The grant paralysed Nepali politics, and nearly brought down a government. After acrimonious wrangling, Parliament three years ago this week ratified the <a href="https://nepalitimes.com/news/putting-the-mcc-in-context">$500 million US project</a> for roads and transmission lines.
Just as the <a href="https://nepalitimes.com/here-now/mcc-ball-in-nepal-s-court">Millennium Challenge Corporation (MCC)</a> started awarding contracts this week for sections of transmission lines, substations, and highways, <a href="https://nepalitimes.com/editorial/trump-s-second-coming">Donald Trump </a>suddenly pulled the plug.
The Finance Ministry said it had received an email last week from Washington that payments for contracts were ‘suspended’ by Trump’s executive order. It is not clear if the stay is only for 90 days, and the MCC has asked for a waiver for Nepal and other countries.
Read also: <a href="https://nepalitimes.com/news/trump-shock-wave-hits-nepal">Trump shock wave hits Nepal</a>, Sudiksha Tuladhar&nbsp;
“This is a temporary suspension, we believe it will eventually work out as it is supposed to,” says former National Planning Commission Chair Biswo Nath Poudel. “If not, the Americans will lose credibility around the world.”
In January, the MCC approved an additional $50 million to cover increased costs, and Nepal is chipping in its own $197 million.
“We will take loans to complete the <a href="https://nepalitimes.com/editorial/a-millennium-challenge">transmission lines</a> if we have to, and Nepal is now capable of operationalising projects of that value,” Poudel told us.&nbsp;
The MCC was caught up in the <a href="https://nepalitimes.com/news/sino-american-rift-impacts-climate-action">Sino-US competition</a> for dominance in the region. It was Washington’s response to Beijing’s <a href="https://nepalitimes.com/opinion/bri-enters-the-tenth-year">Belt and Road Initiative (BRI)</a>. Abandoning MCC will leave Nepal open for <a href="https://nepalitimes.com/here-now/china-lobbying-against-mcc">China to step in</a> with its own infrastructure.&nbsp;
“I don't see the Chinese replacing the US in terms of dollar-to-dollar aid in Nepal, including on the MCC, which is also an export-to-India-oriented project,” says Amish Mulmi, author of All Roads Lead North. “But, yes, China can use the aid and investment vacuum left by the US to assist Nepal.”
The debate about whether Nepal should accept <a href="https://nepalitimes.com/here-now/power-politics-delays-mcc-in-nepal">the MCC polarised politics</a>, even splitting leaders within parties. <a href="https://nepalitimes.com/opinion/comment/inoculation-against-misinformation">Conspiracy theories and disinformation</a> spread like <a href="https://nepalitimes.com/news/wildfire-season-starts-early-in-nepal">wildfire in Nepal</a>’s cybersphere, alleging that the MCC was a ploy to base US missiles in Nepal aimed at China. The Chinese added fuel to the fire, trying to stop ratification.&nbsp;
Not surprisingly, the suspension of MCC contracts this week was greeted with the same trolling that filled <a href="https://nepalitimes.com/news/no-comment">social media </a>during the MCC debate and after ratification in 2022. This time, the posts have an additional ‘we told you America was not a reliable partner’ refrain.
One self-described influencer posted on X: ‘The MCC has only been suspended, it should be entirely cancelled…(it) is an absolute military trap.’
Finance Ministry officials last week assured that the MCC would not be affected by <a href="https://nepalitimes.com/news/how-usaid-cut-affects-nepal">the freeze on USAID supported programs </a>worldwide, including Nepal.&nbsp;
On Wednesday at Mar-a-Lago, Trump singled out Nepal, and said USAID’s $20 million to support <a href="https://nepalitimes.com/editorial/feudal-federalism">federalism</a> and $19 million for <a href="https://nepalitimes.com/here-now/conversation-with-mr-conservation">conservation</a> was a “fraud”. Other US-supported government programs worth $131 million to improve healthcare, education, <a href="https://nepalitimes.com/here-now/back-to-the-land-in-the-cities">agriculture </a>and inclusion are halted.&nbsp;
In 2022, USAID and Nepal signed a five-year Development Objective Agreement worth $659 million for climate adaptation, environment protection, <a href="https://nepalitimes.com/banner/nail-salon-workers-say-proper-ventilation-can-protect-their-reproductive-health">gender and reproductive rights</a>. That is also now in limbo.
Slashing all this assistance has impacted over 300 consultancies and non-profits in Nepal, and threatens to undermine past successes in maternal and child health, <a href="https://nepalitimes.com/news/the-goal-is-empowerment-and-independence-of-women">women’s empowerment</a>, free press and rural development. &nbsp;
Says Mulmi: “What the US withdrawal on MCC will do is further erode US credibility inside Nepal, particularly since it was such a politically charged subject. It will also signal a change in its stance on China in South Asia, as the MCC was a direct challenge to the BRI and <a href="https://nepalitimes.com/news/nepal-s-love-triangle-with-china-and-india-impacts-investment">Chinese investments</a> in infrastructure.”
If there is one lesson from all this, it is that<a href="https://nepalitimes.com/news/missing-links-in-nepal-s-mcc-debate"> foreign assistance is rarely a free lunch</a> and often comes with strings attached. Nepal should look out for itself and be self-reliant, after all <a href="https://nepalitimes.com/opinion/is-free-health-care-possible-in-nepal">basic health care </a>and environmental protection are responsibilities of the Nepali state, not of donors.&nbsp;
This means investing in infrastructure and development to <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">create jobs at home</a>, actually spending budget outlays for capital expenditure, and making optimum use of domestic resources such as<a href="https://nepalitimes.com/here-now/pump-water-store-energy"> hydropower</a>.
Says Bishwo Nath Poudel: “The MCC was never anti-China. In fact, India and China are our most important neighbours. What is really important for us is to leverage their growth to pull us along.” &nbsp;

