<figure><img width="1400" height="1185" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e3149c7e80680e033363jpeg.jpg" alt=""/><figcaption>Walkley</figcaption></figure>Last week’s edition of this paper carried a <a href="https://www.nepalitimes.com/here-now/saving-democracy-and-free-press-in-the-philippines/" target="_blank" rel="noopener">report</a> on the Philippines under President Rodrigo Duterte. In it, investigative reporter Rameshwar Bohara painted a bleak picture of how a country known for its vibrant civil society and long struggle to restore and protect democracy is now threatened by a populist president who boasts about having shot people.Duterte is among a new breed of elected despots who use populist slogans to get to power and proceed to dismantle the rule of law and democratic institutions. Bohara warns that the Philippines holds important lessons for Nepal where a retreat to authoritarianism is a real possibility.Fed up with crime, corruption and the stranglehold on politics by an entrenched business elite, <a href="http://alfpnetwork.net/en/e-magazine001_03/" target="_blank" rel="noopener">Filipinos</a> voted overwhelmingly for Duterte. The president’s preferred method of dealing with drugs and crime is through encounter killings. More than 5,000 people have been killed under Duterte so far, and human rights groups say most of them are innocent or minor offenders.Read also: <a href="https://www.nepalitimes.com/here-now/mr-province-2/" target="_blank" rel="noopener">Mr Province 2</a>, Om Astha RaiThis is why it was ominous to hear Makwanpur police chief Lokendra Shrestha announce recently that he would use ‘encounters’ to rid his district of crime. He told businesspersons and media that he had a carte blanche from Home Minister Ram Bahadur Thapa to shoot on sight. Nepal Police’s role in criminal investigation has now been taken over by the Home Ministry. On Monday, an alleged gangster was shot in an ‘encounter’ in broad daylight in the capital.Indeed, Minister Thapa (a former Maoist guerrilla commander himself) has been going beyond his ministry’s mandate to crack down on bus syndicates, lethargic road contractors, and even sidewalk vegetable and meat vendors. The criminal investigation and legal process are bypassed as suspects are taken straight to jail – presumed guilty until proven innocent. There may be some support for this from people sick of syndicates and swindlers, but it has eroded the rule of law, demoralised honest policemen, and flouted due process.The Home Ministry’s over-reach has been taken by many as yet another worrying sign of an authoritarian tendency in the united Communist government, which with its new Madhesi partner now has more than two-thirds majority in Parliament. Prime Minister Oli obviously has to balance his former party’s democratic values with the Maoists who have never formally abandoned violence as a political tool, and never apologised for conflict-era excesses.Read also: <a href="https://www.nepalitimes.com/banner/from-rebels-to-rulers/" target="_blank" rel="noopener">From rebels to rulers</a>, Om Astha Rai<a href="http://archive.nepalitimes.com/article/nation/gangamaya-hunger-justice,4180" target="_blank" rel="noopener">Gangamaya Adhikari</a>, the mother of a teenager allegedly abducted, tortured and killed by the Maoists, is on the third week of her fast unto death at Bir Hospital. Her husband <a href="http://archive.nepalitimes.com/article/editorial/Maoist-hungry-ghosts,3261" target="_blank" rel="noopener">Nanda Prasad</a> died three years ago during their prolonged hunger strike, and his body is still in the hospital’s morgue. She resumed her fast on Republic Day, when the government got a presidential pardon for <a href="https://www.nepalitimes.com/editorial/united-we-stand/" target="_blank" rel="noopener">Bal Krishna Dhungel</a>, a Maoist convicted of a murder during the war.The Maoists are hoping that by merging with the relatively-clean UML, they can wash the blood off their hands, and keep transitional justice in limbo. That plan may very well work. However, this has engrained a culture of impunity, and the idea that anyone can get away with anything. Thus, corruption in all three organs of government is eating away at the state structure from within, dashing hopes that last year’s elections would ensure accountability and good governance.There are other examples this week of the Communist government bristling at free speech. Information Minister Gokul Banskota closed down a NTV program after the anchor grilled him about his asset declaration. And Pushpa Kamal Dahal, angry at media reports of his landlord being the main defaulter on road contracts, warned journalists they were getting too big for their boots.The Nepal Communist Party’s election promise of ‘stability’ is becoming synonymous with ‘absolutism’. And ‘prosperity’seems to apply only to office-bearers. We already see evidence of this at the municipality and rural levels where contractors elected to office are <a href="http://archive.nepalitimes.com/article/editorial/trickledown-corruption,4176" target="_blank" rel="noopener">plundering natural resources</a>. And in Kathmandu there is tendency to make high-profile populist crackdowns without due process, with no followup.The Cabinet is expected to approve new guidelines under the <a href="https://www.nepalitimes.com/banner/the-crow-and-the-scarecrow/" target="_blank" rel="noopener">National Integrity Policy</a> which, as we reported here in a previous issue, sound draconian and so broadly worded that anyone can be taken in for anything. The code of conduct for INGOs, aid agencies and foreign missions appear to be intended for control rather than cooperation. All this is being justified in the name of stopping religious conversion, protecting national unity, and removing corruption.A government really serious about controlling organised crime would go after the Biplab faction of the Maoists who tried to violently disrupt elections, and in the past months have been terrorising, extorting, and confiscating property throughout the land. The comrades are being allowed to do whatever they like by their erstwhile comrades in government.As we <a href="https://www.nepalitimes.com/banner/from-rebels-to-rulers/" target="_blank" rel="noopener">report from Province 2</a>, it is an irony of our times that a federal state that was supposed to devolve power to local elected assemblies is now more centralised than ever before. In fact, today power is concentrated in the hands of only two men: PM Oli and PM-in-waiting Dahal. <h2>10 years ago this week</h2> The <a href="http://archive.nepalitimes.com/news.php?id=14920#.WyPPzxIzYnU" target="_blank" rel="noopener">front page</a> image of #404 of Nepali Times dated 13-19 June 2008, says it all. Here is an excerpt from the <a href="http://archive.nepalitimes.com/news.php?id=14922#.WyPP8xIzYnU" target="_blank" rel="noopener">editorial</a>:Two weeks after the declaration of the republic, the debate over who should be the first president is deadlocked. Two months after the elections, the Maoists have still not been able to form a government.History repeats itself as farce. We have voted to power a utopian ideology that the rest of the world paid for with the death of tens of millions. One could never accuse Nepali politicians of being ahead of the times, but we had never realised till now just what a bunch of dinosaurs they are.There were socio-political reasons for the Maoist victory, of course. Perhaps contributing to it also was our collective blind spot for history and the deliberate airbrushing of atrocities in the past century. <img width="640" height="995" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e3179c7e80680e033364jpeg.jpg" alt="">

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TOWARDS A POLICE STATE

