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Date: May 20, 2010

Highlights

Nepal Rastra Bank (NRB) has moved against seven commercial banks for

failing to maintain their capital adequacy ratio, cash reserve ratio (CRR),

statutory liquidity ratio (SLR) and deprived sector lending during the first

eight months of the current fiscal year.

A huge number of the poor in various parts of the country are still unable to

receive micro finance facility, and even those who do have to pay a high rate

of interest. Addressing the Central Regional Micro Finance Conference

organised by the Rural Micro Finance Development Centre (RMDC), Dr.

Yubraj Khatiwada, governor of Nepal Rastra Bank, said that many micro

finance institutions were not interested in going to the remote hills citing high

operating costs.

Investigators of Unity´s fraud saga faced a major hurdle Wednesday as they

could not access members and financial details of Unity Life International

(ULI), as the company was found storing the database, and the internet-based

software used to access the database, in computers outside Nepal.

Unity´s hospitals at different places have been found running at a huge loss

and a deficit of doctors, which has eroded the standard of service being

provided by the company. Our correspondent in Pokhara Manoj Adhikari said

a hospital operated by Unity Life International in Pokhara suffered a loss of

about Rs 10 million in the five months since its commencement.

Trade unions affiliated to different political parties have agreed to coordinate

and unite for labour rights irrespective of their political leanings. Leaders of

different trade unions vowed to work together to ensure labour rights in the

new constitution at an interaction organised by the Joint Trade Unions

Coordination Centre that represents seven trade unions.

The government has invited proposals from private sector interested to operate

international flights on Class A routes. It sought fresh proposals from

interested parties as per the decision made by cabinet on May 7 after it

received no proposal on Class A routes in its second notice issued in mid-

January.

The government's advisory body responsible for formulation of development

plans and policies of the country has targeted 5.5 percent annual growth in its

three-year planning beginning later this year.

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The price of the precious yellow metal has decreased by some Rs. 350 to stand

at Rs. 34,905 per tola on Tuesday. Earlier on Monday, the price of gold hit the

highest record of around Rs. 35,250 per tola, this week.

The Nepal Stock Exchange (NEPSE) maintained its upward trend for the

second consecutive day Wednesday. The benchmark index registered a gain of

5.52 points to reach 454.15 points when the market closed for the day. The

rise in the indices of banking and financial institutions along with the

hydropower group pushed the NEPSE index up.

While Prime Minister Madhav Kumar Nepal on Wednesday expressed hope

that the Maoists will agree to the ruling parties‟ proposal to extend the tenure

of the Constituent Assembly, UCPN (Maoist) Chairman Pushpa Kamal Dahal

is preparing a political document that will not support the bid to extend the CA

term.

Peace and Reconstruction Minister Rakam Chemjong Wednesday said

integration and rehabilitation of the Maoist combatants is not going to start

unless there is a political agreement on the number of those to be integrated.

Unified CPN (Maoist) chairman Pushpa Kamal Dahal has reached Dwarikas'

Himalayan Shangrila Resort in Dhulikhel Wednesday morning to work out

future strategies for the party. The Maoist chairman is known for his knack for

peaceful getaways when he has to prepare important strategic decisions.

In a strong-worded press statement Wednesday, National Human Rights

Commission (NHRC) chairman Kedar Nath Upadhaya said the major political

parties must say sorry to the people for failing to draft the new constitution on

time, establish peace and provide justice over the cases of human rights

abuses committed during the insurgency.

The Ministry of Foreign Affairs has decided to open extra hours on week-days

and also open on Saturday to issue passports, paying heed to the woes of

public who had to stand on queue for hours for passports.

UCPN Maoist‟s bid to counterbalance the ruling coalition looks to have

backfired, with Madhes People's Rights Forum (MPRF) vice-chairman Jaya

Prakash Gupta on Wednesday making it clear that his party would not

collaborate with the Maoists if they decline to extend the tenure of the

Constituent Assembly (CA).

Preparation of the Detailed Project Report (DPR) of the proposed Upper

Marsyangdi II Hydroelectricity Project has got the axe. Tamu National

Liberation Front, an ethnic organisation affiliated to the UCPN (Maoist), has

not allowed to prepare the DPR since February. The Tamang body believes

that the project “will not benefit” the country.

Nepal and India have agreed to prepare a five-year joint master plan to fight

the flood havoc by sharing real time information and preparedness.

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International Committee of Red Cross (ICRC) has called on governments,

including in Nepal, to redouble efforts to minimise the impact of armed

conflict and other violence on civilians.

Recent cases of dengue fever reported at the Shukraraj Tropical and Infectious

Diseases Hospital, Teku, have raised concerns that Kathmandu is also

vulnerable to the disease.

The sweaty, sticky feeling that is irritating you and probably giving you

sleepless nights is here to stay for another three weeks, according to the

Meteorological Forecasting Division (MFD). It said summer this time around

will only worsen until monsoon arrives around June 10.

With the season to hunt yarsagumba, a precious herb, at its peak, District

Police Office, Gorkha has sent a troop of police officials to high Himalayan

regions bordering with Tibet to avert any possible dispute or clashes.

