<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131148/6372395f9c7e80680e0c73dajpeg.jpg" alt="" width="4096" height="2731"/><figcaption></figcaption></figure>Out-going US Ambassador to Nepal <a href="https://www.nepalitimes.com/latest/us-support-to-restore-stolen-nepal-gods/" target="_blank" rel="noopener noreferrer">Randy Berry</a> speaks to Nepali Times about his four-year tenure which was marked by the Covid-19 pandemic, the rancorous debate about the US-backed MCC project, and American support for human rights, press freedom and democracy. Excerpts:Nepali Times: What were your expectations about your second tour of duty in Nepal, and were they met?Ambassador Randy Berry: My hope in becoming US Ambassador to Nepal was simple: to deepen the friendship between the United States and Nepal. Although our countries might be far apart geographically, we share democratic values and aspirations for a better world, one that respects human rights, is well educated, healthy, combats corruption, <a href="https://www.nepalitimes.com/banner/a-biden-presidency-climate-and-the-himalaya/" target="_blank" rel="noopener noreferrer">fights climate change</a>, and has inclusive economic growth.Each day that I’ve been here, I’ve worked on advancing these principles. We’ve partnered extensively with the Nepali government through USAID, which has promoted good governance, sustainable economic growth, health, nutrition, and education programs.We’ve supported civil society in advancing human rights – including the rights of women and girls and <a href="https://www.nepalitimes.com/latest/nepal-is-ahead-of-many-countries-in-lgbtqi-rights/" target="_blank" rel="noopener noreferrer">the LGBTQI+ community</a>. We’ve helped build resilience to climate change and both of our countries have furthered our commitments to abating the climate crisis and strengthening our democracies.The <a href="https://www.nepalitimes.com/editorial/knowing-whats-good-for-nepal/" target="_blank" rel="noopener noreferrer">MCC-Nepal grant</a> will mean more jobs, roads, and reliable electricity for Nepalis in the coming years. And we continue to strengthen people-to-people ties. We send over 100 Nepalis to the United States on exchange programs for leaders and professionals yearly, and Nepal ranks 12th worldwide for the number of undergraduate and graduate students studying in the United States each year.So, when I came as US Ambassador my hope was to deepen the US-Nepal relationship and I’m lucky to see that happening every day.The last four years were largely overshadowed by the Covid crisis. What would your analysis be of the way both our countries handled the pandemic?Nepal did remarkably well. The government took swift action against Covid-19 in the beginning. Almost immediately, the US government partnered with the Ministry of Health to support Nepal’s response to the pandemic. Through USAID and our Department of Defense, we provided <a href="https://www.nepalitimes.com/here-now/helping-nepalis-breathe-again/" target="_blank" rel="noopener noreferrer">oxygen tanks, breathing devises</a>, PPE, testing kits, and other supplies that continue today. To date, we’ve spent over Rs16 billion on Covid assistance in Nepal, excluding vaccines.One of the things I’m most proud of, of course, is we were able to donate 13 million doses of the <a href="https://www.nepalitimes.com/latest/johnson-johnson-in-nepal/" target="_blank" rel="noopener noreferrer">Covid-19 vaccine to Nepal</a>, including 8,385,200 pediatric doses. Notably, Nepal has a much higher vaccination rate than my own country today.That must not have been easy -- to secure the doses for Nepal when there was so much demand from other countries under the COVAX arrangement.When President Biden announced that the United States intended to be a world supplier of Covid-19 vaccines, they had already been at work with experts to figure out how they were going to get the greatest number of vaccines to the countries with the greatest need. Through our partnership with <a href="https://www.nepalitimes.com/opinion/hope-hyperbole-and-hypocrisy-of-covax/" target="_blank" rel="noopener noreferrer">COVAX alliance</a>, particularly UNICEF as the delivery partner, we’ve been able to do just that. COVAX helps us deliver the vaccines, so they get to the places that need them the most.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131148/637239639c7e80680e0c73dbjpeg.jpg" alt="" width="1035" height="812"><figcaption></figcaption></figure>The other thorny issue during your time here was the MCC, which you mentioned earlier in this interview. Would there be anything you'd have done differently to make the ratification process smoother?I would have addressed <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium-2/" target="_blank" rel="noopener noreferrer">the disinformation</a> right away.  Our assumption was that the absurd claims against MCC would be seen for what they were – lies promulgated by someone with an interest in preventing a program based on accountability, democracy and transparency from moving forward.  This <a href="https://www.nepalitimes.com/latest/post-truth-politics-in-nepal/" target="_blank" rel="noopener noreferrer">disinformation delayed the program</a> for years, which just meant delays in providing jobs, reliable roads and sustainable energy to the people of Nepal.But in the complicated multi-polar geopolitics of the region, didn't the MCC force Nepal to take sides to the detriment of its relations with an immediate neighbour? Nepal should be making decisions for the good of Nepal -- not for the good of any other country. With <a href="https://www.nepalitimes.com/here-now/mcc-gets-green-light-in-nepal/" target="_blank" rel="noopener noreferrer">the ratification of MCC</a>, the Government of Nepal made a sovereign decision based on what it believed was good for the country. Initially, the government had wanted to participate in the program because it had seen it work so well in other countries. The Nepali government then helped design the program itself in a way that it thought would best serve its people.In an <a href="https://www.nepalitimes.com/opinion/we-all-yearn-to-breathe-free/">op-ed you wrote for Nepali Times</a> two years ago, you defended America's outspokenness about human rights and democracy in other countries, even when things are not that rosy back home. But wouldn't it be true to say that lecturing other countries rings a bit hollow these days?What I said then is what I’ll say now: Americans are outspoken on human rights, not because we think we are perfect but because we know we are not. We don’t sweep our problems under the rug. We actively talk about human rights in our own country, including <a href="https://www.nepalitimes.com/opinion/we-all-yearn-to-breathe-free/" target="_blank" rel="noopener noreferrer">deep-seated racism</a> and gender discrimination that Americans experience every day. But our problems don’t disqualify us from talking about human rights; if anything, they give us greater opportunity to do so with humility and honesty. <figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114131148/637239669c7e80680e0c73dcjpeg.jpg" alt="" width="1858" height="1239"><figcaption></figcaption></figure>From what you have seen in Nepal this time around, how would you assess the chances for socio-economic progress for this country in the coming years? There is a window of opportunity for Nepal right now. Prime Minister Deuba has made ambitious commitments to combat the <a href="https://www.nepalitimes.com/banner/climate-smarter-himalayan-infrastructure/" target="_blank" rel="noopener noreferrer">effects of climate change</a> and to further democracy in the country. Those things attract investors which will help grow the economy in a sustainable and inclusive way.For the US government’s part, I’m proud to say we’ve supported Nepal’s sustainable economic growth with an array of programs, from USAID’s long-running development assistance, to the MCC grant, to supporting private entities through investments from the US International Development Finance Corporation. We’ve also started the first American Chamber of Commerce here in Nepal for US businesses. All of this activity signals that Nepal has the chance to make lasting economic progress.And lastly, what would be some of the enduring memories of Nepal that you will take with you?Nepal is an incredible place with vast landscapes, tall mountains and incredible culture, but it is the people that I’ve met during my time here that have changed my life. Nepalis’ kindness, generosity and hospitality are unmatched, and for that I am grateful. I will take that with me everywhere I go.

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“Nepal should make decisions for Nepal’s good”