<figure><img width="644" height="644" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2739c7e80680e03332ajpeg.jpg" alt=""/><figcaption>Image: Romeo Jericho</figcaption></figure>Even though it is a country with a liberal constitution and vibrant civil society which struggled long and hard against dictatorship, the Philippines is another proof of just how fragile those freedoms can be. The southeast Asian nation is a warning to Nepal that despotism is never too far away.Just like Nepal, the Philippines has suffered a Maoist insurgency (see below). And although the conflict in Nepal ended after ten years in 2006, the New People’s Army in the Philippines is still fighting the world’s longest-running Maoist war.Philippine strongman Ferdinand Marcos was elected to power in 1965, but gradually took over and ruled as a corrupt dictator until he was overthrown in a People Power movement in 1986. In Nepal, the first democratically elected government was dismantled by a royal coup in 1960, marking the beginning of three decades of a partyless absolute monarchy which also ended in 1990 after a People's Movement.The oscillation between dictatorship and democracy in both countries have followed a parallel trajectory, which is why the populist despotism of the current President Rodrigo Duterte, who was elected two years ago, can be instructive to Nepal to show just how easy it is for a democratic country to slide back into authoritarianism.Duterte did what most elected strongmen do: exploit the disarray and corruption in established democratic parties, rabble rouse the public with nationalism, be outspokenly abusive towards the traditional elite, silence critics in media and civil society with threats, and use popular strong-arm tactics to control crime. In fact, Duterte was a Trumpian even before the United States elected Donald Trump. As mayor of the Mindanao city of Davao, Duterte is credited to have cleaned up the city’s drug scene and violent crime. He promised to do the same throughout the Philippines if elected. He boasted of having personally killed drug pushers. The Filipino people, disillusioned with weak and corrupt rulers and fed up with drugs and crime, rewarded him with a landslide in 2016.  His popularity rating is still above 80%.The Philippine Congress is still debating the reinstatement of the death penalty but that isn’t stopping Duterte from ordering the police to hunt down criminals. There are no arrests, no charges, no trial, and the police have killed 4,251 people since Duterte took office. And that is just the official count, human rights groups say the death toll exceeds 10,000. Many are innocent, or minor offenders.“I have interviewed retired police, and they confirmed the killers are not vigilantes, it is the police who plant evidence on the victims,” says Reuters reporter in Manila, Manuel Mogato.What Duterte is doing in the Philippines mirrors what is happening across the world: democratically-elected demagogues are abusing the state apparatus to silence critics. Manila-based advocate Johnny Oyos says bluntly: "A lot is happening now in the Philippines in the name of democracy, but there is no democracy. I could be silenced at any time." Deuterte hasn’t stopped at suspected drug peddlers, nine journalists critical of his war on drugs have been killed since he came to office, all shot by pillion-riding assassins. Journalists regularly get death threats, or are silenced with defamation suits. Larry Que, publisher of Catanduanes News Now, was the first journalist to be killed under Duterte's rule. In his column, he had flayed the government for targeting the small fry involved in drugs while the wholesalers went scot free. The police officer accused of killing Que said he was ordered by the provincial governor. He promised to testify in court, but only if the slain journalist’s family paid him $191,000.      <figure><img width="340" height="481" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2769c7e80680e03332bjpeg.jpg" alt=""><figcaption> </figcaption></figure>Duterte himself has delivered scathing public speeches against journalists. The president got one of his cronies to buy the powerful Philippine Daily Inquirer. Last year he took the critical news portal, Rappler Philippines to court for violating investment rules. Founded by former CNN correspondent Maria Ressa, Rappler reporters are now banned from the president’s press conferences.“We are trying to be economically viable so that we can be politically independent, and if that doesn’t work, we will go to the people to support our public service journalism,” Rappler’s Gemma Mendoza told Nepali Times. <figure><img width="640" height="831" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e2779c7e80680e03332cjpeg.jpg" alt=""><figcaption> </figcaption></figure>Government lackies mercilessly troll Duterte’s detractors on social media, dubbing critics 'anti-national', and a section of the media toes the Duterte line.Says Malou Mangahas of Philippine Centre for Investigative Journalism: "Journalists' lives are at risk, so is people's right to know the truth. Journalists and human rights activists are polarised, which has amplified the threats to civic rights." <h2>Filipino Maoists </h2> <figure><img width="1500" height="1162" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e27a9c7e80680e03332djpeg.jpg" alt=""><figcaption> </figcaption></figure>Nepal’s Maoist insurgency dragged on for ten years and left a lethal legacy, but the rebellion in the Philippines also inspired by Maoism has been going on five times longer. And there is no end in sight.A peasant rebellion known as the Huk Uprising against Japanese occupation was violently put down with the help of the US military after the end of the Pacific War. Later in 1969, the New People’s Army formally launched its armed struggle against the Philippine Army. Since then, nearly 45,000 people have been killed in the guerrilla war — half of them in an internal purge in the 1980s to eliminate suspected infiltrators.Persistent inequality in Philippine society, perpetuated by feudal landholders who dominate politics, fuels the low-intensity war. There have been numerous talks and truces over the decades, the violence flares once in a while, the guerrillas have been restricted to pockets in Luzon and Mindanao. But the conflict continues.Satur Ocampo, 79, led the Maoist negotiation team during the first talks with the government thirty years ago and now lives in Manila. He has renounced violence, but is still an ideological supporter of the Maoist doctrine of protracted people’s war.Speaking to Nepali Times at his modest Manila home, Ocampo says the NPA has been cornered, but their revolutionary zeal is intact. They are ready to shed more blood, and the only way to end the war is to bring them back to the negotiating table.“We should emulate what Nepal did 11 years ago with the peace accord,” Ocampo said. “The ball is in President Duterte's court, he can end the war by fulfilling his election promise to reach out to rebel leaders for talks, and push for a socio-economic transformation."President Duterte won elections in 2016, projecting himself as 'a socialist' and promising to end the Maoist conflict through dialogue. However, once in power, Duterte has made a U-turn vowing not to spare the Maoists involved in killing police and army personnel. <figure><img width="379" height="491" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e27d9c7e80680e03332ejpeg.jpg" alt=""><figcaption> </figcaption></figure><h2>#PushBack for freedom </h2> <h2>Authoritarian populists want rights and liberties curtailed to promote stability and prosperity. It does not work that way.</h2> <h2>Jose Luis Martin C. Gascon</h2> The world is now less free and less democratic. What had previously been just ominous dark clouds to what we thought was the global march to democracy have now appeared as menacing twin spectres looming across the globe that seem ready to overwhelm us.These two threats of violent extremism and illiberal populist demagoguery impose upon us a future world order that would no longer be rules based, but instead grounded upon the brazen power of brute force.This unfolding scenario can no longer be brushed aside as a mere passing phenomenon. To my mind, this constitutes nothing less than an existential threat against that which we and all those who have come before us have painstakingly sought to build through many years of fighting against tyranny and oppression. Our very edifice of democracy that respects human dignity, promotes equality for all, and upholds the rule of law, is under threat.In the Philippines and the world over, the very concept of rights is being put to the test on a daily basis. The importance of the rights of each individual is being sidelined for other so-called priorities of the State: economic growth and development, national security, peace and order, the fight against terrorism, the war against illegal drugs and the like. It is as if human rights cannot co-exist with other human values and ideals that are good.On 10 December 2018 we shall