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Millennium Challenge Corporation Compact Operations Department Cameron Alford arrived in Kathmandu on Tuesday.

The Kathmandu-based US Embassy said the US government was excited to know the progress of the MCC compact.

It has been made possible through regular cooperation among wider stakeholders, governments in Nepal and political parties, the embassy sources said.

"We are committed to collaborate with MCA-Nepal to ensure successful implementation of the compact. All concerned parties are working to attain the goals of the MCC compact on time", the embassy said.

Preparations were made to commence the implementation of the $500 million MCC compact from today onward. The project related to energy and road infrastructure development is supposed to spur economic growth and reduce poverty in Nepal.

Noting that the MCC had received explanatory declaration last year, the US Embassy said they had accepted the explanatory note as part of the compact.

According to the agreement, August 30 marks the commencement of the implementation of the five-year project.

As global pollution edged upward in 2021, so did its burden on human health, according to new data from the Air Quality Life Index (AQLI). If the world were to permanently reduce fine particulate pollution (PM2.5) to meet the World Health Organization’s (WHO) guideline, the average person would add 2.3 years onto their life expectancy—or a combined 17.8bn life-years saved worldwide.

This data makes clear that particulate pollution remains the world’s greatest external risk to human health, with the impact on life expectancy comparable to that of smoking, more than three times that of alcohol use and unsafe water, and more than five times that of transport injuries like car crashes, says the report. 

Yet, the pollution challenge worldwide is vastly unequal.  “Three-quarters of air pollution’s impact on global life expectancy occurs in just six countries, Bangladesh, India, Pakistan, China, Nigeria and Indonesia, where people lose one to more than six years off their lives because of the air they breathe,” says Michael Greenstone, the Milton Friedman Distinguished Service Professor in Economics and creator of the AQLI along with colleagues at the Energy Policy Institute at the University of Chicago (EPIC).

“For the last five years, the AQLI’s local information on air quality and its health consequences has generated substantial media and political coverage, but there is an opportunity to complement this annual information with more frequent—for example, daily—and locally generated data.”

Indeed, many polluted countries lack basic air pollution infrastructure. Asia and Africa are the two most poignant examples. They contribute 92.7 percent of life years lost due to pollution. Yet, just 6.8 and 3.7 percent of governments in Asia and Africa, respectively, provide their citizens with fully open air quality data. Further, just 35.6 and 4.9 percent of countries in Asia and Africa, respectively, have air quality standards—the most basic building block for policies.

The collective current investments in global air quality infrastructure also do not match where air pollution is having its greatest toll on human life. While there is a large global fund for HIV/AIDS, malaria, and tuberculosis that annually disburses $4bn toward the issues, there is no equivalent set of coordinated resources for air pollution.

In fact, the entire continent of Africa receives under $300,000 in philanthropic funds toward air pollution (i.e. the current average price of a single-family home in the United States). Just $1.4m goes to Asia, outside of China and India. Europe, the United States, and Canada, meanwhile, receive $34m, according to the Clean Air Fund.

“Timely, reliable, open air quality data in particular can be the backbone of civil society and government clean air efforts—providing the information that people and governments lack and that allows for more informed policy decisions,” says Christa Hasenkopf, the director of AQLI and air quality programs at EPIC. “Fortunately, we see an immense opportunity to play a role in reversing this by better targeting—and increasing—our funding dollars to collaboratively build the infrastructure that is missing today.”

Read the Full Report

South Asia

In no other location on the planet is the deadly impact of pollution more visible than in South Asia, home to the four most polluted countries in the world and nearly a quarter of the global population. In Bangladesh, India, Nepal and Pakistan, the AQLI data reveal that residents are expected to lose about five years off their lives on average if the current high levels of pollution persist, and more in the most polluted regions—accounting for more than half of the total life years lost globally due to pollution.

Nepal

The study has shown that Nepal is the world’s third most polluted country based on satellite-derived PM2.5 data. Fine particulate air pollution (PM2.5) shortens the average Nepali resident’s life expectancy by 4.6 years, relative to what it would be if the World Health Organization (WHO) guideline of 5 µg/m3 was met. Some areas of Nepal fare much worse than average, with air pollution shortening lives by 6.8 years in the nine districts with the highest concentration of particulate pollution, according to the study. These districts lie in southern Nepal and share their borders with the highly-polluted Northern Plains of India, the study says.

