KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Electricity generation fell significantly short of the government’s target of 1,000 megawatts, achieving only 468 megawatts due to delays in major hydropower projects, which underscores ongoing challenges in the energy sector.
Meanwhile, the rise in gold and silver prices reflects fluctuations in the commodity market, impacting consumer behavior and investment strategies.
The laying of the foundation for the Annapurna Square Hotel marks a significant investment in the hospitality sector, indicating growth in real estate and tourism.
Additionally, progress on the Malekhu-Muglin road suggests a renewed focus on infrastructure development, though it has faced delays.
The introduction of NEPALPAY QR code for international travelers enhances Nepal’s payment ecosystem, promoting cross-border commerce.
Also, the establishment of the Small and Medium Enterprise Development Centre demonstrates a commitment to bolstering local businesses through training and support, which is crucial for sustainable economic growth.
Collectively, these developments illustrate the dynamic nature of Nepal’s economy, with both challenges and opportunities shaping its trajectory.
During the last fiscal year (2080-081), less than half of the target electricity was generated.
The price of gold has increased on Monday. The foundation stone for the Annapurna Square Hotel on Durbarmarg in Kathmandu was laid on Monday.
In related news, NIC Asia Bank Limited has put the founder shares of four of its owned companies up for sale.
Meanwhile, work on the Malekhu-Muglin road of the Prithvi Highway has accelerated following the festival.
Additionally, Prabhu Group’s Prabhu Cable Car is set to issue ordinary shares (IPO) to the general public.
Electricity generation below target
In the last fiscal year (2080-081), the government aimed to generate 1,000 megawatts of electricity and connect it to the grid.
However, only 468 megawatts were produced by government and independent power producers, which is significantly less than the target.
During this period, two solar projects and 21 hydropower projects were completed, contributing to the national grid.
According to the Nepal Electricity Authority, the goal was to generate approximately 1,000 megawatts from around 36 different hydropower projects.
Unfortunately, delays in large hydropower projects resulted in less than half of the expected electricity production.
Key projects, including the 111 MW Rasuwagadhi Hydropower Project, the 102 MW Madhyabhotekosi Hydropower Project, and the 42.5 MW Sanjen project, were anticipated to be completed last year but faced construction delays, preventing commercial electricity generation.
Gold price increases
Gold and silver prices increased on Monday. According to the Federation of Nepal Gold and Silver Traders, the price of gold increased by Rs. 1,000 per tola, trading at Rs. 161,000.
On Sunday, gold was priced at Rs. 160,000 per tola. Similarly, silver has increased by Rs. 15 per tola, trading at Rs. 1,920 per tola.
Foundation stone of Annapurna Square Hotel laid
The foundation stone for the 25-storey Annapurna Square Hotel on Durbarmarg in Kathmandu was laid on Monday.
Two months after signing a partnership agreement with ITC Hospitality, Min Bahadur Gurung, the President of Annapurna Square Hotel, initiated the project.
The hotel will cover an area of 900,000 square feet and feature 350 rooms, including 40 apartments, as well as a business complex.
Gurung has invested Rs. 6.5 billion for the construction, which is slated for operation by 2085.
Malekhu-Muglin road work accelerates
Following the festival, work on the Malekhu-Muglin road of the Prithvi Highway has picked up pace.
Despite the contract period being half complete, progress was slow, prompting recent acceleration efforts.
Sharma-ZI CG JV commenced work in December 2022, with a three-year completion deadline.
So far, only 18% of the work has been completed. Highway engineer Sahan Vaidya stated that 150 workers are now on-site, up from 100 previously, and this number is expected to rise to 200 by next week.
Travelers from 10 countries can use NEPALPAY QR Code for Payments in Nepal
Travelers from 10 countries and regions, including mainland China, Hong Kong, Singapore, Malaysia, Thailand, South Korea, and Italy, can now use their payment and banking apps to make transactions in Nepal by scanning the NEPALPAY QR code.
This cross-border payment service started on November 7, following an announcement at the Singapore Fintech Festival 2024.
The initiative was introduced by officials from Ant International and Nepal Clearing House (NCHL) after a memorandum of understanding was signed between the two organizations in May 2024.
Small and Medium Enterprise Development Centre established
The Small and Medium Enterprise Development Centre has been inaugurated at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Kathmandu.
Inaugurated by key officials, including National Planning Commission Secretary Madhu Marasini, the Centre aims to provide support in skills, technology, and training for managing enterprises.
It will also offer guidance on market and financial management, enhance production capacity and product quality, and promote products in national and international markets through trade fairs and other promotional activities.
Energy Ministry introduces ‘Contingency Expenditure Work Procedure’
The government has launched the ‘Contingency Expenditure Work Procedure, 2081’ to oversee the temporary staffing needed for monitoring, supervision, operations, and consultancy related to construction projects.
Minister for Energy, Water Resource, and Irrigation, Deepak Khadka, enacted this procedure following a decision made at a ministerial level. The Ministry approved it on November 17.
Chhirkane-Deurali section of Prithvi Highway to be closed for four and half hours daily
The Chhirkane-Deurali road section along the under-construction Muglin Pokhara section of the Prithvi Highway will remain closed for four and a half hours daily for the next 20 days from Monday.
The section will be closed to traffic daily from 11.00 pm to 1.00 am in the first phase and from 1.30 am to 4.00 am in the second phase to carry out the road widening works.
The construction work is being carried out by closing the road section from Byas municipality-12, Chhirkane to Deurali along the Prithvi Highway in two phases.
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