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This week, Foreign Minister Arzu Rana Deuba made an official visit to India at the invitation of Indian Minister for External Affairs S Jaishankar. While her discussions with Jaishankar focused on bilateral issues, her meeting with Indian Prime Minister Narendra Modi garnered the most attention. It is rare for Nepali foreign ministers to meet Modi during their visits to New Delhi, and those who do often gain significant political traction back home.

In Nepal, Rana’s meeting with Modi has sparked various interpretations. Some view it as a sign of the high priority India places on its relationship with Nepal. Others suggest that recent developments in Bangladesh may have prompted New Delhi to engage more closely with its neighbors. CPN (Maoist Center) Chairperson Pushpa Kamal Dahal quickly added to the speculation, claiming that Rana’s meeting with Modi might have unsettled Prime Minister KP Sharma Oli. Dahal hinted that India’s treatment of Rana as an equal to the prime minister might have been a calculated move, especially as Oli awaits an invitation to visit New Delhi. 

There is now speculation about a potential visit by Modi to Nepal, which would reverse the traditional pattern of Nepali prime ministers visiting India first. People are curious whether India has formally invited Oli to India.

Another important news this week concerned the Millennium Challenge Corporation (MCC). It has been a year since MCC came into effect in Nepal. This week, the Millennium Challenge Account Nepal (MCA-Nepal) shared an update on the progress made over the past year. MCA-Nepal announced that it has completed the procurement for some contracts and made significant strides in preparing sites for contractors. However, doubts remain about whether the two MCC projects—a transmission line and a road upgrade—will be completed within the five-year timeline, given that four years now remain. Although political opposition to the MCC has waned, frequent changes in government and bureaucratic reshuffling continue to pose challenges. The successful implementation of the MCC is a priority for the US, particularly given opposition from communist parties and China.

Talking about the growing American interest in Nepal, US Deputy Secretary of State for Management and Resources Richard R Verma visited Nepal this week. During his visit, he met with top political leaders and made significant announcements, including US support for the Nepali Army. Foreign Minister Rana, via a post on X, announced that the US would provide Nepal with two Skytrucks and two additional Bell helicopters to support disaster management efforts.

There was also a welcoming development for young content creators and small business owners this week, as the government made an announcement to lift the ban on TikTok, which was imposed a year ago. Following directives from Prime Minister KP Sharma Oli, the Ministry of Communications has begun preparations for the ban’s removal. Last year, the government, led by Pushpa Kamal Dahal, banned TikTok citing concerns about social cohesion. After the ban, TikTok representatives lobbied intensively, promising to remove objectionable content. They argued that the government banned the app without providing any specific reasons, noting that Nepal is one of TikTok’s largest markets in South Asia. At the time, the ban had broad political support despite concerns about free speech.

Now onto the ongoing internal conflict inside CPN (Maoist Center). It appears that Maoist Chairman Pushpa Kamal Dahal and senior leader Janardhan Sharma have reconciled following a tense exchange at the party meeting. Sharma is the first leader since Mohan Baidya and Baburam Bhattarai (2006-2015) to openly challenge Dahal’s leadership. He made two strong points: Dahal should pass the party leadership to younger leaders, and Dahal used state agencies to punish Sharma and others when in power. Currently, three leaders—Sharma, Barsha Man Pun, and Narayan Kaji Shrestha—are vying to succeed Dahal as party chair. However, Dahal is reluctant to relinquish power and is instead working to strengthen the party by forming alliances with fringe Maoist factions and the CPN (Unified Socialist) led by Madhav Kumar Nepal. Dahal is reportedly trying to convince Nepal to support party unification by offering him the position of prime minister.

This week, the federal parliament passed a bill to amend some controversial clauses in the transitional justice Act. While major political parties support the bill, some human rights organizations and conflict victims have criticized it, arguing that it does not meet international standards. This opposition could undermine the effectiveness of the two transitional justice bodies, as has happened in the past. On a positive note, most major countries, except India, have welcomed the passage of the bill, which will be crucial for the success of transitional justice mechanisms. Attention is now focused on upcoming appointments to the transitional justice bodies.

