World Bank dissatisfied with NIRTTP's work progress

REPUBLICA
KATHMANDU, Sept 12:

The World Bank has expressed dissatisfaction over slow work progress in the implementation of Nepal India Regional Trade and Transport Project (NIRTTP).

The multilateral donor arrived at the conclusion after evaluating performance of the project over the past 15 months. The World Bank has also hinted that it might terminate the project if significant progress is not achieved by the next evaluation.

The Ministry of Commerce and Supplies (MoCS) is the implementing agency of the project.

The project, which is estimated to cost US$ 101 million, is said to be crucial for reducing trade-related costs.

“The World Bank might discontinue the project if significant progress is not achieved as per the project timeframe,” a World Bank official privy to the issue told Republica.

The project has three major components -- transport and transit agreement with India, integrated check posts (ICP) at major custom points, and Electronic Data Interchange (EDI) and Inland Container Depot (ICD) for Kathmandu.

Though the Indian government has asked Nepali officials to propose transshipment modality, Nepal has yet to prepare such modality. The World Bank has also sought transshipment modality after India expressed willingness to sign transshipment agreement with Nepal during the recent visit of Indian External Affairs Minister Sushma Swaraj.

In the absence of transshipment facility, Nepali exporters and importers have to issue necessary trade documents from Kolkata port of India which is full of hassles and time consuming.

The transshipment agreement with India can reduce transportation costs as well as reduce the lengthy documentation process. Nepal has proposed to India to recognize Birgunj ICD as an international port location. Once Birgunj ICD is recognized as an international port location, Nepali exporters need not go all the way to Kolkata to get shipping documents. They can get the required documents at India´s Raxaul customs point itself.

Likewise, the process to construct integrated check posts and introduce EDI is also lagging behind due to slow decision-making process and lack of necessary follow-up with the concerned Indian agencies, World Bank said in its evaluation.

The delay is also affecting the Trade Portal component of Trade and Export Promotion Development Centre, according to the World Bank.

The government has also failed to establish an internationally-accredited lab to facilitate foreign trade. In the absence of such lab, Nepali exporters have been facing problems while certifying their products before sending them to international market.

Establishment of two such well-equipped labs is also a component of the project. But the process of establishing labs for facilitating Sanitary and Phyto Sanitary (SPS) issues are also pending.

Similarly, the process to construction Inland Container Depot (ICD) in Kathmandu has also been affected due to availability of required land. Though the government has expressed commitment to build ICD in the budget for fiscal year 2014/15, it has yet to take any decision on land acquisition.

“Some serious components like National Single Window is not being implemented because of the indifference of the government,” a World Bank official told Republica.

Representative bodies of private sector like Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce, Confederation of Nepalese Industries and Nepal Freight Forwarders Association are also involved in the implementation of project through Nepal Trade and Transit Facilitation High Level Committee (NTTFC ) under the MoCS.

Source: Republica