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The Millennium Challenge Corporation (MCC) Nepal Compact hit a roadblock after the Finance Ministry raised concerns about the elevated cost of the transmission line project. Finance Minister Prakash Sharan Mahat has expressed dissatisfaction over the financial proposals, which have exceeded the estimated cost. 

According to the Finance Ministry sources, discussions have started to call for the tender again for the construction of the transmission lines. Mahat, on Monday, discussed with MCA-Nepal executive director Khadga Bahadur Bisht about issuing the tender again. 

Six Indian companies had submitted bids to construct the power line which will be constructed in three separate packages. An association of Megha Engineering and Infrastructure Ltd and Power Mech Projects Ltd along with Kalpataru Power Transmission Limited, KEC International Ltd, Transrail Lighting Ltd, Tata Projects Ltd, and Larsen & Toubro Ltd participated in the bid. 

MCA-Nepal has prepared an estimated cost of constructing the transmission line at $226m. However, when financial proposals were opened, the total cost of the three packages stood at $365m, a staggering 66 percent increase over MCA Nepal’s initial estimates. With the huge difference between the initial estimates and financial proposals, the Finance Ministry is inclined to initiate a fresh bidding process for the construction of the transmission lines.

“The amount quoted in the financial proposals is unusually higher than the estimated cost,” said a senior official of the Finance Ministry. “Even if we were to accept the lowest bid, it would pose a significant budgetary challenge for us. We have no alternative but to initiate a fresh tender process.” Amid the Finance Ministry’s reservation over the pricing, the MCA Nepal has not made any official statements or disclosures regarding the matter.

MCC, the US aid agency has committed to provide $500m while the government had earlier pledged $197m to implement the transmission line and road improvement projects under the MCC Nepal Compact. Since the MCC will not provide an additional amount, the Finance Ministry believes it has to bear the additional financial burden if it accepts the financial proposals.

According to Finance Ministry officials, should these financing proposals be accepted, half of the total budget would have to be allocated to the transmission lines, potentially leaving insufficient funds for other critical components of the Nepal Compact. Initially, the government had planned to invest $130m, but an additional $67m had been contributed for the Nepal Compact. 

A 315-km high-capacity transmission line will be built and a section of the East-West Highway upgraded under the $500m US aid. Five segments of transmission lines to be built are—New Butwal-India Border (18km), New Butwal-New Damauli (90km), New Damauli-Ratmate (90km), Ratmate-New Hetauda (58km), and Ratmate-Lapsephedi (59km). Three substations will be built in Ratmate, Damauli, and Butwal.

Once completed, these transmission lines are expected to provide a vital missing link for power projects of different river basins to the existing high-voltage grid in Nepal.

The government has allocated Rs 10.84bn for the MCA-Nepal for the current fiscal year. While Rs 9.27bn had been set aside for the entity in the last fiscal year, only Rs 4.11bn was spent, according to the Finance Ministry.

Six years after Nepal signed an agreement with the MCC, the much-debated MCC Nepal Compact entered into the implementation phase on Aug 30. The execution of the Nepal Compact will span a precise five-year duration from its initiation, at which point the responsibility for the projects will shift to Nepal. Once this five-year period concludes, the funding from the MCC for the execution of the MCC Compact initiatives will cease.

Initially, the Nepal Compact was supposed to enter into the implementation stage on 30 June 2020. However, the delay in the ratification of the compact by Nepal’s Parliament amid a controversy threw the US assistance into uncertainty. The Nepal Compact finally moved ahead after the parliament endorsed it in Feb 2022. 

Price quoted by bidders

The Commission for the Investigation of Abuse of Authority (CIAA) has received numerous complaints against staffers and people's representatives of local units in Madhesh Province.

The Bardibas-based regional office of CIAA has jurisdiction over Siraha, Dhanusha, Mahottari, and Sarlahi of Madhesh Province; Okhaldhunga, Khotang, and Solukhumbu of Koshi Province; and Sindhuli and Ramechhap of Bagmati Province.

According to the office, it has received 442 from Dhanusha district which is the highest in Madhesh Province. Most of the complaints are related to irregularities in Janakpurdham Sub-Metropolitan City. Similarly, it has received 295 complaints from Siraha, 240 from Mahottari, and 236 from Sarlahi.

The majority of the complaints are against irregularities in local units. In fiscal year 2022/23 and the first month of 2023/24, a total of 1,145 complaints were received against local units. Of these, 65 have been resolved, while the remaining 1,080 are under investigation, according to the office.

Data from the regional office reveals that most of the complaints are related to irregularities in public procurement and construction, often involving collusion between staffers and elected people's representatives. “Preparing wrong estimates and specifications, splitting projects to favor contractors, making unnecessary procurements, subpar construction work, and the misuse of consumer committees to bypass laws and regulations are among the common issues mentioned in the complaints,” said Sunil Chaurasiya, a section officer at the regional office.

Additionally, there are complaints about administrative misconduct, corruption in training and capacity development, irregularities in service delivery, the use of counterfeit educational certificates and licenses, revenue leakage, and irregularities in the distribution of social security allowances, among other issues, Chaurasiya added.

