Few ‘development’ projects have been as controversial in recent years as the proposed <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport">Nijgad International Airport (NIA)</a>, set to be built by logging thousands of hectares of forest.
Prime Minister K P Sharma Oli as Prime Minister revived the project in 2017 as a once-in-a-generation opportunity to catapult Nepal’s economic development. Experts, researchers and activists who questioned the destruction of a valuable transboundary ecology were trolled on social media as being ‘anti-development’.&nbsp;
In the years since, Nepal has been rocked by a never-ending series of corruption scandals involving top politicians and corporate houses. Two much-hyped new international airports in <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport">Bhairawa </a>and <a href="https://www.nepalitimes.com/here-now/pokhara-nepal-s-new-aviation-gateway">Pokhara</a> built at great cost were inaugurated amidst much fanfare, and have turned out to be <a href="https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport">white elephants</a>.
At a time when Nepal’s economy is in crisis, the NIA project has been exposed as being a <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport">multi-billion dollar heist</a> by a cross-party alliance. Despite <a href="https://www.nepalitimes.com/here-now/building-nijgad-come-what-may">increasingly vocal public opposition</a> to the project, Prime Minister Pushpa Kamal Dahal has said ‘site clearance’, which means logging the forest, will be completed this fiscal year. Tourism Minister Sudan Kirati is following through.
Nepal was never supposed to build the NIA on its own. It was designed as a BOOT (Build, Own, Operate, and Transfer) model, in which an international group would manage it for 25 years before transferring it to Nepal.&nbsp;
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Earlier government efforts at site clearance had been <a href="https://www.nepalitimes.com/here-now/building-nijgad-come-what-may">halted by the Supreme Court</a> until an agreement with a developer was secured. In 2020, the tourism minister under the UML, Yogesh Bhattarai, announced that such a developer had been secured.
However, this was a boldfaced lie that was <a href="https://www.nepalitimes.com/here-now/zurich-airport-international-opts-out-of-nepal-project">exposed in an exclusive report</a> in this paper. The minister was confronted about who was to build the airport, but there was no answer. Nepal’s political establishment then declared that the government would build it on its own, and committed $3.5 billion to a ghost airport.
A litigation around the project’s <a href="https://www.nepalitimes.com/editorial/megalomania-kleptomania">Environment Impact Assessment (EIA)</a>, which turned out to be a copy and paste job from a hydro power project, lingered.
Nijgad is not an airport project, it is a <a href="https://www.nepalitimes.com/editorial/megalomania-kleptomania">scam to log thousands of hectares of hardwood forests</a>. Even as an airport, it presents risks to the economy, ecology, food and water security.
Nepal’s bickering politicians are all united in this delusional project, and the basis for them to do so rests on a May 2022 Supreme Court decision on a public interest litigation on the EIA. The Court voided all previous plans and instructed the government to start the process anew, re-examine where the airport should be built, and conduct a new EIA.&nbsp;
Prime Minister Deuba’s government immediately hosted a high profile event in Nijgad to reaffirm commitment to NIA and commissioned a panel to study where the airport should be built. The panel immediately concluded it should be built as originally planned in Nijgad Forest.&nbsp;
How did the committee come to that conclusion so fast? Not surprisingly, the panel was led by Birendra Bahadur Deoja, author of a 2019 paper ‘Need for Nijgadh International Airport for Accelerated Development of Nepal’.&nbsp;
The panel’s development planning expert was Surya Raj Acharya, a longtime vigorous advocate for NIA. Rameshore Khanal, the influential former finance secretary, had tweeted after the initial Court ruling: ‘No matter how much we argue, building of Nijgad Airport is the only (satisfactory) ending’.
The panel did not have any expert on wildlife biology, Tarai and sal forest ecology, food and water security. Yet it quickly concluded Nijgad should be logged out with consequences for the ecology of the entire floodplain farm and forest region, and the last remaining native forest of the eastern Tarai be destroyed for an airport with no developer, financier or planned user.
The Deuba government used the Supreme Court decision to create a pro-Nijgad panel and give the impression it was following due process.
What next?
