People celebrate in Kathmandu on Tuesday on the eve of becoming the world’s newest republic. (AP)

Kathmandu, May 27: The sun will finally set on Nepal’s 239-year-old Shah dynasty tomorrow.

The seven-party ruling coalition today hastened the process of swearing in the newly elected and nominated members of the Constituent Assembly, paving the way for the first sitting of the recently created House which would draft Nepal’s new constitution.

The meeting, at the International Convention Centre here tomorrow, is expected to adopt a resolution scrapping the institution of monarchy and declaring the Himalayan nation a republic.

The resolution would also have a clause asking King Gyanendra to vacate the Narayanhitti Palace, the seat of the Shah dynasty, as soon as possible as all royal properties have already been nationalised.

The three major political parties, the dominant forces in the Constituent Assembly, have evolved a consensus on the form and structure of the next government.

A meeting of top leaders of the Nepali Congress, the Maoists and the CPN(UML) at the Prime Minister’s residence this morning decided to create the position of President who would replace the king as the ceremonial head of state and function as commander-in-chief of the Nepal Army.

While the President would have limited powers, the Prime Minister would enjoy all executive powers in the new set-up.

CPN(UML) leader Amrit Bohara said the republican resolution would be formally tabled by the government in the Constituent Assembly. “As per today’s agreement, the President can exercise his powers to resolve any constitutional or political deadlock and fulfil other normal presidential responsibilities,” he said.

The meeting, Bohara added, was attended by Prime Minister and Nepali Congress president Girija Prasad Koirala, former Prime Minister Sher Bahadur Deuba, Maoist chairman Prachanda and fellow rebel leader Babu Ram Bhattarai, and CPN(UML) leaders Jhalanath Khanal and Madhav Kumar Nepal.

CPN(UML) general secretary Khanal said the Constituent Assembly would be adjourned for a week after the republican resolution is adopted.

“During the recess period we will seek to resolve other major differences like on the issue of amending the constitution to replace the two-third provision with simple majority and so on,” he said.

The royal flag on the Narayanhitti Palace, he added, would be replaced with the national flag tomorrow evening in a symbolic burial of the Shah dynasty.

The government also decided to declare the next three days public holidays to celebrate the creation of a republic.

A blast, however, soured the transition mood. An unknown royalist outfit called Ranbir Sena detonated a bomb in the busy Ratna Park area this afternoon, injuring six persons.

“It was a small bomb in a public park near the venue where a pro-republican cultural programme was set to be held,” Kathmandu police chief Sarbendra Khanal said.

The blast came hours after the new members of the assembly were sworn in.