Asia and Africa bear the greatest burden 

Asia and Africa bear the greatest burden yet have some of the weakest infrastructure to deliver citizens timely, accurate data. They also receive tiny slices of an already small global philanthropic pie. For example, the entire continent of Africa receives less than $300,000 to tackle air pollution.

“There is a profound disconnect with where air pollution is the worst and where we, collectively and globally, are deploying resources to fix the problem,” Christa Hasenkopf, director of air quality programs at EPIC.

While there is an international financing partnership called the Global Fund that disburses $4bn annually on HIV/AIDS, malaria and tuberculosis, there is no equivalent for air pollution.

“Yet, air pollution shaves off more years from the average person’s life in the DRC (Democratic Republic of Congo) and Cameroon than HIV/AIDS, malaria, and other health threats,” the report said.

Bangladesh tops ranking 

Globally, South Asia is the worst impacted region. Bangladesh, India, Nepal and Pakistan are in order the top four most polluted countries in terms of annualized, population-weighted averages of fine particulate matter, which are detected by satellites and defined as particles with a diameter of 2.5 microns or less (PM2.5).

Air pollution concentrations are then fed into the AQLI metric which calculates their impact on life expectancy, based on peer-reviewed methods. Residents of Bangladesh, where average PM2.5 levels were 74 micrograms per cubic meter, would gain 6.8 years of life if this were brought to WHO guidelines of five micrograms per cubic meter. India’s capital Delhi meanwhile is the “most polluted megacity in the world” with annual average particulate pollution of 126.5 micrograms per cubic meter. 

With inputs from AFP

“Timely, reliable, open air quality data in particular can be the backbone of civil society and government clean air efforts—providing the information that people and governments lack and that allows for more informed policy decisions,” says Christa Hasenkopf, the director of AQLI and air quality programs at EPIC

A high-level delegation of the CPN-UML is visiting China at the invitation of Communist Party of China (CPC).

A team led by UML General Secretary Shankar Pokharel will head towards Beijing, the Capital of China, via Guangzhou next week.

The delegation led by General Secretary Pokharel, who has already become the Chief Minister of Lumbini Province, will stay in the northern neighbor for two weeks.

According to a source, the UML leaders will leave for Beijing on Sunday.

A UML leader said that the General Secretary Pokharel-led team will hold a meeting with senior leaders of the Communist Party of China.

The Foreign Department of the Communist Party of China had invited the UML delegation to visit China.

“A high-level team led by the General Secretary is leaving for China at the invitation of Communist Party of China,” the UML leader said.

The Communist Party of China has also invited a high-level delegation of the UML to visit China at a time when preparations are being made for Prime Minister Pushpa Kamal Dahal’s visit.

A team led by CPN (Maoist Center) Vice-Chairman Agni Sapkota had also visited China on May 19.

On August 10, CPN (Maoist Center) General Secretary Dev Gurung left for China.  Gurung, who had left for the northern neighbor to make preparations for Prime Minister Dahal’s China visit, has already returned home.

On August 16, a team led by Major General Yue Ande, the Tibet Military Commander of the Chinese People's Liberation Army came to Nepal.

Prime Minister Pushpa Kamal Dahal has commended the contribution and courage of the people of Rolpa district for a political change in Nepal.

Responding to queries raised by lawmakers in today's meeting of the House of Representatives, he said the government has focused on the development of the district. "The government has prioritized bringing the backward region in terms of development onboard the mainstream. The government has given priorities to social justice, good governance and public service."

On police investigations into various cases recently, the PM said the government had clearly directed the police administration to freely and impartially investigate the cases so the guilty should not escape and innocent must not be booked. "There is no need to halt investigations when it comes to investigating cases relating to the Prime Minister. Put aside my party in this regard," he said. Those found involved in corruption would face action, he added.

The government is committed to preventing any such activities that would disturb social unity, harmony and social coexistence, the PM said, adding the government would not give exemption in activities that disturb social harmony and go against culture and religion of each other.