Press Advisor to President Dr Ram Baran Yadav Rajendra Dahal on

Wednesday ruled out the possibility of presidential rule after May 28. Dahal

said the rumors about presidential rule are just fictitious.

BANKING:

NRB takes action against 7 banks

Nepal Rastra Bank (NRB) has moved against seven commercial banks for failing to

maintain their capital adequacy ratio, cash reserve ratio (CRR), statutory liquidity

ratio (SLR) and deprived sector lending during the first eight months of the current

fiscal year.

The central bank has fixed a limit on deposit collection by Siddhartha Bank and

barred it from opening new branches for failing to maintain a capital adequacy ratio of

10 percent. Its capital adequacy ratio stood at 9.56 as of mid-March.

As per the bank's third quarterly report, it has maintained a capital fund of 10.31

percent. The central bank has also prohibited Siddhartha Bank from declaring

dividends and bonus shares. It has also demanded a capital plan for increasing its

capital. "We took this action as per the provision made in the Prompt Corrective

Actions Bylaw," said an NRB official.

NRB imposed these penalties two weeks ago. An NRB official said that Siddhartha

Bank had appealed against the decision. "We are reviewing the bank's application,"

said the official. Siddhartha Bank said that its capital adequacy ratio fell below

requirement for just a day as it could not manage adequate liquid assets. Siddhartha's

chief executive officer Surendra Bhandari said that the restrictions be removed right

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after the requirements are fulfilled. "The capital adequacy ratio was not enough as

NRB changed the formula for counting liquid assets," he added.

Prime Commercial Bank had to pay a penalty of Rs. 1.12 million for failing to

maintain the statutory liquidity ratio (SLR) that should be 6 percent of domestic

deposits for the current fiscal year and which has been increased to 8 percent from the

beginning of the next fiscal year.

SLR means a requirement for banks and financial institutions to invest in the

government ratio against their total domestic deposits. Prime failed to maintain the

SLR ratio in both the second and third quarters. NRB is reviewing whether the banks

maintained an adequate CRR (amount of deposits that banks should put in NRB) and

made adequate lending to the deprived sector in the third quarter.

Rastriya Banijya Bank (RBB), Nepal Bank Limited (NBL), KIST and Agricultural

Development Bank have already paid a penalty for failing to maintain the CRR during

the second quarter of this year. RBB, NBL and Nabil Bank had paid a penalty for

failing to maintain the CRR during the first quarter.

http://www.ekantipur.com/the-kathmandu-post/2010/05/19/business/nrb-takes-action-

against-7-banks/208467/

POLICY:

Rural poor without micro finance

A huge number of the poor in various parts of the country are still unable to receive

micro finance facility, and even those who do have to pay a high rate of interest.

Addressing the Central Regional Micro Finance Conference organised by the Rural

Micro Finance Development Centre (RMDC), Dr. Yubraj Khatiwada, governor of

Nepal Rastra Bank, said that many micro finance institutions were not interested in

going to the remote hills citing high operating costs.

Khatiwada underscored the need to make a national effort to expand micro finance

instead of leaving it to the community.

Chief executive officer of the RMDC Shankar Man Shrestha said that 19 hilly

districts were cut off from micro finance.

Participants at the conference said that many micro finance institutions were charging

an interest of 20 percent whereas they are getting credit from the RMDC at 7 percent.

Senior manager of the RMDC Megh Raj Gajurel said that their interest rate had been

increased from 6 to 7 percent due to the liquidity crisis. The RMDC has to pay an

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interest of 8 percent on its loans from commercial banks compared to 6 percent

previously. "This has increased the cost of the funds that we operate," said Gajurel

Moreover, despite Nepal Rastra Bank's directive to commercial and development

banks to allocate 3 percent of their total loan issues to the deprived sector, they are not

doing so even if this means paying a penalty to the central bank.

http://www.ekantipur.com/2010/05/20/business/rural-poor-without-micro-

finance/314674/

BUSINESS & ECONOMY:

Unity database outside Nepal

Investigators of Unity´s fraud saga faced a major hurdle Wednesday as they could not

access members and financial details of Unity Life International (ULI), as the

company was found storing the database, and the internet-based software used to

access the database, in computers outside Nepal.

“We enquired all domestic internet service providers (ISPs), but unfortunately we

found that the company was not using their service, but relying on overseas service

providers,” said a government source.

While officials noted that it could be an indication of the international linkages of the

company, they added that the problem has prevented them from tracing out and

gaining control over the crucial details of the company.

The investigators noted that Unity saga has also exposed serious weaknesses in the

capacity of frontline regulators like Nepal Rastra Bank (NRB) and Insurance Board

(IB) in upholding financial laws and protecting general interests of the commoners.

Worse still, facts surrounding Unity, which reveals that the regulators were already

aware of the illicit operations of the company back in 2008 and still neither did

anything to inform people about them nor initiated actions against them, even raised

questions over the intentions and credibility of the top officials in those institutions.

Finance Minister Surendra Pandey too said that the Unity saga inflated to the present

scale due to inaction of key regulatory entities like NRB and IB.

“We failed because our regulators supposed to provide feedback on affairs going on

in the market showed serious lapses,” he told myrepublica.com on Wednesday.