Sonia Awale

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The Great Game, 2nd Half

<figure><img width="2211" height="1541" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101116/6372080d9c7e80680e0b54c7jpeg.jpg" alt=""/><figcaption></figcaption></figure>A much-delayed half-billion dollar US government project to upgrade Nepal’s infrastructure <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/&amp;source=gmail&amp;ust=1643783587117000&amp;usg=AOvVaw1mPNK10b4Qti4kBCQ2ZqtY">threatens to split Nepal’s governing coalition</a>, amidst indications the <a href="https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/china-lobbying-against-mcc/&amp;source=gmail&amp;ust=1643783587117000&amp;usg=AOvVaw3xLZatwKG1qUAKCvOP5DVb">Chinese have intensified lobbying</a> with politicians to oppose it.Prime Minister Sher Bahadur Deuba of the Nepali Congress (NC), a minor coalition partner Janata Samajbadi Party (JSP), as well as the main opposition UML support the project. But it is vehemently opposed by two Communist parties: the Maoist Centre (MC) and the Unified Socialists.The strain within the coalition appears to have taken a turn for the worse after Prime Minister Deuba got wind that <a href="https://www.nepalitimes.com/latest/nepal-speakers-ipu-trip-slammed/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-speakers-ipu-trip-slammed/&amp;source=gmail&amp;ust=1643783587117000&amp;usg=AOvVaw1748mrZsIq3zaEcjwoZOZ_">Parliament Speaker Agni Sapkota</a> of the MC postponed a sitting of the House on Sunday that was to discuss the Millennium Challenge Corporation (MCC) project.After a meeting of the five coalition partners on Saturday failed to agree on getting the MCC ratified by Parliament, Sapkota called off a scheduled House sitting for ten days without informing the prime minister.Deuba is said to be so put off that he has leaked a threat to register a proposal to unseat Speaker Sapkota, and has hinted that he will push through the MCC even if it means a split in the coalition.China’s Ambassador to Nepal Hou Yanqi has been meeting various coalition leaders in the past months to lobby against the MCC, the latest was a one-on-one with the opposition UML’s K P Oli at his residence on 22 December.Then on Saturday, just after the inconclusive coalition meeting, the Maoist Centre’s Pushpa Kamal Dahal held an hour-long hush-hush virtual meeting on Saturday with Song Tao, the high-ranking head of the International Department of the Communist Party of China (CPC).Although the conversation was said to have centred around greeting each other on Chinese New Year and Dahal being congratulated for being re-elected chair of the Maoist Centre, the timing of the online discussion on Saturday evening is seen as significant.In November also, CPC officials had talked to senior party leaders in Kathmandu to actively dissuade them from passing the American project. The deputy head of the International Department of the CPC Chen Zhao had even called the UML General Secretary Ishwar Pokhrel on 13 December to try to change his party leadership’s pro-MCC stance. Zhao also spoke to Madhav Kumar Nepal of the Unified Socialists, and the latter is said to have assured him that he would not let the MCC be ratified.Speaker Agni Sapkota has been known to be close to Beijing, and has made no secret for his opposition to the MCC, and this week was not the first time that he blocked ratification in Parliament. His predecessor Krishna Bahadur Mahara, also a close confidante to Dahal, was also publicly anti-MCC before he was removed from office in 2019 after allegations of rape.   <a href="https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/is-china-now-micro-managing-nepal-politics/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw1ZjFWwIUS-IjUQIDA_jTNV">China’s suspicions about the MCC</a> as being an American geo-strategic counter to its own Belt Road Initiative (BRI) can also be gleaned from Chinese academics who have been <a href="https://mp.weixin.qq.com/s/TgjzJv5skEkt6rjm9pyU8w" target="_blank" rel="noopener noreferrer">writing in state controlled media</a> as well as in interviews with Nepali portals. Wang Yiwei of Renmin University in an op-ed in October called the MCC ‘American ploy’.Besides geopolitics, the MCC has also become a factor as <a href="https://www.nepalitimes.com/banner/dance-of-democracy/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/dance-of-democracy/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw2v7G-9XPUQE_b0yVvy5RP7">Nepal’s domestic politics</a> as parties try to position themselves for upcoming local government elections in May and federal polls later this year.Last week, Deuba managed to convince Dahal and Nepal to <a href="https://www.nepalitimes.com/latest/nepal-coalition-dilly-dallying-on-polls/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-coalition-dilly-dallying-on-polls/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw3bRn0dwVnuNcGvc5nNm05E">lift