<figure><img width="3600" height="2400" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a3d9c7e80680e0b5590jpeg.jpg" alt=""/><figcaption>Photo:RSS</figcaption></figure>Five years after Nepal signed the US-funded <a href="https://www.nepalitimes.com/banner/its-decision-time/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation (MCC)</a> compact in 2017, Parliament on Sunday finally ratified the $500 million grant for much-needed transmission lines to distribute and export power.Key leaders from the Maoists, including Narayan Kaji Shrestha, Giriraj Mani Pokhrel, Krishna Bahadur Mahara, Dev Gurung and Leela Mani Pokhrel maintained their opposition until the last minute, as did leaders like Jhala Nath Khanal from the Unified Socialists, who said he would not participate in the vote.Gagan Thapa of the Nepali Congress in his address offered blistering criticism of those who were opposed to <a href="https://www.nepalitimes.com/banner/high-tension-in-nepal/" target="_blank" rel="noopener noreferrer">the project</a>, calling out former prime ministers present in Parliament for their duplicity. “Those who call us traitors for wanting to move forward with the project now need to point their fingers at themselves, and reflect on their own words and actions during their leadership,” said Thapa, alluding to leaders of Nepal’s Communist parties. Janata Samajwadi Party (JSP) leader Baburam Bhattarai during his remarks also addressed opponents of the project, saying, “Those leaders should have the courage to admit they were wrong for opposing the project in the past, and then retire from politics."Parliament vote followed a meeting of the five-party coalition held at the Prime Minister’s residence in Baluwatar on Sunday morning, which finally decided to endorse the agreement after months of back-and-forth mainly by the Maoist Centre and the Unified Socialists of the that had <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatened to dismantle</a> the governing alliance. Party leaders <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/" target="_blank" rel="noopener noreferrer">Pushpa Kamal Dahal</a> and Madhav Kumar Nepal agreed to support ratification on the condition that it be accompanied by an ‘interpretative declaration’ addressing concerns about the project.Gagan Thapa, Maoist leader Shakti Basnet and Unified Socialist-affiliated lawyer Govinda Bandi were tasked to mediate and prepare the declaration.  <img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a419c7e80680e0b5591jpeg.jpg" alt=""><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a449c7e80680e0b5592jpeg.jpg" alt="">Party insiders said that the Unified Socialists were forced to vote in favour of the compact after Prime Minister Sher Bahadur Deuba explored the possibility of forming an alliance with the UML to mobilise support for the project. KP Oli of the opposition UML for his part had maintained that he would support the MCC only if the NC left the coalition, a demand that was critical for <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">elections this year</a>.  The interpretative declaration is meant to assuage the Maoists and Unified Socialists concerns about articles included in the Compact, which leaders of the two parties had repeatedly said is against Nepal’s national interest, and superseded Nepal’s laws, sovereignty, and the Constitution. The interpretative deceleration addresses <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">concerns of the Communists</a> and was drafted by Thapa and will be appended to the ratification. It states that Nepal does not consider itself to be bound by any strategic, military or security alliance of the US, including its Indo-Pacific Strategy, and that Nepal is not obliged to comply with existing or future US laws or policies for any purpose other than the use of grants. The declaration also states that project related activities will be regulated by the laws of Nepal, and that Nepal will own all intellectual, movable and immovable property created under the Compact. The declaration stipulates all activities and funds of Nepal be audited by Nepal’s Auditor General. Another point states that Nepal can reject the grant amount by giving thirty days prior written notice if Nepal’s laws are violated. But even as the declaration seems to have kept the governing coalition intact and ratified <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">the MCC</a>, experts have questioned the validity of such a document. "One country does not have the sole right to make explanatory comments on an agreement that was formed between two countries, and doing so could be seen as a coercion,” says constitutional expert Bipin Adhikari. "It would have been better to pass a resolution.” Others have called the document redundant, and that it is merely a face-saving exercise for the Maoists and Unified Socialist leadership. “Nepal’s political leaders <a href="https://www.nepalitimes.com/editorial/the-message-is-the-medium-2/" target="_blank" rel="noopener noreferrer">spread misconceptions about the MCC</a> among the public in the past to such a degree, and have had to backtrack now,” former Supreme Court Justice Girish Chandra Lal told Himalkhabar, “Now, they find themselves in a position of having to save face in front of their party workers.” The much delayed infrastructure grant project was presented in Parliament members for deliberation over the Compact in the afternoon, and a verbal vote was conducted late on Sunday night. Discussions regarding the project took place even as the main opposition UML stood in protest in front of the rostrum upholding their demand that Unified Socialist MPs be expelled, having gotten up from their seats as soon as <a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/" target="_blank" rel="noopener noreferrer">Speaker Agni Sapkota</a> began his opening remarks while anti-MCC protesters clashed with police outside Parliament. <figure><img width="1267" height="845" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a489c7e80680e0b5593jpeg.jpg" alt=""><figcaption> </figcaption></figure><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a4b9c7e80680e0b5594jpeg.jpg" alt=""><img width="640" height="427" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a4e9c7e80680e0b5595jpeg.jpg" alt=""><img width="1242" height="828" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101128/63720a519c7e80680e0b5596jpeg.jpg" alt="">Even before and while Parliament voted, organised protests against the MCC had been going on all day in the streets outside as police used water cannons against brick throwers at the barricades.Most of the $500 million grant is earmarked for the <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">Kathmandu-Hetauda-Butwal 400kVA transmission line</a> to distribute electricity from existing and new hydropower plants in central and eastern Nepal, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.Nepal is currently generating 2,000MW of hydroelectricity with an additional 2,500MW under construction. This figure will soar to 7,300MW by 2025 as per Nepal Electricity Authority (NEA) estimates. The country <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/" target="_blank" rel="noopener noreferrer">stands to lose Rs142 billion annually</a> without transmission lines to evacuate surplus electricity. Following the endorsement of the grant, the US Embassy Nepal released a press statement where it says that the decision whether to ratify the compact always rested with the Government of Nepal which will will now be able to continue to work towards implementing the five-year program."Today's decision by Parliament to follow through on its signed commitment and ratify the compact will mean more jobs for the Nepali people, a reliable supply of electricity, and lower transportation costs," it reads."The United States’ relationship with Nepal is broader than one agreement and we will continue to support the country and its democratic values and long-term economic prosperity."

Shristi Karki

MCC gets green light in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209a69c7e80680e0b5555jpeg.jpg" alt="" width="1500" height="2000"/><figcaption>Illustration: DIWAKAR CHETTRI</figcaption></figure>For those of us who devour dish-information for current affairs, it is now looking like Nepal is about to declare war on the United States. Forget the Russians massing troops on the Ukraine border, the media should note that Nepal is fully mobilised to deploy the country’s entire arsenal and urinal to taken the Americans head-on.Never in history since we went to war against the East India Company and lost half the country have Nepalis faced such an existential threat. It is time for all patriots who did not get their DV lottery to take revenge.There are many retaliatory steps we can take against the Millennial Challenge. The Ass, in the ultra-national interest, has come up with a top secret highly classified list of options, and will divulge it below if you take a solemn oaf not to go around blurting it out to anyone.<ul><li>The Americans are eyeing our uranium deposits in Mustang, and the MCC is a ruse to mine it. Nepal should therefore get its centrifuges spinning to enrich plutonium to build our own nuclear deterrent.</li> 	<li>Atom bums are useless without a missile delivery system, so we must install those warheads on locally-manufactured leather cannons that spread such terror among Company soldiers at Nalapani in 1814.</li> 	<li>Nepalis will not be kicked around anymore by Sam Kaka. As Comrade Lotus flower once so eloquently put it, Nepal is a dynamite between two boulders. He co-signed that letter to the MCC to show that he will not take things lying down anymore — he will kowtow.</li> 	<li>The Americans should not be allowed to improve our highways, it will make it easier for them to invade us. Our defence strategy is to keep our roads in such a poor state that they will stop American tanks in their tracks. In a military exercise last week, a Bailey bridge over the Arun collapsed, proving that this strategy works brilliantly.</li> 	<li>Electric power comes out of the barrel of a gun.</li> 	<li>We cannot accept the $500 million MCC grant because if we do, the Americans may want to give us an even bigger aid package in future.</li> 	<li>The MCC compact says disputes will be decided at an international arbitration court. We cannot allow that. Nepal’s courts must prevail because we have no rule of law.</li> 	<li>Can’t trust the Nepali Congress because it is named after the American Congress.</li> 	<li>Since India has banned the export of lab animals, the Americans want to use the MCC to kidnap our monkeys.</li> 	<li>How can we support a project that has to be completed in 5 years? Like Pokhara International Airport and Melamchi, we need at least 40 years.</li> 	<li>Yankee, go home! (And Take us with you.)</li></ul>

Ass s

Yankee go home. (Take us with you.)

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209819c7e80680e0b5548jpeg.jpg" alt="" width="1800" height="1200"/><figcaption>Photo: RSS</figcaption></figure> The scheduled House session this week was once again postponed with Pushpa Kamal Dahal of the Maoists seemingly reneging on a deal with Prime Minister Sher Bahadur Deuba to table the bill in exchange for <a href="https://nepalitimes.com/latest/chief-justice-suspension-linked-to-mcc-ratification/">registering an impeachment motion against Chief Justice</a> Cholendra SJB Rana.The 28 February deadline to approve the American-funded Millennium Challenge Corporation (MCC) project is looming, but the the <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/">ruling coalition is now on the verge of a split</a> if Deuba convinces the UML’s K P Oli to back him on Friday. Oli may be willing, but Deuba is wary of his prime ministerial ambition and possible realignment with the Maoists.But after failing to convince his coalition partners on Thursday evening, Deuba immediately went with his wife Arzoo to meet KP Oli (pictured above). He now expects the coalition to collapse and needs UML support to pass the MCC.One might wonder why the very political parties and their leaders who had previously signed the grant contract with the American government used every excuse in the last four years to delay its endorsement by Parliament. The answer is simple.Pushpa Kamal Dahal and Madhav Kumar Nepal pitted the $500 million infrastructure compact as ‘anti-national’ to such an extent to topple Oli that they cannot now retract their words, and risk election prospects by supporting ratification.Read also: <a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/">Putting the MCC into context</a>, Jeevan R Sharma and David SeddonNeither the Maoist Centre nor the Unified Socialists have strong local bases, since both are breakaway parties.  Prime Minister Deuba for his part wants to have his cake and eat it too -- keep the coalition intact and pass the MCC. The time may have come for him to choose.Deuba knows that rejecting the MCC would impact on future aid, trade and development partnerships, and lead to international ostracisation. Sri Lanka rejected its own $480 million MCC two years ago, and is now ensnared in debt.Dahal landed in hot water two weeks ago after a letter to the MCC he co-signed was leaked, <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/">exposing his duplicity</a>. This is a prominent feature of Nepali politics, but the collateral damage this time is a project that is important for Nepal’s future growth.<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209849c7e80680e0b5549jpeg.jpg" alt="" width="1244" height="830"><figcaption> </figcaption></figure>If the 5-year project had gone ahead, the transmission lines would have been built by now and Nepal would be able to distribute electricity from new plants. Those hydropower plants were developed with Rs215 billion in investment from banks, which means deposits of ordinary Nepali citizens.As Anil Shah argues <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/">the banks and their depositors will be in deep trouble</a> if the private producers go belly-up. Nepal will then have to get loans from the World Bank or the ADB for transmission lines, but even that will be difficult unless we have an explanation for why we rejected the MCC.There is no one party or politician to be singled out for this unholy mess. The UML rallied behind the MCC while in government, only to use it now to bring down the ruling coalition. The two Communist parties in the ruling alliance are hoping Deuba and Oli will be punished by voters on 13 May for their support of the MCC.Coalition leaders have failed to garner support within their own party ranks for the project, nor are able to explain its reality to the public. This provided an opportunity for self-proclaimed nationalists of the left and right to spread disinformation about how the US was turning Nepal into a US military outpost.Read also: <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/">To be or not to be on the MCC</a>, Anil shahA generation that grew up reading Communist commentary on 'American imperialism and Indian expansionism' is now in the leadership of the Communist parties. Such phrases may be obsolete now, but it is being revived to stoke populism during a Sino-US Cold War. This has not only increased the ideological polarisation, but also led the country astray.It is important for Nepal to vet all aid and loans, not just the MCC. However, domestic and geopolitical factors should not affect important projects. The populist nationalism around the MCC is not only tarnishing the image of the parties and their leaders, but also Nepal’s image as a nation. The consequences will be borne by the people.Hundreds of thousands of Nepalis have to migrate to the Gulf and Malaysia every year for work and it is the <a href="https://www.nepalitimes.com/latest/more-remittance-more-than-remittance/">remittance money</a> that runs the country’s economy. We will never rise above this with such insular hyper-nationalism.Nepal currently does not have the capacity to mobilise sufficient resources to upgrade transmission lines and prevent <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/">potential wastage of Rs142 billion a year worth of electricity by 2025</a>. So the country has no choice but to seek foreign funding. Rejecting this grant is foolish, especially because all the leaders today were all on board when it was signed in 2017.Not ratifying the MCC today will set a precedent tomorrow to embroil every Belt and Road Initiative (BRI) project in controversy. Once and for all, Nepal’s politicians must stand together for the country’s future regardless of their party election symbols.A MCC ratification will also be a lesson for anyone tempted to misuse quasi-nationalism for self-interest and weaken the Nepali nation.Read more: <a href="https://www.nepalitimes.com/editorial/using-power-wisely/">Using  power wisely</a>, Nepali Times