<ol>
 <li>&nbsp;Based on explicit bias and lack of expertise, the panel and its findings must be voided. Nepal’s development partners must challenge the government in meetings, by public interest litigation in court, and civil society in media and on other public platforms. The new EIA must be made public.</li>
 <li>Two brand new international airports are barely functioning. The government must provide the public and Parliament a cost benefit analysis of NIA that meets the highest levels of international scrutiny. It must list the committed developers, financiers and users, and prove Nepal’s right to use neighbouring airspace. Site clearance cannot begin until this process is complete.&nbsp;</li>
 <li>In 2021, a statement demanding accountability on NIA was drafted and <a href="https://www.nepalitimes.com/news/importance-of-ecosystems-for-people-and-the-planet">signed by 11 of Nepal’s development partners</a>: Asian Development Bank, the United Nations, the World Bank and the Australian, British, Finnish, French and German Embassies. These organisations must now revisit their statement and find pressure points to compel the government to rethink its effort to bulldoze the project through. After all, they have committed $3.2 billion to Nepal’s Green, Resilient and Inclusive Development (GRID) initiative. Now, the Americans must join the call since it is in line with the Biden White House’s position and the work of its Climate Envoy John Kerry. The US Embassy and USAID have invested in Nepal’s conservation, accountability, and food security. Considering this is a transboundary ecological issue, it is also time for ICIMOD to engage.</li>
 <li>Nepal has signed many international commitments on conservation, climate and sustainable development. These must be examined to assess the ecological implications of logging Nijgad Forest. Nepal has already disregarded NIA’s impact on the Tarai Arc Landscape under the World Bank’s REDD Emission Reductions Program. Violations to these agreements must inform public policy and the international funding discourse.&nbsp;</li>
 <li>The proposal to make Nijgad a conservation area <a href="https://www.nepalitimes.com/here-now/nijgad-s-green-runway">that I proposed in this paper last year</a> must become a part of the public and policy discourse. Hemanta Mishra, Nepal’s pioneer conservationist said of that proposal: ‘The implementation of this concept would create a solid and continuous belt of a very high ecological and environment significance ecological site and a continuous belt of indigenous forest (and a carbon sink) all the way from Bara to Parsa and Chitwan to the Northern Banks and the Islands of Narayani in Nawalpur.’ It would also help Nepal’s economy while offering construction contracts for research facilities and wildlife crossings. Resettling the Tangiya Basti community, promised for a long time by state, should happen regardless of NIA.</li>
</ol>
For 7 years, Nepal’s political establishment has ignored activists, experts, media and the Supreme Court in a single-minded pursuit to log a pristine jungle for a project of dubious economic viability.&nbsp;
It has ignored an unprecedented statement signed by a large and important bloc of the international community. This defiance is a direct result of Nepal’s culture of impunity in which top politicians face no personal or political consequences for abuse of authority.&nbsp;
Nepal is on the verge of witnessing its greatest organised eco-crime led by the highest political powers in the land. The implications will reverberate beyond Nepal’s borders. Pushing this <a href="https://www.nepalitimes.com/here-now/economy-ecology-of-nijgad-airport">economically and ecologically suicidal plan</a> during a climate emergency and economic crisis will push Nepal towards a failed state.
Sadly, Nepal’s rulers are not on Nepal’s side.&nbsp;

Kashish Das Shrestha

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Fight or Flight

<img width="1127" height="756" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111132/6372197a9c7e80680e0baa9ejpeg.jpg" alt=""/>The Supreme Court last week <a href="https://www.nepalitimes.com/here-now/building-nijgad-come-what-may/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/building-nijgad-come-what-may/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw1pZzAVLpA6Thda6W1lfmq8">ordered the government to scrap</a> all decisions it has taken so far to build a new international airport in Nijgad 80km south of Kathmandu.The justices faulted an amateurish Environment Impact Assessment (EIA) that ignored the ecological cost of the $3.5 billion project. Activists rejoiced in Kathmandu even as Finance Minister Janardan Sharma set aside money in his budget speech on 29 May for construction to go ahead, and a multi-partisan committee in Parliament vowed the project would go ahead. In a tragic twist of fate, the Tara Air crash this week claimed the life of Makar Tamang and his entire family. Tamang had been an active campaigner for <a href="https://www.nepalitimes.com/latest/protecting-nepals-forests-from-fires/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/protecting-nepals-forests-from-fires/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw02ygPuE1HMWTZXZmtsxkyl">regenerating Tarai forest</a>s through the <a href="https://mwt.org.np/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://mwt.org.np/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw2n3BJTv3kIGCGMbGGi2-rQ">Mithila Wildlife Trust</a>, which is also trying to save what is left of Nijgad's jungles.