New govt’s regional diplomatic engagement continued with PM KP Oli completing state visit to India 6-8 April in ongoing effort to repair bilateral relationship and rebuild trust; visit included agreements signed to strengthen development cooperation. Indian PM Modi scheduled to visit Nepal 11-12 May; trip to begin in Province 2 – only province composed of Madhes-only districts along the southern plains. FM Pradeep Gyawali visited China 16-21 April, meeting with his Chinese counterpart to discuss increased bilateral cooperation through development of infrastructure projects, transport networks, and trade especially through Belt and Road Initiative. Despite several months of discussions, efforts to unify ruling UML and CPN (Maoist Centre) parties continued to be delayed due to power-sharing issues and differences over ideology; the two parties leading the leftist coalition missed their own deadline to finalise merger by 22 April; talks ongoing between UML Chairman Oli and Maoist Chairman Pushpa Kamal Dahal. Nepal Army formed board of inquiry to investigate allegations of sexual exploitation of teenage girl in South Sudan by Nepalese peacekeepers deployed with UN peacekeeping mission there.

New Communist Party of Nepal (UML)-led govt secured support from three-fourths of lower parliamentary house – including from two main Madhesi parties – in constitutionally-mandated 11 March vote of confidence. Despite 7 March announcement about joining govt, Sanghiya Samajbadi Forum-Nepal (SSF-N) – a Madhesi party with sixteen MPs – 18 March decided a written commitment to amend 2015 constitution would be required first. SSF-N’s discussions on joining govt alienated Rastriya Janata Party-Nepal (RJP-N), the other Madhesi party in parliament and SSF-N’s ruling coalition partner in the Madhes-only Province 2. PM Oli planning state visit to India 6-8 April to focus on economic ties; political issues taking backseat amid efforts to repair bilateral relationship. Govt strongly criticised EU Election Observation Mission’s 20 March report on parliamentary and provincial elections for undermining Nepal’s sovereignty; report recommended removing controversial electoral quotas for well-represented Khas-Arya community. In report’s aftermath, Oli briefed diplomats 27 March to outline govt’s foreign policy priorities and emphasised nationalism as major pillar of his govt; foreign ministry asked diplomatic missions and UN agencies to seek prior approval before meeting state or local authorities. Chief Justice Gopal Prasad Parajuli resigned 15 March following Judicial Council termination of his term for exceeding retirement age of 65.

UML Chairman KP Oli appointed prime minister 15 Feb following resignation of Sher Bahadur Deuba. Deuba resigned after completion of elections to upper house of parliament 7 Feb where Leftist Coalition of UML and CPN (Maoist Center) won 39 of 59 total seats. Following months of negotiations and some disagreements along ideological lines, UML and CPN agreed 19 Feb on framework for merger of two parties: new party to be named Communist Party of Nepal; Oli and CPN Chairman Pushpa Kamal Dahal to share prime ministership during parliament’s five-year term. With unified party falling ten seats short of two-thirds majority in lower house of parliament, UML in discussions with Sanghiya Samajbadi Forum-Nepal (SSFN) to join govt; SSFN – a Madhesi-based party with sixteen parliamentary seats – demands amendments to constitution as precondition. Indian Foreign Minister Sushma Swaraj visited Nepal 1-2 Feb, meeting with top leaders including Oli and Dahal in efforts to improve relations with Leftist Coalition prior to formation of new govt. China’s Vice Minister of the International Department of the Communist Party of China Central Committee Guo Yezhou visited Nepal 21 February and met with Oli and Dahal, expressed China’s readiness to work with new govt.

Despite completion of federal, provincial, and local elections, transfer of power from Nepali Congress (NC) to leftist alliance between UML and CPN (Maoist Centre) continues to be delayed with country’s new decentralised governing bodies taking shape; new provincial assemblies sworn in 21 Jan; parties preparing for 7 Feb elections for upper house of federal parliament. PM Sher Bahadur Deuba continues to be criticised by leftist of alliance for unwillingness to step down. Govt’s 17 Jan declaration of temporary headquarters of all seven provinces led to protests in several areas; clashes between demonstrators and police in former regional headquarter cities resulted in over 25 injured; UML Chairman KP Oli vowed to reverse this and other decisions made by NC-led govt during transition period. UML and CPN (Maoist Centre) continued to discuss merger and power-sharing deals; 28 Jan decided four of seven provinces would be led by UML and two by CPN (Maoist Centre); deal criticised as disproportionate by some Maoist leaders who also demand Chairman Pushpa Kamal Dahal assume leadership of new unified party.

Final phase of first federal and provincial elections under 2015 constitution completed 7 Dec across remaining 45 (of 75) districts with 67% turnout; first phase held 26 Nov. “Leftist alliance” of CPN (UML) and CPN (Maoist Center) emerged strongest with ruling Nepali Congress (NC) suffering heavy setbacks. UML won 44% of all seats in lower house of parliament; CPN (Maoist Center) won 19%; NC won only 22% of 275 total seats. In provincial polls, UML-Maoist alliance won control of provincial governments in six of seven provinces. Madhesi parties – which won 12% of seats in national elections – will lead eastern Tarai province. PM Sher Bahadur Deuba resisted calls to resign from presidency of NC despite party’s poor showing and despite losses for several high-ranking NC leaders. UML Chair KP Oli hailed leftist alliance victory as opportunity for stable governance; UML and Maoist leaders in ongoing discussions on cabinet appointments and proposed merger of two parties. President Bidya Bhandari 29 Dec approved contentious electoral legislation following weeks of disputes between UML and NC over modalities to elect upper house of parliament that hindered efforts to form new govt.

