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Nepal, a landlocked country situated between India and China, faces unique challenges due to its geographical location and rugged topography. The nation’s landscape is characterized by three distinct regions: the high Himalayan Mountains in the north, the mid-hill regions and the southern plains (Tarai). These diverse terrains pose significant logistical challenges for domestic distribution and access to international markets. With over 80 percent of its population residing in rural areas and dependent on agriculture, Nepal’s economic growth hinges on improving infrastructure to facilitate connectivity, trade and development. 

Despite these challenges, Nepal’s strategic position as a bridge between two of the world’s largest economies offers immense potential for growth. To harness this potential, public-private partnerships (PPPs) are critical in addressing infrastructure gaps and enhancing the logistics sector. 

Below are actionable policy guidelines for establishing an effective PPP framework:

Institutional framework 

A dedicated PPP unit: The government must set up a dedicated PPP unit or agency to oversee project implementation, provide technical support and standardize logistical practices for logistics service providers. This unit will coordinate provincial and national transport initiatives to ensure harmonization and efficiency. 

Legal and regulatory environment: Introducing PPP-specific legislation is essential to define clear frameworks for contract enforcement, risk-sharing and dispute resolution. These laws will provide confidence to private investors and international donors. 

Decentralization: An empowering provincial government is key to managing localized PPP projects. Each province should focus on developing infrastructure tailored to its production centers, whether for manufacturing or agriculture. This includes establishing and investing in transport hubs, warehouses, and equipment suited to the geographical terrain, such as all-weather roads and specialized vehicles for mountain regions.

Project selection and prioritization 

Feasibility studies: Conducting rigorous feasibility studies is vital to prioritize infrastructure projects such as roads, railways, airports and multimodal connectivity. The studies should consider environmental, technical and financial aspects to ensure sustainability. Key projects should include centralized logistics hubs in major cities like Kathmandu, Birgunj, Biratnagar, Kakarvitta and Bhairahawa, with efficient links to border points for customs and warehousing. 

Alignment with national goals: PPP projects should align with national plans, such as Nepal’s five-year plans, focusing on reducing isolation of remote areas, improving trade and promoting economic growth through efficient distribution of goods and services.

Risk allocation and management 

Risk-sharing mechanisms: Clear guidelines for risk-sharing between public and private sectors are crucial, particularly given Nepal’s susceptibility to natural disasters like landslides, floods and earthquakes. 

Utilization of resources: The government should leverage public land for long-term leases and offer financial guarantees for projects that may not be immediately profitable but have high social and economic value. Blended financing models combining public, private and donor investments can provide the necessary funding and technical assistance. 

Capacity-building: Investing in capacity-building is crucial for both government officials and local communities. Train government personnel in PPP project design, negotiation and management. Provide employment and training opportunities to local populations to ensure inclusivity and skill development. Engage communities, NGOs, and private sector stakeholders in decision-making to foster trust and collaboration.

Technology and innovation 

Renewable energy solutions: Focus on small-scale hydro, solar and wind energy projects to power remote areas and reduce dependency on non-renewable resources. 

ICT and digital connectivity: Develop digital solutions to bridge connectivity gaps, such as internet access and e-commerce platforms for rural communities. 

Resilient engineering: Adopt innovative engineering solutions such as modular bridge systems and climate-resilient road designs to overcome geographic and climatic challenges.

Environmental and social sustainability

Environmental safeguards: Ensure regular environmental impact assessments (EIAs) to mitigate risks to the ecosystem during infrastructure development. 

Community benefits: Design projects to deliver tangible benefits, such as improved market access, healthcare and education for remote populations. 

Green logistics: Promote eco-friendly technologies like electric trucks, solar-powered warehouses and sustainable building materials.

Digital platforms

Develop a central digital platform for data collection, goods tracking and information sharing among stakeholders. Enable real-time updates on traffic, warehouse capacities and customs clearance to improve efficiency. Introduce e-payment systems for tolls, customs and other fees to reduce inefficiencies.

Cross-border trade facilitation

Given Nepal’s dependency on its transit neighbors, harmonizing customs procedures with India and China is critical. Collaborate on reducing delays at border points, such as Birgunj-Raxaul in the south and the Rasuwagadhi-Kerung crossing in the north.

Monitoring and evaluation

Transparent and robust monitoring mechanisms are essential for PPP success. Define key performance indicators such as reduced transport costs, increased trade volumes and time savings. Engage independent bodies for audits and evaluations. Ensure transparency through public disclosure of contracts, progress reports and financial data.