Minister for Education, Science, and Technology Bidya Bhattarai revealed this week that officials at the Tribhuvan University (TU) have been receiving threats. In a social media post, she requested that the Ministry of Home Affairs provide security for the officials and address the growing problem of hooliganism in educational institutions. She emphasized that turning educational institutions into arenas for political conflict is a troubling trend that political parties must take seriously.

In another story this week, the Ministry of Health and Population raised concerns about the risk of monkeypox infection, which is spreading rapidly in Asia. Ministry Spokesperson Dr Prakash Budhathoki warned that with the infection spreading in neighboring India, Nepal is also vulnerable. It’s worth noting that a 60-year-old foreign woman was diagnosed with the virus in Nepal last year.

Also this week, the news about the devastating flood caused by a glacial lake outburst at a village in the Everest region raised alarms, particularly among climate scientists and environmentalists. Although no casualties were reported in the incident, the scale of the flood was huge. The flood, which tore through the village of Thame, underscores the growing risk posed by glacial lake outbursts in Nepal. According to a 2020 study by the International Centre for Integrated Mountain Development (ICIMOD), there are around 2,070 glacial lakes in Nepal, many of which are at risk of bursting. Government authorities need to address this issue urgently.

That’s all for this week. Have a great weekend!

Out of 753 local levels across Nepal, 539 have been fully electrified, while 196 are partially connected to the national grid. Eighteen local levels remain without access to the grid, but these areas are powered by micro-hydropower projects and solar plants.

According to the Nepal Electricity Authority’s (NEA) 2023/24 electrification data, 99 percent of the population now has access to electricity. This data, collected through a comprehensive study down to the ward level, shows that there are currently 5.9m electricity customers. Of those with electricity access, 97 percent receive power from the national grid, while the remaining three percent rely on alternative sources.

A total of 590 local levels have been electrified between 95 to 100 percent and 72 local levels have seen 75-95 percent electrification while it is 50-75 percent in 33 local levels, 26-50 percent in 26 local levels and up to 25 percent in 32 levels.  

NEA Managing Director Kulman Ghising emphasized the authority’s commitment to implementing the government’s goal of providing reliable and high-quality electricity to all citizens within the current fiscal year. He noted that in the fiscal year 2015/16, the electrification rate was just 58 percent, a figure that has now surged to 99 percent, marking significant progress. Ghising stated that NEA is working to identify and connect households in remote areas that still lack electricity. “We are prioritizing providing quality services to areas with existing electricity access and are dedicated to connecting those without NEA services.”

Efforts are also underway to bring electricity to homes in the geographically challenging mountainous and hilly districts of Karnali and Sudurpaschim provinces within a year. The NEA has already selected contractors and commenced electrification projects in the hilly regions of Lumbini, Karnali, and Sudurpaschim provinces, funded by a $220m soft loan from the Asian Infrastructure Investment Bank (AIIB) and the European Investment Bank (EIB).

Ghising also mentioned that the NEA is extending electricity access in other regions through government investments and allocating a portion of the authority’s earnings for this purpose.

Among the seven provinces, Madhes province has 100 percent electrification while Koshi has 99.3 percent, Bagmati 99.97 percent, Gandaki 99.4 percent and Lumbini 98.49 percent electrification. Karnali province has the least electrification at 74.38 percent. Sudurpaschim province has 86.58 percent electrification.

Out of 77 districts, Humla is the only district not connected to the national grid. The district relies on micro-hydropower and solar energy projects for electricity. 

Fifty-six out of the 77 districts have between 95 to 100 percent electrification while it is 75 to 95 percent in 10 districts, from 50 to 75 percent in five districts and between 25 to 50 percent in six districts. 

In Koshi Province, all 14 districts except Solukhumbu and Sankhuwasabha have over 95 percent electrification, with Solukhumbu at 89.04 percent and Sankhuwasabha at 93.99 percent. Jhapa, Morang, Sunsari, and Dhankuta districts are fully electrified.

In Madhes Province, all eight districts have been fully electrified. In Bagmati Province, 13 districts, including Kathmandu, Lalitpur, Bhaktapur, Ramechhap, Nuwakot, and Chitwan, have 100 percent electrification. The remaining districts have over 95 percent electrification.

In Gandaki Province, Tanahu, Syangja, Parbat, and Kaski districts are fully electrified, while Manang has 87.81 percent electrification, and the remaining districts exceed 95 percent.