In this connection, the Ministry of Finance (MoF) on Tuesday issued serious

instructions to the NRB to clean up the mess in the central bank and step up its

vigilance and promptness.

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Continued apathy of Ministry of Commerce and Supplies (MoCS) and its Department

of Commerce, entrusted to uphold consumers´ rights and protect their interests,

toward the issue is also noteworthy.

MoF has further made it clear to the top Ministry of Homes officials to be ready to

file cases of forgery against the company.

“Our investigation has already proved that the company was operating banking

services without NRB´s approval, insurance deals without IB´s license and flouted co-

operatives norms as well. These are enough grounds to file the case against the

company,” said the source.

If the government took action against the company on charges of forgery, it can slap a

fine worth three-fold of the amount it collected from the consumers, which is

estimated at Rs 6 billion.

Meanwhile, leaders of different political parties, including those in the government,

have exerted severe pressures on the ministers and top bureaucrats not to take actions

against Unity, which is not only illegal but also financially unviable.

Pandey said that the government was serious at protecting the money of the general

clients as well, and hence, has frozen the bank accounts and properties of the

company. “Our directives to restrict overseas travel of Unity promoters´ is also aimed

at the same purpose,” he said.

Minister Pandey also vented ire over leaders of Unity issuing two-day ultimatum to

the government to withdraw action against the company and release their officials

from police remand.

Organizing a mass meet, Unity leaders on Tuesday had issued such ultimatum.

“It is too much that thugs are warning to take out protest rallies against the

government,” he aid. He even urged the people not to fall into the words and dreams

of network marketing companies.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18840

Unity hospitals operating at loss

Unity´s hospitals at different places have been found running at a huge loss and a

deficit of doctors, which has eroded the standard of service being provided by the

company.

Our correspondent in Pokhara Manoj Adhikari said a hospital operated by Unity Life

International in Pokhara suffered a loss of about Rs 10 million in the five months

since its commencement.

Janardan Subedi, chief accountant at Unity Life Hospital, said the hospital posted the

loss because of the free treatment provided to Unity´s members.

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“We have recorded an income of hardly one million rupees since the establishment of

the 100-bed hospital whereas operating costs have crossed over two million per

month,” said Subedi.

The hospital has been providing its services daily to 40 to 50 patients, with its 12

doctors. The hospital has to pay at least Rs 1.6 million as salaries to a staff of about

100 and utility expenses hover around Rs 0.6 million.

The hospital is operating with a deficit of doctors since at least 20 doctors are

necessary to provide a proper service, given the flow of patients.

“However, we are earning hardly Rs 200,000 per month, which is far lower than the

operating cost,” added Subedi.

Hospital registered in personal name

Meanwhile, Chief District Officer of Kaski Shambhu Koirala has disclosed that the

hospital has been registered in the name of Unity´s central president Kashi Gurung.

Unity has been claiming publicly that the hospital has been registered under an

institutional name.

The hospital, located at Simal Chaur of Pokhara-6, spreads over of 4 ropani 3 ana of

land. “It is surprising that the hospital, which was widely publicized to have opened to

serve the people, turns out to have been registered in the name of an individual,” said

Koirala.

Over 12 complaints have been registered against Unity at the District Administration

Office.

Unity has been operating over 16 hospitals, and most of whom are not meeting

minimum standards.

Similarly, our correspondent Dilip Paudel in Baglung said the Unity hospital there has

been operating at a monthly loss of Rs 165,000.

According to acting administrator of the hospital Ram Krishna Shrestha, the 15-bed

hospital has an operating cost of Rs 265,000 per month.

Similarly, our correspondent in Lahan Mithilesh Yadav stated that ongoing

construction work on Unity Hospital in Lahan has been suspended and its signboard

also removed amid reports of illegal operations by Unity. According to a source,

Unity has already collected Rs 100 million from its over 7,000 members in Siraha

district.

Republica correspondent in Dhangadhi Dil Bahadur Chhatyal said a department store

operated by Unity in Dhangadhi has goods worth one million rupees. Bank of Asia,

Dhangadhi branch said Unity has a deposit of only Rs 200,000.

Unity recently transferred one million from NIC Bank, leaving its account without

any deposit. Around 10,000 people in the Far Western Region have received Unity

membership.

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http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18839

Unions to be one on rights

Trade unions affiliated to different political parties have agreed to coordinate and

unite for labour rights irrespective of their political leanings. Leaders of different

trade unions vowed to work together to ensure labour rights in the new constitution at

an interaction organised by the Joint Trade Unions Coordination Centre that

represents seven trade unions.

Binod Shrestha, vice president of the General Federation of Nepalese Trade Unions,

Baburam Gautam, vice president of the All Nepal Trade Union Federation, and

Laxman Basnet, president of the Nepal Trade Union Congress (Independent), were

among the trade union leaders highlighting the need to work together.

http://www.ekantipur.com/the-kathmandu-post/2010/05/19/business/unions-to-be-

one-on-rights/208470/

Govt eyes 5.5pc growth

The government's advisory body responsible for formulation of development plans

and policies of the country has targeted 5.5 percent annual growth in its three-year

planning beginning later this year.