Conclusion

Nepal’s landlocked status and challenging terrain may appear to hinder its development prospects, but they also offer opportunities for innovation and collaboration. Developing a well-structured PPP framework can bridge infrastructure gaps, enhance logistics and connect Nepal’s remote regions with domestic and international markets. 

By implementing these policy guidelines, Nepal can unlock its potential as a trade hub, fostering sustainable economic growth and improving the quality of life for its citizens.

To promote the flow of vehicular traffic between member-states, the Bangladesh, Bhutan, India, and Nepal (BBIN) Motor Vehicle Agreement (MVA) was signed in 2015. Although experts had hoped to stimulate an increase in commercial and personal vehicular traffic across borders, it failed to make any noteworthy impact. 

So, what went wrong?

Despite various studies and stakeholder consultancies conducted by donor agencies like the World Bank and Asian Development Bank, the initiative failed to achieve anything significant. Bhutan ultimately backed out of the agreement, fearing possible displacement of local MSMEs in the trucking industry, endeavoring to fight for its small business owners. They also cited environmental concerns as another prime reason behind the move even as Bangladesh pushed on, developing a fruitful trade relationship with India. India has been asking Nepal to revisit the transit and bilateral agreement, but the latter seems unsure how to go about it.

ADB attempted to assist Nepali ministries by drafting suitable protocols and advocating cooperation between them and observed that the Ministry of Industry, Commerce and Supplies (MoICS), and the Foreign Ministry needed to cooperate better with the Ministry of Physical Infrastructure and Transport (MoPIT). General opinion among related personnel is that the MoICS should have precedent over matters related to bilateral and regional agreements, and that MoPIT was erroneously designated authority over these matters. This atmosphere of resentment failed to forge the collective political will necessary to motivate the ministries to cooperate and coordinate.

Recent studies on the transport industry of Bhutan and Nepal show that donor agencies attempt to woo and advocate only to higher-level stakeholders by disregarding stakeholders at the ground level and leaving the gap in their understanding unaddressed. This allows us to understand what went “wrong”: Being influenced by wrong examples of the tracking and tracing of end-to-end movements along the logistic chain and wrong advocacy with wrong stakeholders resulted in the pitfalls experienced. 

So, the way forward should be to begin from the ground level to raise awareness among stakeholders, and I believe that following steps can “grease the wheels” to make a real difference.

Firstly, various members of the government need to collectively decide on the appropriate ministry responsible, which will then implement a ground-up stakeholder consultancy approach. This approach should be informed by the expertise of relevant logistics actors and at least inform, if not incorporate, donor agencies to prevent redundancies and confusion among stakeholders. Donor agencies and relevant Nepali ministries should cultivate amicable working relationships to generate a collective political will that appropriately advocates for the modality so that all member-states understand how it might be mutually beneficial to them.

Secondly, undertaking several trade-related activities along highways to benefit citizens living close to them while addressing businesses/entrepreneurs, social safeguards, climate change, gender, disability issues and disaster prevention will help them adapt to the new economic ecosystem and better understand and enhance their monetary potential.

The benefits of carrying out local outreach in conjunction with BBIN MVA are manifold and have the potential to make a significant impact at the grassroots. At local marketplaces along highways connecting member-states, citizens can sell their goods and services, promoting economic opportunities for local businesses and entrepreneurs if they are provided support in identifying the nature of business, communicating policies and regulations as well as standards, or even providing suggestions to aspiring businesspeople and linking them to real traders (retailers, wholesalers, et cetera.)

Skill development centers along highways will provide training and employment opportunities for residents, including vocational training in trades such as driving, mechanics, carpentry, agriculture and hospitality.

Health and safety protocols will help protect workers and residents from accidents, occupational hazards, and exposure to pollutants during road construction. Placing disaster preparedness and response centers along highways with emergency supplies, communication systems, and trained personnel will ensure swift and effective responses to road accidents, landslides, floods and other disasters.

Community resilience techniques offered to communities along highways will provide knowledge to residents on disaster preparedness, risk reduction strategies and response, empowering them to take proactive measures to protect themselves and their communities by engaging with local communities, indigenous groups, and other stakeholders throughout the road construction process to solicit their input, address concerns, and ensure transparency and accountability.

Providing gender-inclusive business support services along highways, including access to finance, training and mentorship programs tailored to the specific needs of women entrepreneurs and specific business owners will foster an environment of economic agency and inclusiveness.

The social safety aspect is crucial, and it should include implementation of social safety nets and support programs for vulnerable populations living close to highways, including access to healthcare, education, housing, and social assistance. By integrating these social safety nets along trade routes, stakeholders can minimize adverse social impacts, enhance community resilience and promote sustainable development in the areas affected by natural calamities. Each of these methods has advantages, challenges, and potential applications depending on various factors like population density, type of topography and industries around the community. Introducing technologies that help with environmental impact mitigation and help reduce greenhouse gas emissions will increase awareness and ensure greater accessibility to mitigate climate change.