In Lumbini Province, the lowest electrification rate is in Rukum East at 32.24 percent, and in Rolpa at 85 percent. Nawalparasi, Rupandehi, Kapilvastu, Arghakhanchi, Gulmi, and Bardiya are fully electrified, with other districts above 95 percent.

In Karnali Province, Rukum West has the highest electrification at 95.8 percent, while Mugu has the lowest at 31.8 percent. Other districts include Surkhet (86.48 percent), Dailekh (81.05 percent), Salyan (79.5 percent), Jajarkot (49.8 percent), Kalikot (70.96 percent), Jumla (62.47 percent), Dolpa (42.75 percent), and Humla (32.51 percent).

In Sudurpaschim Province, Kanchanpur and Kailali are fully electrified. However, Bajura has only 33.51 percent electrification, while Dadeldhura has 94.08 percent, Doti 88.04 percent, Achham 65.97 percent, Baitadi 61.73 percent, Bajhang 69.03 percent, and Darchula 84.01 percent.

Ghyang Phedi Secondary School of Nuwakot saw 16 of the 17 students fail in the recent Secondary Education Examination (SEE), a staggering 95 percent failure rate that underscores significant deficiencies in the school’s educational system. A closer observation reveals multiple contributing factors, including prevalent child marriage, with some students already having children, which disrupts their focus and continuity in academics. Additionally, underqualified teachers and an insufficient number of staff have resulted in a substandard quality of education compared to private schools.

Geographical challenges exacerbate these issues, with many students forced to walk for hours to attend school, creating significant physical and time burdens. Unlike students in private schools who often attend extra tuition classes, students from Ghyang Phedi Secondary School are typically engaged in household chores after school, further detracting from their academic pursuits.

This problem is not isolated to Ghyang Phedi Secondary School but is indicative of a widespread issue across Nepal. An alarming 52.13 percent of SEE students nationwide have been categorized as non-graded, meaning that more students failed than passed—a record high in the last five years. This rise in the failure rate coincides with a policy change in Nepal's grading system. Since 2016, students needed a 1.6 GPA to progress to grade XI, regardless of individual subject scores. However, starting this year, students must achieve at least 35 percent in each subject, both in theory and internal assessments, to advance. Failure to meet these criteria necessitates retaking the subject, even if the overall GPA exceeds 1.6. This change, intended to reform the education system and improve the quality of human resources, has made it more difficult for students to pass. However, expecting meaningful results without adequate investment in resources is unrealistic.

Class differences, economic disparities, geographical challenges, and societal structures remain substantial barriers to quality education in Nepal. For instance, Bagmati Province had a failure rate of 33.88 percent, while Karnali Province saw a failure rate of 50.02 percent. In Lumbini Province, 61.2 percent of students failed, and Sudurpaschim Province had the highest failure rate at 68.12 percent. The stark contrast between private and government schools has been evident across Nepal for decades. Private schools consistently produce better results due to better staffing, funding, infrastructure, and access to course materials. Students from more affluent backgrounds attend private schools, while others are compelled to attend under-resourced government schools. Bagmati Province, which has the highest number of private schools, also has the lowest failure rate, highlighting the role of economic and class disparity in the quality of education.

Geographical challenges further compound these issues. Bagmati Province, with the best transportation infrastructure, has the highest number of students appearing for the SEE exam. In contrast, students in other provinces must walk for hours to attend school, depriving them of easy access to education. Only 53,446 students appeared for the SEE exam from Sudurpaschim Province, compared to 99,872 students from Bagmati Province.

Educationist Biddhyanath Koirala says that the results are affected by teachers’ inability to teach according to the interests and needs of students. He also noted that students and their guardians do not seem serious about education. However, these results are not merely due to a lack of motivation among students but reflect deeper problems embedded in the education system. The inability of government schools to provide quality education has been a major contributing factor.

Vice-principal of Ghyang Phedi Secondary School Prem Syangtan echoed these sentiments, stating that the problem is not limited to their school but is a nationwide issue affecting government schools. Students are weak at a basic level due to the lack of qualified teachers. Syangtan says that in private schools, underperforming teachers are removed, whereas this cannot happen in government schools. Private schools are driven by the goal of achieving high scores, while government schools struggle to complete the syllabus. Syangtan is dissatisfied with the current education system and calls for an urgent need to reform Nepal’s education system. 