commemorate the 70th anniversary of the adoption of the Universal Declaration of Human Rights. This year we are also just barely a quarter century from the time Francis Fukuyama declared his much-applauded ‘end of history’. But now, it is apparent that this once ascendant democratic consensus we had all sought to promote, nurture, deepen, and widen is once again confronted by a familiar adversary — fascism, albeit manifesting itself in new, reinvented, and popular forms.Yet, fascism essentially posits the same old argument to entice all of its adherents: that in uncertain and difficult times such as the one we are currently in, the only security that is possible is that which can be delivered by a so-called strongman that we must obey and surrender our fundamental rights to.It has come to pass that this false choice has regained renewed appeal by feeding upon the people’s frustrations with our governments’ failure to deliver on the public’s expectations, therewith generating overwhelming popular support for some utopian – even dystopian –vision of change that a ‘great leader’ alone would be able to provide.There are societal actors as well that view freedom and human rights as ‘destabilisers’ and obstacles to societal order or progress. We now live in a time where there persists a strong current of opinion that is quite disturbingly tolerant of repressive approaches. Suppression of dissent is slowly becoming the norm, seen now as a legitimate way to maintain peace and social stability. The curtailment of rights and liberties in order to promote stability and economic prosperity is increasingly accepted as justifiable, and at times viewed to be even necessary. And many of our own compatriots now form a popular chorus for authoritarian populist leaders.This is indeed the disturbing and challenging reality that we are all confounded by and confronted with. Many of these attacks are nothing new. But in my experience as human rights lawyer, organiser, democracy worker, and activist, the very concept of democracy and human rights have never been negated, maligned, disregarded, and even denied with such brazenness and popular support from the people.As with other countries, the Philippines has had its share of challenges to the promotion of democracy and the protection of human rights. But our country has recently been prominent once again in the world stage for the violations and attacks to human life and dignity. In one sense, the Philippines probably is a microcosm of a world society that has struggled with engendering democracy, while constantly confronted with perils to human rights.Let us be clear about this: an attack upon any of the people’s fundamental freedoms is an assault on democracy itself. Any harm inflicted upon or directed towards anyone – especially the lowliest and most vulnerable of persons – is an assault upon the core of humanity itself.We are not against the State’s obligation to suppress crime as in the case of our so-called ‘war against illegal drugs’. The State is duty bound to suppress crime and in fact, in human rights discourse, it has an obligation to ensure everyone’s right to safety and security. However, the State must do thisvia legitimate law enforcement, and always within the bounds of the rule of law and with utmost respect for human rights.Given these challenges, it is our responsibility to mount a response that will affirm truth over deception and hope over desperation. We are all called to defend our cherished core values. We need more democracy and not less of it, we must uphold human rights and not allow it to be curtailed. Democracy and human rights are important enablers of human development, creating the conditions that will help people thrive and reach their full potential.In the face of these overwhelming threats that seek to subdue, silence, and defeat us, we must draw strength and inspiration from each other’s struggles and victories no matter how small or insignificant these initially may appear. The road ahead is difficult and uncertain but we must not be discouraged. Instead, we must march forward in solidarity to affirm a politics of civility and inclusion, employing strategies of non-violence, motivated by deep love for humanity, emboldened by an unrelenting commitment to stand up for justice, and spurred by an undying hope that light shall always prevail over darkness.JOSE LUIS MARTIN C. GASCON is Chairperson of the Commission on Human Rights of the Philippines. This op-ed is taken from the Asia Leadership Fellow Program (ALFP) online magazine called <a href="http://alfpnetwork.net/en/e-magazine/" target="_blank" rel="noopener">Voices of Asia</a> that contains commentaries on the threats to democracy around the globe. <img width="608" height="705" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107111148/6368e27f9c7e80680e03332fjpeg.jpg" alt="">

Saving democracy and free press in the Philippines

<figure><img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221107101156/6368d6819c7e80680e03148ajpeg.jpg" alt="" width="1400" height="1254"/><figcaption>Bhanu Bhattarai</figcaption></figure>Across the world, from the Philippines to the United States, and in Central European countries like Hungary and Poland, we have seen worrying signs of democratic reversal. Even in open societies like the UK, Germany, France and India there has been a recent ascendance of the racist right.Extremism and populism have taken centre-stage as demagogues whip up xenophobia and bigotry to get elected in democracies that are abandoning a rule-based society. They are systematically gagging the free press,<a href="http://archive.nepalitimes.com/news.php?id=18837#.Wv1qyu6FPIU" target="_blank" rel="noopener"> using the power of the social web</a> to spread hate and lies, and encouraging violent extremism. Hungary’s Viktor Orbán boastfully calls his country an ‘illiberal democracy’. Using the Trump administration as a shield, Israel is mowing down Palestinians. Cambodia has just sold its last independent newspaper to a Malaysian tycoon.The decline is not isolated, and it is not a temporary occurrence. The Freedom in the World Report 2018 notes that political freedom is in retreat across the globe. More than 70 countries have seen declines in political and civil rights in recent years, and there were gains in only half that number of nations.The only recent silver lining is Malaysia, where the people last week voted out a brazenly corrupt and openly racist cabal, even though the electoral system had been rigged, and the judiciary coopted, to bring back 92-year-old Mahathir Mohamad.Read also: <a href="https://www.nepalitimes.com/?p=6146&amp;preview=true" target="_blank" rel="noopener"> The crow and the scarecrow</a>, Om Astha RaiHopefully, Malaysia’s example will spread, and send a message to those struggling against despots: sooner or later democracy will prevail.Even so, in many Asian countries today there is open admiration for China’s economic growth and the Singapore miracle. This has led to a growing attraction for strong-man rule. Political and civil liberties are seen to be putting the cart before the horse, and freedom is seen as a luxury that is keeping people poor. The emphasis is on economic and cultural rights, and citizens are asked to <a href="http://archive.nepalitimes.com/article/nation/The-right%20-to-have-rights,2656" target="_blank" rel="noopener">give up their basic freedoms while waiting to prosper</a>. The state’s priority has become national security, fighting terrorism, stopping migration, to ensure stability and prosperity.All this is now getting to sound disturbingly familiar in Nepal where the slogan of the ruling coalition that was elected last year is ‘<a href="http://archive.nepalitimes.com/article/nation/into-a-state-of-uncertain-stability-nepal,4068" target="_blank" rel="noopener">prosperity through stability</a>’. The alliance is made up of a <a href="http://archive.nepalitimes.com/article/nation/a-two-party-state,3968" target="_blank" rel="noopener">moderate leftist party</a> named after Marx and Lenin which on Thursday, merged with former communist rebels who are inspired by Mao.The UML changed its spots to espouse the People’s Multi-party Democracy line, but the CPN-MC did not convincingly abandon its <a href="http://archive.nepalitimes.com/news.php?id=6258#.Wv100-6FPIU" target="_blank" rel="noopener">ideology of revolutionary violence</a>. It wanted the <a