Appoint NEA head within a week‚ says House committee

KATHMANDU:

The Parliamentary Committee on Agriculture and Water Resources today directed the Ministry of Energy (MoE) to complete the process of appointing heads at Nepal Electricity Authority (NEA) and various projects operated by the state-owned power company within a week.

Committee has also directed MoE to submit a detailed report on problems faced by various hydroelectric and transmission line projects, incorporating a timeline on completion date of those projects.

The decisions were taken at a time when many are complaining that the practice of steering NEA and various departments, electricity distribution centres and projects under it through acting heads was affecting decision-making processes and delaying project implementation.

“Why are NEA and various departments and projects under it being run by people who do not have complete authority to take decisions?” asked Committee Chairman Gagan Thapa. “This practice is affecting work performance of NEA and its projects.”

NEA has not seen an independent managing director since Rameshwor Yadav was prosecuted in a corruption case by the Commission for the Investigation of Abuse of Authority in August 2013. He was later relieved from his duty in April and was replaced by MoE Joint Secretary Arjun Karki. After Karki was called back to the ministry, NEA is being steered by Officiating MD Ram Chandra Pandey.

“We will take a decision on appointment of MD at NEA within a week,” MoE Secretary Rajendra Kishore Kshatri told the committee, referring to a verdict issued by Supreme Court on MD appointment at NEA.

The apex court in July directed the government to appoint Mukesh Kumar Kafle as managing director of NEA. His name was shortlisted for the post in December 2012 through an open competition by

a committee formed to select NEA’s head.

At that time the Supreme Court had argued running such a huge company by an acting MD was not appropriate.

Because of various reasons many departments and projects of NEA are also being run by acting heads. NEA is currently operating 17 hydro projects to generate 470 megawatts of electricity. It has also formed other committees, subsidiaries and special purpose vehicles to implement various hydro and transmission line projects.

Because of leadership and other problems, NEA’s projects generally cost two to four times more than those developed by the private sector, Thapa said.

Echoing Thapa, Lawmaker Amrit Kumar Bohara said that Chamelia hydro project has emerged as a white elephant for the government. He made the remark pointing to per megawatt construction cost of the project, which has soared to around Rs 540 million, as against Rs 190 million for those built by the private sector.

But the problem faced by Chamelia hydro project is just the tip of the iceberg.

“Look at how transmission line projects are being handled,” said Lawmaker Ananda Pokharel. “Thankot-Chapagaun transmission line project, for instance, has not been completed even after 14 years.”

Source: THT