their opposition to holding local elections</a> on time in exchange for keeping the coalition in an electoral alliance. Although NC insiders say they also got a commitment from them to back the MCC, the two leaders have denied this.Both say they will back the MCC only “with amendments” to clauses in the contract that they say undermines Nepal’s sovereignty.For its part, the UML has obstructed Parliament for the past six months, accusing Speaker Sapkota of allowing a breakaway group from the Nepal faction to keep their seats.Amidst all this, Deuba appears to be losing his patience with coalition partners. He takes personal responsibility for having signed the MCC agreement during his previous tenure five years ago, and fears loss of credibility for Nepal from international partners if the agreement is not ratified.Sources said that in Saturday’s meeting, Deuba actually brought up the possibility of the coalition splitting if the MCC is not passed. Deuba is gambling that an electoral alliance with the coalition is important for the MC and the Unified Socialists, both of which have been <a href="https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/who-wants-early-elections-and-why/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw3EuLUjhgdgtlUAmjsBpP1O">weakened by their split with the UML.</a>The UML itself is now playing coy, and K P Oli has made no secret of its aim to use the MCC to split the coalition. Deuba is determined to push the MCC to Parliament even if it means getting UML support, since the NC and JSP alone do not have the numbers to ratify it.UML Chair K P Oli was a strong backer of the MCC when he was prime minister till July last year, and it was in fact his erstwhile party colleagues Pushpa Kamal Dahal and Madhav Kumar Nepal who <a href="https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/mcc-damned-if-we-do-damned-if-we-dont/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw2o4JhiHrU0WJYe66eGhiHV">weaponised the MCC</a> to bring him down. Ultimately, this led to their Nepal Communist Party to split into the MC and the UML, and the UML itself later split with Nepal breaking off to form the Unified Socialists.Having been so vehemently opposed to MCC, Dahal and Nepal can now not do a 180 degree on the project. And they also have to contend with the Chinese breathing down their necks.One of the more vocal proponents of the MCC has been former Maoist ideologue and ex-prime minister Baburam Bhattarai who fell out with Dahal and is now with the JSP.Bhattarai, who also has a PhD in urban planning, tweeted on Monday: ‘The MCC is a trial by fire for Nepal’s political parties, mainly the Communists. First: Will we try to balance the US and India and China or be beholden to one of them? Second: If we do not want American support, what will we do with aid from the WB, IMF or ADB? If an American grant is untouchable, how about aid from India, China or others?’ <img width="640" height="175" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114101116/637208109c7e80680e0b54c8jpeg.jpg" alt="">The $500 million project was signed in 2017 when Prime Minister Deuba led a coalition that also had the Maoists as a partner in government. The Americans have denied that the project has any military component, saying Nepal qualified for it and there are no strings attached.Increasingly impatient with delays in Nepal and irritated with what it sees as Chinese obstruction, the Americans have sent a <a href="https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/mcc-row-rocks-nepals-ruling-coalition/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw2Io7kTRWitTQBFQcPJndxQ">slew of high officials to Nepal</a> in the past six months, who has also warned Nepal that project approval is time-bound, and the MCC can withdraw the grant if Nepal does not want it.The project will pay to expand <a href="https://www.nepalitimes.com/latest/the-cost-of-no-mcc/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/the-cost-of-no-mcc/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw3ftWPiTFZ8uZospptUy9b3">Nepal’s electricity grid</a> with a 400kVA transmission line to distribute power from eastern to western Nepal, as well as export surplus to India. Nepal’s <a href="https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepals-precious-electricity-going-waste/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw2H55BAU4KQwQs8tcmB84xz">power producers could lose</a> up to Rs142 billion annually if the electricity lines are not built to evacuate the estimated 5,000MW of generation capacity by 2025. The project also has a component to <a href="https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/generating-electricity-and-cash-for-nepalis/&amp;source=gmail&amp;ust=1643783587118000&amp;usg=AOvVaw212arRNKdVKZSYW2VBkCRW">boost economic growth</a> through improvements in highway connectivity in Central Nepal.