First phase of federal and provincial elections held across 32 districts 26 Nov marking first parliamentary polls since 1999 (previous two were to Constituent Assembly) and first elections under new federal state structure; voters electing representatives to seven provincial assemblies. All results to be announced after second phase on 7 Dec across remaining 43 districts. Pre-electoral period was marred by some violence, mostly IED attacks on election officials and candidates, including senior figures of ruling Nepali Congress (NC) and CPN (Maoist Center) in various districts. Attacks attributed to breakaway Maoist party led by Netra Bikram Chand; several cadres arrested late Nov; Nepal police claimed insufficient funds and personnel to manage electoral preparations; Nepal army began conducting aerial and ground patrols in response to attacks. NC and opposition UML-led leftist alliance cadres clashed in several districts prior to polls, further complicating security situation. Parties criticised for not meeting constitutional requirement to field 33% women candidates; Supreme Court 21 Nov summoned NC, UML, and CPN (Maoist Center) on issue. Chief Election Commissioner Ayodhee Prasad Yadav criticised international electoral observers, claimed they were not needed to certify polls following 24 Nov decision to bar two EU representatives for violating election code of conduct.

Amid uncertainties about logistical preparations, political manoeuvring hastened in lead-up to provincial and national elections scheduled for 26 Nov and 7 Dec. Opposition UML and ruling coalition member CPN (Maoist Center) 3 Oct announced “leftist alliance” with view to an eventual merger. CPN (Maoist Center) decided to remain in current govt led by Nepali Congress (NC) but NC President and PM Sher Bahadur Deuba responded 17 Oct by relieving CPN (Maoist Center) ministers of their portfolios; launched efforts to form countervailing “democratic alliance”; merged 16 Oct with fifth largest party in parliament, Nepal Loktantrik Forum; 17 Oct appointed ministers from monarchist Rastriya Prajatantra Party to cabinet. Electoral delay fears emerged as Election Commission claimed insufficient time left to abide by 25 Oct Supreme Court ruling to print separate ballot papers for First Past the Post elections at provincial and national levels; commission eventually announced 30 Oct it could print all ballot papers within twenty days. UML and CPN (Maoist Center) leaders accused NC of trying to postpone polls due to fears of defeat. Nepal elected to 2018-2020 UN Human Rights Council term for first time 16 Oct after securing 166 votes ­– highest among all Asia-Pacific candidates.

Following completion of local polls, mainstream parties now focused on next stage of electoral cycle. Madhesi parties participated in third and final local elections phase 18 Sept in eight southern Tarai districts that were strongholds in protests against 2015 constitution; voter turnout (77%) was highest of all three phases. Upcoming provincial and federal elections being held in two phases; first phase 26 Nov in 32 districts including all northern belt districts and some central belt districts; second phase 7 Dec in remaining central belt districts and all southern plains districts. Two biggest parties in parliament, Nepali Congress (NC) and UML, separately discussing alliance with CPN Maoist (Unity Center) to ensure majority in forthcoming elections. Madhesi parties criticised Constituency Delineation Commission for delineating electoral constituencies in Tarai disproportionate to population residing in region. At 23 Sept speech to UN General Assembly, PM Sher Bahadur Deuba sought support for Nepal’s candidacy to UN Human Rights Council; several experts urged govt to fulfil domestic human rights obligations to strengthen candidacy by investigating killings during constitution-related protests in Tarai and revising transitional justice mechanisms. Nepal one of five Asian countries contesting four seats; vote expected Oct-Nov.

In major setback for Madhesi parties and their agenda, constitutional amendment bill first tabled in April failed to pass in parliament 21 Aug after getting only 347 of 395 votes needed for adoption; opposition Communist Party of Nepal (UML) – second largest in parliament – voted against bill. Govt 30 Aug announced holding of provincial elections on 26 Nov and federal elections 7 Dec; Election Commission had cited logistical challenges in advising against govt’s previous decision to hold both polls on 26 Nov. Main Madhesi party – the Rastriya Janata Party-Nepal – 24 Aug announced it would participate in final round of local polls on 28 Sept and in provincial and federal elections following internal pressure on party leaders after unsuccessful boycotts of first two phases of local elections. PM Sher Bahadur Deuba committed to amending constitution to increase popular buy-in despite failed amendment bill in meeting with Indian PM Modi during 23-27 Aug visit to India; several parties including UML and CPN (Maoist-Center) criticised Deuba for internationalising a domestic issue already resolved by parliament. Several districts including most in southern Tarai plains experienced severe flooding second week of Aug; over 150 dead and over 20,000 families displaced.

With ruling coalition preoccupied with negotiating cabinet expansion for most of July, talks with dissenting Madhesi parties failed to progress. Ruling Nepali Congress (NC) 24 July decided to put constitution amendment proposal to vote in parliament before 18 Sept third and final phase of local elections. Amendment seen as unlikely to pass as opposition UML party – second largest in parliament – continues to block it; NC leaders claimed an unsuccessful amendment vote would draw criticism toward UML in the eight Tarai districts where third phase of local elections being held. Madhesi parties struggling to map out common strategy including on participation in third phase amid growing internal divisions following boycott of first two phases (May and June), which enjoyed high turnout. Madhesi parties also weighing ruling coalition offer to address some second-tier demands in exchange for election participation. Mainstream parties shifting focus to provincial and general elections needed to be held by Jan 2018; voter registration began 16 July; Constituency Delineation Commission formed 20 July, due to present report to govt on new electoral constituencies for both elections. Fringe parties criticised UML – which performed strongly in local elections – for demanding higher threshold of votes needed to win parliamentary seats in general election.