href="http://archive.nepalitimes.com/article/nation/the-spark-that-lit-the-Maoist-revolution,2870" target="_blank" rel="noopener">People’s War</a> to be glorified and enshrined in the guiding principles of the new Nepal Communist Party. There is no move towards <a href="https://www.nepalitimes.com/here-now/the-struggle-for-transitional-justice/" target="_blank" rel="noopener">transitional justice</a>, <a href="http://archive.nepalitimes.com/article/editorial/justice-delayed-justice-denied-transitional-justice,3556" target="_blank" rel="noopener">or to say sorry</a>.Read Also: <a href="http://archive.nepalitimes.com/article/nation/a-trump-world-us-nepal,3359" target="_blank" rel="noopener">A Trump world</a>, Om Astha RaiRecently, we saw how easily both parties as well as the NC, now in the opposition, were held hostage by their own appointee to the anti-corruption commission as he terrorised the press and dismantled the rule of law for three years. The warning to us is that <a href="http://archive.nepalitimes.com/regular-columns/Legalese/The-charade-of-impeachment,801" target="_blank" rel="noopener">Lokman Singh Karki</a> can easily happen again.Communists are guided by the principle of ‘democratic centralism’ which is an antithesis to federalism and devolution. And the ruling coalition is doing just that: centralising power in the PMO. The recently released draft National Integrity Policy, while seeking to lay legitimate ground rules for the conduct of public officials and outside agencies, has some disturbing provisions.As we report in this edition, the restrictions appear to be guided by the perception of aggressive proselytisation and donor funding for indigenous and excluded groups during the Constitution-drafting process.Read Also: <a href="http://archive.nepalitimes.com/regular-columns/On-the-way-up/who-teaches-democracy,1020" target="_blank" rel="noopener">Who teaches us democracy?</a>, Kanak Mani DixitThere may have been a need to regulate the proliferation of NGOs, and the government does need to keep track of where <a href="http://archive.nepalitimes.com/regular-columns/half-full/capacity-for-development-half-full,1110" target="_blank" rel="noopener">outside funds go</a>. But some of the points in the draft are so open-ended that they seem intended for control rather than regulation. The government now wants only foreign assistance in ‘hardware’ and not ‘software’, and is turning away aid on anything to do with inclusion, human rights and democracy.Given the spread of illiberal democracy around the world, there is reason to be worried that ‘stability and prosperity’ could be a euphemism for control, and silencing dissent.Read Also: <a href="http://archive.nepalitimes.com/article/nation/The-turning-point-war-nepal,3986" target="_blank" rel="noopener">The turning point</a>, Kunda Dixit

Illiberal ills

This is the first instalment in a new limited series in Nepali Times on the historic transportation infrastructures of Nepal. Nepal’s Forest Railways As<a href="https://nepalitimes.com/here-now/india-s-border-trains-that-connected-nepal"> India’s railway network </a>expanded in the 1890s and 1900s, the demand for wooden railway sleepers, called ‘ties’ in America, likewise increased. The <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/the-rana-reign-a-recap-of-history,3751">Rana regime</a> realised that western Nepal’s dense forests, from which sal trees could be extracted and sold, represented a valuable source of revenue. There was a problem of accessing large tracts of <a href="https://nepalitimes.com/here-now/the-tarai-s-shrinking-forests">Tarai forests</a>. However, once Indian railway lines are extended to Nepal’s border in several places, this issue could be resolved by constructing logging railways, also known as ‘tramways’ or ‘light railways’. The Nepal Government awarded a contract to Punjabi timber contractors to supply 15,000 sal sleepers to Chandan Chauki station of India’s Oudh &amp; Rohilkhand State Railway in 1908. The contractors also received a concession to construct a steam tramway to run 48km into <a href="https://nepalitimes.com/banner/reviving-nepals-community-forestry-success-story">Nepal’s forests</a> for cutting and transporting trees. The author found no records, however, indicating that such an ambitious tramway was built in 1908. The hewn logs were probably carried into India by bullock carts or <a href="https://nepalitimes.com/news/elephants-become-white-elephants">elephants</a>. The earliest known forest railway in Nepal was built in 1914 in the southwestern corner of the present-day Parsa district. A British engineer went to the Indian border town of Bikna Thori to plan a 4-mile portable light railway for the transport of timber from <a href="https://nepalitimes.com/here-now/on-the-tri-junction-of-wildlife-conservation-conflict-and-co-existence">the forest of Chitwan </a>to the Thori depot on the Bengal &amp; Northwestern Railway. This short line was laid upon wooden sleepers, and its rails could be taken up and repositioned when logging in one section of the forest was completed. This forest railway was in operation at least through 1917.&nbsp; A few year down the line in 1923, J V Collier of the Indian Forest Service built a narrow-gauge railway in Kailali district also to export of timber to India. This line, the Nepal Government Forest Railway, departed Chandan Chauki in Uttar Pradesh and ran 48km northwest into Nepal.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd.jpg" data-media-id="editor_6" data-image-id="20250824150820_84ddef57433c2f847b2c7e56c2d9c924084b6e6a504bbca905d2c593fac8eabd" data-rendition-name="original" width="1130" height="689" loading="lazy" alt="Nepal's little railways"> <figcaption>A Nepal Government Forest train in Kailali District hauling sal sleepers in 1925. Photo: DAVID CHURCHILL </figcaption> </figure>  It was a 2-foot railway supported by 11kg rails. The line was ‘temporary’ in that as sal trees were thinned out in one area, railway tracks were shifted to uncut areas of the forest. The railway crossed seven small <a href="https://nepalitimes.com/here-now/saving-what-is-left-of-himalayan-rivers">rivers</a>, but the bridges were taken down during the summer and monsoon. Trains ran only from November to April. This forest railway purchased four 4-6-0T ‘tank’ engines built in Leeds, England. Each bogie could carry 100 broad-gauge sleepers, and two engines were needed to haul a 21-car train loaded with 2,100 sleepers. This huge commercial forest operation once employed about 14,000 men, most of them Indians. During one season, nearly 800,000 broad and metre-gauge sleepers were exported to India. When India suffered a depression in 1930, large scale operations came to an end. Read also: <a href="https://nepalitimes.com/news/rust-in-peace?fbclid=IwAR1_eg88TCOS6RGRW1af7WvaWx5mzh_rY8-vT1MnJxSs41QtCpaA988oXk8">Rust in peace</a>, Daniel W Edwards  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5.jpg" data-media-id="editor_9" data-image-id="20250824150828_13a0b894b9ea0c478904d358028f0c976d84f284432ee25106787366598d38e5" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>Rails extended north from this spot into the virgin sal forests of Bardia in western Nepal 100 years ago.  