MCC risks split in Nepal’s ruling coalition

<a href="https://nepalitimes.com/news/ball-in-balen-s-court">Nepal’s newly-installed Prime Minister Balendra Shah</a> unveiled his Council of Ministers after taking the oath of office on Friday in Kathmandu.&nbsp; Besides Nepal's pre-existing problems, his team will immediately have to deal with the fallout of the West Asia conflict to satisfy an electorate impatient for change. The Rastriya Swatantra Party (RSP) won a majority in the 5 March election and capped the Cabinet size at 15. Shah, a structural engineer and musician, himself has taken charge of the Defence and Industry Ministries. There has been an attempt to make the Cabinet inclusive with women in five of the new portfolios.&nbsp; After much negotiation, the powerful Home Ministry, a bone of contention between Shah and RSP Chair Rabi Lamichhane, has gone to Sudan Gurung, a hitherto little-known figure who <a href="https://nepalitimes.com/here-now/who-or-what-is-hami-nepal">rose to prominence after the September GenZ protest</a> and won the election from Gorkha-2.&nbsp; Gurung will be in charge of Nepal’s internal security apparatus and maintaining law and order. And with Gurung, a close ally of the Prime Minister, in charge, some note the Home Ministry will be a hook for Shah if Lamichhane, with his share of controversies, steps out line.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a.jpg" data-media-id="editor_2" data-image-id="20260327090324_c7725ea5fb9ffbf96df25a7b3122520b7ae3ee10548aed3f37781a7e5440e51a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Notable RSP leaders, including vice-chair DP Aryal, were said to have been vying for the portfolio.&nbsp; Gurung is the founder of the non-profit Hami Nepal, which worked primarily in earthquake relief in 2015, and emerged onto the national stage during negotiations to appoint Sushila Karki as interim PM after the unrest. He was also involved in key negotiations that cemented Balendra Shah and Rabi Lamichhane’s political partnership in the runup to the election.&nbsp; Most new Cabinet members are not just first-time ministers, but are also freshmen lawmakers. Many are experts in their fields. Finance Minister Swarnim Wagle is an <a href="https://nepalitimes.com/here-now/nepal-needs-to-rebrand-itself">economist </a>with degrees from the London School of Economics and Harvard, and was previously Chief Economic Advisor at the UNDP Regional Bureau for Asia and the Pacific, and also served in Nepal’s National Planning Commission.&nbsp; Previously a member of Nepali Congress, Wagle exited the party in 2023 following differences with top leadership, and joined the RSP. Wagle won a by-election from Tanahu-1 in 2023 and won again from the same constituency in this month’s election.&nbsp; Shishir Khanal, who heads RSP’s foreign affairs department, has been appointed Minister of Foreign Affairs. &nbsp;Khanal is co-founder of Teach For Nepal, was briefly Education Minister when the RSP was part of the the Pushpa Kamal Dahal-led coalition government in 2023.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42.jpg" data-media-id="editor_4" data-image-id="20260327090324_b1a670bac12e2bf4df955134f58c8de7718d48f6be4e1f2df7c7c52f82e36e42" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Law Minister Sobita Gautam is a lawyer by profession and worked in governance and public policy before she was elected as the youngest MP in the 2022 election.&nbsp; Health Minister Nisha Mehta is a nurse and became a lawmaker under the Proportional Representation system in this election which swept the RSP to power with a near two-third majority.&nbsp; Education Minister Sasmit Pokharel, a first-time MP elected from Kathmandu-5, served as an aide to Balendra Shah when he was mayor of Kathmandu and a was member of the KMC City Planning Commission.