High tension in Nepal

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209729c7e80680e0b5541jpeg.jpg" alt="" width="848" height="1106"/><figcaption>PHOTO MONTAGE/NEPAL ENERGY FORUM</figcaption></figure>Like a mirage, the nearer we get to Parliament’s ratification of a <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/">$500 million US-backed infrastructure project</a>, the farther it seems to recede. Given the fecklessness of Nepali politics, nothing is over until it is over.After the Maoist parliamentary party on Wednesday morning decided to vote against the ratification of the American grant, a <a href="https://www.nepalitimes.com/latest/nepal-house-sits-for-crucial-mcc-vote/">scheduled House session</a> was postponed till Friday. A Maoist-Unified Socialists vote against the project would have effectively led to the collapse of the ruling coalition led by Prime Minister Sher Bahadur Deuba of the Nepali Congress, who would have got help from the opposition UML to pass the project.The Americans have set a firm 28 February deadline for ratification. The message to top Nepali leaders by US Assistant Secretary of State Donald Lu last week may not have been a threatening ‘take our gift, or else’, but it was certainly a ‘take it or leave it’.Part of the problem is the acronym itself. The <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/">Millenniumn Challenge Corporation (MCC)</a> is too awkwardly named, its aims are not clear enough. And many ask: why are the Americans so keen to make us accept their gift anyway if there is no hidden agenda?Read also:  <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/">China lobbying against MCC</a>, Ramesh KumarYes, geopolitics looms large. Nepal is used to being squeezed between China and India, but this time we are caught in a global <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/">Sino-US rivalry</a> that has intensified since the rise of Xi Jinping and the Trump years. We are now a yam between three boulders – although the Indians are for once strangely silent.Outsiders are playing on the incompetence and greed of Nepal’s rulers. None other than the country’s <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/">prime minister and his coalition partner write a groveling letter</a> to the project team in Washington DC begging for more time to ‘build a consensus’.All this makes King Mahendra smell like roses. In comparison to these lilliputs, Mahendra was a towering statesman who balanced regional geopolitics, and prevented Nepal from being sucked into the Cold War rivalry between the United States and the Soviet Union.When the Chinese built the Kodari Highway, there was consternation in New Delhi and pressure  on Nepal’s king who had just sent Indian security posts packing from Nepal’s mountains. India and China had just fought a brutal Himalayan war, and Beijing had every reason to consider Nepal an enemy nation since the Indian Army’s Gorkha battalions were on the frontlines in Ladakh and Arunachal.Yet, Mahendra played deft diplomacy between New Delhi-Beijing-Washington-Moscow and got the superpowers to chip in to help with infrastructure and development projects.Read also: <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/">To be or not to be on the MCC</a>, Anil Shah<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209749c7e80680e0b5542jpeg.jpg" alt="" width="422" height="628">What a far cry all that is from what is happening today. By vacillating on a project that they themselves signed, Nepal’s leaders are coming off looking like fools who cannot be trusted. Who is going to take this bunch of clowns seriously anymore?They have used a project that would have <a href="https://www.nepalitimes.com/banner/power-politics/">catalysed the future economic development of Nepal</a> against each other for petty party infighting. Actually, $500 million is not peanuts, and Nepal has already pledged another $130 million to increase the capacity of transmission lines and improve highways in Central Nepal.Borrowing that money would put Nepal deeper in debt. And we just have to see the current situation in Sri Lanka to realise what a real debt trap looks like. Colombo rejected a $480 million MCC two years ago by mishandling geopolitics and is now facing international ostracisation.Read also: <a href="https://www.nepalitimes.com/latest/using-the-delay-in-mcc-to-dissect-it/">Putting the MCC in context</a>, Jeevan R Sharma and David SeddonIt is at a time like this that Nepal needs a leader of Mahendra’s stature and skill. What would he have done? He would have approved both the MCC and the BRI, sent competent emissaries to keep Washington, Beijing and New Delhi happy. We do not even have ambassadors in those capitals.The big powers have bigger fish to fry, Nepal is not as strategic as we imagine ourselves to be. We can convince them that investment in Nepal’s infrastructure will ensure domestic stability and regional energy security.Nepal will soon have surplus electricity supply thanks to Rs215 billion <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/">investment by Nepali citizens in private power projects</a>. It now needs help with <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/">distributing</a> that power, for which the MCC project is crucial.Nepal also needs help with connectivity, upgrading the country’s decrepit highways, adding railways and airports, and improving cross-border transit to India and China. That is where China’s Belt Road Initiative (BRI) would help.Why does it have to be one or the other? Geopolitics is so polarised, and Nepal’s domestic politics so fractious that we have lost our ability to balance these forces for the country’s sustainable long-term economic wellbeing.Read also: <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/">MCC: damned if we do, damned if we don’t</a>, Nepali Times

Using power wisely

<figure><img width="2106" height="1078" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/6372096f9c7e80680e0b5540jpeg.jpg" alt=""/><figcaption></figcaption></figure>As Nepal’s Parliament finally sits on Wednesday to try to ratify a controversial and long-delayed <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">American infrastructure project</a>, parties opposed to the $500 million scheme are determined to block it.
[UPDATE: After the Maoist parliamentary party decided on Wednesday morning to vote against the MCC, the scheduled session of the House has been postponed. Maoist leader Pushpa Kamal Dahal met Prime Minister Deuba to explain the move. If the Moaists vote against the ratification, it would effectively mean the collapse of the current coalition government.]  
Despite Prime Minister Sher Bahadur Deuba having said at a parliamentary party meeting of his Nepali Congress on Tuesday that the Millennium Challenge Corporation (MCC) would be tabled when the Lower House convenes. 
Deuba also spoke with <a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/" target="_blank" rel="noopener noreferrer">Speaker Sapkota</a> regarding the compact on Tuesday. Sapkota, an ally of the Maoist Centre’s Pushpa Kamal Dahal, has postponed parliament meetings multiple times ostensibly to prevent discussions about the grant in the House from moving forward.
Dispute over the MCC within the five-party alliance has in recent times <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">threatened to dismantle</a> the fragile five-party governing coalition. Prime Minister Deuba’s NC, whose 2017 coalition government concluded the agreement in Washington DC to upgrade Nepal’s electricity grid and highways, has been in support of getting the project ratified.
However, Madhav Kumar Nepal and his breakaway NCP (Unified Socialists) and Pushpa Kamal Dahal, whose Maoist Centre was part of Deuba’s coalition when he signed the agreement in 2017, have been vehemently opposed to the project.
Last week, details emerged about <a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/" target="_blank" rel="noopener noreferrer">a letter Dahal co-signed with Deuba</a> in September 2021 asking the MCC for more time to build a consensus within the current coalition for the project. 
Deuba’s predecessor KP Sharma Oli had backed the project while he was in office. However, the UML has not made its position on the MCC public after UML became the opposition party. Mahanta Thakur’s Loktantrik Samajwadi Party, which recently split from the JSP, has supported the project. 
The Prime Minister was optimistic that the compact once tabled on Wednesday would be ratified by Parliament. This comes hot on the heels of Sunday’s filing of an <a href="https://www.nepalitimes.com/latest/chief-justice-suspension-linked-to-mcc-ratification/" target="_blank" rel="noopener noreferrer">impeachment motion against Chief Justice</a> Cholendra Shumsher Rana MPs by the NC, MC, and Unified Socialists.
Rana is unlikely to be removed, however, because the coalition cannot muster a necessary two-thirds majority in the House. But he will be automatically suspended, and this is being used as a bargaining chip in order to mollify Communist members of the coalition to get the MCC ratified. 
Justice Rana’s impeachment would increase the chances of House Speaker Sapkota escaping unscathed from a war crimes charge, and would guarantee that 14 Unified Socialist MPs retain their seats. Former prime minister K P Oli of the UML had been blocking House proceedings after Speaker Sapkota refused to expel them. 
It remains to be seen if Parliament will pass <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/" target="_blank" rel="noopener noreferrer">the project</a> when it convenes on Wednesday. The US has given a final deadline of 28 February for ratification. Several fringe left parties have called for street protests on Wednesday, and security is expected to be tight in Kathmandu.
Whether the MCC is approved by Parliament or not, its repercussions will not only be felt in Nepal’s pre-election domestic politics but also on the country’s bilateral relationships, especially with the United States and China.
In late 2021, high-ranking MCC officials including MCC vice-president <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">Fatema Z Sumar came to Nepal</a> to meet with Nepal’s top leadership following a written response to concerns raised by Nepal’s Finance Ministry regarding the grant. 
US Assistant Secretary of State <a href="https://www.nepalitimes.com/banner/power-politics/" target="_blank" rel="noopener noreferrer">Donald Lu</a> called Deuba, Dahal and Oli separately last Thursday reportedly to remind them of the consequences on bilateral relations of a failure to ratify by the deadline. 
In May 2017, Nepal signed a framework agreement with China on its Belt Road Initiative (BRI) infrastructure development strategy. At the time, the Americans stated that Chinese investment in Nepal must not only serve the interests of China, and pointed out that Nepal could be a victim of China’s ‘debt-trap diplomacy’.
In the past year, Beijing has been <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">actively lobbying against the MCC</a>. Controversy over the project was one of the factors that ultimately led to the split in the Nepal Communist Party as well as the UML last year. 
Nepal is increasingly squeezed in a geopolitical tug-o-war between the US and China. But experts say that Nepal needs both the MCC and <a href="https://www.nepalitimes.com/latest/china-builds-digital-and-medical-silk-roads/" target="_blank" rel="noopener noreferrer">BRI</a> and its foreign policy strategy should reflect this delicate geopolitical balance. They say that going ahead with one project should not deprive Nepal of the other. 
“It is in Nepal’s best interest to implement both the American MCC and Chinese BRI projects based on our national needs,” says diplomatic affairs expert Geja Sharma Wagle.
Nepal has historically had to walk the <a href="https://www.nepalitimes.com/latest/nepal-in-political-and-geopolitical-jam/" target="_blank" rel="noopener noreferrer">diplomatic tightrope</a> in trying to balance relations with China, India, and the US, maintaining individual ties with global and regional powers through wars, crises and border disputes. 
But geopolitics is so polarised, and Nepal’s fractious rulers are so prone to acting as proxies to outside powers that the country cannot seem to maintain that balance.

