Impetus on second airport for Kathmandu
Kathmandu: The government is allocating Rs 250 million for the construction of a domestic airport at Nagidanda of Kavrepalanchowk district, at a distance of 24 kilometers from the Tribhuvan International Airport (TIA) in Kathmandu. The airport is being constructed in order to relieve the growing pressure on the TIA, which is so far the country’s only international conduit. The money will be spent by the Ministry for Culture, Tourism and Civil Aviation on feasibility study and preparing a detained project report.
The new airport, which will handle only domestic flights, is expected to cut air traffic at TIA by up to 31 percent. When the new airport is complete, the bigger international airlines will dock at the TIA, while the smaller planes that ply the domestic routes will dock at the Nagidanda airport.
Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari has been emphasizing the urgent need for an airport that could take some pressure off the TIA ever since he assumed office four months ago. He had even set up a technical team to study the project. The team led by Engineer Kamal Kumar KC had concluded that the burden on the TIA would be significantly reduced with a second airport close by.
But yet another team that was set up by Adhikari to study what could be done to improve the overall civil aviation sector in Nepal had come to the conclusion that the country did not need any airport that catered exclusively to domestic passengers for another five years.
Nonetheless, the government is in a mood to endorse the report of KC’s technical team. According to this team, the construction cost of the Nagidanda airport, with a proposed runaway of 1,202 meters, will come to around Rs 8.5 billion. But if the runway is only 800 meters, the cost will drop to Rs 5.5 billion.
The technical team has said that works can begin, at the earliest, only a year after the formal announcement of airport construction; the airport is expected to take around 4-5 years to compete. When it is ready, small aircraft, aircraft flying to Lukla and helicopters will be directed to this new airport.
By Uttam Kapri
The geopolitical context of Oli’s China visit
The ease with which Prime Minister KP Sharma Oli has been dealing with Nepal’s two all-important neighbors in recent times is indicative of two things. One, it suggests a level of diplomatic acumen and strategic vision that is rarely seen in a Nepali prime minister. Oli has been able to take both Indian Prime Minister Narendra Modi and Chinese President Xi Jinping into confidence, a gargantuan achievement for the prime minister of a country that has always felt itself stretched in that age-old geopolitical tug-of-war. Part of this confidence must come from Oli’s command of a government with a two-thirds majority. Partly, it can be argued, one thing Oli has never lacked is confidence, which he has now carried over in his foreign policy dealings.
Two, PM Oli’s relatively smooth foreign policy ride is also reflective of the recent thawing of relations between India and China. Modi and Xi seems to have developed a rare camaraderie as they see the rationale for greater cooperation in light of the increasingly protectionist tendencies of the US. India is far from assured that the mercantilist America under Donald Trump can be relied on to safeguard its strategic interests, which in turn has brought it closer to China. Perhaps, then, India and China have agreed on greater cooperation in South Asia, including in Nepal?
On June 20, Chinese President Xi, in his meeting with PM Oli in Beijing, said he was confident the Chinese rail would soon come to Kathmandu. (The feasibility study for the Kathmandu-Kerung section of the proposed Nepal-China railway is to be completed by August.) On being invited by Oli to come visit Nepal, Xi accepted the invitation, saying that the exact dates would be decided on the basis of bilateral consultations. A host of other long-term bilateral agreements were also signed during Oli’s Beijing stay.
And yet the Indian media, which used to blow hot and cold over any kind of rapprochement between Nepal and China, has this time mostly chosen to stay quiet on Oli’s China visit. The Indian media seems to have internalized the not-so-subtle message from the South Block that the old anti-China bias be set aside for time being.
Perhaps PM Oli deems himself capable of extracting benefits from the recent thaw in India-China ties. He just might but he should tread carefully. Historically, in a battle among big powers for geopolitical supremacy, the interests of smaller countries are often ignored, or badly trampled upon. This has been as true in South Asia as it has been in the South China Sea.
Billion-rupee World Cup business
The FIFA World Cup, the world’s biggest sporting event, is a big deal in Nepal. Whole streets have morphed overnight into makeshift Brazils, Argentinas and Spains. People can be seen going about their lives in the jerseys of their favorite teams. With live screenings, restaurants are doing a roaring business. Newspapers and TV channels are filled with endless news of Lionel Messi and Harry Kane.
There are indeed millions of die-hard World Cup aficionados in Nepal. Then there is another group of people who are perhaps even more interested in this quadrennial sporting extravaganza: the gamblers.
Sports betting is an established practice in the developed world but in the Indian subcontinent it is relatively new, and illegal. Nonetheless, thousands of Nepalis have wagered their money on the teams they fancy, despite the Kathmandu Chief District Officer’s clear warning before the World Cup that anyone involved in gambling would be penalized. Nor has the arrests of those involved in the Indian Premiere League bookmaking back in May deterred them.
APEX reporters visited some suspected “gambling dens” of Kathmandu to find out more. Sports bars, restaurants, pubs and even small coffee shops and tea houses have become meeting points for these gamblers and bookies. On our expedition, we found gamblers staking just Rs 500 a game to high rollers betting hundreds of thousands. The bookies, for their part, came from all walks of lives, some temporarily taking up betting to make quick money, others earring a living out of it.