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f.jpg" data-media-id="editor_5" data-image-id="20260327090324_5ed794d7bf0cac2844277521810225c4355746b9c3f7369f70cacc878c94641f" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Biraj Bhakta Shrestha is Energy Minister, and also served as the Minister for Youth and Sports in the Dahal-led coalition government in 2024. Before joining RSP, Shrestha was elected to the Bagmati Provincial Assembly in the 2017 elections representing the r<a href="https://nepalitimes.com/here-now/rsp-s-activist-dna">eformist Bibeksheel Sajha Party</a>. He will immediately face the challenge of addressing the <a href="https://nepalitimes.com/news/rough-road-ahead-for-new-nepal-rulers">impact of the West Asia war,</a> including rising petroleum prices and a shortage of cooking gas. Sita Badi, who was elected through the PR system, is Minister for Women, Children and Senior Citizens. She was born and brought up in the underserved and marginalised Badi community in Surkhet and has been advocating for the rights and welfare of women, children, and minority communities. Other ministers include RSP spokesperson Pratibha Rawal as Minister for Federal Affairs and General Administration as well as Land Management, and Gita Chaudhary as Minister for Agriculture, Sunil Lamsal is Physical Infrastrucutre, Transport, and Urban Development Minister, Khadka Raj (Ganesh) Paudel as Tourism and Civil Aviation Minister. Dipak Sah is the Labour and Employment Minister, and Bikram Timilsina is Communication Minister.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed.jpg" data-media-id="editor_8" data-image-id="20260327090324_b67c2d199d4897031583a5b7ec7ce43e88771167696e6161665eeb5fca25d3ed" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  Meanwhile, RSP vice-chair DP Aryal, who many thought would be home minister because of his proximity with Rabi Lamichhane has been proposed as Speaker of the House.&nbsp; Aryal previously served two brief stints as the Minister of Labour when RSP was part of the RSP’s coalition governments in 2023 and 2024. As minister Aryal came <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">under scrutiny </a>for his involvement in an employment agency that was investigated for illegal acquisition of wealth in 2020. If appointed House Speaker, Aryal will be expected to play a neutral and non-partisan role in Parliamentary affairs. &nbsp; With the full Cabinet announced on Friday, Prime Minister Shah and his team now have their work cut out for them. &nbsp;The government’s first priority will be ensuring the safety and long-term security of the almost two million <a href="https://nepalitimes.com/here-now/migrant-workers-in-wartime">Nepalis living and working in the Gulf</a> amid the ongoing conflict in the region, and taking steps to cushion Nepal’s economy from the Israel-US war on Iran. The new leaders will also be tasked with implementing the findings of the Karki Commission report on the September violence that paved the way for the election and the rise of the RSP. &nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_11" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> <figcaption>Snapshots from PM Balen Shah's swearing-in ceremony</figcaption> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d.jpg" data-media-id="editor_12" data-image-id="20260327090324_69b36bc62737e44ade4080be36688f9c2f92201356e1df2072cef8ecc6a9be5d" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a.jpg" data-media-id="editor_13" data-image-id="20260327090324_8646d490883154f696bcdc6e2375084419f2eefaaf0ef0c7e2710aa6e2d94a8a" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>   <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c.jpg" data-media-id="editor_14" data-image-id="20260327090324_89d17d6584593be1eb23eb1d4872c3b7c600e1620f3aca48dbff4838364a1e3c" data-rendition-name="original" width="1440" height="960" loading="lazy" alt="Balen Shah swearing in NT"> </figure>  &nbsp;Full list of ministers: Prime Minsiter: Balendra Shah Home Minister: Sudan Gurung Finance Minister: Swarnim Wagle Foreign Affairs Minister: Shishir Khanal Law, Justice and Parliamentary Affairs Ministry: Sobita Gautam Energy, Water and Irrigation Minister: Biraj Bhakta Shrestha Education Minister: Sasmit Pokharel Physical Infrastrucutre, Transport, and Urban Development Minister: Sunil Lamsal Communication and Information Ministry: Bikram Timilsina General Administration Minister: Pratibha Rawal Women, Children and Senior Citizens Minister: Sita Badi Health and Population Minister: Nisha Mehta Agriculture Minister: Gita Chaudhary Culture, Tourism and Civil Aviation Minister: Khadka Raj (Ganesh) Paudel&nbsp; Labour Minister: Dipak Sah