In connection with this, the National Planning Commission (NPC) is organising a

two-day meeting of National Develo-pment Council in the Capital on May 23-24 to

finalise the planning's draft and endorse it.

The draft has targeted to achieve agricultural growth by 3.9 percent and non-

agricultural growth by 6.4 percent. It has also aimed to increase per capita income by

3.3 percent and employment by 3.6 percent annually.

"The new plan will focus development of physical and social infrastructure, tourism,

industries and export sectors to create more employment opportunities and achieve

economic growth," said Dinesh Devkota, acting vice-president of the NPC at a press

meet on Wednesday.

The planning has projected the annual inflation rate to hover around at 7 percent

during the three-year period. The size of the new plan is Rs. 10.19 trillion, of which

57 percent will be spend under recurrent expenditure title, 36 percent under capital

expenditure and around 7 percent for payment of principle and interest. The revenue

contribution would be 34 percent.

To achieve the Millennium Development Goal by 2015, the draft aims to create

employment opportunities, reduce economic disparities, eradicate social deprivation

and bring positive change in people's lives.

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In the planning, the government has aimed to bring down the poverty line below 21

percent from the current 25 percent. "To guarantee easy availability of essential

services, investment in sectors like education, health, drinking water, electricity and

food security will be increased," said Devkota.

Puskar Bajracharya, a NPC member, said results of the current three-year interim plan

have been mixed.

Hailing the progress made in some sectors like health, social and communication,

Bajracharya said, "The achievement in reconstruction and rehabilitation hasn't been

satisfactory due to the political situation."

http://www.ekantipur.com/2010/05/20/business/govt-eyes-5.5pc-growth/314672/

More airlines to get int'l flight permit

The government has invited proposals from private sector interested to operate

international flights on Class A routes.

It sought fresh proposals from interested parties as per the decision made by cabinet

on May 7 after it received no proposal on Class A routes in its second notice issued in

mid-January.

“We have invited proposals from capable private sector to operate international flights

on Class A routes,” Ranjan Aryal, acting secretary at Ministry of Tourism and Civil

Aviation (MoTCA), told myrepublica.com on Wednesday.

As per the notice, interested companies will have to submit proposal within 45 days.

The government had received proposals from private sector to operate international

flights only on Class B and Class C routes in its second call in mid-January.

The government had selected Yeti Airlines to operate international flights in its first

call. Yeti operated international operation for some time with the brand of

flyyeti.com.

The government had selected four airlines - Buddha Air, Shree Air, Unity Airlines

and Dynamic Air - to operate international flights in the second call.

The government has categorized air routes with flight duration of up to two hours as

Class B and between two to three and a half hours as Class A.

According to Aryal, companies having experience of five years in domestic aviation

and having paid-up capital of Rs 500 million are eligible to apply for international

operation. The companies should have at least five aircraft.

New companies with paid-up capital of Rs 500 million are eligible to apply for license

for international flights. The companies will have to pay a non-refundable fee of Rs

50,000 and show a bank guarantee of Rs 5 million.

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“If the companies failed to launch flights two years after receiving permission, their

bank guarantee amount won´t be refunded,” Aryal added.

The government plans to award license to three companies, including one focusing on

cargo operations.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18837

MARKET:

Gold price plunges by Rs. 350

The price of the precious yellow metal has decreased by some Rs. 350 to stand at Rs.

34,905 per tola on Tuesday.

Earlier on Monday, the price of gold hit the highest record of around Rs. 35,250 per

tola, this week.

According to Tej Ratna Shakya, president of Nepal Gold and Silver Dealers'

Association NGSDA), the price of the gold has decreased in the international market

which has also caused the price to decrease in the domestic market.

The price of the gold in the international market had on Tuesday decreased by US$ 14

to stand at US$ 1,225 per ounce from US$ 1,239 per ounce.

The price of the silver has also plunged by Rs. 4.50 to stand at Rs. 556.50 per tola on

Tuesday.

Due to the wedding season, gold and silver business persons have some hopes in the

transaction of gold and silver while there was only 50 percent transaction in a day, last

week. nepalnews.com

NEPSE up on second day

The Nepal Stock Exchange (NEPSE) maintained its upward trend for the second

consecutive day Wednesday. The benchmark index registered a gain of 5.52 points to

reach 454.15 points when the market closed for the day.

The rise in the indices of banking and financial institutions along with the hydropower

group pushed the NEPSE index up.

Of the 20 commercial banks present on the trading floor, the impressive performances

of 17 banks were instrumental in the rise in the banking sector. Banking posted a

growth of 7.47 points. Nabil Bank was the highest gainer with its stock going up by

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72 points while Himalayan Bank was the biggest loser shedding 45 points. Shares of

14 development banks changed hands on Wednesday. The group witnessed a growth

of 6.12 points.

Shares of 15 finance companies went up on Wednesday. Similarly, the hydropower

sector posted a rise of 7.3 points.

Shares of 60 companies changed hands on Wednesday. Market turnover reached Rs.