<a href="https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw00pUVJPImlsUDzluVuPOWK">We have weighed both sides</a> of the argument: the need to plan for growth in passenger volume with the environmental and economic cost of <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw1kOejQBS79cQb09Hv8BaWk">such a gigantic project. </a>The Civil Aviation Authority of Nepal (CAAN) argues that Kathmandu airport was <a href="http://archive.nepalitimes.com/article/nation/Air-jam,4196" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=http://archive.nepalitimes.com/article/nation/Air-jam,4196&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw29nAycJWMHlg1foTobj1ZI">built for 9.2 million passengers</a> a year, and has exceeded its capacity. Passenger volume is growing at 20% a year and at that rate, Kathmandu alone will have to handle 25 million passengers per year by 2040. Because of terrain, Kathmandu cannot have automatic ILS landing needed for operations in poor visibility — increasingly the case due to worsening air pollution. And the new airports in Pokhara and <a href="https://www.nepalitimes.com/latest/bhairawas-new-airport-already-too-small/" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/bhairawas-new-airport-already-too-small/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw2aZwo-BeBIL6EMQ-58bKme">Bhairawa just do not have the capacity</a> to relieve Kathmandu’s pressure. However, activists argue that Nijgad is already an environmental disaster. The airport’s first phase will mean felling 600,000 trees over 2,500 hectares of the last remaining native Char Kose Jhari forest that once covered the entire Tarai.Infrastructure economists also say that Nijgad will mire Nepal in Sri Lanka-scale foreign debt at a time when the economics of global aviation is changing due to longer-range airliners from the hub-and-spoke model, for which Nijgad was originally designed, to point-to-point flights. <figure><img width="2222" height="1160" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111132/6372197c9c7e80680e0baa9fjpeg.jpg" alt=""><figcaption>Property speculators and squatters have already settled in parts of where Nijgad airport will be built. </figcaption></figure>Not only was the EIA shoddily done, but the business model for the airport is not viable. Nijgad will still be at least 1 hour away from Kathmandu after the expressway is built. Given the track record of Nepal’s governments in non-implementation of ‘national pride’ projects like Melamchi, Pokhara airport, the MCC, or the highway to Kerung, Nepal just does not have the decision-making and management wherewithal, nor the culture of transparency to handle an infrastructure scheme on this scale.  Nijgad is a colossal white elephant. It is a gigantic logging concession masquerading as an airport project. It is a lethal mixture of kleptomania and megalomania. Federal and Madhes Province politicians seem to have done their back of the envelope calculations about how much hardwood timber from 600,000 trees will be worth. Officials have tried to assure us that there will be 20 trees planted for every tree cut. Where have we heard that one before? And where will those 14,400,000 trees be planted, anyway — it will require an area the size of Kathmandu Valley. Nijgad is not just trees, it is a vibrant ecosystem, an important biodiversity hotspot and wildlife corridor in the Tarai Arc Landscape. Prime Minister Sher Bahadur Deuba promised at the Climate Summit in Glasgow in November that Nepal would <a href="https://www.nepalitimes.com/latest/nepals-greenwashing-in-glasgow/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepals-greenwashing-in-glasgow/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw3ANFy1JniiQjMjs-vxd32p">expand its jungle area to 45%</a> by 2030. The current canopy cover is less than 40%, which means not only does the country have to expand its forest, but it will also have to halt further denudation. Nepal also <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw0So4PzMJrNPT52pQEBu496">risks losing climate adaptation funding</a> if the project goes ahead. The loss of Nijgad’s forest is irreplaceable. We understand that no infrastructure is possible without sacrificing nature. But there are ways to ensure a win-win with green growth and climate smart development. If an alternative to Kathmandu airport is really needed, there are viable sites elsewhere: expanding Simara airport without felling so many trees, building the new airport 40km to the east in Sarlahi, where no forest needs to go.  New airports in Bhairawa and <a href="https://www.nepalitimes.com/banner/pokhara-nepals-new-aviation-gateway/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/pokhara-nepals-new-aviation-gateway/&amp;source=gmail&amp;ust=1654056768205000&amp;usg=AOvVaw1NnxfEuTjdIty564LJQQhf">Pokhara</a> can also easily be enlarged to take some of the traffic off Kathmandu. In Kathmandu itself, the ADB project to build a new terminal and extend the taxiway to the end of the runway, and moving STOL flights to Ramechhap, will increase handling capacity in the medium-term. Few in government are willing to listen to this when green becomes the colour of money, and not of trees. Read Also: <a href="https://www.nepalitimes.com/here-now/building-nijgad-come-what-may/" target="_blank" rel="noopener noreferrer">Building Nijgadh, come what may</a>, Aria Shree Parasai

Aborted landing in Nijgad

<figure><img width="2846" height="1594" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111124/6372181a9c7e80680e0baa25jpeg.jpg" alt=""/><figcaption>The Nijgad Airport construction site. Pic: Kiran Nepal</figcaption></figure>As the date for a final Supreme Court ruling on the proposed new international airport in Nijgad approaches, uncertainty once more shrouds the $3.5 billion project. Supporters call the airport 60km south of Kathmandu as a <a href="https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport/">necessary infrastructure investment</a> for the country’s economic growth, while opponents say it is an <a href="https://www.nepalitimes.com/editorial/megalomania-kleptomania/">expensive and an ecologically disastrous white elephant</a>. On 26 May, the Supreme Court is slated to give a final verdict on a public interest litigation citing irreversible environmental damage, since it will mean felling 40sq km of <a href="https://www.nepalitimes.com/banner/tree-mendous/">primary tropical forest</a>.  A 2010 feasibility study by Korean consultants Landmark Worldwide proposed a 3-phase construction with a single 4,000m runway for 15 million passengers per year at a cost of $650 million in the first phase to be completed in 4 years. By the third phase, there would be four runways for 67 million passengers a year at a cost of $6.7 billion. It will take another ten years for the final completion.Successive governments, including those led by parties in the current coalition as well as the opposition, have all enthusiastically backed Nijgad, saying it is <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/">important for Nepal’s future</a>.Read also: <a href="https://www.nepalitimes.com/banner/does-nepal-need-a-4th-international-airport/">Does Nepal need a 4th international airport?