc07b4b43f2989b1dc0c0650ab80f10ebb06680c25a6909c519957bd8" data-rendition-name="original" width="810" height="668" loading="lazy" alt="The Everest Industry "> <figcaption>All four members of the Furtenbach team at the summit. Photo: Sandro Gromen-Hayes</figcaption> </figure>  But more controversial was their use of xenon gas therapy in a German hospital to ramp up the production of oxygen-carrying haemoglobins in their blood. Xenon is banned by the World Anti-Doping Agency for being performance enhancing in sports. Expedition leader Lukas Furtenbach said this rule does not apply to mountaineering, as it is not a regulated sport like swimming. Nepal has no rules about xenon, but the Department of Tourism said it was launching an ‘investigation’ to decide on future policy since it is difficult to ban xenon, but allow oxygen. The controversy has also divided the mountaineering community, with some climbers saying they just want to maximise their chances of survival. Spending less time on the mountain could make climbing safer by reducing avalanche risk. It would also mean less trash on the mountains, but it would reduce the income of Nepal’s expedition industry. It is also unclear how much of the success was due to xenon therapy and whether the ex-special forces were already in good physical shape.&nbsp; The need for speed hides the fact that climbing in the Himalaya is dangerous business, and climbers cannot sprint to the top just by huffing xenon. But ultra-fast climbs could be charged more, and the revenue generated can be used to establish state-of-the-art rescue operations, and increase pay and insurance for guides. Two other speed chasers this season were Swiss-Ecuadorian Karl Egloff and American Tyler Andrews, both on Everest without oxygen. Andrews choppered to Base Camp to catch a weather window, but turned back from 8,500m due to high winds. Heavy snow and wind also forced Egloff to descend from 7,000m. Slow and steady climbers like Anja Blacha from Germany did make it to the summit without oxygen, while Kami Rita Sherpa broke his own record with his 31st Everest summit as he led a 26-strong Indian Army group. There were 468 permits issued for foreign climbers from 48 expeditions to Everest this spring. Nepal’s other eight-thousanders together had only 17 expeditions. Nepal has more than 1,000 peaks above 6,000m, and has opened only 476 of them for climbing.&nbsp;

The Everest Industry

That winter day in January 1664 marked an exceptional event in the reign of King Pratap Malla of Kathmandu. It was 15 Paush 784 of the Nepal Sambat and for the first time, a historical event was being immortalised on canvas for generations to come.&nbsp; The occasion was the grand Tuladaan ceremony of the King’s youngest son Chakrabartendra Malla from his wife Anantapriya, an Indian princess from Cooch Behar in present-day Assam.&nbsp; During the ritual, the prince was weighed against gold, silver, pearls, and other precious stones, which were then offered to Goddess Taleju Bhavani, the guardian deity of the Malla dynasty.&nbsp; The 170 x120cm painting captures the time of King Pratap Malla in all its splendour and is more than a personal tribute to his son: it is a significant visual historical document. It was evidently completed five years later in 1669, and could be considered a photographic record, with retrospective recreation of the event by the unknown artist. A Tuladaan ceremony is performed to purify one’s karma, quell impending bad luck, or as an act of charity and devotion. Chakrabartendra Malla was not well, and the ritual was performed in hopes of restoring his health. King Pratap Malla had arranged for each of his sons to take turns ruling Kathmandu so they got administrative experience. But Chakrabartendra died just two days after assuming power in 1670 (790 NS). This painting is considered the earliest known example in which the composition is dominated by an architectural landscape: the Taleju Temple. Given the stylistic features such as side-profile facial depictions and the rendering of human forms, it is believed that the Nepali artist was trained by a Rajput master.