Nepal swears in new Cabinet

Next to my home in Bhainsepati stood a dead Uttis tree next to a public tap. A nearby water tank built a year earlier had killed its roots.
If the tree collapsed, people living nearby and those queuing up to fetch water at the tap would be hurt. With the storm season approaching, the risk was obvious. The tree could also fall on my own house, so I volunteered to find a way to remove this threat.
Little did I know how difficult it would be. A forest officer acquaintance told me there is a special procedure for cutting risky trees. I contacted the Lalitpur District Forest Office (DFO).&nbsp;
He said a technical report from a field officer was needed, and passed on her number. When I called, she asked for the location, photos, and a video. I send them all.
The ward office also suggested I use Lalitpur Metropolitan City’s mobile app, Lalitpur Alert, to report the problem. I uploaded photos, and submitted the complaint. This seemed to be very easy and efficient.
Indeed, the next day the municipality called me back and I explained the situation. They said they could not act without permission from the DFO. I asked why the app existed if the city could not act on such complaints. The officer said he did not know. My happiness was short-lived.
A couple of days later, the app notified me that my problem had been solved, and the complaint was removed. But the dead tree still stood there defiantly.&nbsp;
A week later, two forest technicians arrived on a scooter to inspect the tree. They looked up at the tree and asked if I had a measuring tape so they could measure its diameter.
“You are the technicians,” I told them. “You came to inspect the tree, and you came without a measuring tape?”
I rummaged at home and found a tape measure. They got the diameter and said they would prepare a technical report, but I would have to obtain a recommendation letter from the ward office and submit it to the DFO.
“This tree is dead,” I told them. “It is on public land. You have seen it with your own eyes. You know it's dangerous, so write a report and arrange for it to be cut. Why do I have to run from office to office to apply for recommendation letters?”
Their answer was simple, yet expected: “Those are the rules.”
They left, and I gave up. Two technicians spent half a day visiting the site. The metropolis runs a complaint system with a mobile app funded with public money. The ward office has staff to solve problems. Yet none of these institutions took the responsibility to remove a dangerous tree.
Everyone is busy citing rules and regulations and passing the buck. Weeks passed. Everyone reacted to the problem, but no one took any responsibility to resolving it.
Then, one bright December morning under a deep blue sky, a few neighbourhood boys were swinging their axes on the trunk. They had no proper equipment, no safety gear, and no professional experience.
I gave the boys some money and so did a neighbour. It took an hour or so for the tree to come crashing down safely. We had paid to have the tree cut illegally, and the matter ended there.
Multiple government offices, technicians, procedures, and mobile apps could not remove a dangerous tree, and we had to break the law to cut it. The tree is gone now, but the real problem remains: an inefficient bureaucracy.&nbsp;
It is perhaps symbolic that the tree is the election sign of the Nepali Congress, which was part of Nepal's governance and bureaucracy for decades and did not perform well in this month's election.&nbsp;
That is the bureaucracy that the new RSP government now has to get to work. But it will not be easy.
I posted on Facebook: ‘When people feel leaders have grown arrogant or corrupt with power, they change their minds and their votes. If those who replace them follow the same path, voters will again change their minds and votes.’
I continued: ‘The strength of democracy lies in this simple principle: the more citizens act as independent voters, the stronger democracy becomes. The more they behave as party loyalists, the weaker it grows. If we want a better system, we must demand deep reform of the state bureaucracy and hold institutions accountable.’&nbsp;
The first responses came from two senior government officials. They told me privately that they agreed by 200% but could not say so publicly.
It is quite normal for a Nepali to get the run around in government offices, it is almost a given to be asked for a bribe. As an environmental reporter and citizen, I have numerous such examples.
It is not just one sector that has been suffering. It is everywhere, and this is just an example of how complicated our bureaucracy is. As a 40 something person, I am old enough to remember the 1990 pro-democracy movement, &nbsp;the Maoist insurgency. Many promises made then by the politicians were broken.
We fought for rights, we fought for regime change. The country has changed political systems several times, from monarchy to multiparty democracy and finally a republic.
Yet one thing that remains largely untouched or reformed is our inefficient and corrupt bureaucracy. The new government, to be led by the youngest prime minister in our history must start this reform if it wants to deliver.&nbsp;
Otherwise, we may have to keep changing governments every few years, and still find ourselves unable to legally cut down even one dead tree.

