MoE starts scrapping hydropower licences
KATHMANDU, JAN 04 -
Amid controversy over the Commission for Investigation of Abuse of Authority’s (CIAA) direction to scrap licences of hydropower projects, the Ministry of Energy (MoE) is doing what the anti-graft body has ordered.
The ministry has started scrapping licences of hydropower projects that were under the CIAA list.
Ministry sources say except for the Kabeli-A project, licences of all other 13 projects are most likely to be terminated. The ministry has already scrapped licences of three projects—Karua Khola (36MW), Lower Arun (400MW), and Balefi-B (4.53MW). The anti-graft body had directed the ministry to cancel more than a dozen hydropower projects, including the World Bank-funded Kabeli-A, for their failure to sign power purchase agreements (PPA) with Nepal Electricity Authority (NEA) and to complete financial closure in time.
Energy Secretary Rajendra Kishore Kshatri said almost all the projects are likely to face cancellation in the near future. “The minitry will move ahead as per legal interpretation of the CIAA directive,” Kshatri said. The ministry’s move can be altered only if the CIAA issues a fresh directive.
Other projects on the CIAA list are Kabeli-A (37.6MW), Bhotekoshi-5 (60MW), Buku Khola (6MW), Lower Indrawati (4.5MW), Chahare Khola (17.5 MW), Midim Khola (3.4MW), Upper Mailung (14.3MW ), Upper Solu (18MW), Upper Khorunga (6.8MW), Lower Balefi (20MW) and Upper Ingwa (9.7MW). Kabeli-A Hydropower Project, however, is likely to survive as it marks the World Bank’s entry into Nepal’s hydropower development after the Arun III debacle. The Hydroelectric Investment Development Company (HIDCL) has also funded the Kabeli-A, promoted by Butwal Power Company. “Factors such as the completion of the Project Development Agreement in 2010 and involvement of the World Bank and HIDCL will save Kabeli-A,” said ministry sources.
The Agriculture and Water Resource Committee (AWRC) on December 17 had directed the ministry to decide the fate of the 14 hydropower projects, following a verbal relaxation of the orders from the CIAA. At the meeting, CIAA’s acting secretary Prem Kumar Rai had said the anti-graft body’s directive was not mandatory.
Ministry officials, however, have said the CIAA directive is obligatory and that they have no other option but to abiding by it. The ministry has said the scrapped projects will be kept in the government’s basket and will be awarded to the new developers.
Source: eKantipur