</a> Om Astha Rai“Kathmandu airport was <a href="http://archive.nepalitimes.com/article/nation/Air-jam,4196">built for 9.2 million passengers</a> a year, and it has already exceeded that,” says Pradeep Adhikari, Director General of the Civil Aviation Authority of Nepal (CAAN). “Annual international passenger growth is 9-12% and domestic flights have grown by 33% in the past year. Tourism was growing at 10% a year pre-pandemic, and will revive,” he added.With Kathmandu projected to handle 25 million passengers per year by 2040, Pokhara and <a href="https://www.nepalitimes.com/latest/bhairawas-new-airport-already-too-small/">Bhairawa just do not have the capacity</a> to reduce that pressure.“We have reached the limit of air space capacity, terminal capacity and runway capacity,” Adhikari explains.However, it is not just environmentalists who question the rationale for Nijgad. They say the airport is designed for an obsolete <a href="https://www.nepalitimes.com/editorial/megalomania-kleptomania/">‘hub-and-spoke’ model</a>, whereas global aviation has moved to point-to-point destinations with new generation of aircraft that can circumnavigate the globe with just one stop.They also say that with the <a href="https://www.nepalitimes.com/here-now/pandemic-impact-on-aviation-may-kill-nijgad/">impact of the pandemic</a> and spreading awareness about the <a href="https://www.nepalitimes.com/here-now/tourism-aviation-and-carbon/">climate crisis</a>, there is already a slowdown in civil aviation growth in parts of the world, and that the age of mega-airports is over. Besides, can Nepal afford the debt financing for such a mammoth undertaking? <figure><img width="1329" height="885" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111124/6372181e9c7e80680e0baa26jpeg.jpg" alt=""><figcaption> </figcaption></figure>The writ petition at the Supreme Court faults a 2018 <a href="https://www.nepalitimes.com/latest/nepals-environment-impact-non-assessments/">Environmental Impact Assessment (EIA)</a> for downplaying the impact on biodiversity and <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/">carbon sequestration potential</a> of the Nijgad jungle – the last remnant of the once extensive Char Kose Jhari that stretched across the central Tarai.Nepali Times received a copy of the EIA report, and found that it actually <a href="https://www.nepalitimes.com/here-now/pandemic-impact-on-aviation-may-kill-nijgad/">copy-pasted from a hydropower project</a> in the mountains. It did not even delete technical references to ‘headwork’ and ‘powerhouse’. It cites Nijgad as being the habitat of the ghoral, an antelope-like mammal found only in the Himalaya.One of the other concerns is noise pollution from heavy jets on the nearby Parsa National Park, but the EIA misses the point. Saying instead that noise will be mitigated by using ‘less dynamite’. Again, this seems to be from an EIA of a hydropower project. The EIA was prepared by the firm GEOCE Consultants, whose area of expertise is hydropower. The EIA also overestimates passenger handling capacity of 60 million per year, lacks environmental and ecological assessment of the proposed ‘aeropolis’, quarry sites, and infrastructure in the construction and operation phases.In its final phase, the airport  would ultimately require 8,046 hectares of which nearly 95% is heavily forested at present. This has led critics to call Nijgad a “<a href="https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport/">logging concession</a>” rather than an international airport project.Destruction of the Nijgad forest could impact on <a href="http://archive.nepalitimes.com/article/nation/Recharging-the-mountains,3465">ground water recharge</a> and river flow, affecting irrigation and agriculture production downstream in the fertile Tarai plains.It would also remove the <a href="http://archive.nepalitimes.com/article/nation/habitat-destrcution-of-tiger-in-Tarai,3423">last remaining wildlife corridor</a> for migration between the Tarai jungles and the Siwalik and Mahabharat ranges to the north.Read also: <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/">Nepal must save Nijgad Forest to receive climate funds</a>, Kashish Das ShresthaSince the project area is a part of the Parsa National Park buffer area and lies in the <a href="https://www.nepalitimes.com/latest/nepal-can-up-forest-cover-to-45-by-2030/">Terai Arc Landscape</a> (TAL), environmentalists say that the EIA should have analysed the <a href="https://www.nepalitimes.com/here-now/pandemic-impact-on-aviation-may-kill-nijgad/">impact of the project on biodiversity and wildlife</a> much more carefully. A 1994 report by the <a href="https://www.iucn.org/">International Union for the Conservation of Nature</a> (IUCN) showed the Nijgad forest to be ecologically fragile, <a href="https://www.nepalitimes.com/here-now/economy-ecology-of-nijgad-airport/">rich in biodiversity and wildlife</a> movement routes.  The forest has Khair, Sissoo, Sal and Satisal trees, some of which  cannot be logged and exported by law according to the revised forest rules of 2001.Hardwood tropical forests with their canopy cover and undergrowth are much <a href="https://www.nepalitimes.com/banner/nepal-must-save-nijgad-forest-to-receive-climate-funds/">more effective at carbon sequesteration</a>, and experts have calculated that felling the Nijgad jungle would prevent 22,500 tonnes of carbon from being absorbed from the atmosphere annually.Parts of the Nijgad jungle are community forests, or locally protected, and have small seasonal streams and natural drainage systems forming a ‘paini’ network that villagers traditionally use for wells, irrigation and drinking.The EIA does not have a valuation of ‘ecosystem services’ and livelihood benefits for the 37,000 households that depend on the forest for firewood, fodder and water. If the forest is replaced by an airport, it could put further pressure on the nearby national park and other protected areas.The EIA mentions that the government will compensate local communities for loss of livelihood, and initiate a major <a href="https://www.nepalitimes.com/here-now/mini-forests-to-make-kathmandu-more-liveable/">reforestation drive</a> to replace the trees. But it does not mention where and how many trees will be planted. Nepal’s record for compensation and replanting in other infrastructure projects is poor. <figure><img width="1361" height="784" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221114111124/637218219c7e80680e0baa27jpeg.jpg" alt=""><figcaption> </figcaption></figure>CAAN’s Adhikari argues that no development project anywhere in the world comes with zero environmental cost.