Generating tourism in Bhutan, Nepal and Bangladesh by encouraging community-based tourism initiatives along highways, where residents can offer homestays, guided tours, and cultural experiences, generating income while preserving and showcasing local traditions and heritage will be yet another way to help drive economic and social progress. Green infrastructure projects along highways, such as tree planting, rain gardens and natural drainage systems, mitigate climate change impacts, enhance biodiversity and improve resilience to disasters like floods and landslides.

We can achieve these benefits by implementing BBIN MVA, especially to support MSMEs by providing and linking activities under different trade infrastructure along with construction of roads and other trade-related infrastructure. Connectivity through different means and modes of transport like inland waterways and trains can further enhance the economy of the BBIN initiative by connecting trade and social issues for a better livelihood.

The author is trade consultant and advisor at Nepal Freight Forwarders Association. Views are personal

Emotional intelligence (EI) is connected to quality improvement or performance enhancement through attachments with employees by perceiving their feelings and empathizing for more effective and efficient outcomes. It shapes their ideas about philosophy and the nature of existence. It builds relationships, provides emotional support, and helps understand unique learning needs of the human brain. 

EI skills enable us to strengthen social bonds and connect with others through critical and ethical thinking by using added energy and creativity.

Combining learning or teaching methodology with emotional intelligence is not easy, but with right planning and approach, it can help create a sustainable learning environment.

EI is about developing self-awareness to recognize one's own emotions . To be able to adapt to self awareness and stay motivated, regular help from teachers as well as devotion from students is a must. Regulating self is not easy as it involves effective managing of emotions by being goal-oriented and avoiding distractions. 

The development of the capacity to empathize with others and understand peers and teachers will enhance the communication skills as well as develop social skills and improve motivation towards positive attitude to achieve the set goals. Something very crucial in the process is the management of negative feelings that keep flowing during the process which is unavoidable. To have the capacity to manage these negative feelings is critical, as it is related to ‘yoga’ or control of mind and body which helps in assessing emotions.

Based on the above background related to EI and the soft skills needed to harness the capacity of individuals or firms, it can be concluded that product enhancement teachings, skill development, quality improvement, innovation, capacity building and techniques like customers relationship management, Lean, JIT, TQP, etc. cannot succeed until we are able to master the soft skills related to emotional intelligence. 

EI involves understanding and managing emotions for quality improvement efforts and effective teamwork. It helps build strong working relationships, resolve conflicts, and promote collaboration among team members. Here is how EI can help meet your organizational goals by fostering a healthy team collaboration:

• EI helps to develop effective communication which is a cornerstone for enhancing performances. Individuals with high EI are generally skilled communicators, as they can convey ideas clearly, listen actively, and provide constructive feedback, enabling smoother project implementation and better results.

• Process changing is a difficult activity in an organization and needs much understanding of the employees and employers mindset. High EI enables better management of the resistance to change by considering the emotional impact of change on employees or the organization as a whole. It can address concerns empathetically and guide the team through transition more effectively.

• Leaders with high EI can inspire and motivate their teams, creating a positive and supportive work environment that fosters innovation and continuous improvement.

• Conflicts are unavoidable in the process of change management efforts , especially when changes disrupt established routine work. EI helps individuals handle conflicts constructively, finding win-win solutions and preventing conflicts and helps derailing improvement efforts.

• EI is essential for understanding customer needs and preferences. Emotionally intelligent individuals are better at empathizing with customers, leading to better products/ services meeting customer’s wants and desires and at times exceeding customers expectations.

• It is important to improve quality through constant feedback for critical adjustments and achieve progress. Emotionally intelligent individuals are open to feedback and see it as an opportunity for growth. They can provide and receive feedback more effectively, leading to continuous learning and improvement.

• When setbacks and challenges occur in any process improvement efforts, EI tends to be more resilient, bouncing back from setbacks and maintaining a positive attitude in the face of adversity.

• Motivation is an important aspect of EI, as it is related to the human senses and emotions . It is intrinsically motivated and can inspire others to stay committed to improvement goals.

• EI emphasizes empowering employees and the team to make improvements by trusting them to take ownership of improvement initiatives and make decisions that benefit the organization.

In summary, emotional intelligence plays a vital role in the success of an organization’s ultimate goal by building a better equipped and effective team who can communicate clearly, lead change, resolve conflicts, and maintain a customer-centric focus culture.