Nepal & Bhutan Brief (12/15)

Political Developments:

Constitution Drafting:

1. Four major political parties namely Nepali Congress, NCP (UML), the Maoists and a Madhesi group agreed to a 16-point deal, on June 8, that could possibly lead to the Constituent Assembly to finalize writing of Nepal’s new constitution, nine years after the end of conflict. Even though some of the smaller constituents of the Maoist-led 30-member alliance have opposed the deal, this was unlikely to deter the CA from approving the draft of the new constitution. After years of bickering over the contentious issues of federalism, governance, Judiciary and elections, the ruling NC-UML coalition and the opposition Maoist-Madhesi combine were forced to make compromises after the earthquake. However, the real reason for the rush in striking the deal seems to be UML Chairman KP Oli’s impatience to become prime minister under a separate deal with the NC, Prime Minister Sushil Koirala, who would step down once the constitution was written and hand over the power to the UML leader. The break through finally came after Maoist leader Pushpa Kamal Dahal backed Oli’s ambition and assume Prime Ministership of a national unity government that would also include Maoist and Madhesi leaders as well.

2. The ruling NC-UML alliance agreed to an eight-province model of federalism as proposed by the Maoist-Madhesi parties, giving up their earlier demand for six-provinces. In return, the Maoist-Madhesis agreed to NC-UML’s proposal that names and boundaries of the provinces will be determined by future provincial councils and the proposed State Restructuring Commission (SRC) respectively. They had earlier wanted ethnicity-based names for the provinces with pre-determined.

3. Fringe parties in the UCPN(M) alliance favoured identity as a basis to carve out federal units, have opposed the deal. They maintain that approving the new constitution without naming the federal units and demarcating their geographical boundaries, will not ensure rights of marginalized communities. However, they do not have the numerical strength in the CA to prevent the NC-UML and the Maoist-Madhesi combine from passing the new constitution. The Maoists-Madhesi parties did not accepted the NC-UML’s proposal on system of governance, which is a continuity of an executive President, but agreed to present the draft of the new constitution with a note of dissent. Major parties also agreed that the lower house will have 275 members; 60 per cent being directly elected and the rest through PR system. Similarly, the upper house will have 45 members; all nominated. The deal also provides for a minimum threshold of three per cent of the total votes to be represented in the parliament. As for the judiciary, it was agreed to set up a constitutional court to act as the apex judicial body to deal with all disputes between the federal units. However, the existing model of judiciary will remain the same.

KP Sharma Oli the Key Political Leader:

4. With this agreement on an eight province federal model, being described as a landmark development, KP Sharma Oli has now emerged as the key political leader after the 2013 elections. The agreement was possible because of KP Sharma Oli, who was earlier ‘most inflexible’ on increasing the number of provinces beyond six, made a sharp departure to agree to have the eight-province formula. Oli convinced his own the party leaders and also took the UCPN-(Maoist) and a section of Madhesi leaders into confidence by holding several rounds of informal meetings. Except for former UML Chairman Madhav Kumar Nepal, no other leader of significance has so far opposed the new arrangement. Oli supporters claim that he will now get prime ministerial seat with the promulgation of the new constitution. NC will only extend outside support to its present coalition partner, the second largest party in the CA.

30-Party Alliance Splits:

5. The 30-party Alliance led by the Maoists in the CA consequently on June 8 after the 16-point agreement. On June 9, the divided alliance held two separate meetings. Pushpa Kamal Dahal held a meeting of 13 groups and hailed the agreement as ‘historic’. The other group described the deal as ‘regressive’, violating Article 138 of the Interim Constitution on the CA’s jurisdiction. Their leaders indicated that discussions were under way to incorporate political forces inside and outside the CA to form a new front. The Mohan Baidya-led CPN-Maoist faction too started discussions with 28 parties in the divided alliance to launch joint protests.

Nepal PM to Quit After Charter Announcement:

6. Addressing NC’s parliamentary delegation on June 9, Prime Minister Koirala urged the CA members of his party to play a positive role to bring an end to the constitution drafting process thereby completing the political transition. He said that the agreement had opened avenues for completing the long pending constitution drafting process. Koirala also made it clear that he would tender his resignation immediately after the constitution was promulgated. Nepali Congress’ parliamentary group endorsed the 16-point Agreement.