25.15 million through trading of 51,352 shares.

http://www.ekantipur.com/2010/05/20/business/nepse-up-on-second-day/314673/

POLITICS:

PM wants Maoist da, Dahal wont for nyet

While Prime Minister Madhav Kumar Nepal on Wednesday expressed hope that the

Maoists will agree to the ruling parties‟ proposal to extend the tenure of the

Constituent Assembly, UCPN (Maoist) Chairman Pushpa Kamal Dahal is preparing a

political document that will not support the bid to extend the CA term.

Dahal is busy preparing the document on the party‟s future strategy in the tranquil and

serene environment of Dhulikhel in Kavre district.

The document, which is to be presented in the Central Committee meeting of the

party beginning Friday, figures out the party‟s future strategy by reviewing the past

movements and relations with and status of different national and international power

centres, according to Maoist Vice Chairman Narayan Kaji Shrestha.

Maoist Secretary CP Gajurel said that contrary to rumours spread by the ruling

parties, Dahal‟s political document will not support the ruling parties‟ bid to extend

the CA term.

Dahal had reached Dwarikas‟ Hotel in Dhulikhel along with politburo member Agni

Sapkota to avoid the current political turmoil in the Capital.

The upcoming Maoist CC meet is being taken seriously as it may take some important

decisions on the extension of the Constituent Assembly tenure, integration of Maoist

combatants and formation of a national consensus government.

Gajurel ruled out any possibility of going against Saturday‟s politburo meeting, which

had stated that unless the government quits, the party would not even discuss the CA

term extension.

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The meeting had also decided to propose amending the statute to opt for a “consensus

system” by replacing the current “majority system”.

“We will not agree to the CA tenure extension in the current state of affairs. Other

parties are thinking that the Maoists will come to an agreement at the last minute,

which is not true,” Gajurel said.

Prime Minister Nepal has earlier on Wednesday said he hoped that Maoists will vote

on the constitution amendment bill registered in the Parliament Secretariat, which

proposes extending the CA tenure by one year.

“I am fully confidant that the Maoists will support the bill,” Nepal told a programme

organised by Press Chautari Nepal in the Capital.

http://www.ekantipur.com/the-kathmandu-post/2010/05/19/nation/pm-wants-maoist-

da-dahal-wont-for-nyet/208447/

Integration cannot start without agreement on number, says peace minister

Peace and Reconstruction Minister Rakam Chemjong Wednesday said integration and

rehabilitation of the Maoist combatants is not going to start unless there is a political

agreement on the number of those to be integrated.

“An agreement should be reached on the number of those to be integrated and those to

be rehabilitated. Integration cannot start unless the number is determined,” Chemjong

said while speaking to reporters in Chulachuli of Ilam after visiting the 1st devision of

the Maoist People‟s Liberation Army there to inspect the distribution of salary to the

combatants.

Describing the integration of combatants is the most important aspect of the peace

process, he said the combatants should be asked, once the number is determined, to

choose whether they want to join politics, be integrated or rehabilitated.

The peace minister‟s comments come at a time when dispute between the Maoists and

the two main ruling parties, Nepali Congress and UML, over the number of

combatants has hindered consensus thereby prolonging the political deadlock.

Meanwhile, 566 combatants at the 1st PLA division in Chulachuli received their

salaries on individual basis for the first time. Distribution of salary had been stalled

for four months owing to dispute between the government and the Unified CPN

(Maoist).

The Maoist leadership had finally agreed on the government proposal to give the

salaries to individual combatants. The government was suspecting misuse of the

money.

Earlier, the commanders of respective PLA cantonments would receive the salary on

behalf of the combatants. nepalnews.com

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Maoist chairman Dahal reaches Dhulikhel resort to work out strategies

Unified CPN (Maoist) chairman Pushpa Kamal Dahal has reached Dwarikas'

Himalayan Shangrila Resort in Dhulikhel Wednesday morning to work out future

strategies for the party.

The Maoist chairman is known for his knack for peaceful getaways when he has to

prepare important strategic decisions.

Dahal arrived at the resort along with Politburo member Agni Sapkota, who is the

chief of Tamsaling state committee, and son Prakash. There was sheer presence of

local journalists, but Dahal preferred to maintain a distance from them.

The Maoist strongman's search for a solitary place to devise future strategies comes

two days before a crucial central committee meeting of the party begins.

Maoists are facing pressure for supporting the bill presented by the government in the

parliament for extension of the Constituent Assembly's term, failure of which will

mean dissolution of the CA.

Similarly, the party has already announced to declare its own constitution on May 29

if Prime Minister Madhav Kumar Nepal did not resign. nepalnews.com

Major parties should apologise to the people: NHRC chair

In a strong-worded press statement Wednesday, National Human Rights Commission

(NHRC) chairman Kedar Nath Upadhaya said the major political parties must say

sorry to the people for failing to draft the new constitution on time, establish peace

and provide justice over the cases of human rights abuses committed during the

insurgency.

“The parties have proved themselves a failure not only in drafting the new

constitution and bring peace in the country but also in providing justice over human

rights violations that took place during the conflict.” Upadhaya said.

“This is nothing but sheer disrespect towards the people and a blatant violation of the

commitments made by the parties before the people and the nation. It is imperative for

Nepal‟s major parties to apologise to the people.”