“The idea is to mitigate the impact and strictly follow  guidelines for replanting trees that are lost,” he says.  But such massive reforestation is an ambitious goal, and difficult with Sal saplings that nurseries find hard to grow. It takes decades to build species diversity and fully functioning forest ecosystems, and they still cannot replace native forests. Environmentalists say the EIA also does not look at <a href="https://www.nepalitimes.com/here-now/15-points-for-and-against-nijgad-airport/">alternative sites</a> for the airport that would be less damaging.Nepal has increased forest cover in the past years, but sub-tropical and tropical forests are declining even as the country’s carbon footprint grows. At COP26 in Glasgow last year, Prime Minister Sher Bahadur Deuba set a target for Nepal to <a href="https://www.nepalitimes.com/latest/nepal-can-up-forest-cover-to-45-by-2030/">increase its forest area to 45% by 2030</a>, and opponents of the project say Nijgad would be a step backward.The Nijgad EIA was submitted in March 2018, and hurriedly approved within two months by the Ministry of Forests and Environment. Critics say it is wrong for both the presenter of the EIA and the approver being government agencies. In fact, the last sentence of the EIA even says <a href="https://www.nepalitimes.com/here-now/zurich-airport-international-opts-out-of-nepal-project/">Prime Minister K P Oli  backed the project</a> and wanted it to be started ‘ASAP’.“We have to look at 20 years from now,” says Adhikari of CAAN. “There is going to be big tourism growth, Nepalis will be traveling more, and we will have outgrown Kathmandu, Pokhara and Bhairawa. Nepal needs a primary international airport in the coming decades.” Even before the EIA approval, the Ministry of Culture, Tourism and Civil Aviation had already contracted the Nepal Army to start clearing trees at the Nijgad site. At present 60% of land acquisition has been completed, tree felling has begun, and work has started on civil works and river training.Politically motivated environmental assessments are common in developing countries like Nepal, and opponents say the Nijgad EIA is one such.  Read more: <a href="https://www.nepalitimes.com/editorial/megalomania-kleptomania/">Megalomania + Kleptomania</a>, Editorial

Aria Shree Parasai

Building Nijgad, come what may

The monsoon has got bad press because Nepal’s tourism operators actively told visitors to avoid <a href="https://nepalitimes.com/opinion/managing-the-monsoon?%2F">the rainy season</a>. It is time to change that. The reason can be found right here in the vast alpine meadows of Central Nepal where this time of year you can walk on velvet grass of pastures abloom with delicate pink, red and yellow flowers as the mist rolls up the valley. There is no sound except the hum of bumble bees. &nbsp;&nbsp; There are dozens of places across high Nepal called Chaurikharka, which means yak pasture. But this particular Chaurikharka in Rukum East located at an altitude of 4,000m stands out for its serene beauty, rustic charm and bucolic setting. There is just the occasional chime of <a href="https://nepalitimes.com/here-now/when-yaks-go-so-does-culture">yak bells</a> in the distance, and the sharp whistle of herders corralling sheep. &nbsp;&nbsp; The grass shoots are so fragile that one hesitates to step on them, the rounded ridges appear and quickly vanish in waves of mist. With the<a href="https://nepalitimes.com/here-now/before-the-next-monsoon"> arrival of monsoon</a>, these meadows are a soothing shade of green dotted with millions of <a href="https://nepalitimes.com/review/the-anatomy-of-a-flower?%2F=">multi-coloured flowers</a>. Until very recently, it took a week or so to hike up to places like Chaurikharka, but with the expansion of the road network even to these far-flung mountains in the lap of Dhaulagiri, they are much more accessible. It is just a three-hour uphill from the Mid-Hill Highway on the border between Baglung and Rukum East.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16.jpg" data-media-id="editor_4" data-image-id="20250802130828_a0b06b494d751b2144ffbbf10894ea64b29e8aed844bc8c66171783abfaf4e16" data-rendition-name="original" width="2048" height="1365" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Purists would say that such easy access devalues the sanctity of these remote high meadows, but it also means more people will be moved to treasure the experience, appreciate <a href="https://nepalitimes.com/banner/natures-fragile-gift-to-nepal">the value of nature </a>so they can take steps to protect it.&nbsp; To be sure, the <a href="https://nepalitimes.com/here-now/deadly-monsoon-in-nepal-turns-deadlier">monsoon season can be challenging for road travel</a>. The roads are rough even at the best of times, and in the monsoon they become muddy and treacherous, often blocked by<a href="https://nepalitimes.com/news/monsoon-deluge-in-nepal"> landslides</a>. But that could be precisely the kind of adventure that the more intrepid visitors crave. Improved road connectivity has already made Chaurikharka and places like Badimallika &nbsp;and other sacred lakes in the mountains of western Nepal popular with domestic tourists. What is driving this traffic is the urge to go to exotic new places and share videos and selfies on social media. Several of Nepal’s travel vloggers have visited Chaurikharka and popularised the place, enticing followers on TikTok or YouTube to retrace their footsteps. But even as they become more popular, these fragile and once-remote places should be protected from over-tourism.