It is the government’s duty to ensure the quality education in all government schools by hiring qualified teachers, conducting parent orientation programs, improving infrastructure, and providing academic support to students after school hours.

I am happy to share that following the Entry Into Force (EIF) on 30 Aug 2023, MCA-Nepal has completed the procurement of some major contracts and made significant progress in preparing the sites for contractors’ access. This included ensuring work on land acquisition and forest clearance is achieved in adherence with the regulations of the Government of Nepal, MCC Environment Guidelines and International Finance Corporation (IFC) Performance Standard 5. I would like to highlight specific achievements and updates starting with the Electricity Transmission Project. 

One-year progress and updates 

MCA-Nepal awarded and signed contracts worth around $126m for the construction of three 400 kV GIS substations at three locations from May-July 2024 in Nawalparasi West, Nuwakot and Tanahun. Two substations, the New Damauli Substation and the Ratmate Substation will each have a capacity of 1,000 MVA, making them the largest substations in the country. 

Similarly, a two-year $1m Livelihood Restoration Program for 270 project-affected people in Ratmate Substation concluded on 30 May 2024 to pave the way for new businesses and prosperity. Project-affected people benefited from the program through training in high-value agriculture, a wide array of vocational skills, and job skills such as weaving, advanced computer training and financial literacy. MCA-Nepal had earlier acquired around 400 ropanis of land for the substation. 

The contractor for the 18-km cross-border transmission line segment has been selected and will be awarded within Aug 2024. Consultant Supervision Engineers are on board for supervision of construction works of transmission lines and substations and currently working to help MCA-Nepal re-launch procurement for the 297-km transmission line later this year. 

For the transmission line tower pads land acquisition, CDO-led Compensation Fixation Committees (CFC) have been formed to fix land rates for 856 tower pads across nine out of 10 districts. Rates for the lands to be acquired in Dhading, Makwanpur and Nawalparasi West have been fixed as of July 2024. MCA-Nepal has also completed the opening of bank accounts and provided financial literacy training for all persons receiving compensation, which are necessary precursors to making payments in these three districts. Similarly, the CFCs in six districts will be fixing the land rates for respective districts.  MCA-Nepal also plans to start and complete work in the remaining district of Kathmandu this fiscal year. 

Forest census works have been completed in nine out of 10 project-affected districts. MCA-Nepal is now doing the verification to apply for forest permits. Similar to land acquisition, MCA-Nepal plans to start and complete work in Kathmandu district this fiscal year. 

An important component of the Electricity Transmission Project is the Power Sector Technical Assistance. A contract worth $1.2m was signed on 22 July 2024 to provide advisory support in the economic/financial, technical, legal and policy/institutional regulatory work of the Electricity Regulatory Commission. The goal is to create an enabling environment of transparency, efficiency and competition in Nepal’s power sector.

Likewise, a contract worth $2.4m was signed on 15 July 2024 to provide consultancy services to enhance electricity use with a focus on preparing Municipal Energy Plans and developing capacities for productive use of electricity within affected wards under the MCA Partnership Program, a benefit-sharing activity under the Electricity Transmission Project.  

On the progress and updates on the Road Maintenance Project, the Initial Environmental Examination (IEE) Report for road maintenance works in the 40 km segment of the road from Dhan Khola to Lamahi along the East-West Highway has been approved. MCA-Nepal plans to launch the procurement of road maintenance works using Full Depth Reclamation (FDR) technology at the earliest this year. This segment will be maintained by applying new climate-smart technology of Full Depth Reclamation (FDR) and Superpave. 

Looking ahead, our goals for the second year are to sign the contract for the remaining 297 km of transmission line and move ahead in the construction of transmission lines and substations both, fix land rates in all affected districts and distribute compensation, and to move ahead with the road maintenance works with the selection of a contractor. We anticipate meeting these goals but we know that historically, in Nepal, working with communities that will be impacted by the project’s land acquisition can take time. We have been successfully navigating this and setting the bar in terms of handling this process fairly and plan to continue that going forward. 

The author is executive director at MCA-Nepal