Budhi Gandaki & Nalsyaugad Hydel Projects: PM pushing for controversial amendment

Thu, Jan 3, 2013 12:00 AM on Others, Others,

KATHMANDU, JAN 03 -

Prime Minister Baburam Bhattarai has initiated a process to amend Development Committee Formation Order to give full executive power to chairmen of committees formed to develop two reservoir-type hydropower projects—600MW Budhi Gandaki and 400MW Nalsyaugad.

A government official said that the prime minister, who also looks after the Ministry of Energy, proposed amending order that would deny the representation of Energy Ministry and Nepal Electricity Authority officials in the committee. “The prime minister has decided to table the amendment proposal at the Cabinet,” said the government official.”

The official said that the PM made the amendment proposal in order to secure his direct political intervention in the development multi-billion rupee projects. Development cost of the projects are estimated at more than Rs 200 billion.

The Cabinet’s approval of the proposal will make Laxmi Prasad Devkota and Sher Bahadur Singh chairman and executive director of development committees of Budhi Gandaki and Nalsyaugad projects respectively. The projects are currently under the process of detailed engineering study. Energy Secretary Hari Ram Koirala confirmed that there had been preparations to provide executive power to the chairmen of the two projects but did not divulge further information.

Of the two chairmen, Singh is not professionally associated with the hydropower sector, while Devkota is hydro-electric engineer but does not have experience of developing a single hydropower project yet. Devkota hails from Gorkha, the home district of Prime Minister, while Singh is a local Maoist leader. “If such people without experience of hydropower development are given the responsibility of the entire projects, it would not only delay the project but could also contribute to financial irregularity,” said a source. As per the existing provision, chief of planning division of MoE remains as member in the development committee and joint secretary, with technical background, works as executive director until a chief executive officer is appointed through a free competition. But the new proposal seeks to make a provision that allows the chairman to be a member in the committee. The chairmen in both the projects had been appointed only to chair the meetings. As per the existing provision, board chairman and members are supposed to take a policy decision while executive director will take administrative and financial decisions.

Source: The Kathmandu Post