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446.jpg" data-media-id="editor_8" data-image-id="20250731110736_f97110b7cdc3e7f80d5877690948fc9f4c95a09c583deb23b07355491e6c5446" data-rendition-name="original" width="1083" height="699" loading="lazy" alt="Visit Nepal in the monsoon NT"> </figure>  <h2>INCREASING FOOTFALL</h2> Chaurikharka is located in Bhume Rural Municipality of East Rukum, near the scenic valley of Dhorpatan in Baglung district. Even in the <a href="https://nepalitimes.com/banner/monsoon-culture">middle of the monsoon</a>, there is a steady stream of Nepali hikers trooping to these high pastures – especially during festival days like Saune Sankranti which this year was on 17 July and actually marks the auspicious beginning of the monsoon here. “This year the rains have not been as heavy and there have been some clear mornings when we could see everything from Dhaulagiri to Machapuchre,” says Khageswar Bhandari, who trekked up here from the road. “The flowers, the greenery and the snowy mountain views make this an incredibly unique place.”&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9.jpg" data-media-id="editor_10" data-image-id="20250802130824_1b9e26f2e9853fdfe69154bb42a7c9ea6da4bf4940efc1da99b304dcfbd7d3d9" data-rendition-name="original" width="2048" height="1152" loading="lazy" alt="Visit Nepal in the monsoon"> </figure>  Chaurikharka is worthwhile to get to in any season, but it has a different charm during the monsoon. Word has spread and because it is now easy to get to from Baglung or even Pokhara, people have been flocking here.&nbsp; “Holidays and Saturdays see the largest crowds, with up to 500 visitors every day,” says ward chair Mankaji Pun of Bhume.&nbsp; There was a time not too long ago when local herders brought sheep, goats, cows, buffaloes, horses, and mules to graze here during the monsoon. Although there are still livestock around, animals have been replaced by visitors taking selfies. Read also: <a href="https://nepalitimes.com/here-now/the-monsoon-and-nature-s-arithmetic">The monsoon, and nature’s arithmetic</a>, Tom Robertson Ward Chair Pun says infrastructure development is his main priority. A foot trail to Chaurikharka was built last year by the Tourism Division Office in Kohalpur, but access via the Raniwas-Koipa road section still remains challenging.&nbsp; “If we get more budget, we can improve the road and facilities to make Chaurikharka the main tourist attraction of this region,” says Bhume Municipality Chair Hom Prakash Shrestha. “After that, we hope to promote Chaurikharka as a top tourist spot.”&nbsp; Economic activity is also picking up with the arrival of visitors, but there seems to be a need to manage the makeshift sheds made of corrugated sheets that spoil the beauty of the place. Tea shops and lodges are also available but facilities are basic. Kuldeep Neupane took a three-day trip from Ghorahi in Dang to visit Chaurikharka recently, and says: “This is an ideal trip to make a quick getaway and let nature recharge your mind and body. And it is much more fun with a tent, to watch the sunrise over the Himalaya or the mist blowing in.”

Visit Nepal in the monsoon

Nepal is graduating to become a developing country on 24 November 2026 after half-century in the Least Developed Country (LDC) category. By 2030, the country hopes to transition to middle-income status.&nbsp; Everone from Prime Minister K P Oli have boasted that this is a matter of national pride, and will have a multiplier impact on trade and economy.&nbsp; But will it make any difference to the average Nepali? Not unless improved governance <a href="https://nepalitimes.com/news/why-invest-in-nepal">spurs investment and creates jobs</a>.&nbsp; Countries need to meet at least two of the three criteria in two consecutive triennial reviews to be eligible for graduation from LDC. Nepal has consistently met the thresholds for the Human Assets Index (HAI) and the Economic and Environmental Vulnerability Index (EVI) in 2015, 2018, and 2021. But Nepal was recommended for graduation before meeting the per capita <a href="https://nepalitimes.com/banner/nepals-great-income-divide">Gross National Income (GNI)</a> threshold of $1,306. “A major implication of LDC graduation is the loss of preferential market access available through Generalised System of Preferences (GSP) and other arrangements,” explains economist Sameer Khatiwada. “But over two-thirds of <a href="https://nepalitimes.com/news/nepal-doesnt-produce-its-2-biggest-export-items">Nepal’s exports</a> are to India, and the preferential market access to India is through a bilateral trade agreement. This has nothing to do with our LDC status.”  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85.jpg" data-media-id="editor_3" data-image-id="20250815060832_f5eabe7628a8cdf84f33b25d7cef3c4dc8913a26d8e5b253ea52a36e176b8a85" data-rendition-name="original" width="640" height="470" loading="lazy" alt="LDC graduation "> </figure>  Furthermore, a provision under the South Asian Free Trade Area (SAFTA) allows Nepal to export to India duty-free if the items are at least 30% value-added. Nepali traders take advantage of this by re-exporting edible oils without meeting that requirement, falsely boosting Nepal’s exports.“ Following graduation from LDC, the value addition threshold might increase to 40%,” says Kalpana Khanal of the Policy Research Institute. “This is supposed to work to our advantage, because on paper value addition inherently means <a href="https://nepalitimes.com/multimedia/staying-home-to-create-jobs">job creation at home</a>.” But Nepal’s exports to other major destinations will face <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">tariff increases</a> with the graduation. A South Asia Watch on Trade, Economics and Environment (SWATEE) study shows that while tariff increase in the US market is relatively low (see page 5) it is considerably higher in Europe. The International Trade Centre (ITC) in a 2022 study also estimated that graduation could result in a 4.3% decline in Nepal’s projected exports, but this is excluding the impact of changes in ‘rules of origin’ provisions in preference-granting countries such as the UK and Europe.