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250615040624_ddad3bc27a327e3f9926c8473287e4f14b53081296c295049009f327a4d97051.jpg" data-media-id="editor_0" data-image-id="20250615040624_ddad3bc27a327e3f9926c8473287e4f14b53081296c295049009f327a4d97051" data-rendition-name="original" width="3248" height="4395" loading="lazy" alt="Tuladaan NT"> </figure>  During that era, there were regular exchanges of artists between Northern India and Kathmandu Valley. The painting is also a melding of Nepali, Tibetan, Mughal, and Rajput art styles of the time. Pratap Malla could have been inspired by a painting of Mughal Emperor Jahangir’s Tuladaan ceremony for his son Khurram in 1607. The Mallas and Mughals shared cordial relations, which is reflected in the cultural influences seen in the art and attire of the period.&nbsp; The clothing of the Malla ruling class, in particular, features colourful tunics, turbans, and jewelry that display strong Rajput and Mughal stylistic elements. The musicians in the upper tier are also dressed in Indian-style clothing, while the ensemble on the lower steps wear local attire, notably without turbans. Their hairstyles also differ, with the lower group wearing their hair tied in a bun at the front. This national treasure is currently in storage at the Collège de France in Paris, and has never been publicly displayed. Nepal’s art scholars like Gautam Vajracharya, Pratap Aditya Pal and Anne Vergati have written about this iconic paubha in the past, but the only detailed study is from the perspective of music history by researcher Richard Widdess who had access to high resolution copies of the original.&nbsp; Widdess from the Department of Music at the School of Oriental and African Studies (SOAS) in London describes the paubha as the most significant and richly detailed documentation of music in Nepali art. He identifies distinct musical ensembles on the terraces of the temple, and remarkably most of them are actively used today. One of them reflects the Mughal naqqārakhāna model — a loud outdoor ensemble typically composed of kettledrums, trumpets, and cymbals, traditionally performed from the gateway of the emperor’s palace to announce his entrances and exits. The depiction of such an ensemble in the tulādāna painting is likely the earliest known representation of a complete naqqārakhāna in Nepal — considered the forerunner of the panche baja, the traditional Nepali ensemble. On the stepped pyramid base of the temple are two groups of musicians playing local instruments: dhimey, bhushya, and dha. They are unmistakably Newar musicians, wearing short skirts and short-sleeved tops, with bare heads and legs—clearly distinguished as local performers.&nbsp; Higher still on the temple pyramid are musicians of apparently higher status, positioned close to the king, and his courtiers, possibly professional court musicians from India, well-versed in rāga and tāla. A dāphā group is also clearly depicted, identifiable by their characteristic instruments.&nbsp; Dāphā bhajan is likely the oldest surviving tradition of Newar devotional singing, and this paubha is the oldest visual record of it. Pratap Malla himself is believed to have composed songs that continue to be performed by dāphā groups throughout Kathmandu till today.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025061211064_d67636730cdc0ec778c02494817aca0b99654f2950d0fae4b95499a61faf7ef3.jpg" data-media-id="editor_1" data-image-id="2025061211064_d67636730cdc0ec778c02494817aca0b99654f2950d0fae4b95499a61faf7ef3" data-rendition-name="original" width="596" height="768" loading="lazy" alt="Priceless paubha in Paris NT"> </figure>  The artist’s thorough attention to musical detail may be attributed to King Pratap Malla’s own deep interest in music. His inscriptions on this painting and elsewhere proclaim his mastery of all branches of knowledge, including music. He is also known as the author of dance dramas and poems, penning his name as Kavindra (king of poets). Some noteworthy elements of new art techniques stand out: for example, the roof of the temple is filled with realistically rendered white doves, pigeons, and crows. This is a rare feature in paubha, where animals and birds are stylised, mythological forms. This remarkably talented unknown artist has managed to also render an orthographic projection: the front and side view of Nepal’s first architectural paubha. The Taleju Temple, with its staggering multi-tiered structure and numerous steps and platforms, is masterfully translated into layers within the painting. This represents a significant artistic achievement of the time, especially considering that dimensional perspectives had not started in deity-based paubha.&nbsp; The artist has also made a meticulous effort to capture architectural details such as the toran (ornamental arch) and temple struts with impressive precision. There are flickering lamps along the steps and some people carrying what appear to be oil pots.