UN Secretary General Hails Agreement:

7. UN Secretary General Ban Ki-Moon hailed the 16-Point Agreement, signed by the major political parties of Nepal, as a major milestone in the country’s democratic development. In a statement, on June 10, the UN General Secretary said that this achievement was particularly laudable as it was reached amid challenging circumstances caused by the recent earthquakes. He urged all political leaders to take decisive steps to implement the agreement, work on the remaining issues and complete the constitution drafting process through inclusive consultation in the broad interest of the Nepali people. The Kathmandu-based international community also welcomed the “The spirit of unity” that Nepali political leaders displayed in reaching the agreement.

PDCC Submits Consensus Report on Statute:

8. The Political Dialogue and Consensus Committee (PDCC), on June 11, submitted a consensus report on the disputed statute agendas to the Constituent Assembly clearing the way for preparing the first draft of the new constitution. The report presented by PDCC Chairman Baburam Bhattarai will now be forwarded to the Drafting Committee after deliberation in the full house. The Drafting Committee headed by Nepali Congress leader Krishna Prasad Sitaula will have to prepare the first draft of the constitution within 15 days. Though the parties have agreed to start the drafting process, some minor provisions of the preamble remain unsettled. The parties agreed to continue negotiations on the contentions issues while the draft is readied. The parties were split over how to describe Maoist insurgency in the new constitution: The Maoist want to term it as “people’s war” while the NC and the CPN-UML want it described as ‘armed insurgency’. The parties also debated terms such as “inclusive” and “proportional representation of the oppressed and marginalized communities”.

Citizenship from Either of Nepali Parents:

9. In another historic step, the major parties in CA, on June 10, agreed to incorporate in new clause in the new constitution providing for grant citizenship to any applicant through either of the parents (mother or father) who holding Nepali citizenship. Women’s rights activists have hailed the decision and said that it had sent the message that women were equal citizens of the country. Although the Citizenship Act (2006) and the Interim Constitution (2007) allow the child of a Nepali mother or a father to become a Nepali citizen by descent, the citizenship draft bill prepared in 2012 by the first CA had included the clause that both parents must be Nepali citizens for their children to acquire Nepali citizenship.

Indian Communist Leader Yachuri Denounces India - China Statement:

10. Visiting General Secretary of the CPI(M), Sitaram Yachuri during his meeting with CPN-ML Secretary General CP Mainali, on June 10 denounced the recent joint statement of India and China on opening trade route through Lipo/Lekh, which Nepal government claims to be inside its territory. He added that the two countries should have consulted Nepal prior to deciding the plan. Yachuri, was in Kathmandu to donate Rs 30 million to the Prime Minister’s Disaster Relief Fund, on behalf of his party. It may be recalled that in the joint statement issued on May 15 in Beijing during Indian Prime Minister Narendra Modi’s China visit, the two countries had expressed their plan to expand border trade at Qiangla/Lipu-Lekh pass, a far western point of Nepal.

Bajaj India Donates Rs 160 million to PM Relief Fund:

11. Bajaj Auto Ltd. India has provided Rs. 160 million to Indian Prime Minister’s Relief Fund as contribution to support the rehabilitation and rebuilding efforts in Nepal.. The aid will be redirected to Nepali Prime Minister’s Relief Fund. The company has also contributed a sum of Rs. 8 million to SEWA, an NGO working for the needy and self employed women workers in Nepal. Meanwhile, the Kantipur Media Group and National Human Rights Commission (NHRC) (Nepal) also donated Rs. 44.31 million and Rs. 105,334 respectively to the Prime Minister Disaster Relief Fund.

55 Dead in Teplejung Landslides:

12. Massive landslides triggered by incessant rains hit Teplejung district, on the night of, June 10, leaving 55 people dead. However, the District Police office confirmed only 21 deaths so far. The landslide has placed the human settlements near the Tamor and Mewakhola at risk. Even the trekking routes to the land slide area have been swept away, which adversely affected the rescue work.