&nbsp; Nepal’s top export to these preference-granting countries is <a href="https://archive.nepalitimes.com/news.php?id=1482">carpets</a>, and will not be impacted, but other items such as textiles and apparel will be heavily affected due to higher cost of production. The impact will felt mostly by small and medium enterprises which represent the largest share of exports to LDC-specific preference-granting countries. As for the service exports, Nepal never really made use of the World Trade Organization’s LDC services waiver anyway, hence the effect will be minimal, if any. There is also concern about Nepal’s graduation at a time when the global economy is topsy-turvy, amidst <a href="https://nepalitimes.com/opinion/turning-point-in-us-india-relations">tariff wars and conflicts</a>. This affects Nepalis abroad directly and may impact <a href="https://nepalitimes.com/news/more-remittance-more-than-remittance">remittances </a>which hit $11 billion in 2024. In comparison, Nepal only received $350 million in foreign loans and grants last year.&nbsp; Tourism arrivals have finally reached pre-pandemic levels, but bad publicity about pollution, poor infrastructure and bureaucratic hurdles hinder further growth. Manufacturing continues to struggle, while hydropower and the IT sector have taken off.&nbsp; “Look at data -- <a href="https://nepalitimes.com/news/tourism-needs-a-new-push">tourism arrivals</a> are up, spending is up, IT exports are up, <a href="https://nepalitimes.com/news/why-nepal-needs-to-restore-ev-tax-subsidy">EV sales </a>are up, Europe still needs 85-90 million skilled workers. We are sitting on $16 billion in cash reserves, our balance of payment, foreign exchange reserve, tax to GDP ratio, credit flow are all positive, we have to build on these factors,” says Sujeev Shakya of the Nepal Economic Forum. He adds: “Our mindset creates negativity to promote rent-seeking behaviour, but this cynicism will go away after 2026 with LDC graduation. We must deal with data, look at trends, and projects which will bring in <a href="https://nepalitimes.com/from-the-nepali-press/why-there-is-no-foreign-investment-in-nepal">international investments</a>.” Khanal agrees that investment is not dependent on<a href="https://archive.nepalitimes.com/regular-columns/backside/Nepal-not-the-least-developed-country,306"> LDC status</a>. The factors that that affect investment are policy stability, a strong legal framework, market potential and ease of doing business. She adds, “That is where our focus needs to be, and we need to retain <a href="https://nepalitimes.com/diaspora-diaries/migrant-worker-returns-to-create-work-at-home?fbclid=IwAR09xJfsClCwn8uRVAmz28CU658vdKpuyDwB_b1sNlvKtAFFnSldnA0JS2g">Nepalis with jobs at home</a> for our sustained growth.” After 2026, financing support from donors and aid agencies could be affected and Nepal will no longer be able to access Least Developed Countries Fund (LDCF) to adapt to the impacts of climate change. But the Global Environment Fund and Green Climate Fund will still be available.“ LDC status does not determine bilateral development aid, that is usually driven by broader <a href="https://nepalitimes.com/here-now/looking-beyond-two-boulders">geopolitical considerations</a>,” says Sameer Khatiwada. “The World Bank and Asian Development Bank, which provide concessional loans to Nepal, it is determined mainly by per capita income, not LDC status.” &nbsp;However, Nepal may lose some concessional terms for loans. Nepal is currently a lower-middle-income country as per the World Bank in the bracket for GNI between $1,036 and $4,045. The country is already receiving more loans than grants and in July the World Bank increased its interest rate on loans by 100% from 0.75 to 1.5%. “All this means that the impact of LDC graduation for Nepal might not be as earth-shattering as some tend to think. Countries that have recently graduated, such as Botswana and the Maldives, have shows that graduation is just a step in a country’s development path,” says Khatiwada. Sujeev Shakya also sees the glass as half full, explaining that LDC graduation is just a stepping stone if Nepal has the right policies in place. He adds, “Nepal’s biggest advantage is our<a href="https://nepalitimes.com/opinion/investing-in-people"> working age population</a> and we have investments coming in. These aided by how adaptive we are as a society are the very foundations on which Nepal will grow.”

Not poor, but not rich

Two weeks ago, Prime Minister KP Sharma Oli announced jubilantly on social media that Nepal had achieved a historic annual growth of 81.8% in exports. He was right. Nepal’s trade did take a great leap forward compared to last year. But the dramatic rise was mainly due to processed soya bean oil.&nbsp; However, Nepal does not produce the edible oil it exports. In fact, the soya and palm oil that make up 44% of total exports are imported from Southeast Asia and South America, and simply re-exported, mostly to India.&nbsp; Under the SAFTA (South Asian Free Trade Area) Agreement, Nepal can export products to India duty-free if it has at least 30% value-added. Nepal’s traders have taken advantage of SAFTA even though the edible oils they export do not reach that value addition threshold. “The 30% value addition requirement is often only on paper,” says former commerce secretary Purushottam Ojha. “It is clear that simply packaging edible oils in Nepal does not fulfil the terms of the trade agreement.” Prime Minister Oli is aware of this, and even called Nepal’s export figures “fake” at an earlier event. The government is relying on other iffy figures to suggest that Nepal’s economy is strong and getting stronger. For example, the value of imports rose by 13.25% in 2024-25 compared to the previous fiscal year.&nbsp; Some of it was due to a jump in electric vehicle imports worth Rs 31.76 billion, but mostly it was because more wholesale soya oil was imported to be re-packaged and sold in India. The very fact that the government boasts about increased imports is an indication of how much it relies on taxing them for revenue. Touting such trade figures cannot be the basis to claim an economic rebound.&nbsp; “A jump in the value of imports can be interpreted as an increase in purchasing power, but it is not evidence of a stronger economy,” says economist Keshav Acharya. “Even though imports have increased, Nepal's domestic production and productive capacity have not improved.” Nepal Rastra Bank's semi-annual economic activity study report shows that industrial production was down in the first six months of the last fiscal year. This despite an increase in the number of new industries registered and investment commitments. Out of the Rs70.2 billion proposed foreign investment, Nepal received only Rs17.9 billion last year.