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The Millennium Challenge Account (MCA) Nepal may require an additional Rs 5 billion to complete its projects due to an increase in estimated costs. Nepal signed the MCC Compact in 2017, and the compact is set to be implemented from this September. “The implementation phase is beginning six years after the compact was signed. Factors such as inflation may contribute to the funding shortfall,” said Khadga Bisht, the executive director of MCA Nepal. Nepal was selected for the MCC compact in 2011. It, however, took six years to sign the compact. The compact was signed in Washington DC by Gyanendra Bahadur Karki, the then-Minister for Finance, and Jonathan Nash, MCC's Acting CEO, on September 14, 2017. The agreement was ratified by the parliament on February 27, 2022. As part of the MCC, Nepal is receiving $500 million, or around Rs 60 billion, to implement transmission line and road rehabilitation projects. "All vendors for these projects will have to be paid in US dollars, and prices have increased over the past six years. The Russia-Ukraine conflict has increased inflation further. Due to these factors, we estimate that the projects will face a shortfall of funds," added Bisht. After the compact was ratified by the parliament, MCA Nepal started implementing several preparatory works. Of the six pre-conditions for the projects, five have been fulfilled, while work is still underway to fulfill the sixth. According to Bisht, works such as the design and demarcation of transmission lines, preparation of environmental impact assessment (EIA), and the maintenance of a database of affected areas are currently underway. Land acquisition is currently underway in six out of the 10 districts that will be affected by the projects. These include Nawalpur, Chitwan, Palpa, Dhading, Tanahun, and Nawalparasi. Similarly, preparations are underway to begin land acquisition works in Nuwakot and Makwanpur. After that, MCA Nepal plans to begin acquisition works in Sindhupalchowk and Kathmandu districts. "We will have a better idea of the integrated cost once all land acquisition works are completed. Only then will we be able to determine how much additional funding will be needed for the project," Bisht explained. According to the EIA report, as many as 743 towers will need to be erected for the 315-kilometer transmission line. This will require felling of 200,200 trees in forests covering an area of 7,000 ropanis. MCA Nepal has announced plans to plant one tree for every tree felled as part of the project. However, the government has stated that 10 trees should be planted for every tree cut down. Bisht stated that they will finalize the number of trees to be planted very soon. MCA Nepal plans to begin tree marking work in April and complete it by June. As part of the transmission line project, MCA Nepal will build three 400 kV gas insulated substations in Ratamate of Nuwakot, Damauli of Tanahu, and Bhumahi in Nawalparasi. Additionally, the Lapsiphedi-Hetauda transmission line will be connected to Nepal Electricity Authority's existing substation in Hetauda. MCA Nepal estimates that approximately Rs 7 billion will be required for land acquisition. Thus far, it has spent around Rs 1.4 billion for the acquisition of around 400 ropanis of land for the Ratamate sub-station in Nuwakot. MCA Nepal has already invited tenders to select contractors and consultants for the project. Additionally, it plans to invite tenders to build substations in the near future. Bisht stated that MCA Nepal plans to sign agreements with the selected contractor and consultant in September. The five-year MCC clock will begin ticking from that date. Similarly, preparations for the road component of the compact have also begun. MCA Nepal will use the compact to upgrade 77 kilometers of the East-West Highway from Dang. For the first time in Nepal, MCA Nepal is introducing new technologies like full-depth reclamation and superior performing asphalt pavement (SuperPave). To facilitate the adoption of these technologies, six laboratories have already been set up at the Department of Roads. According to MCA Nepal, the design for the road has already been prepared. Likewise, MCA Nepal will also conduct regular maintenance on another 100 kilometers of road on the East-West Highway. Although the road section for maintenance has not been selected, Bisht stated that the Department of Roads could select the Mugling-Narayanghat road section.  