The NHRC chief also called on the parties to work towards forming a national unity

government and make sure the constitution of the federal democratic republican

Nepal is issued from the Constituent Assembly.

Upadhaya also pointed out that a lot of time has already been wasted and urged the

parties represented in the CA to arrive at a consensus before the Assembly loses its

essence. nepalenws.com

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Foreign ministry to open extra hours for passport issuance

The Ministry of Foreign Affairs has decided to open extra hours on week-days and

also open on Saturday to issue passports, paying heed to the woes of public who had

to stand on queue for hours for passports.

According to Chief of Protocol at the ministry Mohan Krishna Shrestha, the ministry

will open will open from 8 am to 8pm from Sunday to Friday and from 11 am to 5 pm

on Saturdays, from next week.

The ministry has also requested the state-owned Rastriya Banijya Bank (RBN) to

open a counter at the ministry premises to ease the service seekers. Service seekers

have to deposit the passport fees in the foreign ministry's account in RBN to get the

passport.

The foreign ministry has seen an increased pressure in issuing passports after it

stopped passport issuance from District Administration Offices after April 1, from

when the International Civil Aviation Organisation (ICAO) introduced the provision

of compulsory use of Machine Readable Passports (MRP)s.

At the special request of Nepal government ICAO extended its deadline to introduce

MRPs for Nepal up to August 1. The foreign ministry has been issuing hand-written

passports marked 'not machine-readable' since April 1. nepalnews.com

Gupta slams Maoists for creating CA extension hurdle

UCPN Maoist‟s bid to counterbalance the ruling coalition looks to have backfired,

with Madhes People's Rights Forum (MPRF) vice-chairman Jaya Prakash Gupta on

Wednesday making it clear that his party would not collaborate with the Maoists if

they decline to extend the tenure of the Constituent Assembly (CA).

Speaking to the media at MPRF‟s parliamentary party office in Singha Durbar, Gupta

said the 10-party alliance, largely dominated by UCPN Maoist, was primarily formed

to push for peace process and constitution writing task.

Gupta said the Maoists‟ recent stance on political consensus rather than a majority

system while sharing powers has remained at the odds with the spirit of the alliance.

He further said the Maoists should stop asking the resignation of Prime Minister

Madhav Kumar Nepal, considering the complexities of Nepal‟s current political

situation.

The MPRF leader also accused the Maoists of trying to manipulate the alliance only

to push through their „hidden agenda‟. He demanded the Maoists scrap their decision

to make public constitution from streets on May 29, a day after the mandate of the CA

expires.

Though critical of the recently tabled Bill on Amendment to Interim Constitution,

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Gupta conceded that his party would vote for extension of the tenure of CA, for which

most political parties are lobbying except some, most apparently the major opposition

UCPN Maoist.

The MPRF, led by Upedra Yadav, is one of key allies of the 10-party alliance formed

in the aftermath of the Maoists‟ May 2-7 protest debacle.

http://www.thehimalayantimes.com/fullNews.php?headline=Gupta+slams+Maoists+f

or+creating+CA+extension+hurdle&NewsID=244587

GENERAL:

Blow to Upper Marsyangdi

Preparation of the Detailed Project Report (DPR) of the proposed Upper Marsyangdi

II Hydroelectricity Project has got the axe.

Tamu National Liberation Front, an ethnic organisation affiliated to the UCPN

(Maoist), has not allowed to prepare the DPR since February. The Tamang body

believes that the project “will not benefit” the country.

GMR, an Indian company, holds 80 percent stake in Himtal Hydropower Company

Pvt. Ltd. that had received the government‟s go-ahead to conduct the DPR for the 600

MW project proposed to be built at the bordering region of Manang and Lamjung.

“We obstructed because the project is against the national interest,” said Devendra

Parajuli, Lamjung district in charge of the UCPN (Maoist). He said that the study was

being conducted without the consent of locals.

http://www.ekantipur.com/2010/05/20/national/blow-to-upper-marsyangdi/314676/

Joint plan on flood mgmt

Nepal and India have agreed to prepare a five-year joint master plan to fight the flood

havoc by sharing real time information and preparedness.

The decision was taken during a meeting of the Third Joint Committee on Inundation

and Flood Management that concluded here Wednesday.

Both sides have prepared a draft copy of such an action plan, which will be endorsed

by the mechanism‟s next meeting after six months, said a official who attended the

two-day meet.

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The earlier action plan to tame recurrent floods terminated in 2009. “We need a new

action plan to cope with the recurrent flood menace. Both sides have agreed to share

real time information on the flood and also exchange data,” the official said.

Senior officials from Nepal‟s Department of Water Induced Disaster Prevention and

those of India‟s Ganga Flood Control Commission took part in the meeting.

The meeting also took stock of the progress on embankments constructed across

Bagmati, Kamala, and Lal Bakaiya rivers. The Nepali side requested the Indian team

to provide the design for the pond at Mahali Sagar that lies 92.76 metres above sea

level.

http://www.ekantipur.com/2010/05/20/national/joint-plan-on-flood-mgmt/314680/

ICRC for lessening conflict impact

International Committee of Red Cross (ICRC) has called on governments, including

in Nepal, to redouble efforts to minimise the impact of armed conflict and other

violence on civilians.

