Bheri-Babai diversion Project: MoF requested to generate foreign aid

Wed, Sep 14, 2011 12:00 AM on Others, Others,
NEPALGUNJ, SEP 14 -
The Ministry of Irrigation has requested the Ministry of Finance (MoF) to generate foreign assistance for the development of Bheri-Babai Diversion Multipurpose Project is facing shortage of funds.

The government this year allocated 105 million for the project whose estimated cost is Rs 16 billion“ “Work on the project cannot move ahead with the existing budget allocatio”,” said project chief Madhav Belwase“ “We have initiated the process of seeking South Korean aid through the Finance Ministr”.”

At a recent meeting between irrigation ministry officials and Korean government representatives, the Nepali side had requested for $50 million aid for several other projects, including the Bheri-Babai Diversion. According to an official who attended the meeting, they sought Korean aid for purchasing mainly electronic equipment.

Finance Ministry Joint Secretary Lal Shankar Ghimire confirmed the request from the Irrigation Ministry for generating foreign aid for the project. He, however, made it clear that the finance ministry has not made any decision in this regard.

The project has a capacity of irrigating 60,000 hectares of land in Banke and Bardiya districts and generating 48MW electricity.

The project has said it cannot mobilise contractors with such a limited budget allocation. Although the government sought to develop the project with internal resources, the need for huge resources forced it to search external resources. The project has said it needs at least Rs 1 billion to initiate the project“ “We need at least Rs 900 million to mobilise contractor”,” said Belwase.

The project has completed aerial survey and geological study of the construction site. It sought foreign aid in order to build 12-km tunnel in Chure, a dam in Chiple of Lekhpharsa, Surkhet and divert water from Bheri to Babai“ “In spite of insufficient budget, if the Finance Ministry allows awarding multi-year contract for tunnel construction, we can start wor”,” said Belbase. The Department of Irrigation has currently been reviewing the draft of detailed project report and environmental impact study is also being carried out. The project has expected that the environment ministry will give approval for construction after six months of study.

During dry season, the Bheri River flows at a speed of 79 cubic metre per second. The government has targeted of delivering irrigation facilities to the people of Banke and Bardiya after diverting water of Bheri to Babai.

Source: Kantipur