DANIEL W EDWARDS</figcaption> </figure>  A third railway was built in <a href="https://nepalitimes.com/here-now/the-big-bulls-of-bardia">Bardia </a>where some scattered rails and signs of an old roadbed were seen in the 1960s. It ran from Nishangada in India to Khairbhatti in Nepal. From there, stations heading south were Ranipur, Karmak, Taratal and Madhuwan. Collier likely <a href="https://nepalitimes.com/here-now/nepal-train-project-struggles-to-stay-on-track">built this railway </a>as well in the 1920s. An elderly man in Bardia in 2022, whose father had worked on this forest railway, was interviewed for this account. Kathmandu Valley’s Motor (Trolley) Railway Merchants importing goods from India via the<a href="https://archive.nepalitimes.com/article/business/ropeways-connecting-nepal,1749"> ropeway</a> Chandra Shamsher built in 1927 had to go to the ropeway’s terminus at Matatirtha near Thankot to claim their goods and then haul them 6km to the customs house Bhansar Adda at Teku for clearance and payment of customs duties. The Motor Railway was built to carry goods from the<a href="https://archive.nepalitimes.com/news.php?id=16839"> ropeway station </a>directly to the customs office, making it cheaper and more convenient for merchants to receive their shipments. In December 1931, Prime Minister Bhim Shamsher issued an order (sanad) putting Lt Gen Singha Shamsher Rana in charge of building this rail line to Teku and on to ‘Nabalak Khana’ in Tripureswar, a distance of 10km. The project was subdivided into four sections or ‘phant’, and for each, budgets and timelines were established. There was bato phant (constructing the roadbed), lik sleeper and jordne phant (laying sleepers and joining the rails), culvert phant (installing culverts) and pul phant (building bridges). Colonel Kishore Narsingh Rana was put in charge of the sleeper and rail section, while Colonel Dilli Jung Thapa, an engineer at Ghar Kaj Adda, also was involved. The Motor Railway was completed by the end of 1933. In the beginning, the railway’s small wagons may have been pulled and pushed by men and bullocks. However, in 1938 a British railway manufacturer sent Nepal a four-wheel, 5½ ton, 2-foot narrow-gauge diesel-powered locomotive with mechanical transmission, hence the name motor railway. Read also: <a href="https://nepalitimes.com/latest/nepal-railways-janakpur-test-drive?fb_comment_id=3554227181262227_4263866616964943">Nepal Railways Janakpur test drive</a> Leaving Matatirtha, the trains passed Satungal, Naikap, the Bishnudevi Temple, crossed an iron bridge over Balkhu Khola, then to Ghattepakha, Sunagau, through what is now a section of Kuleshwor (‘Lik Marg’) to the Customs Office at Teku.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9.jpg" data-media-id="editor_15" data-image-id="20250825020852_033f0cee9775d7dadde7811132f84da876f614c386e3677e560ba7aed79909d9" data-rendition-name="original" width="2000" height="1333" loading="lazy" alt="railways in Nepal"> <figcaption>Lik Marg in Kuleswor, the former route of the Motor Trolley Railway. Photo: DANIEL W EDWARDS</figcaption> </figure>  In 1945, Motor Trolley had four engines, but spare parts was badly needed. The charge for transporting one maund (about 40kg) of cargo from Matatirtha to Teku was 50 paisa. Even though the trains ran slowly and only for a short distance, <a href="https://nepalitimes.com/news/fatalism-and-fatalities">accidents were not unknown</a>. A train loaded with rice, salt and cotton derailed on a curve in July 1946, and two railway employees were crushed under the cars and killed, five others were injured. Besides the driver and a brakeman, guards rode the trains to prevent theft of goods.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060.jpg" data-media-id="editor_17" data-image-id="20250824150836_63a327d4db3b067a23dd5c6cf17a31ffe811ffd4a8429bc31011d62298a90060" data-rendition-name="original" width="6000" height="4000" loading="lazy" alt="Nepal's railways"> <figcaption>The author by the remains of the Balkhu Khola bridge built in 1932 with American steel. Photo: JEEVAN NEPAL</figcaption> </figure>  By 1953, government budget estimates indicated the Motor Railway would break even with an income of Rs70,000 against Rs71,000 in expenditure. It appears the railway stopped service around 1957 with the opening of the Raj Path and the extension of the ropeway from Matatirtha to Bhansar Adda. Bent steel beams of the bridge across Balkhu Khola and two plaques recovered from the river a few years ago are the only remains of this railway today. Photos of the Motor Trolley Railway in operation are hard to come by.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b.jpg" data-media-id="editor_18" data-image-id="20250825020848_3a7cd17d0ffc36bbf5fdad404f5f6e91c7aa0e4f4ed729ed2c7e9c186f32ca9b" data-rendition-name="original" width="5189" height="1979" loading="lazy" alt="railways in Nepal"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The Kosi Project Railway (KPR) As early as 1941, India and Nepal considered building a dam on<a href="https://nepalitimes.com/here-now/the-kosi-s-sorrow-and-scope"> the Kosi River</a> to prevent destructive floods caused by <a href="https://nepalitimes.com/editorial/when-it-rains-it-pours-ksqprbu3">monsoon rains</a>. Floods in 1950 inundated 500 villages in Bihar and left 500,000 people homeless. The two governments signed an agreement in 1954 to build a barrage on the Kosi, and King Mahendra and Prime Minister Nehru laid the foundation stone in April 1959. To transport stones from a quarry near Dharan to use in mixing concrete at the construction site, the Indian government, in charge of building the barrage, made plans to build a narrow-gauge railway linking Bihar and its border town of Bhimnagar with Nepal’s settlements at Chakraghatti, Chatra and Ghopa, the outskirts of Dharan.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7.jpg" data-media-id="editor_21" data-image-id="20250824150816_fc5e13b01022c63c64f1e83589da0015eee7ecd002bdd3d97b88c98c1f3d45b7" data-rendition-name="original" width="4011" height="2645" loading="lazy" alt="Nepal's railways"> <figcaption>Steel plaque commemorating the construction of a Motor Trolley bridge across the Balkhu Khola. Photo: DANIEL W EDWARDS</figcaption> </figure>  The section of the KPR in Nepal totaled 66km — the country’s longest railway to date. The stations south of Chakraghatti were Rajabas, Maduhuwan, Kushaha, Haripur and Bhantabari. The line built, operated and owned by the Indian Government, was opened in 1958 and known locally as Dhunge (stone) Rail. Procuring locomotives, wagons and other materials was a challenge. India’s Railway Board searched the country for old 41 lb rails, and located steam engines, most built around 1910, in poor condition, and stored in ‘retirement’. These decrepit locomotives were later cannibalised for parts to keep the remaining engines running, and six newer locomotives built in Yugoslavia were sent to the KPR in 1960 to prevent the railway from shutting down and halting construction of the barrage.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b.bmp" data-media-id="editor_22" data-image-id="20250824150832_fd644f9e2674c5047a531de5dfeb2c8860b0f93dddc7a2df3db867bf31b2c94b" data-rendition-name="original" width="3171" height="2069" loading="lazy" alt="Nepal's railways"> <figcaption>KPR locomotives, water tank and staff at Chakraghatti in Nepal. Photo: JOHN BENSON</figcaption> </figure>  Used bogie-wagons (gondolas) came from <a href="https://nepalitimes.com/here-now/india-nepal-rail-diplomacy">Indian railways</a> that had been converted to metre-gauge, others were manufactured in Muzaffarpur without couplers due to the non-availability of steel. A hundred new wagons arrived from Japan, but only half could be put in service, as couplers from the other 50 were removed and attached to the Muzaffarpur wagons. This smorgasbord of equipment kept shop mechanics and work crews busy, but now-abandoned railways in Nepal always operated under less-than-ideal conditions. Although the purpose of the KPR was to transport gravel, stones and boulders to the site of the barrage, photographs show people riding in loaded wagons. Excluding Dharan, there was no bus service through the wild animal infested jungle between Dharan and Chakraghatti or along the dusty paths linking other small villages on the KPR, so patient locals sat in wagons at Dharan, waiting perhaps for hours for trains to depart.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6.jpg" data-media-id="editor_24" data-image-id="20250825020852_7d011dcc8e9b8cb0fe745b352486ebc4a84dac99419eadb35875333db20837c6" data-rendition-name="original" width="3965" height="2659" loading="lazy" alt="railways in Nepal"> <figcaption>Ticketless riders on a train of gravel and stones in the forest between Dharan and Chakragatti in 1966. Photo: JOHN BENSON</figcaption> </figure>  Sons of former railway workers in Chakraghatti say that there were no fixed schedules, three or four trains ran both ways daily in the early 1960s. Southbound trains carried gravel, stones and boulders, while northbound trains would carry coal, cement and provisions, including sacks of coins to pay the workers. Trains even ran at night, and the crews worked long hours. Workers received free housing in project-built tenements but had to buy food supplies and items for personal use. The Babu Saheb or the superintendent lived at Chakraghatti, and at one time supervised more than 1,000 employees, nearly all of them from India. The barrage was completed in 1964, but by 1970, the Kosi Project Railway had passed into history. Daniel W Edwards was a Peace Corps volunteer in 1966 and is the author of several books on Nepal.

