GORKHA Feb 27: Nepal Communist Party Chair Pushpa Kamal Dahal ‘Prachanda’ has assured that the construction of Budigandaki Hydroelectricity Project will gain momentum.

Inaugurating a new-constructed building of Gandaki Rural Municipality-7 on Tuesday, the former Prime Minister, said he would not allow any delay in the construction of the national pride project.

“I had signed a Memorandum of Understanding with Chinese Company to expedite the construction of the reservoir-based project when I was the Prime Minister”, he added.

“The project has seen delay but is now taking momentum”, he further said.

The distribution of compensation to the project-affected people has taken ahead in a right way, he said, adding preparation is being made to determine the compensation package in the remaining areas.

“The project is not only meant for generating power. It will have far-reaching importance to the development of Nepal.”

The government would emphatically take ahead such national glory project as it ahs huge potential to steer ahead the country to prosperity.

The CPN Chair pledged to spend next ten years for country’s prosperity. RSS

Ramesh Lamsal
KATHMANDU, Dec 18: The National Planning Commission (NPC) has prepared a report to construct the Budhigandaki Hydropower Project with the investment of domestic capital.

Earlier, the Council of Ministers had formed a committee led by NPC’s Vice Chairman Dr Swarnim Wagle to prepare a report on the development of national pride project Budhigandaki Hydropower.

Secretaries at the Ministry of Energy, Finance and Law, Governor of the Nepal Rastra Bank and Executive Director of Nepal Electricity Authority (NEA) were the members of the committee.

On Monday, the team submitted a 50-page long report to Deputy Prime Minister and Minister for Energy Kamal Thapa concluding that the 1,200 megawatt project can be developed with domestic capital.

Based on the G2G model, the Pushpa Kamal Dahal-led government had awarded the development of the project to a Chinese company. However, the subsequent government scrapped the agreement by deciding to build the project with own investment.

The total cost of the project is estimated around Rs 270 billion. For the construction of the project, the committee said that Nepal can collect Rs 164 billion in a decade from the infrastructure tax charged in the petroleum products.

Likewise, the committee has suggested that Employees’ Provident Fund, Citizen Investment Trust, Rastriya Beema Corporation, Hydropower Investment and Development Company, Nepal Telecom and welfare funds of the Nepalese Army and Nepal Police can be utilized for the development of the project in Nepal’s own investment.

Wagle said that the general people and the non-banking financial institutions too can be lured for their investments for the Budhigandaki project.

The committee has said that carbon tax imposed on imports of petroleum products could reach as high as Rs 160 billion while the Nepal Electricity Authority can invest minimum Rs 10 billion and maximum Rs 20 billion while Fund and Trust are supposed to invest Rs 50 billion and RS 40 billion respectively based on their potential.

Likewise, the committee has kept open to the provision of accepting unconditional line of credit from different multinational development agencies.

KATHMANDU, Nov 13: The government has scrapped its decision to award the Budigandaki Hydropower project to the China Gezhouba Group Co Ltd (CGGC).

A cabinet meeting held on Monday took the decision to roll back the controversial agreement signed with the Chinese company, according to Deputy Prime Minister and Minister for Energy Kamal Thapa.

Pushpa Kamal Dahal led-caretaker government on May 23, had in principle, decided to entrust the 1200-megawatt Budigandaki project to the Gezhauba Group. Following the cabinet’s decision, the then Energy Minister Janardan Sharma had signed a Memorandum of Understanding in that regard on June 4. But the government’s decision had received wide criticism from academia and parliamentary committees.

Thapa said that the agreement signed with the Chinese builder was of irregularity and imprudent. The Gezhouba Group has also been criticized for its credibility due  to the firm’s poor performance record.

Earlier, a joint meeting of Agriculture and Water Resources Committee and Finance Committee of Parliament had directed the government to scrap the decision on September 26 citing that the mega project was awarded to the Chinese group without going for competition and by violating the Public Procurement Act.

KATHMANDU, Oct 8: Even though the top leaders of major left parties CPN-UML and CPN (Maoist Center) have claimed that the left parties allied to form a single communist center in future, some high placed sources have claimed that Nepal’s top energy trader Deepak Bhatta played a middle-man role in bringing together the left parties.

Sources also claim that Bhatta has tipped worth billions of rupees so as to sway UML and Maoist Center leaders to move forward the Budigandaki Hydropower Project. According to sources, China’s Gezhouba Group Corporation has released about three billion rupees to turn the project in its favor.

Pushpa Kamal Dahal led-caretaker government on May 23, had in principle, decided to entrust the 1200-megawatt Budigandaki project to the Gezhauba Group. Following the cabinet’s decision, the then Energy Minister Janardan Sharma had signed a Memorandum of Understanding in that regard on June 4.  But the Chinese firm has been questioned for its lack of transparency.

Last month, a joint meeting of the parliament’s Agriculture and Water Resources Committee and Finance Committee has instructed the government to halt the process of allowing China Gezhouba Group Corporation citing that the mega project was awarded to the Chinese group without going for competition and by violating the Public Procurement Act.

The decision to sign the MoU by the caretaker government had drawn flak from various political parties including Baburam Bhattarai-led Naya Shakti Party Nepal. Bhattarai had demanded that the government immediately terminate the contract regarding the project citing that it was against the national interest. However, Bhattarai appears mum in this regard since UML, Maoist Center and Naya Shakti jointly announced electoral alliance and unity process earlier this week.

UML leader Bamdev Gautam and Home Minister Janadran Sharma have also been drawn into it by agent Bhatta, according to sources. Gautam close Bhatta is the local agent of Gezhouba Group. He has been doing business with Nepal Army, Nepal Police and Nepal Electricity Authority.