Nepal House sits for crucial MCC vote

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/637209619c7e80680e0b553ajpeg.jpg" alt="" width="890" height="500"/><figcaption></figcaption></figure>After a prolonged deadlock over Parliament’s ratification of a <a href="https://www.nepalitimes.com/opinion/to-be-or-not-to-be-on-the-mcc/" target="_blank" rel="noopener noreferrer">$500 million US-backed infrastructure project</a>, Nepal’s ruling parties have found a formula to keep their coalition intact, and approve the scheme.The controversial project was <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">threatening to break</a> up the five-party coalition because Prime Minister Deuba’s Nepali Congress (NC) was for it, while the Maoist Centre and the CPN Unified Socialists were against it.The row had become embroiled in geopolitics with both Washington and <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" target="_blank" rel="noopener noreferrer">Beijing piling on pressure</a> on politicians in Kathmandu to ratify and scrap it. US Assistant Secretary of State Donald Lu had called Nepal's top leaders last week to warn of damage to relations if the compact was not ratified by the 28 February deadline.The MCC row was also <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">complicating Nepal’s domestic politics</a> as the country faces local elections in May, with the Maoists and Unified Socialists wary of facing the ballot without an electoral alliance.On Sunday, 98 MPs belonging to the coalition filed an impeachment motion against <a href="https://www.nepalitimes.com/latest/what-is-happening-to-nepals-supreme-court/" target="_blank" rel="noopener noreferrer">Chief Justice Cholendra Shumsher Rana</a>, who has himself been caught up in a months-long standoff with Nepal’s lawyers over allegations of corruption and political interference.The Nepal Bar Association had been lobbying with coalition leaders to file an impeachment motion against Rana since November, but the politicians had been reluctant to do so. Rana was said to have the support of Prime Minister Deuba.Rana is automatically in suspension now, but he is unlikely to be impeached because that would need a two-thirds majority of the House that the coalition does not command.Rana was to adjudicate two pending writ petitions involving <a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/" target="_blank" rel="noopener noreferrer">Parliament Speaker Agni Sapkota</a> of the Maoists on a war crimes charge, and on the suspension of 14 MPs that defected to the CPN Unified Socialists and whose the UML expelled.Rana was expected to rule against the Communist parties, while his successor, acting Chief Justice Deepak Karki is said to be more favourable to them.In a convoluted political way, suspending Rana opens the door to appease the Maoists and the Unified Socialists to allow the MCC project to be ratified when Parliament’s often postponed session sits on Wednesday.This is a win-win formula for the ruling coalition: Prime Minister Deuba gets to ratify the MCC, the Maoists save their Speaker, and Unified Socialists get to keep their 14 MPs. In addition Rana could have also ruled against former ministers who are now in the Unified Socialists in another case involving the Baluwatar real estate scam.However, the deal also exposes just how seriously the rule of law and separation of powers <a href="https://www.nepalitimes.com/latest/nepals-lawyers-on-warpath-against-chief-justice/" target="_blank" rel="noopener noreferrer">have become eroded in Nepal</a>, where political parties can use or discard Supreme Court justices to suit their interests.Even though the opposition UML was removed from power last year by Rana who annulled Prime Minister K P Oli’s dissolution of the House, it has been critical of the impeachment motion against him.The UML was hoping to break the coalition over its internal <a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/" target="_blank" rel="noopener noreferrer">disagreement over the MCC</a>, and gain an electoral advantage. It expected Rana to rule against Speaker Sapkota in a Supreme Court case to convict him for the killing of a UML supporter during the conflict. The UML was also hoping that Rana would expel the 14 UML rebels from House membership.The UML’s Subhas Nembang on Sunday criticised the impeachment motion as having been executed “guerrilla-style”, and its central secretariat held an emergency meeting on Sunday evening to plot future strategy.Despite the formula to save the coalition, Maoists and Unified Socialists have taken such a strong stance against <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">the MCC</a> that they will find it difficult to support it now when the House sits on Wednesday.They may stay away, leaving the NC and UML to pass it so they can brandish their own nationalist credentials for having stood up against American 'imperialism' at election time.

Chief Justice suspension linked to MCC ratification

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101124/6372095e9c7e80680e0b5539jpeg.jpg" alt="" width="1576" height="786"/>On 28 February, we will come either to the finish line or the starting line of <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">the US-funded Millennium Challenge Corporation (MCC) project</a> to upgrade Nepal’s infrastructure.The $500 million that the MCC is offering Nepal as a grant for the development of transmission lines and upgrading the road network needs to be ratified by that date.There has been a lot of debate in Nepal’s cybersphere and <a href="https://www.nepalitimes.com/latest/the-deal-breaker/" target="_blank" rel="noopener noreferrer">the political arena that is spilling out into the streets with rallies</a>. The points of view are highly polarised, and we left logic behind a long time ago — we are now debating on emotion and rhetoric.When King Mahendra wanted the Chinese to build the Arniko Highway connecting Kathmandu to Lhasa in the 1960s, there was a similar debate about whether or not it was a good idea. India and China had just fought a war, and the Cold War was at its height.Many worried that the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/chinese-ink-wash-paintings-in-Nepal,2622" target="_blank" rel="noopener noreferrer">trans-Himalayan highway </a>would give direct access to our northern neighbour to the heart of Nepal and down to the plains, while others felt that this would be the route to open trade and commerce between Nepal and China.King Mahendra pushed ahead and built the Arniko Highway, and six decades later, it is a major artery for bilateral trade and cultural relations.Similarly in the early 1980s there was intense domestic and international debate on the development of the <a href="https://www.nepalitimes.com/here-now/dam-it-its-all-about-the-water/" target="_blank" rel="noopener noreferrer">Arun 3 hydropower project</a> that would have not only met all of Nepal’s energy demand at the time, but also allowed export of surplus energy to India.After much acrimonious debate, the <a href="http://archive.nepalitimes.com/news.php?id=11083#.Ygiu_ShBzOQ" target="_blank" rel="noopener noreferrer">World Bank pulled out of financing</a> this project. This pretty much put an end to the development of major projects in Nepal for many decades, even while Bhutan took advantage of harnessing its water resources.By negotiating with India, it used revenue from electricity exports to enhance the quality of life of its people, and raised per capita income. Decades later, <a href="https://www.nepalitimes.com/here-now/how-they-kept-nepal-in-the-dark-ages/" target="_blank" rel="noopener noreferrer">we in Nepal are still trying to catch up</a> in harnessing our own water resources, and develop <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" target="_blank" rel="noopener noreferrer">our hydropower potential</a>.Once again, we as a nation and people, stand at the point of <a href="https://www.nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal/" target="_blank" rel="noopener noreferrer">deciding whether to accept</a> the $500 million MCC grant for the development of transmission lines and the enhancement of our road network or not.The people who need to examine the facts and make this decision are political leaders who we have trusted with our vote and put into Parliament. The decision they make must be for the wellbeing of all Nepalis, and Nepal as a nation, now and into the future.I am a banker and I can tell you that as per the guidance and direction of Nepal Rastra Bank and the government of Nepal, the banking industry as by mid-December 2021, had invested Rs215 billion in energy projects across Nepal.We need to increase this to 7% of the total loan portfolio by April, then to 9% by 2023 and 10% by 2024. This translates to 1,920MW of installed capacity, with construction licenses for 7,870MW. Of these, 214 projects are by private producers for 6,970MW, and foreign investment for 900 MW.In addition, another 37 projects for 2,576MW and 1,200MW of Investment Board Nepal (IBN) projects have applied for construction licenses. By the end of this fiscal year alone, we anticipate installed capacity to grow to 3,300MW.The nation’s focus on <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">harnessing our river resources and generating energy</a> is working, we are well on the way to being a major energy producing nation. This means that currently, Rs215 billion of the bank deposits of the citizens of Nepal are already invested into these projects through loans, and the amount will increase exponentially in the years ahead.The hard-earned deposits of millions of Nepalis are the main source of funding for the development of these projects. We stand at a point where we have to firstly stimulate domestic demand and consumption of electricity, and secondly facilitate the export of electricity to our neighbours.The common and critical factor for both these goals is the need for transmission lines across Nepal, that can effectively and efficiently evacuate the electricity from these projects, and get the power to the internal or external markets to spur the economy.If we do not start to put <a href="https://www.nepalitimes.com/opinion/decentralising-hydropower/" target="_blank" rel="noopener noreferrer">the needed transmission infrastructure</a> in place to do this, then the turbines will spin uselessly, wasting the electricity generated with phenomenal losses. Nepal’s entire financial sector will be in peril if the hydropower sector faces such loss from spilled energy.I do not know if Nepal should ratify the MCC and take the $500 million grant, that is for our elected leaders to decide. But I do know that if we do not get the needed transmission lines in place at the earliest then the savings of millions of Nepalis that the banking sector has been directed to lend to the hydropower sector will be in troubled waters.Many thousands of Nepalis who have invested in shares of hydro projects may also stand to lose if the transmission lines are not built. Politicians who have directed the banking sector to invest such a large quantum of the Nepali peoples savings in the energy sector must have a plan on how to get the power we generate to market.As a banker, all I can say is whether we take this $500 million grant from the MCC or take loans from somewhere else, we need to get the funds to build these transmission lines.February 28 is only two weeks away. Nepal’s leaders need foresight and courage to make the correct decision for the future. It is a choice between darkness and light, deprivation and prosperity.Anil Shah is a concerned Nepali, and a banker. Excerpts from NNSD post.Read also:<a href="https://www.nepalitimes.com/latest/the-deal-breaker/">The deal-breaker</a>, Sonia Awale<a href="https://www.nepalitimes.com/here-now/maoists-backpedal-on-mcc-letter/">Maoists backpedal on MCC letter</a><a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/">Nepal House speaker embroiled in MCC row</a>