The annual report of the ICRC released in Geneva on Wednesday said humanitarian

response to contemporary armed conflicts, which tend to be drawn out and often lack

a clear-cut ending or resolution, must be better adapted to meet the complex needs of

the people caught up in them.

The residual effects of the conflict in Nepal, in particular the needs of the families of

people who went missing, remain a challenge that the ICRC continues to address, the

humanitarian organisation said in a statement released on Wednesday.

“In reviewing worldwide operations in 80 countries last year, we observed that

prolonged periods of armed violence resulted in a combination of severe problems,

requiring a sustained, flexible and multifaceted humanitarian response,” the statement

added.

“The consequences of long-lasting conflicts go well beyond what we often see in the

headlines,” said the ICRC‟s president, Jakob Kellenberger.

“The uncertainty that comes with not being able to return home for years on end or

the monotony of walking for hours, day in and day out, to fetch water, is not breaking

news… It‟s the bullets and the bloodshed that make people sit and take notice, but the

problems don‟t stop when public attention shifts elsewhere, nor does our work as

humanitarians.”

http://www.ekantipur.com/2010/05/20/capital/icrc-for-lessening-conflict-

impact/314677/

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Capital no more safe from dengue

Recent cases of dengue fever reported at the Shukraraj Tropical and Infectious

Diseases Hospital, Teku, have raised concerns that Kathmandu is also vulnerable to

the disease.

A policeman returning from a mission in Haiti and a man who returned recently from

Dhangadhi had contracted dengue. The tropical disease was first detected in Nepal in

the tarai and inner-tarai districts in 2006 but no indigenous cases have been found yet

in Kathmandu.

The two recent cases were also imported and both patients have now recovered. But

doctors are concerned that the disease can pose a threat even in Kathmandu.

Dengue fever is caused by the dengue virus (DenV), a mosquito-borne flavivirus, and

is transmitted by the Aedes mosquitoes. It may also be transmitted via the infected

blood of patients when they have the fever.

Aedes aegypti mosquito is the principal vector of the disease which is also transmitted

sometimes by Aedes albopictus mosquitoes.

“Only a few Aedes albopictus mosquitoes were found in Kathmandu in the past but

even Aedes aegypti were found last year,” national focal person for dengue Dr Basu

Dev Pandey said. “We now have the vector mosquitoes, the patients and temperatures

favorable for the vector. So, there is definitely a threat,” Dr Pandey reasoned.

Severity of dengue fever

Dr Pandey says dengue fever is mild like other normal fevers but a secondary

infection is extremely dangerous.

“There are four serotypes of the virus and the first infection causes mild fever. If

another serotype enters the body, the reaction of this new serotype with antibodies

produced after the first infection causes dengue hemorrhagic fever (DHF) or dengue

shock syndrome (DSS),” Dr Pandey explained.

DHF starts with severe headache, muscle and joint pains, fever and rash. The joint

pains are so severe that the disease is nicknamed break-bone fever and it ultimately

results in bleeding from joints all over the body. “It is extremely difficult to treat the

patient after the onset of bleeding and may lead to death,” Dr Pandey said.

Unique mosquito

Dr Pandey says the threat posed by Aedes mosquitos is much greater as it is different

from other mosquitoes and therefore can catch people unawares. “It is found in clean

water and not filthy water like other mosquitoes, and it bites during daytime,” Dr

Pandey said.

The mosquitoes breed on water collections in artificial containers such as plastic cups,

used tires, broken bottles, flower pots, and even drinking water tanks. “It is also found

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near air coolers and refrigerators and is therefore a threat to even the more affluent,”

he explained.

Entomologist at the Epidemiology and Disease Control Division Purushottam

Gautam, who had stumbled upon some Aedes aegypti mosquitoes in Kathmandu

during surveillance for Japanese encephalitis in 2009, said the preventive measures

should be aimed at avoiding collection of water in used tires, bottles and cups, and

regular disposal of water contained in storage tanks.

“But due to deficiency of water in Kathmandu, everyone has to store water for several

days, not just in tanks, but in other vessels also, thereby providing a medium for

dengue vectors to breed,” Gautam said.

Survey for vectors in 2010

There have been no surveys for dengue vectors in Kathmandu Valley. “We have not

done a survey so far as we have not come across any indigenous dengue cases in

Kathmandu,” senior epidemiologist at the Epidemiology and Disease Control

Division Dr Bishwa Raj Khanal stated.

But the origins of infected patients do not matter when it comes to transmission of the

virus. Dr Khanal promised that his division will conduct a survey for dengue vectors

in August-September this year.

Entomologist Gautam did not rule out the possibility of a high prevalence of Aedes

mosquitoes in Kathmandu as they can be ferried in by vehicles coming from high-

prevalence areas like Birgunj, Biratnagar and Chitwan district and can breed in the

favorable temperatures here.

Dr Pandey conceded that the presence of the vector, even though the density of its

prevalence has not yet been ascertained, still poses the threat of an outbreak like that

in Delhi, India in 2006 which claimed more than 50 lives including doctors.