Nepal’s five little railways

Turkish Airlines is official airline partner for the second edition of the Vatsalya Everest Women’s Volleyball League (EWV). The league, scheduled for 5-13 September, will take place in Pokhara and feature 18 international players alongside elite Nepali volleyball talent. The agreement was signed by Turkish General Manager Serkan Başar, and EWV CEO Snevy Chapagain. “Turkish Airlines’ support ensures a seamless journey and adds immense prestige to the league’s goal of women’s empowerment through sports as well as the agenda of sports tourism,” said Chapagain. “We are thrilled to partner with Vatsalya Everest Women’s Volleyball League as the official airline. With this association, we aim to support women role models in sports. We believe this association will connect countries to Nepali volleyball,” remarked Basar.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4.jpg" data-media-id="editor_0" data-image-id="20250825030844_36df66612152abbea71f15579358a2bb0fe797f21cbe7e7c7f28e3fe91655ae4" data-rendition-name="original" width="1920" height="1280" loading="lazy" alt="Turkish"> </figure>

Turkish to sponsor women’s volleyball league

India and China have a long-standing border dispute along their Himalayan border which has erupted in violent skirmishes. But Indian and Chinese officials last week agreed to ignore Nepal’s own border dispute with India to facilitate trade. The Indian Ministry of External Affairs this week flatly rubbished <a href="https://nepalitimes.com/editorial/territorialism">Nepal’s territorial claims</a> to the Lipulek Pass and the Kalapani Region, including Limpiyadhura, which Nepal considers as the source of the Mahakali River that forms Nepal’s western border with India. The latest episode in this dispute has come as Sino-Indian relations have thawed after US President Donald Trump slapped <a href="https://nepalitimes.com/news/nepal-and-the-us-india-tariff-tiff">sanctions on Indian exports</a>. The joint communiqué in Beijing said India and China had agreed to resume their border trade through the Nathu La, Sipki La and Lipulek during Chinese foreign minister Wang Yi’s visit to New Delhi. Lipulek is a pass 10 km north-east of <a href="https://nepalitimes.com/news/there-is-precedent-to-settling-kalapani">Kalapani</a> which has been disputed ever since the Survey of India published its 1879 map, where the source of the Mahakali was suddenly shifted from Limpiyadhura to Lipulek.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd.jpg" data-media-id="editor_3" data-image-id="20250826060824_4e68dd5964e0995b91148de9978a1de52b19691e1b01f52a405924fd130c22bd" data-rendition-name="original" width="2000" height="2083" loading="lazy" alt="Lipulek dispute explainer"> </figure>  This tributary of the Mahakali was called the Kali on this map, and is a fordable tributary and not the main channel of the border river. The main Kali River was renamed Kuti Yangdi, and this happened while the British were still in India presumably to gain access to the Lipulek in contravention of the 1816 <a href="https://nepalitimes.com/banner/borderline-disorder">Sugauli Treaty</a>.&nbsp; This subterfuge continued even after India gained independence in 1947. Nepal has maintained that the main channel of the Kali is the border as per the 1816 treaty, when Nepal lost a third of its territory to British India. It is all well and good that India and China are now friendly enough to <a href="https://archive.nepalitimes.com/news.php?id=19447">open border trade</a> routes, but it should not be in violation of Nepal’s territorial integrity. Nepal should be called for diplomatic and political negotiations regarding the Lipulek pass and the Kalapani region comprising Limpiyadhura.&nbsp; Read also: <a href="https://nepalitimes.com/opinion/comment/when-xi-meets-modi-and-oli">When Xi meets Modi and Oli</a>, Kanak Mani Dixit China and India, but especially the latter, should invite Nepal to discuss these issues and iron out the disputes based on facts and evidence and maps. Nepal had sent seven diplomatic notes to India and three to China so far regarding the Lipulek and Kalapani. India has not responded to any of them. China replied once saying that Nepal and India should sort out their border disputes first before voicing their opinions. Nepal welcomes the recent talks between India and China that it hopes will positively impact on settling border disputes that are mostly stalled since the 1962 Sino-Indian war, the 73-day military standoff over the disputed Doklam region between China and Bhutan, and the 2020 Galwan clash in Ladakh. Nepal’s two large neighbours seem to have come to their senses and realised that it is in their interest to collaborate rather than confront each other when President <a href="https://nepalitimes.com/opinion/trump-s-first-month">Trump is acting erratically</a> with threats of sanctions and tariffs.&nbsp; Prime Minister K P Oli should bring up Nepal’s grave concerns about the Lipulek during his state visit to India next month when he will meet Prime Minister Narendra Modi in Bodh Gaya. The two are also expected to meet next week at the Shanghai Cooperation Organisation summit in Tianjin when Chinese President Xi Jinping will also be present. But even before that Nepal should send diplomatic notes to both the Indian and the Chinese governments regarding their agreement to resume border trade through the Lipulek.&nbsp; Here is a timeline of the developments regarding the Lipulek: Sino-Indian Agreement of 1954 This 8-year Agreement on Trade and Exchange between Tibet and India was signed in Peking on 29 April, 1954 by the Chinese Vice-Foreign Minister Chang Han Fu and the Indian Ambassador Nedyam Raghavan.&nbsp; There was no explicit mention on the border settlements either on the Line of Actual Control (LAC) or on Ladakh, although trade and pilgrimage through Lipulek and other 5 passes (Sipki La, Mana Pass, Niti Pass, Kungri Bingri Pass and Dharma Pass) were agreed upon.&nbsp; Trade between Uttar Pradesh state and the Tibet Autonomous Region was through ‘border &nbsp;point of the agreement states: ‘With a view to facilitating the visits of persons engaged in border trade and the exchange of commodities and means of transportation, (India and China) have decided that Lipulek (Qiangla) be the border pass for the entrance and exit of the said persons, commodities and means of transportation from the two sides.’ The agreement expired on 6 June 1962 during the Sino-Indian war, and the two sides did not renew it. Bilateral ties started to normalise only in the 1990s with the Indian decision in 1988 to abandon its policy of settling ‘territorial issue’ for ‘normalisation of relations’. India There was no reaction from Nepal to the 1954 agreement since Nepal did not have diplomatic relations with China yet at the time. Sino-Indian Agreement of 2005 The Political Parameters and the Guiding Principles for the Settlement of the Sino-Indian Boundary Question is detailed in 11 Articles, which outline the steps to be taken for a Peaceful and Tranquil Border. The agreement was a direct outcome of the Special Representatives mechanism that had been set up through a 2003 agreement. It also incorporated the Confidence Building Measures in Military Field along the Line of Actual Control (LAC) in the Sino-Indian Border Areas signed in 1996.&nbsp; A protocol on Modalities for the Implementation of Confidence Building Measures in the Military Field along the Line of Actual Control in the India-China Border Areas signed during Chinese Premier Wen Jiabao’s India visit, which stated in Clause 2 of Article 5: ‘Both sides agree to extend in principle to expand the mechanism of border meeting points to include Kibithu Dhamal in the Eastern Sector and Lipulek Pass (Qing La) in the Middle Sector. The precise locations of these border meeting points will be decided upon mutual consultations.’ Nepal’s Foreign Ministry issued a statement in 2005 stating that Nepal had asked China about the issue and the Chinese Embassy clarified that the agreement had nothing to do with Kalapani. This was perhaps the first time that Nepal had objected to the Sino-Indian agreement on Lipulek. King Gyanendra had staged a coup d’état on 1 February 2005, just two months prior to this agreement. The Nepali press voiced criticism of China in particular for disregarding the country’s sentiment.&nbsp; Sino-Indian Agreement of 2015 India and China signed several documents during the state visit of Chinese President XI Jinping to India on 18 September 2011. Number one on the list was: ’Opening a New Route for Indian Pilgrimage (Kailash Mansarovar Yatra) to the Tibet Autonomous Region of the People’s Republic of China’.&nbsp; The Indian foreign ministry stated: ‘The MoU provides for conducting the annual Kailash Mansarovar Yatra through Nathula Pass in Sikkim in addition to the existing Lipulek Pass in Uttarakhand’. On May 15, 2015, China and India issued a Joint Statement during Indian Prime Minister Narendra Modi’s visit to China. Point 28 under the ‘Trans-border Cooperation’, states that the two sides agreed to ‘hold negotiation on augmenting the list of trades commodities, and expand border trade at Nathu La, Quingla/Lipulek Pass and Sipki La Pass’. Nepal’s objection to the 2015 agreement was stronger than in 2005. Prime Minister Sushil Koirala called up Narendra Modi to express Nepal’s displeasure It was not until 2020 that Nepal’s Foreign Minister disclosed that ‘Nepal had expressed its disagreement in 2015 through separate diplomatic notes addressed to the governments of both India and China … including Lipulek Pass as a bilateral trade route without Nepal’s consent.’  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea.jpg" data-media-id="editor_8" data-image-id="20250826060824_d4497e2620bba81211d27e427393974877e09006abc26e13055508996e5b29ea" data-rendition-name="original" width="1108" height="1550" loading="lazy" alt="Lipulek dispute explainer"> </figure>  The new political map of India published by the Survey of India in November 2019 that incorporated areas east of the Kali River including Kalapani as Indian territory sparked renewed public, and political, attention to the Mahakali dispute. The Nepal government then countered by formally approving the publication of the new Political and Administrative Map of Nepal including all territories lying to the east of the Mahakali River on May 18, 2020. In June, the House of Representatives unanimously endorsed the second amendment to the Constitution of Nepal to update the country’s new political map in the national emblem. Sino-Indian Consensus of 2024 A 6-point Consensus on Peace and Tranquility on the Line of Actual Control (LAC) was agreed on December 18, 2024 between the Special Representative of the People’s Republic of China, Wang Yi, and the Special Representative of the Republic of India, Ajit Doval.&nbsp; India has not denied that this is a consensus, while China made it clear that this was not a Joint Statement. This Consensus is in line with the 2005 agreement, and was agreed during the 23rd round of the Special Representatives talks held after a gap of five years aimed at restoring bilateral ties frozen because of the military standoff in Ladakh. The agreement included: cross-border communication and cooperation, promoting the resumption of pilgrimages by Indians to Xizang, cooperation on crossborder rivers, and trade at the Nathu La Pass. Nepal made no reaction to the statement despite Lipulek being the pilgrimage route for Mansarovar and Kailash.&nbsp; Prabhakar Sharma is a construction engineer and an international border expert who has worked as a survey engineer for the Cameroon-Nigeria border demarcation by the United Nations.