To be or not to be on the MCC

<img width="1500" height="1000" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/6372091c9c7e80680e0b5523jpeg.jpg" alt=""/>The date for local elections is now set in stone: 13 May to be held at once all over the country. But the path to voting booths is a political minefield.The five-party governing coalition is split right down the middle between the supporters and opponents of the American-funded Millennium Challenge Corporation (MCC) project. Prime Minister Sher Bahadur Deuba’s Nepali Congress (NC) and the JSP are for it, while the Maoist Centre and the Unified Socialists are against.But neither side has the numbers if the MCC’s ratification is put to the vote in Parliament. They would both need the UML, which has been playing coy in the opposition even though its leader K P Oli had backed it when he was prime minister.There are no permanent foes and permanent friends in politics, and this is most evident at election time. In 2017, the Maoists forged an electoral alliance with the UML and swept the elections, but they failed to make good use of the two-thirds majority and spent the better part of the last four years bickering. One of the reasons for the split was Pushpa Kamal Dahal and Madhav Kumar Nepal using the MCC to bring down Oli.Read also: <a href="https://www.nepalitimes.com/latest/nepal-house-speaker-embroiled-in-mcc-row/">Nepal House speaker embroiled in MCC row</a>, Nepal TimesIt eventually led to the Communist alliance breaking up into Oli’s UML, Dahal’s Maoist Centre (MC) and Nepal’s Unified Socialists (US). And now, the American project threatens to split the governing coalition too.The MCC is now all mixed up with domestic election politics, and geo-strategic rivalry between the United States and China. Dahal’s MC and Nepal’s US, are both offshoots of a bigger party and are unsure of their electoral prospects if the coalition breaks. But if it does they can whip up the MCC as an election issue against Deuba and Oli.The NC is divided about an electoral alliance with coalition partners. Prime Minister Deuba wants to pass the MCC and hold the coalition together, but powerful NC figures want to field elections for all three levels on their own. The opposition UML has a strong local base, but will not be opposed to an alliance if it can garner more seats.Read also: <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/">MCC: damned if we do, damned if we don't</a>, Nepali TimesThis is why the MCC can be a deal-maker or deal-breaker. Only Deuba’s NC and JSP in the governing coalition are for the $500 million infrastructure project. Even within the JSP, Baburam Bhattarai and Upendra Yadav seem to have opposing views, with the former prime minister publicly supporting the grant. The Americans are piling on the pressure, saying they will wait till the 28 February cutoff date for House ratification, failing which they will pull out.Dahal and Nepal on the other hand, seem to be under Beijing’s spell. They have held several virtual meetings with top officials of the Communist Party of China who regard the MCC as a US strategic response to their own Belt Road Initiative (BRI).The media leak this week of a letter to the MCC co-signed by Deuba and Dahal dated 29 September 2021 has put the Maoist leader in hot water. Dahal was assuring Washington that he would work to form a consensus in the coalition, all the while opposing the MCC at home.Read also: <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/">The cost of no MCC</a>, Nepali TimesParliament needs to sit for a ratification vote, but the House has not had a proper session for six months. Oli has been blocking House proceedings because Speaker Agni Sapkota has not evicted breakaway members of the Unified Socialists. And Sapkota, who is a close Dahal confidante, once more pushed a Parliament session slated for 9 February by a week.This gives Deuba more time to cobble together numbers in the House for ratification before the American deadline. If Dahal and Nepal do not go along, he will have to get the UML on board – and that means the collapse of the coalition.In fact, the MCC has now become a bargaining chip for both the UML and the Maoist-Unified Socialists to use against Deuba. But the prime minister knows that Dahal and Nepal need an electoral alliance with him more than he needs them. The Maoists are said not to even have enough candidates to field in local government elections in May.Meanwhile, fringe Communist parties including the Netra Bikram Chand faction of the Maoists have resumed anti-MCC protests outside Parliament. And Mahanta Thakur of the smaller LSP is making an unrealistic bid for local elections to be postponed in Madhes Province by three months.The $500 million MCC compact will be used primarily to upgrade transmission lines to distribute electricity from existing and new hydropower plants in central and eastern Nepal, and also connect to a high-capacity line to Gorakhpur so Nepal can sell surplus monsoon electricity to India.The cost of no MCC equals a loss of Rs142 billion a year for Nepal by 2025 when generation capacity is expected to rise four-fold to 5,000MW. Much of it risks being wasted without the transmission lines to evacuate power. Read more:<a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/">China lobbying against MCC</a>, Ramesh Kumar<a href="https://www.nepalitimes.com/latest/missing-links-in-nepals-mcc-debate/">Missing links in Nepal's MCC debate</a>, Jeevan R Sharma and David SeddonAmerican lobbying for MCC went into high gear on thursday when US Assistant Secretary of State Donald Lu called Prime Minister Deuba, Dahal and Oli separately to warn that the US would recalibrate its relations with Nepal if they failed to ratify the compact.This followed a slew of visits by high-ranking MCC officials to Nepal in October-November last year to warn Nepal that the MCC contract was timebound.Lu is also reported to have a key message to all three leaders: failure to ratify the MCC would be seen in Washington as Nepal buckling under Chinese pressure. Left unsaid in that warning was that Nepal may have to face a similar predicament to Sri Lanka, which has faced ostracisation after rejecting its own MCC project that has led to the country sinking into a deep economic crisis.

Sonia Awale

The deal-breaker

<figure><img width="800" height="557" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208b19c7e80680e0b54fdjpeg.jpg" alt=""/><figcaption>Illustration: RABINDRA</figcaption></figure>Pushpa Kamal Dahal usually gets favourable coverage in Nepal’s mainstream media. Which is why he must have been shocked when he woke up on Monday morning to banner headlines ridiculing what is seen as his duplicity in the <a href="https://www.nepalitimes.com/latest/mcc-risks-split-in-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">US-supported MCC project</a>.He must have had an inkling of it after Nepal’s cybersphere exploded after the leak over the weekend of the letter he co-signed with Prime Minister Sher Bahadur Deuba on 29 September 2021 asking the MCC for some more time to build a consensus in his coalition for <a href="https://www.nepalitimes.com/editorial/just-do-it/" target="_blank" rel="noopener noreferrer">the project</a>.Publicly, Dahal has been a vocal opponent of the project, calling for amendments to clauses he deems to be an affront to Nepal’s sovereignty.  Even sites that have been sympathetic to the Maoists were compelled to expose what they saw as his kow-towing to the Americans. Some posted photo-shopped images of Dahal with two tongues, while cartoonists had a field-day.It is not clear who leaked the letter, but Dahal has broadly hinted that he suspects it came from the prime minister’s office. Deuba himself called a tripartite meeting with Dahal and K P Oli of the main opposition UML on Sunday to sort things out.Deuba, who has been fully backing the $500 million MCC (<a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" target="_blank" rel="noopener noreferrer">Millennium Challenge Corporation</a>) project, seems now to have Dahal exactly where he wants him. Dahal used K P Oli’s support for the MCC to mastermind his ouster as prime minister in a party mutiny last year. <figure><img width="900" height="550" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208b39c7e80680e0b54fejpeg.jpg" alt=""><figcaption>Vice president of the MCC Fatema Z Sumar with Maoist leader Pushpa Kamal Dahal in Kathmandu in October.</figcaption></figure>But Oli is now playing coy, and himself using the MCC as a battering ram to try to break the ruling coalition <a href="https://www.nepalitimes.com/editorial/think-nationally-vote-locally/" target="_blank" rel="noopener noreferrer">ahead of elections</a> to three levels of government this year. He has come out strongly against Dahal’s conduct.There are already hints of friction within the coalition. Madhav Kumar Nepal of the CPN (Unified Socialists) who broke away from Oli’s UML and now a staunch Dahal ally, was not invited to the Baluwatar meeting on Sunday.The UML’s Shankar Pokhrel said Dahal tried to defend himself at the meeting with the prime minister and Oli, saying he never signed the letter. Others in the Maoist party had been posting in social media saying the signature in the letter is forged.Dahal’s daughter Ganga Dahal tweeted a statement from the Maoist party that staunchly defended Dahal: ‘The letter was a diplomatic exercise to protect the national interest, and it has been bent out of context. We are clear that this project cannot go ahead without amendments.’However, the MCC's top officials have ruled out any more amendments, and have laid out a final deadline of 28 February for the project to be ratified by Nepal’s Parliament as required by the contract. This is the reason Prime Minister Deuba is also in a hurry to cobble together the numbers in the House for ratification before then'. <figure><img width="509" height="500" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208b69c7e80680e0b54ffjpeg.jpg" alt=""><figcaption>Ganga Dahal's tweet with the Maoist Centre statement.</figcaption></figure>Deuba, however, faces a hurdle because House Speaker Agni Sapkota is a staunch Dahal confidante and has used the UML’s obstruction of Parliament as an excuse to postpone house sittings. Parliament was supposed to have a session on 30 December, but Sapkota put it off by ten days.The reason Deuba needs Oli in the picture is for him to remove his six-month long obstruction of Parliament over Sapkota not disallowing dissident members of the Nepal faction from the House. But it is clear Oli wants his pound of flesh.Deuba’s Nepali Congress by itself does not have the numbers in the House to pass the MCC, and will need either the Maoist Centre and the Unified Socialists, or the UML to pass it. If Dahal and Nepal refuse to go along, and the UML backs the NC, then <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" target="_blank" rel="noopener noreferrer">the coalition</a> is as good as collapsed.It is clear that Dahal cannot now backtrack from his opposition to the MCC even though his party was in a coalition government in 2017 with Prime Minister Deuba during a previous tenure when the MCC was signed.Nepal was selected for the MCC’s ‘threshold program’ when former Maoist ideologue Baburam Bhattarai was prime minister in 2014. Bhattarai is now with the Janata Samajbadi Party (JSP) and is publicly in support of the MCC. <figure><img width="750" height="457" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208b89c7e80680e0b5500jpeg.jpg" alt=""><figcaption>Gyanendra B Karki, then finance minister, now Communication Minister signing the MCC contract in Washington DC in 2017. </figcaption></figure>In a scathing tweet against his former comrade-in-arms on Sunday after Dahal’s signature in the letter became public, Bhattarai noted: ‘Anti-national inside, and nationalist outside ... Nepal will never develop as long as politics is not free of such absurd two-tongued characters.’ <figure><img width="678" height="169" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101120/637208ba9c7e80680e0b5501jpeg.jpg" alt=""><figcaption>Baburam Bhattarai tweet.</figcaption></figure>There is a geopolitical dimension also to the MCC. The project to upgrade Nepal’s electricity transmission lines does not just <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/">threaten to split Nepal’s governing coalition</a>, but Nepal’s politicians are also under pressure from the Americans to back the MCC and the Chinese who have <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/">intensified their lobbying</a> with the political leadership. China’s Ambassador to Nepal Hou Yanqi has been actively meeting coalition leaders in recent months to lobby against the MCC, including with the UML’s K P Oli. The head of the International Department of the Communist Party of China (CPC) Song Tao also held a one hour Zoom talk with Dahal of the Maoists Centre last week. Chinese official media as well as posts on the Weibo platform have been openly attacking American interference in Nepali politics to push the project through. <a href="https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/">China sees the MCC</a> as being America’s response to its own Belt Road Initiative (BRI), and as Sino-US relations worsen, Nepal and the MCC have been caught in the middle. With elections approaching, the MCC has also become a factor in Nepal’s domestic politics as well. Deuba finally convinced Dahal and Nepal last month to <a href="https://www.nepalitimes.com/latest/nepal-coalition-dilly-dallying-on-polls/">lift their opposition to holding local elections</a> in May after assuring them that the governing alliance would be intact. But the coalition is not expected to survive if the MCC is put to a vote in the House. The Americans are putting up a $500 million grant for the project to upgrade transmission lines and highways in Nepal five years after ratification, while Nepal has committed $130 million. One component of the MCC will upgrade <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/">Nepal’s electricity network</a> with a 400kVA transmission line that can also increase export power surplus to India. Nepal’s generation capacity is expected to rise four-fold to 5,000MW by 2025. Another component of the project is to improve highways in Central Nepal to <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/">boost economic growth</a>.