While maintaining the coexistence of all of us, our national unity will be strengthened through the protection and preservation of our originality thus consolidating our nationality in a true sense, PM Dahal reiterated.

The Nepal Stock Exchange (NEPSE) plunged by 5. 05 points to close at 1,993.42 points on Tuesday.

Similarly, the sensitive index dropped by 0. 71 points to close at 382. 85 points.

A total of 4,006,739-unit shares of 278 companies were traded for Rs 865 billion.

Meanwhile, Kutheli Bukhari Small Hydropower Limited is the top gainer today with its price surging by 10. 00 percent. Likewise, Swabhimaan Laghubitta Bittiya Sanstha Limited was the top loser as its price fell by 4. 83 percent.

At the end of the day, the total market capitalization stood at Rs 2. 98 trillion.

Nepal Rastra Bank (NRB) has amended working capital loan guidelines following pressure from the government and the private sector. The revised guidelines provide flexible provisions, especially for the manufacturing sector.

Issuing a circular on Monday, the central bank has given relief to the manufacturing sector. thereby giving a boost to the country’s productive segment. The term ‘manufacturing industry’, according to the NRB, refers to an industry that adds value to raw materials or semi-finished goods through human effort or machinery.

The central bank through the new amendment has relaxed several provisions that were initially put in place to curb the potential misuse of loans. The working capital loan guidelines have been a contentious point of debate between the private sector and the central bank over the past year. Ever since the implementation of the guidelines, the private sector has been lobbied hard for its suspension, terming the guideline as the 'major obstacle to the business and private sector growth'.

The central bank implemented the guidelines starting on October 18, 2022. The essence of bringing working capital loan guidelines was to stop the misuse of the bank money taken to meet short-term commercial needs for an unlimited period of time and outside of the purpose. The central bank has sought to discourage practices of misuse of working capital loans, a significant portion of which businesspersons use to invest in real estate and the stock market, after getting such loans from banks and financial institutions. 

 Of late, business bodies have been lobbying for its revision saying that the working capital loan guidelines was the main reason for the economy slowing down. In view of growing discontent,  Prime Minister Pushpa Kamal Dahal and Finance Minister Prakash Sharan Mahat have also instructed the central bank to relax the guidelines.

 As per the new amendment, manufacturing industries will not have to comply with the guidelines while using loans up to Rs 30m. Earlier, this limit was only up to Rs 10m.

 Similarly, the loan limit of fluctuating working capital needs that industries can take for one year has been increased to 40 percent of the annual turnover from the existing 25 percent. Businessmen have been demanding to increase this limit.

 The central bank has also increased the working capital loan limit for the manufacturing sector to Rs 40m from the existing Rs 20m. Now, while determining the working capital loan limit of up to 40m rupees for the manufacturing industry, it is stipulated that the total working capital loan limit should be maintained only up to the maximum amount of 20 percent of the estimated annual turnover/sales.

 The central bank has allowed banks to provide working capital loans up to 50 percent of the maximum annual turnover based on the industries' operating cycle, cash conversion cycle, days sales outstanding, inventory conversion period, lead time, and accounts payable period.

 The new amendment has changed the previous provision of reducing working capital loans to zero for seven consecutive days after the third year of implementation of the guidelines, allowing at least 10 percent of the amount to be retained in the account annually. Industrialists and businessmen have been demanding that the provision to reduce the working capital loan to zero is unreasonable and should be abolished.

 Additionally, a provision has been established for granting emergency working capital loans to seasonal businesses (e.g., those involved in purchasing chemical fertilizers, festival-related enterprises, etc.) based on justifications.

 The central bank Spokesperson Dr. Gunakar Bhatta said that the guidance has been revised to invigorate economic activities. According to Bhatta, more concessions have been given to the manufacturing sector. "While the amendment has provided ease to other businesses, special concessions have been given to the manufacturing sector," said Bhatta, "We have removed the provision of reducing working capital loans outstanding to zero."

The Patan High Court declared the letter issued by Civil Aviation Authority of Nepal to the Annapurna Media Network as illegal, invalid and malicious in a verdict delivered on Monday.