Large Deposit of Uranium Found in Nepal:

13. A team from the Department of Mines and Geology (DoMG) has found large deposit of uranium in upper Mustang in Nepal bordering China. The survey included geological mapping and collecting rock chip samples for lab tests from a 100 square Km area in the Himalayan region. However, the quantity or the grade of the deposit could not be confirmed, so far. Additional time will be needed for final conclusion about the quantity and quality of uranium. Survey for uranium mines in the remote mountainous north has been going on for more than two decades after preliminary studies suggested the presence of mineral in 25 locations across the country.

Accord on Vehicular Movement Signed:

14. As decided at the SAARC Summit in Kathmandu, four member states—Nepal, India, Bangladesh and Bhutan signed a Motor vehicle Agreement (MVA) in the Bhutanese capital Thimpu on June 15. The agreement will allow movement of passengers and cargo in the four SAARC nations without having to change vehicles at the borders. Detailed mechanism for its implementation will be fixed bilaterally and trilaterally. The agreement has been pitched as one of the most crucial aspects in increasing trade, tourism and connectivity within the SAARC region to strengthen socio-economic ties. The agreement, it may be recalled, could not be inked during the 18th SAARC Summit as Pakistan had some reservations.

Chinese Goods to Move via Kolkata:

15.On account of extensive damages to the trans-border trading routes between China and Nepal at Liping, Tatopani, Kodari and Rasumagadhi due to the devastating earthquake, Nepal’s import and export with China have come to a grinding halt for over one and half months. Nepal imported goods worth Rs 78 billion from China in fiscal year 2013/14 and its export stood at Rs 2.9 billion. The loss of revenue on this account is estimated at around Rs. 20 million per day.

16. In view of this, traders have started planning to import Chinese goods via Kolkata even though it would be costly and time consuming. The shipping time to Kathmandu via Kolkata is at least 45 days while transportation Tatopani and Rasumagadhi takes only 2 weeks. Major products imported from China are, apparel, textiles, electronics, machinery and other equipment, leather products, fruits, nuts, Chemicals, rubbers, plastics, metal products and motor parts. On the other hand, Nepal exports products such as textiles, mineral products, vegetable oils and fats and cereal crops, but no high value-added products.

Modi Not to Attend Donors Conference in Kathmandu:

17. Finance Minister Ram Sharan Mahat visited New Delhi(June 12) to invite PM Narendra Modi to the international conference of donors being held in Kathmandu on 25 June. On June 13, PM Koirala also spoke to PM Modi. Modi apparently assured Koirala that he would visit Nepal if his schedule permitted. It has now been decided that Foreign Minister Sushma Swaraj will represent India at the meet.

18. According to media speculation PM Modi wanted to organize the conference in India but Koirala turned it down. Ranjit Rae, Indian ambassador to Nepal, reportedly met with Koirala’s close aides to persuade Koirala to change his mind but Koirala appeared resolute. As regards the Chinese President, the invitation was sent through the normal diplomatic channels.

Bhutan

Prime Minister Visits Brussels:

1. At the invitation of Jean-Claude Juncker, President of the European Commission, Prime Minister Lyonchhen Tshering Tobgay, arrived in Brussels on June 10. Lyonchhen separately met the Ambassador and officials of the Royal Bhutan Embassy and Honorary consuls of Bhutan in Europe, representatives of the friendship Association and business interest groups in Europe. During these interactions the visiting Prime minister spoke about developments in Bhutan and the role of embassy in promoting Bhutan’s interest in Europe. In the meeting with the business representatives, he highlighted business opportunities in Bhutan and requested them to explore investment opportunities in the countery.

ADB’s Fresh Assistance to Strengthen Bhutan’s Economy:

2. Asian Development Bank (ADB) approved loan and grant assistance totaling $ 36.2 million for the second phase of Bhutan’s Management Strengthening Programme. The first phase helped the Government of Bhutan to overcome liquidity crunch and stabilize the economy in fiscal year 2013. The second phase will support measures to boost government revenues through improved revenue administration.