Maoists backpedal on MCC letter

Born in Khandbari in eastern Nepal, Parashuram Pathak helped his family around the farm, sold what they grew in the market and lent a hand in the kitchen.&nbsp; After working as a chef in Dubai, San Francisco, Denmark, Australia, and on cruise ships, Pathak has now brought back what he has learnt to the Tusa Restaurant in Bhaktapur that opened on Nepali New Year on 13 April. Tusa uses fresh indigenous ingredients from various parts of Nepal, and fuses them with international methods to produce unique dishes. Pathak is a global Nepali, and is introducing global Nepali cuisine to his homeland. Pathak left an executive chef job to intern at three-Michelin-starred Noma in Denmark, named the best restaurant in the world five times. Noma runs on a philosophy of foraging to rediscover wild local ingredients, and Tusa’s mission is similarly noble: preparing dishes with Nepali ingredients using modern techniques and equipment. “We are taking Nepali food beyond dal-bhat and momo, we are taking it international,” Pathak said on the phone from Sydney. Read also: <a href="https://nepalitimes.com/here-now/nepali-baker-rises-to-the-top-in-denmark">Denmark’s best baker is a Nepali</a>, Vishad Onta  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_1312bc016cbb2fe59c6d4a78d1f8b463af4a10b3f79559a2405fd54ea5b3197a.jpg" data-media-id="editor_1" data-image-id="20240419180424_1312bc016cbb2fe59c6d4a78d1f8b463af4a10b3f79559a2405fd54ea5b3197a" data-rendition-name="original" width="801" height="802" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Photo: PARASHURAM PATHAK/FACEBOOK</figcaption> </figure>  Pathak’s team in Nepal includes chefs Rupesh Bohara and Sagar Shrestha who have also worked extensively in Dubai and Australia, and share his vision. The three realised they shared the same dream, and over the past five years have travelled across Nepal to research their menu, collecting ingredients and ideas from homestays, food carts, and nature. The team then scouted for Nepal’s best architect, and zeroed in on Bhaktapur-based heritage conservationist Rabindra Puri who designed the Malla-era house for Tusa in the Nag Pokhari neighbourhood. Bohara and Shrestha have moved back to Nepal for good, and Pathak arrives in September. “I made dishes from all over the world, but when someone asked what Nepali food was like, I had no answer,” says Bohara, “I came back to find out.” &nbsp;“You can get citizenship, a green card, big houses and cars, but where is the self-satisfaction?” asks Shrestha, who has a red-and-blue chef’s knife with the sun and moon of the Nepali flag tattooed on his right forearm.&nbsp; Read also:<a href="https://nepalitimes.com/diaspora-diaries/the-return-of-a-master-baker"> The return of a master baker</a>, Raju Pakhrin  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_c601264463e5a28d4e71a46781f340a53619a08d00949a7aaebfef84e75a319d.jpg" data-media-id="editor_3" data-image-id="20240419180424_c601264463e5a28d4e71a46781f340a53619a08d00949a7aaebfef84e75a319d" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Photos: TUSA</figcaption> </figure>  Bohara and Shrestha passionately recount stories of their trips across Nepal, speaking of generous lodge owners who introduced them to local ingredients. Tusa can seat 28, and dining here is a sensory experience with a live kitchen. The chefs cook and place dishes on a large granite countertop with induction sections built in. Behind the counter is a grill on an indoor fire with pulley control to adjust the fire. Everything that can be made in Nepal — chairs and tables, ceramic dishes, the grill — is locally sourced. The executive kitchen/laboratory is downstairs. It is spacious, spotless, and contains appliances rarely seen in restaurants here: a sous vide machine that cooks vacuum-sealed packets at consistent temperatures, and a dehydrator for sisnu nettles. A fresh batch of deep purple kimbu (mulberry) muffins has just come out of the oven. Fridges have dry-aged fish and marigold kombucha. Fermentation seems to be the theme at Tusa, and Pathak explained: “Fermentation takes away the natural sugars in food, leaving behind a true, umami taste.”&nbsp; Read also: <a href="https://nepalitimes.com/here-now/vikings-khukri-passion">Viking's khukri passion</a>, Alisha Sijapati  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_c59e2b4230864f646bc36108adb951e95ec85da6156740294b1ec715b86acf89.jpg" data-media-id="editor_5" data-image-id="20240419180424_c59e2b4230864f646bc36108adb951e95ec85da6156740294b1ec715b86acf89" data-rendition-name="original" width="5895" height="3930" loading="lazy" alt="The return of the natives Page 12 NT #1208"> </figure>  Tusa itself means ‘shoot’ in Nepali, and can be a dish of fermented bamboo shoots. The restaurant serves a tasting menu with six courses, plus surprises. It starts with a fermented potato and millet roti with charred green garlic and tomato chutney. The bread tastes like a mix of alu paratha and kodoko roti with a satisfying, mild flavour. The chefs do not show off, and overdo it. Dishes are tastefully simple and faithful, a theme that runs through the meal. The second course is a filet of fish charred on one side and placed in a broth. It is delicate and smokey, and does not mask the character of the fish.&nbsp; The next is Batuk Chukauni, a Magar dish with a lentil snack and a yoghurt-based potato achar. The batuk, made of lentil batter, is light and the chukauni has potatoes and peas. Read also: <a href="https://nepalitimes.com/here-now/money-is-not-everything-but-you-need-money-for-everything">"Money is not everything, but you need money for everything"</a>, Rohit Shrestha  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240419180424_e3f51228ff792e8d4297f81f8e67d138584e922ae035d131977494219e5e85c5.jpg" data-media-id="editor_7" data-image-id="20240419180424_e3f51228ff792e8d4297f81f8e67d138584e922ae035d131977494219e5e85c5" data-rendition-name="original" width="1333" height="1000" loading="lazy" alt="The return of the natives Page 12 NT #1208"> <figcaption>Batuk Chukauni. Photo: VISHAD ONTA</figcaption> </figure>  Next is a skewer of jackfruit with a tamarind and mustard glaze that has the texture of a slice of sausage and melts in the mouth. Then comes the first off-menu item: a steak of watermelon, glazed and grilled, tasting sweet, sour and smokey. After that a palate cleanser sorbet made with laligurans syrup adorned with a frozen candied rhododendron petal. Finally the main course: barbeque chicken and chyakla coarse corn grits. The chicken has been brined, marinated, cooked sous-vide and seared on the grill. The delicate consistency of the chicken stands out. Desert is a smooth, creamy cheesecake that uses the local juju-dhau yoghurt. And the last course is a moist, moss-green sisnu cake laced with mulberry jam and cream.&nbsp; There is nothing gimmicky about Tusa. It is the coming together of skilled Nepalis with international exposure who have mixed what they have learnt abroad with the flavours of home.&nbsp; The tasting menu is Rs3,500, and it may take some time before Nepalis develop a predilection for some of its items. The chefs are excited, vindicated, and relieved. Coming back to Nepal, uprooting successful careers abroad to take a chance on Nepal must not have been easy.&nbsp; Tusa had a soft launch on New Year’s day with Kathmandu-based diplomats. Australian Ambassador Felicity Volk was one of them, and wrote on a Facebook post: ‘Chefs who honed their skills in Australia and returned to Nepal to give back. We call it fine dining, they call it #cominghome.’ Read also: <a href="https://nepalitimes.com/multimedia/the-baker-of-barpak">The baker of Barpak</a>, Tara Aryal Pandey