A dead tree tests Nepal's bureaucracy

On Friday, Balendra Shah is taking his oath of office as Nepal's prime minister in a capital city of which he was a mayor till six months ago.
At 35, he will be among Nepal’s youngest prime ministers. His reticence and reclusiveness have reinforced his brand as a doer rather than a talker. This was a persona he cultivated as mayor of someone who cleaned up the city by managing garbage. But he also chased off sidewalk vendors in an effort to ‘beautify’ the city.&nbsp;
After being elected, Shah did not attend RSP events in official capacity, and he was absent at an MP orientation last week.&nbsp;
His refusal to engage with the press, and even stopping to post on social media, have added to the air of reclusiveness. But as prime minister, he may have to communicate more even if it just to stop conspiracy theories and intrigue.&nbsp;
The people he will now represent would like to know, and have a right to know, what he is up to. Otherwise the feeling will grow that Nepal is entering uncharted territory. Governance, the economy and investment do not like uncertainty.
Political scientist Pyakuryal notes that calling Balen a 'man of few words' may serve as a useful epithet if he governs with quiet efficiency rather than fanfare. "But as Prime Minister, he must engage the nation’s will, not simply manage from above," she says.
She adds: "The real test lies in his choice of style: will he lead exclusively, keeping decisions close, or inclusively, opening space for dialogue and shared ownership of governance?"
Nepal's newly-elected lawmakers were sworn in on Thursday. And once sworn in as PM on Friday, Balendra Shah is set to appoint a ‘minimalist’ Cabinet. Although the Constitution caps the size of the Council of Ministers at 25, the party has decided to stick to maximum 18 and not split ministries to accommodate loyalists as was done in the past.&nbsp;
&nbsp;"The Cabinet must support the leadership of the Prime Minister while ensuring accountability to the Parliament,” notes political scientist Sucheta Pyakuryal. “But the questions that come to mind are: will the RSP MPs readily submit to Balen’s leadership and is Balen’s absence from the party’s official events an unwillingness or hesitation to submit to the party?”
Prime Minister Sushila Karki and her ministers ended their interim tenures this week, and she was lauded for upholding her commitment to hold a free, fair and peaceful election. But her image was tarnished for her reluctance to release the investigation report on the September violence, as well as recommending her Home Minister Om Prakash Aryal for a National Assembly seat, and her personal secretary to the National Trust for Nature Conservation. President Ram Chandra Poudel has put Aryal’s nomination on hold. &nbsp;
The Investigation Commission report leaked on Wednesday said the state failed to stop the firing on protestors by Police on 8 September and blamed the Army for not preventing the arson next day. It recommended the prosecution of prime minister KP Oli, home minister Ramesh Lekhak, and Police chief Chandra Kuber Khapung.
Notable names said to be in consideration for the Cabinet include many who are experts in their fields, and RSP wants a young lawmaker as Speaker. The new government will plunge headlong into the economic fallout of the West Asia war.
RSP, with its near two-third majority, does not have to placate any coalition partner, so Nepal is at long last expected to have a stable government after 35 years. Despite hopes that there will not be the usual horse-trading this time, there is tension between supporters of RSP chair Rabi Lamichhane and Balendra Shah. The two have been negotiating in hotel rooms for Cabinet posts for loyalists.&nbsp;
Shah’s larger-than-life online persona and nationwide appeal delivered the RSP its overwhelming electoral victory this month, and this makes the party’s core leadership beholden to him. To what extent is Shah willing to meet Lamichhane’s demands is the critical question, and we will know the answer by this weekend.
Says Pyakuryal: “Because this election showcased personality politics rather than the regular party politics, the dangers of ego-clashes, power-tussles and intraparty realpolitik become very real and this kind of equation can greatly hamper the spirit of democracy, representation and collective good."