Full story on Sunday
The mixed results of cartel-busting
The ruling Communist Party of Nepal has repeatedly expressed its commitment to battling cartels and syndicates in every sector. It has done a few things too. The registration of various transport cartels has been cancelled. The syndicate involved in exploiting Malaysia-bound Nepali laborers has been busted. The government also seems to be getting tough on the syndicates on daily edibles. And yet most people seem unsatisfied, or unsure of the government intent. “The government is advertising that the syndicates in different sectors have been broken. But the reality is that most consumers are yet to see any tangible change in their daily lives,” says Jyoti Baniya, a senior advocate and President of the Forum for Protection of Consumer Rights Nepal.
The battle against the syndicates began in April 2018 with the issuance of the Transport Management Directive that threatened to break transport monopolies. The government decision was met with massive protests of transport entrepreneurs amassed under the umbrella organization of the Federation of Nepalese National Transport Entrepreneurs Association.
Unlike what happened in former times, the government of the day did not budge to this pressure tactic. After making various arrests and cancelling the route permits of the protesting companies, the transport federation backed off and new bus companies were added on the Araniko Highway, which had been at the heart of the power struggle between the government and the transport syndicates.
Subsequently, Mayur Yatyat, Sajha Yatayat, City Metro, Mahanagar Yatayat, Shiva Darshan, Madhya Upatyaka and Annapurna received ‘direct permits’ from the government and have since started their services. “But these buses are not enough to meet the high demand,” says Baniya. The consumer rights activist believes that many more transport companies need to be introduced to completely do away with the syndicates in the sector.
Moreover, the government intent to take on transport syndicates has been a suspect following some questionable transfers of the bureaucrats involved in recent syndicate-busting activities.
Manpower mess
The government recently cancelled the registration of a few companies that had created a syndicate for Malaysia-bound workers.
Since 2013, four different companies—the One Stop Solution (OSC), the Malaysia VLN Nepal Pvt. Ltd, the GSG Services Nepal, and MiGram—had formed a syndicate that together earned Rs 4.6 billion on the pretext of providing medical checkups, visa stamping, security clearance, passport collection and online registration services to the Malaysia-bound laborers. On assuming office, the Minister of Labor, Employment and Social Security Gokarna Bista swiftly revoked their license and had those who had restricted free competition for bio-metric health checkups of migrant workers arrested.
Manpower company operators, however, believe the government acted in haste. “The companies involved were established in coordination with the Malaysian government. Shutting them down without proper homework could affect thousands of Nepali workers set to leave for Malaysia,” says one such operator on the condition of anonymity.
“The government always attacks us without justification. We are a remittance-based economy and without recruitment agencies like us handling the demand and supply of workers, how does the government expect to increase remittance?” he asks. This manpower operator says he alone spent over two months and around Rs 5 million to create demands for Nepali workers in Malaysian companies, to no avail.
Having set a strong precedent in the case of Malaysia, Nepal could be forced to get tough on labor export to other Gulf countries as well. Emulating Malaysia, Qatar, another big destination for Nepali migrant workers, is preparing to install a ‘one-door mechanism’ of its own to hire workers from Nepal and seven other countries. Qatar plans to open a private recruitment company that will take care of all migrant labor-related issues, from recruitment to departure. The extra costs will undoubtedly be passed on to the laborers applying to go to Qatar. Government officials declined to comment when APEX wanted to know if the government would also look to get tough on the prospective suppliers of manpower to Qatar.
Fruits of labor
Cartels are also responsible for artificially inflating the prices of daily commodities. Take the case of fruits and vegetables. The two main wholesale fruits and vegetables markets in Kathmandu—Kalimati and Balaju—have drawn the government’s attention following complains of irregular and unscientific pricing there.
Minister for Agriculture Chakra Pani Khanal made a surprise inspection of the Kalimati market this week and identified various cartels. “We have shortlisted 434 businessmen who are involved in creating a syndicate in the vegetable market,” says Bomlal Giri, media coordinator for minister Khanal. “We have issued them stern warnings and have asked them to furnish clarifications.”
One example of the syndicates operating in Kalimati wholesale market is the one related to rent of the stalls there. The ministry found that a few businessmen have been occupying the same stalls for over 15 years. These businessmen pay around Rs 8,000-10,000 in rent to the market operator while they sublet the same space for up to Rs 200,000. This naturally translates into inflated end prices for the final consumers, much to their chagrin.
“I have been in the business of selling vegetables for a year now but I still have not been able to find the logic behind the pricing,” says Avilash Pantha, a shopkeeper who runs a vegetable store in Ranibari, Kathmandu. “The prices are raised in the wholesale markets but it is us, retail shopkeepers, who have to face the wrath of the customers.”
Minister Khanal’s visit to the Kalimati market was followed by protests by local businessmen, along with threats of imminent strikes. “But the ministry is ready to take them all on,” said a source at the agriculture ministry. In fact, with the help of the home ministry, the ministry of agriculture is planning to remove middlemen in vegetable markets across the country.
All in all, the all-powerful left government has made some right noises and taken some bold decisions. But again, unless these cartel- and syndicate-busting measures translate into lower costs and ease of access for end consumers, they will be meaningless. That, in the end, will be the real test of the popularity of Oli government.