Officials acknowledge that the regional office has been facing challenges in resolving cases promptly due to a backlog of cases. “Concerned offices often delay registration of our letters and take a significant amount of time to provide supporting documents. In some cases, they fail to submit any documents at all. These actions significantly impact our work,” Chaurasiya added. “When we attempt to contact the heads of the relevant offices by phone, they often do not respond.”

Chaurasiya said that investigations won’t not gain momentum if the constitutional anti-graft body does not receive the necessary support from public offices.

Constituent Assembly Chairman and CPN-UML Vice-Chairman Subash Nembang has been cremated with state honors at Pashupati Aryaghat in Kathmandu on Thursday.

Prime Minister Pushpa Kamal Dahal draped the body of Nembang with the national flag and UML Chairman KP Sharma Oli with the party flag at Aryaghat.

Nembang’s sons Mingso and Suhang Nemang lit the funeral pyre.

Before his funeral pyre was lit, Nembang was accorded a guard of honor by a contingent of Nepal Army.

Nepal government ministers, senior leaders of various political parties, relatives, family members and well-wishers were present at the Aryaghat.

Prior to last rites were performed, the funeral procession was marched to Pashupatinath temple via Maharajgunj-based Tribhuvan University Teaching Hospital, Narayangopal Chowk, Dhumbarahi, Chabahil and Gaushala.

His body was kept at the party headquarters in Chayasal till 1 pm on Wednesday for final tributes. Then the mortal remains were taken to his Baluwatar-based residence.

The government has declared a public holiday today to mourn the demise of a key architect of Nepal’s new constitution.

The government has also decided to fly the national flag at half-mast in all the government offices and Nepali missions abroad to mourn the demise of Nembang.

Nembang was rushed to the Tribhuvan University Teaching Hospital after he suffered a heart attack at 1:40 am on Tuesday. But doctors pronounced him dead on arrival. He was 71.

The gold is being traded at Rs 111, 200 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, tejabi gold is being traded at Rs 110, 650 per tola.

Meanwhile, the price of silver has dropped by Rs 5 and is being traded at Rs 1,385 per tola today.

The bodies of four Nepalis who died during the foreign employment in Saudi Arabia have been sent to Nepal.

According to the Nepali Embassy in Riyadh, the bodies sent to Nepal are from Bardiya, Palpa, Udayapur and Morang districts.

The number of people who died due various reasons in Saudi Arabia from July 17, 2023 to till date has reached 43, the Embassy said.

According to which, 27 people have died in the eastern region of Saudi Arabia, 14 in Riyadh region and two in Al Qassim region.

As per the report, 24 died of natural causes, seven committed suicide, three died in road accidents, four died while working, one person drowned and the reasons behind the death of four persons are yet to be ascertained.

Out of a total of 43 people who died during this period, the bodies of 33 have already been sent to Nepal.

The bodies of four persons were sent on Tuesday while preparations are underway to send the remaining six bodies.

The Embassy said that it would take around a month to send the bodies to Nepal from Saudi Arabia.

The funeral procession of Constituent Assembly (CA) Chairman and CPN-UML leader Subash Chandra Nembang has begun.

His last rites are to be performed shortly at the local Pashupati Aryaghat with state honors. The funeral procession began from his residence in Baluwatar.

Nembang passed away on Tuesday due to a cardiac arrest. He was 71.

Constituent Assembly Chairman and CPN-UML Vice-Chairman Subash Chandra Nembang will be cremated with state honors on Thursday.

Party Publicity Department Secretary Gagan Bista said that Nembang will be cremated with state honors at the Pashupati Aryaghat at 11 am today.

The mortal remains of Nembang were kept at the party headquarters in Chyasal, Lalitpur for final tributes till 1 pm on Wednesday. Then the body was taken to the Baluwatar-based residence.

The government has announced a public holiday today to mourn the death of a key architect of Nepal’s new constitution.

ALSO READ: Subas Chandra Nembang: Key architect of Nepal’s new constitution

The government has also decided to fly the national flag at half-mast in all the government offices and Nepali missions abroad to mourn the demise of Nembang.

Nembang succumbed to a heart attack at 1:40 am on Tuesday while receiving treatment at the Tribhuvan University Teaching Hospital in Maharajgunj. He was 71.

Kushe Aunshi, a Hindu religious festival, is being observed across the country on Thursday by bringing kush, a holy grass used in the performance of various religious rituals, into their homes.

There is a religious belief that keeping kush cut by the priests and anointed with sacred verses or mantras in the house brings wellbeing to the household.

The Hindu community regards kush, Tulashi (basil plant), peepal and shaligram (ammonite stone) as the symbols of Lord Bishnu.

The day is also celebrated as Father's Day or Gorkarna Aunsi.

People across the country celebrate this day by showing respect and reverence to fathers. On this day, children feed their fathers delicious food items including sweets and show respect to them.

Those who have lost their fathers take an early bath and visit nearby temples to perform shraddha (annual death rituals) in honor of the departed souls. Children also take blessings from their living fathers.

Meanwhile, people have thronged the Gokarneshwor Temple in the capital and other various Hindu temples across the country since this morning to perform the shraddha in memory of their late fathers.