House panel endorses bill on reconstruction authority

The Legislation Committee of the Legislature-Parliament today endorsed the Reconstruction Authority Bill that had been lying with the panel for around two months due to the dispute between the government and the main opposition party over the provision of appointment of the authority’s chief executive officer.

After the Nepali Congress agreed to forward the bill to the full House by attaching its different opinion, the panel’s meeting today decided to forward it to the full House.

As per the changes made by the new government to the original bill that was registered by the previous NC-led government, a new CEO can be appointed instead of giving continuity to Govinda Raj Pokharel, who was appointed as CEO by the previous government through an ordinance.

His post was discontinued after the ordinance expired and CPN-UML and Unified CPN-Maoist rejected to pass the bill brought to give continuity to the works of the authority formed as per the ordinance.

The NC wants Pokharel to continue as CEO, while UML and UCPN-M want to appoint new CEO.

“The government could have begun reconstruction work two months ago had the UML and UCPN-M allowed the bill to pass during the NC-led government. However, the two parties registered 73 amendment proposals to obstruct the passage of the bill and insisted on appointing a new CEO,” said NC lawmaker Nabindra Raj Joshi.

Joshi said the NC would put forth its views during discussions in the full House and it hoped the government would forge consensus on it rising above political interests, as it is in the national interest.

The bill will be discussed in the full House before it is put to vote after the ongoing obstruction of the House by Madhes-based parties ends.

Sources said the ruling coalition has provisioned in the bill to make leader of the main opposition party the vice-chairperson of the consultative committee and vice-chairperson of the directive committee of the authority in an attempt to woo the NC.

Relations between coalition partners NC and UML had soured after UML opposed NC’s move to make Pokharel the CEO of the authority.

Minister for Law, Justice and Parliamentary Affairs Agni Kharel hoped that the agitating parties would help pass the bill by ending their House obstruction.

The next meeting of the House has been scheduled for 3:00pm tomorrow.

Although Nepal’s development partners have pledged $4.4 billion for the reconstruction work, the work has not begun in the absence of reconstruction authority.

Setting up the authority has been affected even after more than seven months of the April 25 devastating earthquake due to government’s lackadaisical approach and dispute among major political parties over key issues.

source=sabkura.pvt.ltd

Protests by Anti-India in Kathmandu Reflect Frustration With Blockade of Nepal

KATHMANDU, Nepal—Protesters protests their frustration with India’s ongoing trade blockade of Nepal, which has created a nationwide fuel and medicine shortage and slowed the country’s economy to a standstill.

Hundreds of protesters filled Lazimpat Road on Friday, marching toward the Indian Embassy, shouting anti-Indian chants and carrying signs in both English and Hindi that admonished India for the blockade.

India is Nepal’s No. 1 trading partner, but it restricted the flow of transport trucks after Nepal adopted a new constitution in September. Deadly protests erupted in Nepal’s southern Terai region following the constitution’s adoption, and more than 40 died in related violence.

India argues that Nepal’s new constitution needs to better represent its southern regions, which have close ethnic ties to India. Officials in Kathmandu and citizens across Nepal, meanwhile, accuse India of violating their country’s sovereignty.

Nepal gets 60 percent of all imports and nearly all of its fuel from India. Consequently, wood is being used to cook food and heat homes throughout the country.

With winter setting in across the Himalayas, many remote villages without road access are in danger of not having enough fuel stockpiled before snow blocks routes accessible only by foot.

India’s unofficial trade blockade also has hampered Nepal’s ongoing efforts to rebuild after two massive earthquakes in 2015. Without fuel, international aid can’t be delivered to some of the most affected areas.

As evidenced by Friday’s protests, the trade dispute has sparked anti-Indian sentiment across Nepal. It has spurred many to demand closer ties with Beijing and to call for the reopening of northern trade routes into China across the Himalayas, which were damaged in the earthquakes.

source=sabkura.pvt.ltd

Lights out for Rio 2016? Main power supplier pulls Olympic bid

RIO DE JANEIRO: Longtime Olympic power provider Aggreko  has pulled out of a tender to supply generators for the games in Rio de Janeiro next year, the spokesman for Rio 2016 told Reuters, dealing a major blow to organizers rushing to secure an energy source for the world’s largest sporting event.

The temporary power contract is a vital part of Olympic preparations, guaranteeing a stable and secure energy supply for international broadcasters, the opening and closing ceremonies, as well as back-up electricity for the venues.

The most experienced bidder pulling out on such a crucial contract is a worrying sign for Olympic organizers who are under huge pressure to cut spending as Brazil languishes in its worst recession in 25 years. The government has already warned that there is no money to cover any cost overruns.

Preparations for South America’s first Olympics have been dogged by concerns over the polluted bay where the sailing will be held as well as violence spilling over from heavily policed slums, or favelas. Officials say construction of venues and infrastructure remains on track, but recently admitted Brazil’s recession is making delivery more difficult.

Glasgow-based Aggreko, which has been involved in nine Olympics and six World Cups, declined to comment because the result of the tender has not yet been announced. Sector analysts said not being awarded the contract could impact Aggreko’s 2016 earnings and shares in the company closed down 1.8 percent.

For London 2012, Aggreko’s power deal was worth nearly $60 million, although the Rio 2016 contract is expected to be less as it is smaller in scope.

Rio 2016 spokesman Mario Andrada told Reuters he was comfortable with the companies still competing for the tender, the winner of which will be passed to the board for approval on Tuesday.

LACKING CAPACITY

Two other sources with knowledge of the tender process said the companies left in the running were a mix of Brazilian and international firms, but said it was unlikely any of them had the in-country capacity and Olympic experience to fully meet the needs of the contract. It is likely that whoever wins would have to lease generators from Aggreko, they said.

“There is increased risk of it going to someone who doesn’t have the experience. Are there people out there with enough equipment? Probably. But in terms of the operational side of things, Aggreko are pretty good at this,” said Will Kirkness, an analyst at Jefferies.

Heavy equipment maker Caterpillar is one international firm that industry insiders say could be in the running to provide the power equipment. Caterpillar did not immediately reply to a request for comment.

Brazilian temporary power supplier Tecnogera said it was bidding for the contract and had the expertise and capacity to fulfil it without leasing third-party equipment.

“We haven’t been hit by the dollar, don’t have to import equipment and can deliver this contract for a better price,” Tecnogera Chief Executive Abraham Curi said. He admitted the company had never provided power for a sporting event of this scale before, but said requirements were similar to jobs it had done for nuclear and water projects in Brazil.

It is unclear why Aggreko pulled its tender, but the sources said they thought the firm had tired of two-year-old negotiations, as well as constant changes in both the scope of the tender and who would be paying – the government or organising committee.

Organizers are trying to find substantial savings, as much as 30 percent in some areas, as Rio 2016 scrimps to avoid going over its 7.4 billion reais ($1.9 billion) budget. But with inflation at 10 percent, the Brazilian currency weakening against the dollar and last-minute work always costing more, cuts are proving difficult.

Time is now tight, too. For London 2012, the winner of the power contract was announced 20 months before the games started. The Aug. 5 to Aug. 21 games in Rio are just eight months away.

In 2012, Aggreko’s pre-tax profits surged 11 percent, helped by its London Olympic contract. Aggreko provided London 2012 with 550 generator sets, 1,500 kilometers of cable and 5,500 distribution panels across 39 venues.

source=sabkura.pvt.ltd