The return of the natives

For a year or two after the 25 April 2015 earthquake, the residents of Kathmandu were too terrified to return to their high-rise apartments. None of them collapsed in the 7.8 disaster, but many sustained serious structural damage. &nbsp;
Fast forward nine years, and they have all but forgotten that frightful day. Kathmandu is back to building substandard structures, even as land prices drive developers to build taller.&nbsp;
With no more space to spread horizontally, Kathmandu is going vertical. But structural engineers say most of the high rises do not take into account seismicity, soil condition, construction methods, quality of raw materials, fire hazard, and search and rescue in collapsed concrete structures.
“Much of our focus since the 2015 earthquake has been on building and construction, but not as much on where we are building,” warns Sangeeta Singh, Professor of Urban Planning and Deputy Director of Centre for Disaster Studies at the Institute of Engineering.
Read also: <a href="https://nepalitimes.com/banner/in-a-disastrous-state">In a disastrous state</a>, Sonia Awale
She adds: “Kathmandu is not really suited for high-rises. We have to first test the condition of the soil, but building permits are being issued without this fundamental step.”
Kathmandu Valley is a former lakebed with soft topsoil prone to liquefaction and excessive shaking, as seen during the 1934 megaquake. Many ruptures tore up the surface in 2015. &nbsp;
During an earthquake, the rock layers below Kathmandu ring like a bell and the vibrations on the surface take between 0.5 to 2 seconds for one oscillation. Buildings also vibrate, but at different frequencies depending on their height, construction material, and arrangement of their structural components.
At five floors, the vibration period of a building is 0.5 seconds, which is the same as that for Kathmandu Valley, and this could cause more damage, says structural engineer Surya Narayan Shrestha at the National Society for Earthquake Technology - Nepal (NSET).
“Building anything that is five storeys or higher in Kathmandu needs special design and structural considerations,” says Shrestha.
Read also: <a href="https://nepalitimes.com/editorial/shaking-things-up">Shaking things up</a>, Editorial
Technologies exist to reduce seismic risk in high-rises, and these are used in earthquake-prone cities like Tokyo, Los Angeles, Jakarta or Mexico City.&nbsp;
Base isolation, for example, separates the vibration of the land and the building, reducing damage from soil-building resonance. Base isolators move and stretch under pressure, absorbing much of an earthquake's impact by reducing swaying and shaking. &nbsp;
Seismic dampers change the pattern of vibration altogether, dissipating energy as vibrations move across a structure. But these are all expensive technologies, and none of the high-rises in Kathmandu use them.
However, Nepali engineers who can help with technology transfer are working in the field in Nepal and overseas. Kathmandu’s high-rises are already very expensive, and making them seismic-resistant would be an incremental cost.
Read also: <a href="https://nepalitimes.com/opinion/comment/learning-from-jajarkot-what-we-didnt-after-2015-695vpzle">Learning from Jajarkot what we didn't after 2015</a>, Sushil Gyewali
The shape of high-rises also matters. Reinforced concrete buildings with asymmetric designs of the kind that are seen in newer structures in Kathmandu experience more torsion and shear during quakes. High-rises with regular geometry are stronger. &nbsp;&nbsp;
An even bigger concern is that of emergency evacuation and rescue in case of fire or earthquake. Kathmandu fire services do not have ladders that reach the higher floors of most new structures.
“High-rises mean more people and potentially higher casualties,” explains Shrestha. “We need immediate evacuation routes, fire escapes, emergency ladders, and fire trucks that can reach higher. Right now, safety features are voluntary and not mandatory.”
The street access, shelters, open spaces, and evacuation routes are integral to disaster preparedness and the safety of neighbourhoods and not just buildings. Most new high-rises in Kathmandu have narrow access roads.
Read also: <a href="https://nepalitimes.com/opinion/rebuilding-resilience-7-years-later">Rebuilding resilience 7 years later</a>, Anil Pokhrel
Since most of the buildings that survived the 2015 disaster were reinforced concrete structures, it fed the misconception that they are safer. But Himalayan seismologists say that if the intensity and duration of the shaking had been just a little higher, many substandard concrete structures would have collapsed.&nbsp;
And that is the final gap: Nepal’s limited expertise and equipment for search and rescue inside collapsed concrete structures. Kathmandu’s high-rises need to be better prepared for the next Big One.
“Structural safety and design were at the front and the centre after the 2015 earthquake, we also revised some building codes but we are back to square one with contractor-driven construction, especially in peri-urban areas,” says Sangeeta Singh, who is also with the National Planning Commission. “We need to monitor construction as much as design.”&nbsp;
Shrestha at NSET agrees there have been improvements in building practices in the past nine years, but adds, “We have both learnt and unlearnt lessons from 2015. The awareness hasn’t yet translated into action on safety.”
Read also: <a href="https://nepalitimes.com/here-now/lessons-not-learned-from-2015-o2etq6zu">Lessons not learned from 2015</a>, Sonia Awale

The rise of high-rises

Midway along the stretch of the ancient trade route between Tibet and India lies the Kel Tol neighbourhood. The name is derived from the original Koligrām, and it is believed the Koli people, who were originally from Rāmagrām in present-day southern Nepal near the Indian border, settled here. The Koli were the maternal ancestors of none other than the Buddha. Kel Tol is famous for the Buddhist monastic complex of Kanak Chaitya Mahāvihar, featuring the majestic two-tiered gilded temple of the white god Karunāmaya.&nbsp; This elaborately decorated courtyard is a bustling centre of the Vajrayāna sect of Buddhism, practised widely by the indigenous Newā people of Kathmandu Valley. Karunāmaya, also known as Ārya Avalokiteshwor, is defined in great detail in the 1st century CE Buddhist text Sadharmapundarikā where he liberates all sentient beings from suffering. He helps rid the eight external fears metaphorically equated with their equivalent internal states of mind: lions (pride), wild elephants (ignorance), fire (anger), snakes (jealousy), floods (attachment), imprisonment (miserliness), thieves (wrong views) and cannibals (doubt).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_fe370cbee75003cd3eb5dccc7c3b2671630da193b0744db2aeac1bab3ff4a85c.jpg" data-media-id="editor_0" data-image-id="20240418130432_fe370cbee75003cd3eb5dccc7c3b2671630da193b0744db2aeac1bab3ff4a85c" data-rendition-name="original" width="1338" height="2000" loading="lazy" alt="Seto Machhindranath"> </figure>  In the Pancha Rakshyā Sutra, a Buddhist scripture from 200 CE, Ārya Avalokiteshwor was counted among the eight major deities. Followers of the Brāhminical god Shiva worship Ārya Avalokiteshwor as Seto Machhindranāth. For Shaivites, Machhindranāth is the Indian saint who founded the Nāth cult in the 10th century CE. He is the guru of saint Gorakhnāth. During the reign of Yakshya Malla (1428–1482 CE), a beautiful image of Ārya Avalokiteshwor was dug up by a farmer in present-day Jamal, which was then a cultivated area outside the city. The farmer, known as a Jamami (meaning the one from Jamal) took the image home for safekeeping. That night, Ārya Avalokiteshwor appeared in the farmer’s dream and told him that the proper place for him to reside is at the confluence of two rivers. The nearest confluence was at present-day Wongha (Indrachok) and the image was installed in the Kanak Chaitya Mahāvihar complex in Kel Tol near Wongha. This made it easier for city residents to pay homage to Ārya Avalokiteshwor and spread compassion. Soon, the deity came to be revered highly as Jamaleshwor, the one found in Jamal. Eventually, the name got corrupted, as happens often in Nepāl Bhāsā, to Janabahā Dyo. The courtyard where his temple is located is now popularly known as Janabahā.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_5c9b219530e400445ef4e7f64856b43e7cdb756be26d9ed4565c84044c178a7e.jpg" data-media-id="editor_1" data-image-id="20240418130432_5c9b219530e400445ef4e7f64856b43e7cdb756be26d9ed4565c84044c178a7e" data-rendition-name="original" width="2500" height="1668" loading="lazy" alt="Seto Machhindranath"> </figure>  The gilded temple of Janabahā Dyo, first built in the early 16th century CE, is adorned with wooden and metal artefacts that symbolise 108 forms of Ārya Avalokiteshwor. It stands out as the most decorated temple of its kind in Kathmandu. Today, Janabahā is a living heritage site where many ancient customs and rituals are widely practised as per Vajrayāna Buddhist tradition. Devotees throng the Janabahā Dyo shrine for daily worship and to receive Karunāmaya’s blessings. Being the compassionate one, Ārya Avalokiteshwor goes around town every year in his tall wooden chariot to allow sick and physically disabled devotees to pay homage to him from the comfort of their homes. One could say it is a door-to-door visit by the Compassionate One.&nbsp; For the pragmatic minded, the chariot festival is an annual renewal of communal harmony, validation of our ancient mathematical supremacy and demonstration of the need to keep practical skills alive, including the craft of building earthquake resilient houses.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_fc8b234ceca87dee4b99e897a485cef121fb953857fb61492a413fbfcc48360c.jpg" data-media-id="editor_2" data-image-id="20240418130432_fc8b234ceca87dee4b99e897a485cef121fb953857fb61492a413fbfcc48360c" data-rendition-name="original" width="2500" height="1667" loading="lazy" alt="Seto Machhindranath"> </figure>  The Janabahā Dyo chariot is pulled from Jamal, where his image was found by the farmer, through the historic heart of Kathmandu in a gala parade every year. The procession, accompanied by folk music ensembles and revellers, starts on the eighth day of the bright half of the month of Chaitra, and lasts up to a week (ending on Saturday this year). Hundreds of devotees pull the chariot along the streets as a way of expressing their gratitude to lord Karunāmaya for blessing them with compassion and well-being. Purna Ratna Vajrāchārya is an ordained priest who belongs to the clan responsible for taking care of Janabahā Dyo. He has been studying the design and architecture of the chariot for the past 40 years, and overseeing its construction for the past 15. He has learnt that the engineering principles of building the chariot are based on the mathematical system in which Buddhism is taught. For example, 365 pieces of wood are used in the chariot, each representing a day of the year. Each of the four wheels consist of 25 pieces of wood, totalling 100, representing completeness or fulfilment. The chariot is vertically divided into 13 sections, a parallel to the Buddhist concept of Trayodashi Bhuvana that describes the 13 steps that one must take to achieve the state of Nirvana.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_36d9964c9845f6d9a074786361fc5ab7d49138503ad162086998b731349b0ec0.jpg" data-media-id="editor_3" data-image-id="20240418130432_36d9964c9845f6d9a074786361fc5ab7d49138503ad162086998b731349b0ec0" data-rendition-name="original" width="2500" height="1668" loading="lazy" alt="Seto Machhindranath"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_2662753a9514a682ccdfd17bf05e2be3771183a68dc86b717ab67d9aad894563.jpg" data-media-id="editor_4" data-image-id="20240418130432_2662753a9514a682ccdfd17bf05e2be3771183a68dc86b717ab67d9aad894563" data-rendition-name="original" width="1668" height="2500" loading="lazy" alt="Seto Machhindranath"> </figure>  &nbsp;Exactly nine types of wood are used, which is the sum of the four base elements that make up the universe (earth, water, fire and air) and the five human senses. The height and length of the chariot is 32 arm’s length (hāt in Sanskrit), 14.8m. The number 32 represents the maximum number of auspicious and physical qualities one could possess to be considered an outstanding human being.&nbsp; Says Vajrācharya, “Observing how the chariot is built helps one learn the fundamental pillars of the Buddha’s teachings, and find an easier path to Nirvana.” The structural design of the nearly 15m wooden chariot is not only awe-inspiring but also gravity-defying. It leverages the pliancy of the materials used in its construction -- flexible joints tied with cane soaked in water for several days. The precise proportions of the chariot ensure great manoeuverability in the narrow streets along the route of the chariot procession that include some 90° bends, without colliding into houses.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_9f5c2943f5d6b3f0010d3d5213697549945e87a6f7d3d8cbadd69f0dea6c6e2c.jpg" data-media-id="editor_5" data-image-id="20240418130432_9f5c2943f5d6b3f0010d3d5213697549945e87a6f7d3d8cbadd69f0dea6c6e2c" data-rendition-name="original" width="2500" height="3750" loading="lazy" alt="Seto Machhindranath"> </figure>  Driving and steering the chariot with brute muscle power of the mirthful crowd is a seemingly impossible task. But this has been achieved year after year, despite the fact that the devotees who tug wildly at the ropes lassoed to the two front wheels, are most likely in high-spirits (pun intended). Sanjay Manandhar, a US-based technology entrepreneur, recounts how his high school physics teacher from Canada asked his students to go observe the locals build the chariots of Karunāmaya if they were interested in becoming engineers in the future.&nbsp; “That made no sense to me then, but, after all these decades, I now see clearly how the structural design of the chariot, adopted early on by our ancestors is full of earthquake-resilient properties that need to be applied in building houses in an earthquake-prone zone like Nepal,” says Manandhar. A highlight of the chariot festival is that human goddess Kumari makes an appearance at the final destination in Lagan, usually on the third day. This is only one of the 13 times that people get to see the Kumari outside her temple abode.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20240418130432_08aa39f3f004a212b33c60a2840d6013110de15dd34a0288f699dd5fda8957ab.jpg" data-media-id="editor_6" data-image-id="20240418130432_08aa39f3f004a212b33c60a2840d6013110de15dd34a0288f699dd5fda8957ab" data-rendition-name="original" width="2500" height="1667" loading="lazy" alt="Seto Machhindranath"> </figure>  On the last day of the festival (Saturday), the image of lord Karunāmaya is carried on a palanquin by priests from Janabahā in a gala procession and brought back to his permanent residence at the temple in Kel Tol.&nbsp; The chariot festival is thought to have started during the reign of King Pratap Malla of Kantipur in the 17th century CE. For close to four centuries, the construction of the chariot and its operation has proven to be a phenomenal engineering feat, and the people’s faith in divinity means the tradition is alive.&nbsp; The essence of the colourful rituals and the religious beliefs of this ancient chariot festival is now all but lost. The logic, technology and practicality must be brought back to light, as they reflect the high civilisation and wisdom of our ancestors that we can leverage in modern times and into the future. &nbsp; Alok Tuladhar is a culture and heritage documentarian.

