Prime Minister elect Sher Bahadur Deuba will be formally sworn in by King Gyanendra only Thursday morning at 11 AM at the Narayanhiti Royal Palace, sources said.

The King appointed Deuba head of government to succeed Girija Prasad Koirala Sunday after being overwhelmingly elected leader of the ruling Nepali Congress parliamentary party which has a majority in the 205 member House of Representatives. Difficulties in accommodating disparate factions of the party in the government is the main cause for the delay in formally assuming office and announcing an administration, party insiders said.

The first list of ministerial appoints will be formally announced at 7 AM (1.15 GMT) or several hours before Deuba’s swearing-in, sources said. The first priority of the government is to get parliament’s endorsement of the overall fiscal budget for 2001/2 and resolve a Maoist insurgency that has claimed 1,800 lives in nearly six years.

Deuba and the rebels have announced a temporary end to hostilities to resolve the issue. Indian Prime Minister Atal Bihari Vajpayee congratulated Deuba on his election and said New Delhi will support Nepal’s peace, stability and progress.

Chinese Prime Minister Zhu Rongji called Deuba an old friend who has contributed to fostering bilateral ties. British Prime Minister, in another message, said he will support

Deuba’s effort to negotiate an end to the communist insurgency and strengthen bilateral ties.