Army integration moved forward: PM Prachanda 12 Feb, in Maoist anniversary address, told troops they were now under AISC command, not Maoist. Army integration committee (AISC) 5 Feb authorised immediate release from cantonment of some 4,000 disqualified Maoist combatants. Army chief Gen. Katwal 23 Feb reiterated army will follow all “lawful” govt orders. Visiting U.S. Asst. State Sec. 12 Feb said Maoists will remain on U.S. terrorist exclusion list until they reject terrorism “in word and deed”. PM’s personal secretary 9 Feb injured in Kathmandu shooting. Controversial Maoist MP and Terai leader Matrika Yadav 11 Feb resigned from Constituent Assembly, re-established CPN (Maoist) party with other defectors, alleging Prachanda had betrayed revolution, neglected Terai plains.

UNSG’s report 8 Jan expressed regret over failure of Nepali parties to make further progress on integrating and rehabilitating ex-Maoist fighters. Special committee on integration formed but yet to start work. Journalist Uma Singh killed by armed gang with reported Maoist links 11 Jan in Janakpur. Constitution drafting committees established and starting work but political consensus still shaky. PM used 25 Jan address to nation to call for new deal but relations with army and opposition parties have deteriorated.

Parties made appointments to Constituent Assembly committees, but deferred deadline for appointing chairs. Deadlock over army integration continues. PM Prachanda vowed to investigate Maoist trade unionists’ 21 Dec attack on offices of Himalmedia, publishers of Nepali Times. UN called on govt to investigate enforced disappearances during conflict; issued report 19 Dec of 170 disappearances 2001-03 in Bardiya district alone, the vast majority at hands of state security forces.

Constituent Assembly agreed 28 May 2010 deadline for completing new constitution. Strikes over killing of 2 youths by Maoist youth wing shut down Kathmandu 20 Nov. Nepali Congress leaders maintained strong opposition to Maoist integration into army. Indian foreign minister concluded successful visit as Maoist convention held intense debates on party policy.

3 small bombings in south east, as low-level unrest continued in Tarai: 14 Oct bombing in Chandranigahapur market killed 3. Govt 28 Oct announced long-awaited formation of multiparty committee to oversee integration/rehabilitation of Maoist combatants; first major step towards decision on combatants’ future. UNSG’s 24 Oct report noted UNMIN’s aim to finish operations by Jan 2009 end of mandate dependent on progress towards resolving combatant issue; UNSG Ban urged progress in 1 Nov visit.

PM Prachanda made first official visit to India 14-18 Sept, hailed “new era” in relations, but few concrete agreements. Prachanda and (Maoist) Defence Minister Badal held first formal meeting with Nepal Army 12 Sept. Discussion between parties over constitution-drafting procedures for Constituent Assembly continued to stall.

Constituent Assembly 15 Aug elected Maoist (CPN(M)) leader Prachanda new PM with 80% of votes. Prachanda announced coalition govt 22 Aug with third- and fourth-placed parties in Apr elections, UML and MJF; CPN(M) to hold finance, defence ministries, UML in second position with deputy PM, home ministry, and MJF foreign affairs. Nepali Congress party refused to join Maoist-led govt. Prachanda made first foreign visit as PM to Beijing, attending Olympics and meeting Chinese PM and president. Heavy flooding in Tarai plains displaced over 35,000 mid- month.

Constituent Assembly elected as president Ram Baran Yadav, Nepali Congress candidate from the Tarai, in 21 July run-off. Maoists initially refused to form unity govt, but 25 July said would relent if 3 conditions met: minimum 2 years in power, dissolution of opposition alliance, support for “minimum program”. Yadav 29 July asked Maoists to form govt quickly. UN mission (UNMIN) extended 6 months 23 July.

Interim PM Koirala announced resignation 26 June, clearing way for presumptive successor Maoist leader Prachanda. Maoist ministers had earlier resigned from cabinet over delays in forming government. Negotiations over distribution of cabinet posts continue: earlier in month, Maoists dropped demand to be given ceremonial post of presidency. In abdication ceremony 11 June, King Gyanendra handed crown to govt and vacated royal palace, ending 240-year Shah dynasty.

In first sitting 28 May, newly elected Constituent Assembly overwhelmingly voted to abolish monarchy, establish federal democratic republic. Small bomb explosions and scuffles between demonstrators and police but no serious violence. Negotiations on govt formation and division of powers between ceremonial president and executive prime minister continue. Large-scale strikes protesting 8 May killing of businessman by Maoists; Maoists admitted members responsible, but claimed acting outside party orders. Violent police crackdown on pro- Tibet rallies continued; hundreds of protesters detained.