Interview: Reconstruction will create immense opportunity

Minister of Finance Ram Sharan Mahat has won appreciation from various quarters for successfully holding the international conference in Nepal for arranging funds for reconstruction of the country damaged by the devastating earthquake.

Republica's Subhash Ghimire, Guna Raj Luitel and Laxman Biyogi sat with Finance Minister Mahat to talk about the mobilization of the fund and further plans. Excerpts:

Donors have pledged US$ 4.4 billion for Nepal's reconstruction. How much of the pledged fund is coming to the government coffer and how it is going to be mobilized?

The process and modality to spend the fund will be formulated while signing bilateral agreements with the donor country or agency. Some donors have said that they will spend the fund through their own non-government organizations. However, the portion of such expenditure does not seem to be bigger. The fund will be mobilized and spent by the government on the basis of agreement between the government and the respective donors.

There has not been much improvement in the capacity and mechanism of expenditure. How do you assure that the government can spend the fund it received from the donors?

The capacity does not improve overnight. This is a continuous process of reform. Our capital expenditure has increased by 22 to 24 percent this year compared to the last fiscal year. We are establishing an independent authority for reconstruction. This high-level authority will have the power to resolve problems and obstacles that crop up during the reconstruction process. The authority can even suspend any laws that delays implementation of its projects; it can even work by adopting alternative ways. If the authority works effectively, the problems seen in the implementation of the projects and expenditure system will be resolved.

The government is likely to miss growth target due to the earthquake. What are your plans to boost economic growth and create employment opportunities?

Employment opportunities will be created once the reconstruction works gain momentum. There is dearth of laborers in garment sector and industries. Farmland has been left fallow in the absence of youth. Once the reconstruction works begin, people will get employment in home, road, infrastructure and other projects. Similarly, the demand for cement, steel and other industrial products will increase. Reconstruction will create immense opportunity in the country which will in turn boost economic growth. However, it will be difficult for some months until the reconstruction projects pick up.

We need local bodies for effective reconstruction works. However, there is no such mechanism at the local level at present. How do you maintain transparency in such situation?

Political parties have already made agreement to hold election for local bodies. Similarly, there will be representations of donors in monitoring and facilitation unit of the reconstruction authority. If there is irregularity in reconstruction works, the board that deals with the complaints, which will have judicial power, will immediately look into it. Similarly, we have adequate mechanisms like parliament and media to keep vigil on the works of the authority.

Source: Republica