Nepal PM quits clearing way for Maoists

By Gopal Sharma

KATHMANDU (Reuters) - Nepal's Prime Minister Girija Prasad Koirala resigned on Thursday, clearing the way for former Maoist rebels to form a new government after their surprise election win two months ago.

Koirala's move came after criticism from the Maoists that the veteran politician was unwilling to hand power to them even after his party lost the elections for a constituent assembly held in April.

"I announce in this house that I have abandoned the post of the prime minister," Koirala said in an address to a special assembly in Kathmandu.

The Maoists welcomed the move.

"His announcement is positive," Maoist chief Prachanda, who is tipped to become the new prime minister, told reporters.

Koirala, 83, became prime minister in April 2006 after weeks of street protests forced then King Gyanendra to end his brief absolute rule and hand power to political parties.

That prompted the Maoists to declare a cease fire and join a peace process with the government.

Although Koirala, chief architect of a 2006 peace deal that brought the Maoists from jungles to the corridors of power, has been elected to the special assembly it is unclear what position he will hold under the new government led by the Maoists.