KATHMANDU: Resolving crucial issues of new constitution, the four major parties--Nepali Congress, CPN-UML, UCPN-Maoist and Madhesi Janadhikar Forum (Loktantrik)--signed a breakthrough agreement on Monday evening.

In a meeting held at the Prime Minister's official residence, the parties agreed to advance the process of constitution-writing and issue the new constitution as soon as possible. They have also agreed to hold the election of local bodies after the promulgation of constitution.

In the 16-point deal, the parties agreed to resolve issues regarding federalism, legislature and electoral system, forms of governance, judiciary and election of local bodies.

As per the agreement, there would be eight states -- four each based on identity and economic capability. Their names would be chosen by the two-thirds majority of the respective state assemblies while their boundaries would be fixed by a federal commission which is yet to be formed.

The commission would be given six months to prepare a report, which would be put to vote in the Legislature-Parliament for approval.

The deal, signed by NC President and Prime Minister Sushil Koirala, CPN-UML Chairman KP Sharma Oli, Maoist Chairman Pushpa Kamal Dahal and MJFL Chairman Bijaya Kumar Gachhadar, says that the parliament in the centre would bicameral while the state assemblies would be unicameral. The 275-member House of Representatives would be elected through mixed electoral system -- through the first past the post elections in 165 constituencies and proportional election to chose 110 members.

The Upper House would be 45-member. Each state would elect five members to he Upper House while five would be nominated by the President on the recommendation of the central government.

The Prime Minister elected by the Parliament through majority would be executive head of the country, while the ceremonial President would be elected by the House of Representatives, Upper House and state assemblies.

The Maoist party signed the agreement, formally expressing reservation over the parliamentary system and ceremonial president.

The parties have agreed to hold fresh elections of President, Vice-President, Prime Minister, Speaker and Deputy-Speaker from the Legislature-Parliament after promulgating the constitution.