The construction of the diversion tunnel of the 216 MW Upper Trishuli-1 (UT-1) run-of-the-river hydroelectric project in Rasuwa District has been completed. The UT-1 is the largest hydroelectric project under construction with foreign direct investment in Nepal. The project in a press statement informed that a full concrete lining diversion tunnel with a length of 420 meters and diameter of five meters diameter has been successfully constructed. "The Trishuli river has been diverted via a diversion tunnel on Feb 28 to commence the construction activities of the head works," reads the statement. According to Tae Hak Yoon, CEO of Nepal Water and Energy Development Company (NWEDC), river diversion is a significant achievement in the development of UT-1. The project has completed a 4.5 km excavation of the 13.5 km tunnel, which includes the headrace, adit, and tailrace tunnel. The excavation work of the underground powerhouse has advanced by 21 percent, and the overall progress rate of the Project is 14 percent. The developer of the project plans to complete the construction within December 2026. The project's main construction started in January 2022 and is estimated to complete in December 2026. According to the statement, approximately 700 workers work at the construction site, including 300 local residents from Project affected Rasuwa district. The Korean firm Doosan Eneribility is the engineering, procurement, and construction (EPC) contractor for the project. UT-1 is expected to generate up to 1,533 GWh of electricity annually. Out of the total annual energy generated by the project, 38.75 percent will be generated during the dry season, which is higher than most of the other run-of-the-river hydropower projects in Nepal, thus contributing vastly to managing the dry season electricity shortfall. The project is considered attractive for the country's power system as it is close to the Kathmandu Load Center and will get 104 MW of electricity even in the dry season with high electricity demand. The generated energy will flow to the national grid by connecting it to the Trishuli-3B hub substation that the Nepal Electricity Authority is constructing currently. The USD 647.34 million project is financed through 70 percent debt and 30 percent equity. The project partners will provide an equity investment of USD 194.20 million. The credit oF USD 453.12 million is being provided by a group of international lenders, including the International Finance Corporation (IFC), Asian Development Bank (ADB), Korean Exim Bank (K-EXIM), Korean Development Bank (KDB), Asian Infrastructure Investment Bank (AIIB), FMO (The Netherlands), the British International Investment (BII), Proparco (France), and the OPEC fund for International Development (OFID). The shareholders of NWEDC include Korea South-East Power Company Limited, Korea Overseas Infrastructure and Urban Development Corporation, International Finance Corporation, and a local Nepali partner.

The price of gold has dropped by Rs 100 per tola in the domestic market on Friday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 102, 500 per tola today. The yellow metal was traded at Rs 102, 600 per tola on Sunday. Meanwhile, tejabi gold is being traded at Rs 102, 000 per tola. It was traded at Rs 102, 100. Similarly, the price of silver has dropped by Rs 5 and is being traded at Rs 1,265 per tola today.

UHS Holdings, a leading provider of interior solutions, has brought the German brand Hafele in Nepal. The company opened Hafele Design Studio at the Hafele Showroom in Gairidhara, Kathmandu on Thursday. The studio was inaugurated by Frank Schloeder, Managing Director, Hafele South Asia, and Purushottam Nyaupane, Chairman, UHS Holdings. UHS said that Hafele Design Studios are franchise-shop formats by Hafele that emulate the same retail environment and display settings that you will find in any of their company-owned showrooms. According to the company, the new studio will be home to all Hafele solutions represented in live and real-time display settings from architectural hardware and glass fittings, furniture fittings, and wardrobe solutions to digital security solutions, surfaces, lighting, appliances, and lots more. The Studio also displays Hafele’s in-house manufactured and engineered range of Kitchen fittings. During the event, Hafele and UHS Holdings' representatives highlighted the benefits of the cutting-edge technologies and superior functionality of Hafele’s product range designed to inspire architects and interior designers worldwide as well as its strong service proposition. Guests were also given a sneak peek into Hafele's latest offerings. "UHS Holdings is proud to be associated with Hafele, a brand that has a strong global presence and a reputation for excellence in interior solutions," said UHS Holdings Chairman, Nyaupane. "We are confident that our new Hafele Design Studio will provide our customers with access to smart concepts, innovative solutions, and infinite possibilities that are sure to enhance their living spaces”. UHS Holdings is known for its high-quality bathroom, ceiling, and railing furniture and other interior solutions.