<figure>
 <video controls src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260327020320_f91bd3e51c1dd198b099a24daac8c52384b408174506e7f5a0ced1db76773824.mp4" alt="" width="100%" height="100%"></video>
 <figcaption>Animation: ANUP TAMU</figcaption>
</figure>

Ball in Balen’s court

Rivers have been the lifelines of civilisations with their dynamic ecosystems providing vital services for human survival and ecological balance through the ages.&nbsp; But accelerating anthropocentric footprints are causing severe, and often irreversible, damage to river systems across the world, including those across High Asia, a region that sustains nearly a fourth of the global population downstream. An example is the <a href="https://nepalitimes.com/here-now/how-the-bagmati-civilisation-is-becoming-uncivilised" target="_blank">Bagmati River</a> that courses through Kathmandu, crosses the Himalayan foothills to join the Ganga in India. A river that once shaped the <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/when-it-comes-to-water-pollution,3196" target="_blank">Kathmandu Valley Civilisation </a>is now a polluted and biologically dead water body constricted by urban sprawl, choked by construction debris, chemical waste and untreated sewage.&nbsp; The loss of a sacred river is tragic enough, but its hazards related to health, life and livelihoods are not limited to the Valley, nor is its enormity fully gauged by the metrics of fatality, income loss, flood return periods, runoffs, embankment failure.&nbsp; It is a systemic collapse of ecological integrity, socio-economic stability and cultural heritage, affecting its downstream users as well. The death of Bagmati is a peril for a population size way bigger than circa 5 million residents of Kathmandu Valley. The degradation started in the 1980s and has accelerated. Why has not enough been done to save this iconic river that runs through Nepal’s capital?&nbsp; The Bagmati River Basin Improvement Project (BRBIP) was designed to make headway in restoring the river with a sewage treatment plant, dams for storing water to support dry-season runoff, recharge groundwater, creation of <a href="https://archive.nepalitimes.com/page/resurrecting-bagmati-the-river" target="_blank">green biodiversity corridors</a> along the river bank to also serve as recreation areas, reduce the urban heat island effect, and also provide cultural continuity. The project also envisages collection of hydrological data for managing Bagmati multipurposewater systems and providing flood forecasts and early warnings aimed at protecting lives and property, among other things. Most importantly, the project takes the integrated water resource management approach, which, in principle, is a holistic and collaborative way of managing all elements of the water cycle to ensure water security, public and environmental health and amenity.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c.jpg" data-media-id="editor_3" data-image-id="20260329040336_9605240fa8c7d649ce49fbe43565130e3187e979338ccf959c4e9b8c581b7a4c" data-rendition-name="original" width="2126" height="1577" loading="lazy" alt="Bagmati NT"> </figure>  This should pave the way for managing a river as a connected ecological, social, and economic system by enabling coordination across agencies and disciplines, stimulating technological innovation and financial investment. The success of this approach depends on long-term political will and commitment that transcend political cycles, but also needs strong community and civil society in defining issues and proposing solutions, creating and sharing knowledge, taking independent action to inform practice, monitoring and evaluating policies, and participating in public decision-making. Civil society, especially, in making the <a href="https://archive.nepalitimes.com/page/encounter-with-bagmati-river" target="_blank">revival of the Bagmati River</a> a pressing governance issue. The Bagmati Action Plan 2009, a precursor to the BRBIP, was designed in response to lawsuits filed in 2000 and 2004 by an independent legal practitioner of Kathmandu against waste dumping in the river.&nbsp; It took him almost two decades of legal battle for Nepal’s Supreme Court to pass orders for mandatory septic tanks in all homes in Kathmandu Valley, relocation of squatters from Bagmati river banks to government-built houses, and embargo on dumping and burying garbage on the banks of the river and its tributaries. Despite court orders, however, actual results have been unsatisfactory. Restoration of Bagmati barely made it to any political debate or electoral manifesto this time. Treatment plants have not been operational for years, yet no one is held accountable. The population ignores waste segregation or single-use plastic rules to check littering.&nbsp; The current condition of the river therefore seems to have more to do with the lack of public awareness and behaviour change than the failure of various master plans. Why does the deep danger of a dead river fail to arouse widespread civil society concern, let alone action? The apathy is perhaps underlined by an innately anthropocentric understanding of the river as a mere resource to be exploited, rather than the backbone of existence.&nbsp; Such a paradigm shift is possible when river or river systems are understood to be necessary for &nbsp;a harmonious coexistence with human populations. The more pertinent question is not whether a dead river can be restored because there are many examples from around the world where that has been successfully achieved. It is whether we choose to restore our rivers for intergenerational equity. This would require a holistic perspective and political will to revive reverence for a river system so that its symbiotic relationship with human settlements can be restored. Roshni Gurung is Research Assistant, River Basins at the International Centre for Integrated Mountain Development (ICIMOD).

mcc-grant

The Great Game, 2nd Half

MCC risks split in Nepal’s ruling coalition

Nepal swears in new Cabinet

A dead tree tests Nepal's bureaucracy

Ball in Balen’s court

A lifeline becomes liability