Kathmandu’s gravity-defying chariot festival

In the run-up to the third Nepal Investment Summit this weekend, there have been seminars, conferences and workshops where the discourse has revolved around the economy and the investment climate.
The consensus that Nepal needs foreign direct investments (FDI) to grow was repeated, and the familiar litany of reasons about why it has not been able to was discussed.&nbsp;
Policy advocates and regulators have understood that the lack of urgency is compounded by procedural inconsistencies, on top of the already deficient investment environment in the country.
It is a welcome change from what used to be flippantly accepting matters as given. There now seems to be a sense of urgency, with procedural inconsistencies and lack of harmonisation between various Acts and regulations openly discussed.&nbsp;
Government stakeholders also appear more willing to learn and attempt to be part of the solution. Whatever policy changes have been introduced in the past have been piecemeal and address the few rather than the entire industry. This left dual regulatory approaches aimed at similar players.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/killing-investment-in-nepal-in-10-easy-steps">Killing investment in Nepal in 10 easy steps</a>, Dibesh Karmacharya
This time, unlike in the past two Summits, the government seems to be committed to amending 9 Acts, a positive step towards showing commitment to change. However, the deadline to do so during the winter session of Parliament is over. The option mooted has been to have it passed through ordinance, a lesser appealing step; albeit, a positive one moving forward.&nbsp;
To attract FDI in a competitive global market means that Nepal has to demonstrate that it is serious about bringing in investments with a more consultative and collaborative approach with investors. A departure from procedural to a result-oriented focus is needed.&nbsp;
To put issues in perspective, Nepal needs US$20 billion in investments to meet the UN’s Sustainable Development Goals (SDG) targets by 2030. If net-zero decarbonisation targets are to be met by 2045, another US$7 billion will be required annually.&nbsp;
Looking at our investment history and poor government capital expenditure, the gap is long and wide. In fiscal year 2022-23 Nepal booked a lamentable ~$59 million in FDI (equity). Nepal is in fact the lowest market in South Asia for FDI with 0.3% of the regional average.&nbsp;
What is it that we can do to fill the gap?&nbsp;
First, we need to move away from the notion that Nepal only needs large investments. This has proven to be a mistake, and time series data have proven that smaller investments, in aggregate, make a larger impact on economies.&nbsp;
Read also: <a href="https://nepalitimes.com/news/poor-cash-rich-nepal">Poor cash-rich Nepal</a>, Sonia Awale
We talk about an ‘enabling environment’ but without the right tools. We place restrictions on interest on debt ceiling (SOFR +5.5), without risk premium adjustments, we do not have an active secondary market for bond trading, nor do we have a yield curve, an integral part of the bond market, which is inhibiting us from tapping into the trillion dollar green bond market.&nbsp;
In order to attract green financing, Nepal needs to develop its bond market. Sovereign risk rating has been mooted and was expected to be operationalised before the Investment Summit.&nbsp;
However, to be rated in an adverse economic environment could further deteriorate investment potential due to a lesser-than-expected rating.&nbsp;
Hedging is another instrument that needs further research on. A commercial bank last year showcased the first risk-hedging mechanism for an investment of $8 million. This can be the beginning to expand on its modality. &nbsp;
Subordinated debt instruments have been introduced, but on a special nod basis, this now needs to be institutionalised as it is the most applicable form of investment after equity in a market that has volatile forex reserves.&nbsp;
Read also: <a href="https://nepalitimes.com/editorial/invest-in-investment">Invest in investment</a>, Nepali Times
Viability Gap Funding has been introduced by multilateral development agencies implemented in solar installations. It is a tool to incentivise the private sector to invest in projects that are not financially lucrative initially, but have potential for profitability in the long run. This needs to be scaled up and replicated in sectors like infrastructure, where returns may not be immediate.
Moving forward, to attract FDI, Nepal needs to tap into the funds that are available for the growth of small and medium enterprises (SMEs) and climate change. Alternative investments such as Private Equity Venture Capital (PEVC) have been around in a structured manner in Nepal for nearly a decade now.
These funds have blended finance components and have attracted climate funding as well. PEVC is a new asset class and can address the issues of penetrating into SME financing by incorporating environment, social and governance issues into their investment process.&nbsp;
SMEs are the backbone of any economy, PEVC comes with the ability not only to scale up the enterprise with risk capital, but with the ability to bring technical knowhow to enhance not only the enterprise but also the entrepreneur.&nbsp;
Read also: <a href="https://nepalitimes.com/opinion/success-in-nepal-means-not-having-to-work">Success in Nepal means not having to work</a>, Anil Chitrakar
A differentiator from all other forms of financing available till date in Nepal. Blended finance is a way of de-risking investments, especially in frontier markets. Business Oxygen (BO2) is an example of blended finance with subordinated debt investments of IFC (World Bank Group) taking the lead and Climate Investment Funds along with FCDO as co-investors.&nbsp;
On a larger scale, the 216MW Upper Trisuli 1 is another example of blended finance with IFC, a Korean consortium and local investments. So far, we see that development finance Institutions have been taking the lead in Nepal as their risk appetite is greater than commercial investors and they are eager to help develop the financial markets.&nbsp;
In order to be sustainable, we need to step on this and attract commercial capital from all over the world. To do this there has to be political will to make that pivot.&nbsp;
Instead of being a means to an end, the two previous Investment Summits turned out to be intermittent and cosmetic, providing hardly any results. The third one’s success will depend on how the event will be implemented as a platform for continuous marketing for the country and facilitation for investors in future.&nbsp;
Nepal has outdone many countries in its macro-economic indicators, with sound forex reserves and a stellar history of debt payments to its creditors. This story needs to be propagated along with the drive for change to attract potential investors.
Read also: <a href="https://nepalitimes.com/opinion/comment/alternative-investments-to-attract-fdi">Alternative investments to attract FDI</a>, Siddhant Raj Pandey

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