“Raising awareness about the disease and its vector and measures by the government

to control mosquitoes will go a long way in preventing a possible outbreak,” he

concluded.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18838

Humidity to rise for another three weeks

The sweaty, sticky feeling that is irritating you and probably giving you sleepless

nights is here to stay for another three weeks, according to the Meteorological

Forecasting Division (MFD). It said summer this time around will only worsen until

monsoon arrives around June 10.

“It is the rising humidity and not rising temperature that is making people feel terrible

heat,” said KD Shrestha, senior meteorologist at the division.

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The humidity in Kathmandu is particularly high at nights and in the mornings,

compared to daytime. This is why the nights feel warmer.

The relative humidity recorded at 6:30 am Wednesday was 92 percent, while the same

was 48 percent at 5:30 p.m.

“The humidity will rise for the next three weeks until monsoon arrives,” Shrestha

added.

He further said that humidity this year isn´t worse than previous years.

“This is normal pre-monsoon phenomenon. There is a lot of water vapor in the

atmosphere, which will build up until monsoon starts,” he said.

But the mercury levels aren´t forgiving either. The maximum temperature in

Kathmandu on Wednesday was 31.5 degree Celsius, while the minimum temperature

was 20.6 degree Celsius. On the same day last year, the maximum temperature was

32.8 degree Celsius and the minimum temperature was 18.4 degree Celsius in

Kathmandu.

http://myrepublica.com/portal/index.php?action=news_details&news_id=18817

Cops deployed in yarsa areas

GORKHA; With the season to hunt yarsagumba, a precious herb, at its peak, District

Police Office, Gorkha has sent a troop of police officials to high Himalayan regions

bordering with Tibet to avert any possible dispute or clashes.

According to DPO, police officials from Chhekampar Police Post have been sent

along with the locals going to hunt yarsagumba from May 6 for 45 days.

Additional police personnel have also been sent to other places of the district

including Samagaun, Lho, Chhekampar, Sirdibas, Barpak, Laprak, Gumda, Uhiya,

Ghyachchok and Kharibot. DSP Bishnu KC said, “We have sent the police officials to

thwart potential clashes that might erupt between the villagers and Tibetans.”

Last year police had to resort to firing after a dispute flared up between the villagers

and Tibetans. In a deadly incident last year, seven locals from Karouja in the district

were killed in a dispute while collecting yarsagumba in Nar of Manang.

The locals also have imposed strict rules this year for collecting yarsagumba.

Dorje Lama of Samagaun said, “The villagers have banned people from other villages

from entering their VDCs to collect the herb.”

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To make sure that all the villagers from each family gets a chance to collect

yarsagumba, a meeting of the villagers has decided to allow one person from each

family.

In order to control the number of people, the villagers have also decided to levy Rs

4,000. Dorje said, “The amount collected from the levy will be used in development

activities.”

Madhu Chhetri, head, Manaslu Conservation Area (MCA), which manages the

conservation activities in the seven VDCs in northern Gorkha, said that MCA has

formulated directives to manage the herb collection.

There is no data available for the quantity of yarsagumba collected and exported from

the district. However, Samagaun and Chhekambar VDCs are the places where

maximum amount of the herb is collected.

According to Dorje Lama, every piece of yarsagumba is usually sold for RS 50 to Rs

200 and one kg of it can fetch up to Rs 2 lakhs.

http://www.thehimalayantimes.com/fullNews.php?headline=Police+deployed+in+yar

sa+hunting+areas&NewsID=244551

Prez's advisor rules out presidential rule

Press Advisor to President Dr Ram Baran Yadav Rajendra Dahal on Wednesday ruled

out the possibility of presidential rule after May 28. Dahal said the rumors about

presidential rule are just fictitious.

"The president will perform his activities as per the constitutional provisions," Dahal

said, adding, "He has no right to exercise any power beyond the constitution. Thus, he

cannot exercise any power."

Dahal clarified that they have never advised the president to impose presidential rule

in the country. "We have not advised him to rule the country violating the

constitutional provisions," he added. "The President has no constitutional as well as

political rights to impose presidential rule."

Dahal added that the president does not enjoy the right to impose state of emergency

in the country. "How can the president impose state of emergency if the parliament

does not allow him to do so?" Dahal asked. "We cannot even think that there will be

presidential rule in the country."

Dahal said the interim constitution has guaranteed more rights to political parties than

to the president.

"The president´s office can be compared with a two-years-old infant," he said, adding,

"What can such an infant do?", he asked.

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According to Dahal, president´s every activity should be recognized by the

parliament. "Therefore, all power is in the political parties´ hand, not in the

president´s hands," he added.

Dahal said they have been facing problems to act clearly due to lack of explicit

constitutional provisions guaranteed to the president.

"The constitution says that the president can play the role of a guardian but is silent on

the role, responsibility and rights of the guardian. What role can president play after

May 28?" he questioned. "The constitution is silent about the president´s role after

May 28. Political parties should decide about it," he said.

Dahal said the president would approve political parties´ decision after May 28 if the

constitution is not promulgated. According to him, the president will perform his

activities as per the constitution even after May 28.

Dahal also blamed the three major political parties of taking the state´s supreme

bodies hostage.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=18826