The court also issued a stay order, directing the concerned authorities to refrain from implementing the letter. 

The letter, which was issued beyond the jurisdiction of the civil aviation regulatory body, had sought clarification regarding the news published in the Annapurna Post daily, which is part of the AMN. 

Delivering his ruling, the single bench of Justice Ramesh Dhakal underscored the severity of CAAN's transgression, condemning its undue interference in matters of the press. “It is a direct interference in the constitutionally enshrined press freedom, and it is imperative to stop the implementation of the letter issued by CAAN.” 

The High Court’s ruling came in response to a writ petition filed by Simrik Air against both CAAN and the Office of the Prime Minister and Council of Ministers. Senior advocate Sushil Kumar Pant and Narendra Prasad Gautam represented the petitioner’s side during the hearing. Notably, the court's ruling emphasized that the legal framework does not grant CAAN, or its Director General Pradeep Adhikari, the authority to oversee media content. 

If CAAN found published content objectionable, the appropriate recourse would be to request the publication of factual, accurate information. Similarly, if media outlets disseminated information detrimental to CAAN's reputation, the court posited that the Press Council Nepal should be the avenue for redress. As democratic norms dictate, oversight and critique of government agencies, including CAAN, are not only warranted but crucial. Stakeholders have the prerogative to express concerns and voice opinions on CAAN's directives, decisions, and policies. 

Ahead of implementation of Millennium Challenge Corporation which was endorsed by Parliament, some fringe communist parties have begun criticizing the agreement.

The meeting of the board of directors of the Millennium Challenge Account Nepal Development Committee (MCA Nepal) held on August 16 decided to implement the MCC agreement. Senior MCC Officials have arrived in Kathmandu to witness the formal implementation of the MCC-Nepal compact.

Madhav Kumar Nepal, a former Prime Minister and Chairman of CPN (Unified Socialist) - a ruling partner, has called for more discussion on the 'interpretative declaration' of the MCC.

Speaking at the meeting of the International Relations and Tourism Committee of the House of Representatives on Monday, Nepal said concerns that have been raised regarding the MCC must be addressed. "Issues related to nationality and other significant matters have come to the forefront. Similarly, concerns have been voiced on the implementation of the interpretative declaration of the MCC," Nepal said.

He said Nepal should move ahead in accordance with a policy of non-alignment and adherence to the principles of the UN Charter.

Similarly, Jhala Nath Khanal, another former Prime Minister and senior leader of the Unified Socialist, termed MCC agreement an unfortunate development for Nepal. "The MCC agreement is not in Nepal's best interest, and some of our leaders have inadvertently damaged the country's reputation,” Khanal said.

Addressing a separate event in Kathmandu, Khanal said he had no information about parliament. “I knew it was signed in agreement after it was tabled in parliament. I raised serious concerns about the agreement when it was presented for endorsement.”

Similarly, Maoist Center General Secretary Dev Prasad Gurung said although parliament has attached an interpretative declaration to the MCC, the US government hasn't said anything about the agreement. "Since the US hasn't said anything about the declaration, this process cannot conclude," he added.

The official statement of MCC released after the MCC agreement was ratified by the parliament doesn't mention anything about the interpretative declaration. "The decision to ratify the Nepal Compact has always rested with the Government of Nepal as a sovereign democratic nation," the statement said.

In the meantime, the CPN (Maoist) led by Mohan Baidya has declared its intent to prevent the implementation of the MCC Compact.

CP Gajurel, a leader of CPN (Maoist), said that his party would organize protests in various parts of the country to oppose the MCC's implementation. He said that although the MCC agreement has been ratified by parliament, it doesn’t mean that it cannot be reconsidered. "While the parliament approved the MCC, it doesn't mean that it cannot be reversed. The government retains the authority to distance itself from the MCC. The authority rests with the people of Nepal," he added.

Gajurel reaffirmed his party's commitment to continue protests until the MCC agreement is rescinded.

MThe government is using the $500 million MCC Compact to upgrade a 77-kilometer segment of the East-West Highway and the construction of a 315-kilometer 400kV transmission line along with three substations.

The parliament ratified the MCC agreement on February 27, 2022.