'Japanese investors interested in tourism sector' | Karobar National Economic Daily
Masashi Ogawa has been serving as the Japanese Ambassador to Nepal for
the past one year. Considered a China expert, he has spent a major part
of his diplomatic career in the China Desk. He was deputed to China
after joining the Ministry of Foreign Affairs in 1979 following his
graduation from Tokyo University.
He was posted at the consulate in Hong Kong for four and half years
after he served in China for two years. He worked at the China Division
at the ministry after returning back from Hong Kong. He has also served
in Taiwan and recently as the Director of Japan-China Economic Affairs
Division and Special Coordinator of the Personnel Division at MOFA
before being appointed as the Ambassador of Japan to Nepal.
The diplomat, who has dealt with strategically important countries for
Japan like China and the USA, has studied English and American
literature. Editor of Karobar Sanjay Neupane talked
with Ogawa about economic and other relations between Nepal and Japan
that has been selflessly assisting Nepal. Excerpts:
Your Excellency, Japan has resumed yen loans to Nepal after 12 years. What needs to be done to attract more yen loans to Nepal?
In March last year, the Government of Japan resumed yen loans to Nepal
after a 12-year interval by singing an agreement for the Tanahu
Hydropower Project, which will be the second storage type power plant in
Nepal with a 140 MW capacity. We extended this loan to contribute to
the relaxation of power shortages, as well as to support the Government
of Nepal’s efforts toward economic development.
When we extend a yen loan to a recipient country, we consider not only
the needs of development, but also the sustainability of the project and
diplomatic relations with Japan. There is a huge development need in
the infrastructure sector in Nepal, such as for roads, hydro plants,
airports, and so on. As the next yen loan project, the Japanese
Government and Japan International Cooperation Agency (JICA) are
conducting preparatory survey to construct 2.30 kilometer tunnel from
Nagdhunga to Naubise. The cost is estimated to be about US$20 million.
This will be the first road tunnel in this country and expected to
resolve traffic congestion in this part of the Prithvi Highway. To
attract more yen loans, I think it is necessary for the Government of
Nepal to complete the peace process as soon as possible by promulgating
the new constitution, and to create an investment friendly environment
and attract Japanese companies to Nepal.
As a Major Donor, how is the Government of Japan assessing the issue of Tanahu Hydropower Project in Nepal?
The Government of Japan strongly expects smooth and quick
implementation of the Tanahu Hydropower Project. The conclusion of the
Joint Review Committee which was conducted by the Energy Ministry,
Finance Ministry and Asian Development Bank (ADB) in October should be
respected by all the stakeholders.
How effective have the three arrows of Abenomics been in Japan?
The economic situation in Japan has been in a difficult phase. In order
to cope with this situation, Prime Minister Shinzo Abe has taken the
initiative for an economic growth strategy, which aims to escape from
deflation and to expand wealth. This strategy consists of three pillars,
called the “Three Arrows”. The three arrows are: aggressive monetary
policy, flexible fiscal policy, and a growth strategy. Among these, the
first two arrows were launched in early 2013 and have resulted in a
dramatic up-turn in Japan’s economic performance. For example, the rate
of job offers to job seekers continues to remain at a high level. The
number of employees has been increasing, and among employees, 27.40
millions are female. Furthermore, the rate of consumption expenditure
exceeds one percent for the first time in six years. Having seen these
dramatic effects, the third arrow of the “Growth Strategy” is now the
key to securing lasting economic revitalization in Japan.
The victory of ruling parties in the recent election of the House of
Representatives gave PM Abe new mandate to carry forward his economic
reform strategies.
What is the progress of the Double Taxation Avoidance Agreement (DTAA) with Nepal?
We have received a request for a Double Taxation Avoidance Agreement
(DTAA) along with the draft, and at present it is under review.
Your Excellency, what are the priority areas for Japanese investors in Nepal, particularly as Nepal is situated between two giant economies?
One thing that comes to my mind is the tourism sector. Being surrounded
by two big countries, India and China, Nepal is rich in culture and
traditions. Japanese investors seem to be interested in the tourism
area. Hydropower may be another area Japanese investors will be more
interested in than before. I can feel that the situation surrounding
hydropower development has been changing due to the signing of the
Project Development Agreement (PDA) and Power Trade Agreement (PTA). I
think that, if hydropower development proceeds, large Japanese companies
will be interested in this area. However, in order to attract Japanese
investors, it is necessary to update regulatory frameworks related to
foreign investment. It is necessary to inform Japanese investors about
the potential of Nepal surrounded by two large economies. Japanese
investors can invest in Nepal while targeting the huge and growing
market China and India.
What does Nepal need to do to attract more Japanese tourists?
First, I notice the lack of infrastructure. For example, upgrading the
Tribhuvan International Airport is important. The capacity of the
airport should be improved. Cleanliness, sanitary conditions and a
public toilet system might seem like tiny things, but I’m aware that
those tiny changes and improvements can easily attract Japanese
tourists. Safety is also important. An efficient and effective
information system will easily increase the safety of tourists. The
number of casualties like we saw as a result of the Annapurna blizzard
which occurred recently can be lowered if those systems are developed.
