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Nepal and India on Thursday signed a landmark agreement on bilateral energy cooperation, allowing seamless export of Nepal’s energy to the Indian market. As per the agreement, India will purchase up to 10,000 MW electricity in the next 10 years. 

The agreement is a game-changer for Nepal’s hydropower projects because it has ensured market access for Nepal’s electricity. Earlier, international investors were reluctant to invest in Nepal’s hydropower sector due to skepticism regarding market access. 

Similarly, India, Nepal and Bangladesh are working to sign a trilateral energy cooperation which paves the way for Nepal to sell electricity in Bangladesh. The energy-hungry South Asian country is struggling to fulfill its electricity demand. It has reached out to neighboring countries including Nepal with the proposition of importing electricity. 

The agreement makes way for the Indian as well as international investors to invest in Nepal’s hydropower sector. Still, there are concerns over the electricity produced by the Chinese companies. India has refused to purchase electricity produced by Chinese companies or from projects with Chinese components.

The government needs to create a conducive environment for hydropower companies to speed up the construction of projects. 

Hydropower investors often complain of local governments and residents obstructing work at project sites under various pretexts and demands. The federal government should take immediate measures to resolve the problems facing private companies. 

There is a long-list of demands from private investors which should be resolved without any delay. Hydropower is one of the biggest assets of Nepal. The government and its concerned agencies should be serious about dealing with bureaucratic and other hurdles that have been crippling this sector. 

At the same time, India should seriously consider the issues that Nepal has been raising concerning the electricity trade between the two countries.

Minister for Foreign Affairs Narayan Prakash Saud recently disclosed that over 200 Nepalis are serving in the Russian Army. Russia is recruiting Nepali nationals to increase its military strength in its war with Ukraine without sharing any official information with the Nepali government.

On the basis of complaints from concerned families, Minister Saud revealed that around 100 Nepalis remain unaccounted for, and several others are injured. The government has written to Moscow, requesting assistance in ascertaining the number of Nepalis involved in the war, stopping the recruitment of Nepalis in its military, and facilitating the repatriation of the deceased.

Although the two countries have a cordial relationship, Moscow is yet to respond to these urgent requests. Given the gravity of the situation, the Ministry of Foreign Affairs must intensify diplomatic efforts to ensure the well-being and safe return of Nepali citizens in Russia. If bilateral efforts prove insufficient, Nepal should consider seeking the support of influential nations such as China, India and the United States for the repatriation of Nepalis there. Nepal can approach the European Union and the US for the release of Nepali citizens taken hostage in Ukraine. The government, however, has yet to reach out to these countries for assistance.

While Russia expresses a desire for continued engagement with Kathmandu, its failure to respond to Nepal’s legitimate concerns regarding the welfare of its citizens abroad is disconcerting. Moscow must recognize the urgency of the situation and respond as soon as possible. 

Chief of the Army Staff Prabhu Ram Sharma has admitted to the parliamentarians that the Nepali Army would be unable to complete the Kathmandu Tarai/Madhes Fast-Track within the stipulated deadline of April 2027. The project was handed over to the army in 2017, setting a four-year deadline.

This setback has cast a shadow of uncertainty over the fate of this national pride project. Over the past six years, the project has achieved only 28.56 percent physical progress and 29.44 percent financial progress. After widespread criticism of its inability to expedite the project, the army is now passing the blame on other state agencies. Moreover, CoAS Sharma contended that the new deadline cannot be achieved if necessary laws are not amended.

The state mechanisms must address and overcome the hurdles facing the army, particularly those related to felling trees, land acquisition, and the import of explosive materials. As far as strict environmental laws are concerned, they are not only for the army; they apply to all. The army was aware of these laws before it accepted the project. In the first place, the army should not have accepted the government's offer to implement the project because building an expressway is beyond its technical capacity. Additionally, their involvement in business and infrastructure works is already tarnishing their image as a professional and apolitical institution.

The decision to award the project to the army was rooted in the belief that it could execute development works more efficiently than other state mechanisms. However, the army has struggled to expend the government-allocated funds in recent years. Given the economic strain that the government is facing, the army might face a fund crunch even if it expedites the project. People are raising concerns about the delay today. Tomorrow will bring inquiries into the transparency of expenditures and related issues as it involves taxpayers’ money. Instead of deflecting blame onto other state entities, the army leadership should, therefore, earnestly consider expediting the project. If the army feels that it cannot complete the project, it is better to tell the government frankly.

The Tarai-Madhes Fast-Track Project has taught a lesson to both the army and the political leadership. The army shouldn't engage in such infrastructure development works. Instead, it should focus on strengthening the institution to deal with emerging security challenges, particularly those arising from climate-induced disasters. The more the national army engages in controversial projects, the more it risks damaging its reputation. Politicians should refrain from awarding projects merely to appease the national army. And, parliamentarians instead of engaging in publicity stunts should work to resolve the problems faced by the Army in fast track to complete it on time. 

COP28 has concluded with an agreement that signals the ‘beginning of the end’ for the fossil fuel era by laying the ground for a swift, just and equitable transition supported by substantial emissions reductions and increased financial commitments.

Despite this progress, the absence of a concrete deadline for phasing out fossil fuels remains a notable shortcoming, particularly in meeting the crucial 1.5-degree temperature rise limit. While celebrations echo in the Western world, the outcome has left least developed and developing countries dissatisfied.The most celebrated outcome for countries like Nepal is the operationalization of loss and damage funds. But pledges made by big countries to the fund are disappointingly low at $700m.

 Studies show developing nations require a minimum of $400bn annually to effectively address loss and damage due to climate change. Furthermore, the operational details of the fund and its beneficiaries remain unclear. Nevertheless, Nepal achieved success in highlighting the agendas of mountainous regions and issues related to the least developed countries during COP28. 

High-level rhetoric does not automatically translate into action. We have struggled to attract sufficient funds from international sources in the past. For instance, due to a lack of sufficient homework and preparations, Nepal received very minimal support from the Green Investment Fund. While Nepal is technically eligible for loss and damage funds, the responsibility lies with the country to conduct thorough groundwork and preparations. Prime Minister Pushpa Kamal has returned home after attending the COP28. However, he has not held any meeting with agencies concerned to undertake the necessary preparations.

The Prime Minister is just engaged in a publicity stunt saying that Nepal has been loud and clear this time without specifying what that means. The global community is well aware of the severe impacts of climate change in Nepal. It is a brutal reality that Nepal is not alone in facing these challenges. Securing climate finance is a competitive process and it is contingent on a nation’s capacity. As far as documentation is concerned, Nepal has done a commendable job. 

The Ministry of Forests and Environment has done adequate study about the multifaceted impacts of climate change. However, Nepal lags behind in enhancing capacity for negotiations and research. While the ministry is the nodal agency for handling such issues, there is a lack of coordination among government bodies. PM Dahal should, therefore, form a high-powered mechanism dedicated to climate-related issues. The PM’s efforts to advocate for Nepal’s agenda will be judged by tangible actions, not mere words.