Lipulek dispute explainer

It was 30 years ago this month that investment into ‘Baby Arun’, the 201MW first phase of the run-of-river Arun III project, was brought to a screeching halt when the World Bank officially withdrew its support. This brought about profound and fundamental changes in the way Nepal’s power sector subsequently developed. Nepalis suffered debilitating power outages between 2008-2016 due to shortages attributable to the cancellation. At the same time, the gap left by Baby Arun was filled by private sector investment in ways that were not obvious in 1995. It took 30 years, but in many ways Nepal’s power sector is more healthy today than it has ever been, and likely better than if the project was built as planned. At a projected budget of $1.08 billion, Baby Arun would have cost the equivalent of Nepal’s entire annual government expenditure in 1995. It was to be funded by concessional grants and loans from multilateral and bilateral funders, including the World Bank, Asian Development Bank (ADB), KfW, and investment by the government itself. At the time, Nepal’s total electricity generation capacity was only 230MW, and the trajectory of the power sector changed dramatically following the cancellation. In the past 30 years, $5.4 billion has been invested in the power sector led by private investors, and much of it from domestic banks and pension funds (table, right).  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0.jpg" data-media-id="editor_0" data-image-id="20250829150840_c13d6f9f34d7163832b3089eabdad6f20d2d5cef3a53039e0432add2be6c32f0" data-rendition-name="original" width="984" height="521" loading="lazy" alt="30 years after Baby Arun"> </figure>  Nearly 70% of the new megawatts generated were by private independent power producers (IPP) in the past 30 years, while the Nepal Electricity Authority (NEA) and its subsidiary companies added 30% of new capacity. Almost 80% of total debt financing came from domestic banks and employee retirement funds. International assistance for power generation dropped dramatically over this time, accounting for only about 15% of investment. Before 1995 new power projects used to be entirely dependent on foreign aid. Since 1995, 63% of new generation came from 171 small hydropower projects with an average capacity of 12MW, while 4% was from 21 solar photovoltaic and biomass projects developed by local IPPs.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097.jpg" data-media-id="editor_1" data-image-id="20250829150844_5bc299fc78be90b95ce4727b0b3bdaa4542e17e126718cc8725d136630ffc097" data-rendition-name="original" width="988" height="503" loading="lazy" alt="30 years after Baby Arun"> </figure>  Over three decades, investment in Nepal’s power supply came primarily from new actors that had never before been involved in this sector. The rate of electrification rose from 10% to close to 100% -- sufficient to meet domestic needs during most of the year, and in 2024 made Nepal a net exporter of power to India for the first time in its history. As practically all the new investment in this period went into run-of-river hydro and solar projects, rather than into hydropower reservoirs with seasonal storage, Nepal continues to rely on imports from India during the dry winter months. Surplus electricity generation for export during the monsoon is slated to grow rapidly as another 200 solar and hydro projects are nearing completion of construction, with over 5,000MW of power capacity. Private Power The cancellation of Baby Arun inadvertently accelerated the entry of the private sector into Nepal’s power generation. The government enacted the Electricity Act in 1992 to attract private IPPs and diversify away from total dependence from international aid, but had been struggling for several years to conclude the first agreement with the 60MW Khimti Project. There remained a large gap between the tariff that the government thought was reasonable versus what was demanded by the Norwegian investor Statkraft, and the private sector arms of the World Bank and ADB that were financing the project. The shock of World Bank withdrawal from Baby Arun put tremendous pressure on the government, then led by the UML as it is now. The Bank’s decision to terminate its involvement was ostensibly, at least partially, taken in response to a letter critiquing the project sent by the UML while it was in the opposition.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347.jpg" data-media-id="editor_2" data-image-id="20250829150848_7fb3641d776fe86a09ad60a758f7e16660a409fdb15e541644f13646b0894347" data-rendition-name="original" width="949" height="446" loading="lazy" alt="30 years after Baby Arun"> <figcaption>BAD NEWS: Newspaper clippings from the early 90s on tender announcement ahead of loan approval (left) and secrecy surrounding environmental assessment (centre) of Arun III before its eventual cancellation in August 1995.</figcaption> </figure>  The government was forced to soften its position and agree to the investors’ terms following the cancellation of Baby Arun. It directed NEA to sign a power purchase agreement (PPA) with Khimti. It was concluded in January 1996, and this was followed by a second PPA in July 1996 with Panda Energy, the American developer of the 45MW Upper Bhotekosi project. The expensive USD-denominated agreements to buy power from two international private producers, with price escalation clauses tied to the New York Consumer Price Index, sent alarm bells ringing. There was worry that the country was heading towards unaffordable tariff rates for the consumer and potential bankruptcy for NEA as a result of inevitable future weakening of the Nepali Rupee. The government had strong-armed NEA into signing these agreements, and realised that concessionary financing terms that Nepal was used to receiving for public sector projects such as Baby Arun and Kali Gandaki A, that included below-market interest rates and 40 years repayment period with a 10 year grace period before starting repayment, were not the norm for private sector investors. Nepal’s status as a less than attractive destination for foreign investment meant that the country had few options but to accept expensive dollar PPAs from international developers with the high commercial interest rates and short repayment periods imposed by their banks because of high investment risks. In the end, the government ended up having to additionally provide a sovereign guarantee in order to close the deal at the insistence of the lenders – committing it to repayment in case NEA defaulted on paying the IPPs. It is reasonable to assume that the extraordinarily high political cost of agreeing to the PPA terms would have meant that no government would have willingly agreed to them in 1995 had it not suffered the trauma of the loss of concessionary-financed public sector projects as large as the Baby Arun. It has taken NEA 25 years to consider offering dollar-denominated PPAs again: to cover the foreign exchange portion of the investment in the 216MW Upper Trisuli-1 and 120MW Rasuwa-Bhotekosi Hydropower projects. It seemed unlikely at the time, but it turned out that the dire situation Nepal found itself in 1995 planted the seed to mobilise investment for affordable power from within the country. Double Whammy After the dual shock of first losing investment in Baby Arun and having to sign expensive power purchase agreements with international IPPs, the first proposal for an alternative strategy to mitigate the risk of foreign currency investment into hydropower projects came from a group of engineers within the Arun III team at NEA. Led by <a href="https://archive.nepalitimes.com/news.php?id=4900">Deputy Director Damber Bahadur Nepali,</a> engineers convinced the leadership that NEA needed to invest in a subsidiary company to build a series of locally-designed and domestically-financed projects that would have lower cost with rupee-denominated PPAs. They registered the Chilime Hydropower Company Limited (CHCL) in October 1995 with 51% shares from NEA, 25% from its employees, and 24% available for the general public, 10% of which was prioritised for local residents at the project site. The 22.1MW project is in Rasuwa on a tributary of the Trisuli, and mobilised debt financing from the Employee Provident Fund, which manages retirement savings for employees of the government, public enterprises, and private sector institutions. CHCL’s experience showed that NEA employees themselves believed that individual hydropower projects with operational independence from NEA could be developed profitably in Nepal by its own engineers -- and they were willing to put their own money on the line. Chilime also demonstrated that there was money in the country, particularly with retirement funds, looking for opportunities for long-term investments. Following completion of Chilime in 2003, CHCL led the formation of three other NEA subsidiary companies that completed construction in 2023 and 2024, producing 168.3MW using fully rupee-tied investment. NEA’s largest subsidiary, the Upper Tamakosi Hydropower Limited, completed construction of its 456MW plant in 2021.