PAC forms sub-committee to study PPAs in foreign currency

KATHMANDU, July 13: Parliamentary Public Account Committee (PAC) on Sunday formed a sub-committee to study power purchase agreement (PPA) in foreign currency to buy electricity generated by the independent power producers.

Sub-committee led by parliamentarian Top Bahadur Rayamajhi will study the PPA particularly focusing on deals made in foreign exchange rates and will submit recommendations on the issue.

Suggestions from the sub-committee are expected to serve as policy guidelines to the government.

According to Surendra Aryal, Undersecretary at PAC,  the sub-committee will have nine members--Deepak Bohara, Prem Bahadur Singh, Bhaskar Bhadra, Meena Pun, Mohan Bahadur Basnet, Rupa Maharjan and Bikash Lamsal and Sarbendra Nath Shukla.

PAC has been holding discussions over PPAs signed in foreign currency including Upper Bhotekoshi and Khimti Hydropower Project. The foreign currency PPAs has been incurring huge loss to Nepal Electricity Authority.

After PAC drew attention of government on the issue, Energy Minister Radha Gyawali and Energy Secretary Rajendra Kishore Kshatri had earlier issued a direction not to make any such PPAs further until fresh decision is taken to this regard.

Furnishing his clarification during PAC meeting, Secretary Kshatri had said that all such PPAs in foreign currency were made without proper policy guidelines and asked the PAC to study and provide policy inputs to the government.

Likewise, PAC also has formed a separate sub-committee led by lawmaker Rajendra Kumar KC to study all the issues of the contracts and decisions taken by NEA board on payment of variation order of Rs 1.09 billion to the civil contractor of Chameliya Hydropower Project.

 The sub-committee has  also nine members and both the committees were given one month’s time to submit their reports.

Earlier, PAC had directed Ministry of Energy and NEA not to go ahead of the decision of paying variation order to the contractor.

Source: Republica