Upper Trishuli 3A Upgradation: Cabinet decision challenged in Supreme Court
KATHMANDU, JAN 08 -
The government’s controversial decision to upgrade the Upper Trishuli 3A project has been challenged in the court. Advocate Loknath Chapagain has filed a writ against the Cabinet decision to upgrade project to 90MW from 60MW.
Plaintiff Chapagain has sought annulment of the Cabinet decision and necessary orders. Stating that the capacity upgradation would cause a huge loss to the Nepal Electricity Authority, he has also sought a stay order against the Cabinet decision.
Chapagain has argued that the decision to award the contract to a Chinese firm — China Gezhouba Group Co Ltd — without competition is against the Public Procurement Act.
The litigant has also said that any such upgradation should not exceed 15 percent of the existing capacity as per the Act. He has argued that the group of experts that gave a go ahead for the project upgradation comprised of non-hydro experts.
The Prime Minister Office, Energy Ministry, Nepal Electricity Authority (NEA), Upper Trishuli 3A Hydropower Project and China Gezhouba Group Co Ltd have been made defendants.
Despite strong opposition, a Cabinet meeting on Thursday had endorsed the MoE’s proposal of upgrading the project’s capacity. Both PM Baburam Bhattarai and Energy Secretary Hari Ram Koirala had been making efforts to upgrade the project’s capacity as per the interest of the Chinese contractor.
Three weeks ago, the MoE had decided to upgrade the project through a ministry-level decision despite PM Bhattarai assuring former finance and energy ministers that he would take a decision with their consensus. PM Bhattarai is also looking after the energy portfolio.
The Chinese contractor had long been demanding the project upgradation. After its plan to upgrade the project’s capacity was denied twice by the NEA board, the ministry had tabled its proposal to the Cabinet in mid-December.
The contractor had signed an agreement with NEA in May 2010, in which it had committed to complete the project (then 60 MW) by May 2014. With the capacity expansion, the project is pushed back by three years. The upgradation will also require an additional investment of Rs 4 billion. According to the NEA, the Chinese contractor has already increased the cost for the upgradation. The company, which had initially quoted Rs 2 billion, has now doubled the cost to Rs 4 billion.
Source: The Kathmandu Post