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3.jpg" data-media-id="editor_4" data-image-id="20250829160812_ce9ab8b49c598970db3f5bf0a079061ef52f153b28d9f4ead2bb1b26bfd7c2f3" data-rendition-name="original" width="3000" height="1571" loading="lazy" alt="30 Years after Baby Arun"> <figcaption>DAMNED: The $700 million 456MW Upper Tamakosi built entirely with domestic funds before it was destroyed by the September floods last year. </figcaption> </figure>  There were some delays and cost overruns on this run-of-river project, the largest in the country with a final cost of over $700 million -- all of it sourced domestically. The five subsidiary companies launched by NEA have produced almost two times as much new power as NEA has over the past 30 years. Seven other NEA subsidiaries are currently constructing projects to add another 474MW to the national grid. But even more important than NEA subsidiaries have been local IPPs: Nepali companies which have over the past three decades enthusiastically entered the hydropower sector. From a regulatory perspective, the credit for mobilising domestic private investment to engage in power generation goes to Minister of Water Resources Shailaja Acharya, who in 1998 offered a flat feed-in-tariff of Rs4/kWh for hydropower projects under 10MW. This upfront offer removed a major barrier that early developers had faced of having to spend money to carry out a detailed feasibility study before they could even start tariff negotiations with NEA. She had laid the foundation stone of the Chilime project, and proved to be the champion of opening up the sector for domestic IPPs. The guarantee of a PPA with a fixed tariff, irrespective of project specifications, gave small power developers the confidence to apply for survey licenses and invest in feasibility studies so they could directly approach commercial banks and make a case for their project producing required revenue to repay loans. Domestic IPPs started adding power to the national grid in 2002. Their contribution was initially modest, and first projects were small and commercial lenders who took time to be confident about providing debt financing to a sector which had previously not been considered suitable for private sector investment. While the first 10 years were slow, with less than 10MW being added to the grid each year, this increased twenty fold over the following ten years, resulting in the equivalent of a Baby Arun being added by Nepali IPPs to the grid each year. A total of 84 IPPs added 232MW, 328 MW, 454MW, and 400MW of new generation to the grid in 2021-2024 (graph). There was explosive, exponential growth as domestic developers have surged ahead to account for 76% of the new megawatts added to the grid since 2020, compared to 24% by NEA and its subsidiary companies. The megawatts that IPPs are adding have followed the classic ‘hockey stick curve’ with the ‘breakout point’, signaling the rapid growth phase in 2020. Private producers are expected to accelerate new generation in the coming years with 300 solar and hydropower projects adding 11,000MW. Another 166 hydropower and 96 solar projects are currently in the survey stage, and are in line to add another 11,000MW to the construction pipeline. One major challenge is finding financing required for the projects. Domestic investment will no longer be sufficient to finance this ambitious pipeline of renewable energy projects. Project developers as well as NEA and the Electricity Regulatory Commission will have to leverage their substantial experience accumulated through the construction of over 200 projects to attract regional and international investment and hedge the risks of dollar-denominated PPAs. Following the cancellation of Baby Arun, <a href="https://nepalitimes.com/opinion/people-power/decentralising-power-in-nepal">Nepal developed a highly distributed power sector</a>. The national electricity grid is currently supplied with power from a remarkably decentralised array of hundreds of hydropower and solar photovoltaic projects spread across 43 districts and all seven provinces.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b.jpg" data-media-id="editor_6" data-image-id="20250829150848_0c3aa66b34bfb08380a624f397bf3ebb4126f4d6b41a26115848b496876f501b" data-rendition-name="original" width="1228" height="867" loading="lazy" alt="30 years after Baby Arun"> </figure>  This presents a sharp contrast to the pathway of a few large public sector hydropower projects with a sprinkling of private sector projects that was envisioned as part of NEA’s investment planning when Baby Arun was being considered the front runner for investment. The strategy then was to allow public sector investment in a few large hydropower projects with thermal plants to fill the gap. Knowing what we know now about acceleration of climate change impacts and increased extreme weather events, following this path would have made Nepal’s power sector highly vulnerable. Decentralised generation greatly improves the resilience of Nepal’s power supply as damage to power plants in one part of the country need not affect other areas that have their own generation. Following the investment plan where over two thirds of the country’s power supply would have come from power plants on the Arun River, would have greatly imperiled Nepal’s energy security. All rivers in Nepal are susceptible to flooding from cloudbursts made more frequent by climate change. The Arun River which is fed by glaciers in Tibet is also at risk to glacial lake outburst floods. Bikash Pandey is Director of Clean Energy and Circular Economy at Winrock International. People Power is his regular column in Nepali Times on global energy issues relevant to Nepal. <h2>Decentralised and Diversified</h2> In the 30 years since the cancellation of ‘Baby Arun’: Hydropower projects constructed cover capacities ranging from less than 1MW to 456MW and developed by IPPs from across the country with strong local involvement in purchasing equity shares. Renewable energy sources contributed to the generation mix through solar IPPs that further contribute to climate resilience, and cover shortfalls during low rainfall. The government is committed to solar contributing 10% of the power on the grid. Increasing solar beyond this target and providing incentives to project developers to invest in utility-scale battery storage would further improve resilience. BIG ARUN: The 900MW Arun III project under construction since 2018 at Num in Sankhuwasabha (pictured, below) is a separate initiative by a different project developer using a different financing modality. The ‘Baby Arun’ version of Arun III was cancelled in 1995.  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb.jpg" data-media-id="editor_7" data-image-id="20250829150852_df534df5166eb5a9bb4cbe101627bdec7ac1df2a405a9d3988d1c86fcc8ecdeb" data-rendition-name="original" width="1750" height="1312" loading="lazy" alt="30 Years after Baby Arun"> </figure>