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Economy

National Economy Price and Supply Situation Industry and Tourism
Transport and Communication Energy, Forestry and Environment Agriculture

Transport and Communication
Road Transport

It was targeted to link all the districts by road transport except seven remote districts: Humla, Mugu, Manang, Dolpa, Solukhumbu, Khotang and Mustang during the Ninth Plan period. By the end of this period, however, only 65 districts have been connected with the road network. By the end of FY2000/01, total road network built stood at 15,702 km. Of this, black topped totaled 4,566 K.M., graveled 3,786 km. and fair weather 7,350 km. During the review period of current year, a total of 157 km. (27 km. black topped, 65 km. graveled, and 65 km. fair weather) of road length was added. Total length of road by this period reached to 15,059 km. (black topped 4,593 km., 3,851 km. and seasonal 7,015 km.).

Total Length of Road by Grades by mid-March 2002

S.N Type End of FY 2000/01 Added up to mid-March Total (Up to mid-March 2002)
        K.M. Proportion
1. Black topped 4,566 27 4,593 30.5
2. Gravel 3,786 65 3,851 20.3
3. Fair Weather 7,350 65 7,415  
Total 15,702 157 15,859 100

Tele-Communication Service

During the current fiscal year, a total of 67 licenses have been issued by the Nepal Tele- communication Authority including 17 Internet licenses (including e-mail), 10 V-SAT service, 25 service providers, 8 radio paging network, 1 video conferencing and 6 fax mail services. In fiscal year 2000/01, 61 licenses were issued to the private sector which include, 15 internet (including e-mail), 7 V-SAT services, 23 service providers, 8 radio paging network, 1 video conferencing, 6 fax mails and 1 cellular mobile service.

As of mid-February 2002, 1761 VDCs among 3914 VDCs in the kingdom are facilitated by telephone service compared to 1726 VDCs benefited last year. Under the special rural tele-communication program, a proposal was invited from the private sector to provide telephone service in the villages of eastern Nepal; an operator was selected; and the letter of intent was also issued. The selected operator, however, has refused to receive the license on the plea of the security reasons. The process to invite a fresh proposal is under way. As of fiscal year 2001/02, 99 VDCs of remaining four development regions are provided with the telephone service through WLL system by the NTC.

As of mid February 2002, NTC is providing telephone service through its 142 exchanges that existed last year. Total capacity of such exchanges is 375,312 telephone lines, out of which 312,032 lines are in operation. During the same period of the last year, a total of 275,558 telephone lines were in operation. Cellular mobile lines are in operation in Kathmandu valley, Biratnagar, Birgunj and Pokhara. Out of total capacity of 20,000 mobile lines, a total of 18,102 lines have been distributed so far compared to 11,117 mobile lines in use last year. Total circuit capacity has reached to 1084, enabling direct international access to 131 counties. The number of customers in waiting list for new telephone lines has reached to about 282,257. During the review period of FY 2001/02, a total of 22,000 telephone lines were distributed in the Kingdom compared to 19,781 telephone lines during the same period last year.

Extension of Telephone Exchange Service
Heads Mid July 2001 Mid-March 2002
Grand Total
(a) Urban areas 58 58
(b) Telephone distributed 288,036 312,032
( c) Per thousand/ telephone line 12 14

Note: All exchanges are in digital automatic.

Air Transport Service

Keeping in view the varied topography of the country, it is a distinct need to extend air transport service in Nepal. During the current fiscal year, the civil aviation fields and its infrastructure were destroyed by the terrorist activities incurring a great loss to the country. In order to provide aviation facility to the remote area residents "Remote Service Fund has been established and necessary steps have already been taken to activate it. A high level commission has been instituted and works has been initiated in order to ensure air safety, reliability and to provide standard and easily accessible services to the public.

According to the Majesty's Government's policy to extend and improve the international airport, the 1-6 packages programs under the Asian Development Bank's loan assistance, are being implemented. Under these packages, construction of air cargo building extended international terminal building airlines/operation building, airport fire station and airfield maintenance building have been completed in the current fiscal year and they are in operation. In line with the government's policy to develop airfields at Bhairawa, Biratnagar and Nepalgunj, and develop as hub airports, the terminal building in Biratnagar has been expanded to start a regional flight to Calcutta, but presently, the flight remains closed due to the lack of sufficient number of passengers. Construction of a new terminal building in Bhairawa has already been started.

Pursuant to the government's policy to promote recreational aviation activities, such as flying club, ballooning, gliding and hot air ballooning in Kathmandu and power gliding from micro light aircraft in Pokhara are in operation. Entertainment aviation activities like paragliding and hand gliding are also being encouraged. In order to launch a search and rescue operation, especially for tourists, at the time of natural calamity and other emergencies, Nepal Civil Aviation Authority is working in close coordination with other airlines for landing of aircraft through Rescue Coordination Centre at the time of emergency.

In order to strengthen the Civil Aviation Authority, Terms of Reference (TOR) of business plan and cargo management is under preparation. Similarly, the TOR for consultancy service for the construction of heliport in the Tribhuvan International Airport and for the establishment of Information Management Service (MIS) cell in the airport are also being prepared.

Necessary equipment and services have been identified for the Tribhuvan International Airport Modernization Project Phase 11. In order to develop a satellite-based communication system in near future, technical specification and preparation of tender documents are in the process to establish a V-SAT communication system in Kathmandu, Biratnagar, Pokhara, Bhairawa, Nepalgunj and Lukla airports.

In order to develop the satellite global positioning system (GPS) based air navigation system within the country, GPS route structure chart and approach plates have been prepared in the current fiscal year. Direct international ATS route named as G-348 route has been established between Kathmandu and Bagdora.

As identified by the Civil Aviation Safety Committee, automatic message switching system (AMSS) terminal has been fixed at the Civil Aviation Authority's head office. Similarly, technical infrastructure, such as details of aeronautical information publication (AIP) have been developed and put on the web page in the current fiscal year. Along with this, necessary works have been done in the field of extension of fire control and life rescue services.

In line with the government's policy to encourage private sector in the field of aviation as well, 32 private airline companies have received AOC. Out of these, 18 airlines are currently in operation, As the government has a policy to improve and expand the rescue operation and the fire control service at the standard of ICAO, the Tribhuvan International Airport has been upgraded to ICAO category VIII standard. Fire extinguisher equipment and ambulance services are available in Nepalgunj, Biratnagar, Pokhara and Bhairawa airports. Important tourist airports at Lukla, Bharatpur, Jumla and Jomsom are now equipped with the fire extinguisher.

     

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