Second, having talked with many Japanese people, I found that many
people in Japan are not fully aware of natural beauty and rich cultural
heritage in Nepal. So promotional bodies, such as the Nepal Tourism
Board, should take additional initiatives for promotional activities in
Japan to make people aware of Nepal.
There has not been any high level visit between Nepal and Japan for a long time. When will there be one?
I do not agree with the question since there have been several visits
from the leaders of both countries this year. For example, Seiji Kihara,
Parliamentary Vice Minister for Foreign Affairs of Japan visited Nepal
from 7th-8th of May. Recently Yosuke Tsuruho,
Member of the Japanese Parliament and Secretary General of Japan-Nepal
Parliamentary Friendship League visited this country from November 1st to 3rd.
Both the leaders exchanged their views with the high dignitaries of
Nepal. Those visits are believed to be of high importance in
revitalizing and restarting parliamentary relations between Japan and
Nepal.
From Nepal Minister for Urban Development Dr. Narayan Khadka and
Minister for Physical Infrastructure and Transport Bimalendra Nidhi paid
an official visit to Japan in June and August respectively. Minister
for Education Chitralekha Yadav visited Japan twice, in October and
November this year. Minister for Foreign Affairs Mahendra Bahadur Pandey
also paid an official visit to Japan in October under the invitation of
the Japanese Foreign Minister. During the meeting, the two foreign
ministers exchanged views on regional affairs and the enhancement of
cooperative relations in various fields such as disarmament and
non-proliferation, disaster reduction and the United Nations Security
Council Reform.
In December, Deputy Prime Minister and Minister for Federal Affairs and
Local Development Prakash Man Singh, and Minister for Culture, Tourism
and Civil Aviation Deepak Chandra Amatya visited Japan in order to
attend Buddhism Summit.
Your Excellency, Nepalis are present in a
large number in Japan. How are Nepali businessmen and other Nepalis in
Japan contributing to the Japanese economy?
Around 37 thousand Nepali people are currently living in Japan. Among
them, a good number of Nepalis are involved in the business sector.
Nepali people are mainly working for hotels and restaurants. Those
Nepali people gelled with Japanese society have added diversity over
there and this has been further enhanced by exchanges and cultural
visits between the two countries. It is absolutely delightful that many
Nepalis living and working in Japan have been contributing to Japan in
many ways. (One thing I am disappointed about, however, is that more and
more Nepali people these days are applying for asylum in Japan.)
What is Japan doing to ease the hiring process of Nepalis
through JITCO and what are the new projects that JICA is supporting in
Nepal?
First of all, JITCO’s fundamental purpose is to contribute
international technical intern training programs by assisting them to
run smoothly and appropriately instead of just hiring Nepali workers. In
order to fulfill this purpose, JITCO do mainly the following three
things: firstly, JITCO largely supports and assists organizations which
have intentions to host or are currently hosting technical intern
trainees. Secondly, JITCO provides support and advice to technical
intern trainees on legal issues such as immigration and labor, in
addition to general concerns and inquiries. And finally, JITCO supports
both sending and hosting organizations to conduct and successfully
complete technical intern training programs. Japan has been providing
timely and swift information on the JITCO scheme.
The Government of Japan signed an agreement of Japanese Grant for
Poverty Reduction Effort to extend 300 million Japanese yen to the
School Sector Reform Program (SSRP) in September this year. This fund
will be mainly utilized for disseminating the outcome of our on-going
Japanese technical cooperation, “Support for Improvement of Primary
School Management Project”, throughout the country.
In addition, now we are conducting the preparatory surveys for the
Project for Improving the Suryavinayak-Dhulikhel Road, and the Project
for Improving Pokhara Water Supply, and the Construction of the
Nagdhunga Tunnel.
Is it possible to provide support for waste management in Nepal like Cambodia?
I understand that waste management is urgent problem in Nepal.
Basically, the Government of Japan extends its supports to recipient
countries based on their request proposal. Currently the Government of
Japan dispatches Japan Overseas Corporation Volunteers (JOCVs) and
Senior Volunteer (SV) to Kirtipur, Lalitpur and Kathmandu municipalities
in the field of waste management. They are engaged in environmental
education.
On the other hand, regarding infrastructure for waste management, such
as an incinerator plant and repository site, the Government of Japan has
conducted a feasibility study entitled "The Study on the Solid Waste
Management for the Kathmandu Valley" in the past. But we have not
received a request proposal for the construction of such infrastructure
from the Government of Nepal yet.
There are many challenges for the Government of Nepal to overcome for
the construction of waste management facilities. Among these challenges,
I think local consensus is the most essential one. If the Government of
Nepal submits a request proposal after solving these challenges, the
Government of Japan will certainly take it under consideration.
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