&nbsp; It is a full moon night and the dark sky is adorned with all the gods and goddesses, who are depicted as blessing the ceremony while seated on stylised thangka clouds. There is a lot happening in this painting, with people engaged in various activities. The artist has also rendered a forest backdrop behind the temple, complete with deer, trees, and flowers. Could there have once been a royal garden behind the Taleju Temple?&nbsp; More details and clarity can only be achieved if we are able to view the original or a high-resolution scanned version of the artwork. Many countries proudly display art depicting historical events in their national museums with great reverence. France, for example, has The Coronation of Emperor Napoleon and Empress Joséphine by Jacques-Louis David (1808–1822), along with numerous paintings of the Napoleonic Wars. Many were commissioned by Napoleon himself for future generations to remember.&nbsp; For Nepal, the equivalent is the Tuladaan paubha which is a visual record capturing a historic moment involving one of Kathmandu’s greatest kings, on the very day the event took place. Sadly, we await the day when this masterpiece is displayed, shared in high resolution for detailed study, or more rightfully — repatriated to its homeland, where it truly belongs. &nbsp; Shaguni Singh Sakya is the Director of the Museum of Nepali Arts (MoNA) at Kathmandu Guest House in Thamel. <h2>Gods homeward bound</h2> The Nepal Heritage Recovery Campaign and Nepal’s Department of Archaeology are convening the first international conference on the Recovery of Cultural Heritage from 16-18 June in Patan. The conference will address urgent issues of theft, illicit trafficking, the campaign to repatriate looted cultural artifacts, and explore how the return of sacred antiquities contributes to justice, healing, and reconciliation for communities and nations affected by cultural loss. American art crime professor Erin L Thompson and Saubhagya Pradhananga of the Department of Archaeology will deliver the keynote. Meanwhile, author and Nepali Times publisher Kunda Dixit will lead a conversation on Illicit Trafficking: Public Opinion and Role of Media with Erin Thompson, Amr Al Azm, associate professor of Middle East History and Anthropology at Shawnee State University in Ohio, as well as Bradley J Gordon, a lawyer based in Phnom Penh. There will be sessions looking at repatriation perspectives from Cambodia, India, Vietnam, China and Poland, international frameworks for repatriation, emerging digital technologies in the repatriation of cultural heritage, cultural property agreements, museums as well as trends in the art market, and heritage diplomacy and the role of media.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025061211068_59cfccfa8f5d73bfe8b4c5811a7f53abc09ea04e8cb7c638933d62e5283efdf6.jpg" data-media-id="editor_2" data-image-id="2025061211068_59cfccfa8f5d73bfe8b4c5811a7f53abc09ea04e8cb7c638933d62e5283efdf6" data-rendition-name="original" width="1080" height="1350" loading="lazy" alt="Heritage recovery NT"> </figure>  <h2> </h2> Some of the other highlights include James K. Reap, a professor in the Master of Historic Preservation Program at the University of Georgia who has a session on the US response to illicit trafficking. Art historian Lea Saint-Raymond is taking on “Gods at Auction: The Market for Himalayan Artefacts”, while lecturer of criminology at the University of Glasgow Emiline Smith is delving into transformative approaches to heritage ownership and repatriation. Helena Arose of Antiquities Coalition and Melina Antoniadis of NOSTOS Strategies that specialise on the return home of cultural heritage as well as Hao Liu of International Cultural Heritage Law at the School of Law at Shandong University are some of the others attending. The Nepal Heritage Recovery Campaign was set up in 2020 to develop a coordinated movement to reclaim Nepal’s stolen gods and goddesses, with an aim to ensure that recovered items are returned to their original shrines, niches or sanctums. Ahead of the conference opening organisers have arranged for a film screening of Loot &amp; Return: 4 Documentaries at YalaMaya Kendra in Patan Dhoka between 14-15 June. Following the conference is a multimedia exhibition titled Absent Gods: Nepal’s Lost Heritage from 31 July to 4 August at Patan Museum.

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