&nbsp; Meanwhile, the rate of capital formation was limited to 24% last year, which is lower than the year before, suggesting that new investment, job creation and economic expansion all declined. If domestic production does not improve in relation to this year’s inflated trade figures, the outflow will put pressure on foreign exchange reserves like it did three years ago. At that time, Nepal borrowed from the IMF under its Extended Credit Facility Program to kickstart the economy.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f.jpg" data-media-id="editor_0" data-image-id="2025080710084_2cdaaa5795828c4a7de93a0604ba884ef0a8b8f24cccd939f6c24e279ab6058f" data-rendition-name="original" width="1633" height="723" loading="lazy" alt="Nepal's bubble economy NT"> <figcaption>Source: NEPAL RASTRA BANK</figcaption> </figure>  The macroeconomy is on firm footing with foreign exchange reserves at a comfortable Rs2,520 billion in May, up 23% from last year. This was largely due to remittances, and partly due to a falling NPR exchange rate. Real estate transactions and the stock market index have also been climbing as a result of government policies to revive the sector.&nbsp; However, former executive director of Nepal Rastra Bank Nar Bahadur Thapa cautions: “This is not organic growth, it is the result of deliberate policy decisions to relax rules on real estate and stock markets transactions.” In reality, the sharp rise in land prices have increased the cost of production, and excessive monetisation of the real estate has become the main source of Nepal’s economic woes. The central bank has announced a slew of new policies, shifting the terms of loan repayment for industrialists and entrepreneurs, reducing interest rates, and injecting more working capital — all designed to inject adrenaline into the real estate and stock market sectors.&nbsp; When he was governor, Mahaprasad Adhikari made several financial reforms during the latter half of his tenure to stimulate the economy, including tightening credit flow.&nbsp; By the last fiscal year, additional financial reforms had resulted in a credit expansion rate of around 8%. As the pace of credit expansion slows, real estate prices have started to fall. This is actually beneficial to the economy, because it lays the foundation for improvements in land-related entrepreneurship, production, and the construction sector. Just because real estate and the stock market transactions increase, it does not indicate an economic turnaround — especially when manufacturing and productive sector continues to languish.&nbsp; “It is foolish to believe that real estate and the stock market have magically revived our economy. Agriculture employs more than half of the population, but it is in decline. Investment in the productive sector has not increased, and job creation has not increased.” Two years ago, Nepal’s industrialists, business leaders, and political leadership predicted a recession amidst a sluggish business, declining market demand, large-scale job loss, and a shrinking real estate and share market.&nbsp; Still, the economy grew by 3.36% in fiscal year 2023/24. In fact, Nepal’s economy has grown nominally over the last two decades even when all sectors of the economy are in decline.&nbsp; Says Keshav Acharya: “The growth in trade, real estate, and the stock market are bubbles. The real economy remains stagnant.”

Nepal’s bubble economy

American artist Peter Makela was in Nepal in 2022 on a Fulbright scholarship when he experienced the Matya festival in Patan in which devotees made the rounds of the city’s shrines.&nbsp;
He joined the procession, walking through 2,600 stupa and 140 bahal of the town. That immersion left a lasting impression.
As part of Gallery Mcube’s international residency program in Patan, he put his inspiration to canvas in the exhibition Yala Yatra: Walking, Working, Worshipping. The exhibition also coincides with this month’s Matya festival.&nbsp;
Makela has visited Nepal often in the past 11 years but he mostly stayed in and spent his time around Boudha. “This time I stayed in Patan, put the sites I wanted to visit on my map, and off I went,” he tells us. “Each of my artwork is inspired by the stupas and shrines in Patan that I visited.”
The stupa and Ganesh are recurring motifs in his watercolours, and the elephant gods are located in chaityas — reflecting the interplay and blending of the Hindu and Buddhist faiths in Kathmandu Valley.&nbsp;
The stupas and Ganesh are painted in vivid red, yellow, blue and green against abstract backgrounds meant to represent the sky.
“I use the sky as a backdrop because the sky has no border,” says Makela. “The four colours represent the four elements, the different Buddha families and also lights bouncing off of a rainbow.”
The use of just four colours for all the artwork stands out, and combined with the absence of heavy canvases, frames or stands render Makela’s art striking in its simplicity.&nbsp;
The Ganesh is always holding something and the art also portrays the elephant god’s sacred vehicle, the mouse.
While his vibrant stupas and Ganesh reflect the tangibility of Patan’s tradition and heritage, it is as if the backdrops with their shades of grey and red and yellow capture the soul of the city’s shrines.
“If you look closely, there is a sense of form and formlessness at the same time,” he says.&nbsp;
Makela walked 108 kora around the shrines during his exploration of the town, and in the process developed a spiritual connection with Patan’s heritage and traditions.&nbsp;
The exhibition connects with visitors on a deeper, more spiritual, level as well. And with it, they feel a sense of pride as well as the need to urgently preserve Patan’s heritage for future generations.
“Peter’s inclination and approach towards Nepali art and culture is fascinating, and it reflects in his work,” says Mcube curator Manish Lal Shrestha, whose international artist residency program promotes Nepal’s cultural heritage. &nbsp;&nbsp;
Yala Yatra: Walking, Working, Worshipping
1-5 August&nbsp;
10AM-7PM
Gallery Mcube, Patan