WEST SETI HYDEL PROJECT : House committee gives go–ahead to West Seti
KATHMANDU, APR 02 -
The West Seti power project on Sunday received a go-ahead from a parliamentary committee, paving the way for its early construction.
The Natural Resources and Means Committee (NRMC) of the Parliament has, however, urged the government that it should try making some corrections in the MoU to secure maximum benefit for the country. The committee also directed the government to take action against the officials involved in the deal “for abusing authority”. It was not clear how the China Three Gorges International Corporation (CTGIC) would respond to the call for corrections.
The House panel on Sunday endorsed a probe report on consensus directing the government to implement the project through the Prime Minister-led Investment Board. The committee directed the government to develop West Seti as a multipurpose storage project guaranteeing 49 percent share from Nepal (Nepal Electricity Authority- 25 percent, local people-10 percent and the interested Nepali investors - 14 percent). Current agreement ensures only 25 percent share to Nepal.
“This is the first hydropower project to receive such a wide political support,” said Nepali Congress lawmaker Gagan Thapa. “This indicates that the project will be successfully implemented.”
Earlier on March 10, the House panel had stayed the implementation of the MoU signed between the Ministry of Energy and the Three Gorges citing it was a hush-hush deal with some vested interests. The committee had also formed an 11-member probe team to investigate the MoU.
The project had been pending for over 15 years with a licensed company—Snowy Mountain Engineering Corporation—failing to garner enough investment to construct the project. It got a second lease of life after the government and the CTGC signed the deal.
The investigation report submitted to the NRMC said that the non-transparency and procedural and technical mistakes involved in the deal should be corrected and the government should develop the storage-based 750 MW project within the stipulated time. In the agreement, the Chinese company has promised to complete the project by December 2019.
With the endorsement of the report, the House panel also withdrew its earlier stay order and formally directed the government to begin the construction of the project through the government formed Investment Board. Investment Board was formed to provide one-window solution to potential investors in mega projects. The Act has it that any “hydropower plant of 500 MW or above comes under the Board’s purview.
The report has said that the MoU should be corrected by the Board in coordination with the MoE.
“We’ve directed the government to further the works of the project without delay through the Prime Minister-led, Investment Board,” said lawmaker Shanta Chaudhary, who led the probe committee. “The committee gave the final approval to the project after it realised that the project should be completed as it makes a lot of contribution in the national economy.”
The Committee also directed the government to take necessary legal action against the persons involved in the signing of the MoU for breaching the standard procedure while sealing the deal. The report charges the signatory of the MoU representing the government with abusing authority. Joint Secretary of the MoE Arjun Kumar Karki and CTGC Executive Vice-president Wang Shaofeng had signed the MoU on March 1.
Lawmaker from Nepali Congress Laxman Ghimire, a member of the probe committee, said the investigation has now guaranteed the construction of the project with many corrections.
Lawmakers from the CPN Maoists however said that since now the controversy over the MoU has been sorted out, the House panel’s stay order was uncalled-for. Meanwhile, Maoist lawmaker Mohan Bahadur Khatri warned that the project could be a failure despite all these corrections as it has been decided to be handed over to the newly-formed Investment Board, which seriously lack experience and expertise.
The Board, which is yet to find its permanent office, has not handled any project so far and lacks human resources. Given the Board’s sorry state, the House panel has directed the government to make sure that the Board gets required human and other resources.
July 27, 2011 : Govt scraps license of Australian company
FEB 27, 2012 : Govt approaches China Three Gorges
Feb 29, 2012 : Govt, China Three Gorges sign MoU
March 10, 2012 : Parliamentary Panel stays MoU
March 16, 2012 : China Three Gorges demands govt clarify its position
MAR 22, 2012 : Govt defends MoU at NRMC, asks CTGI to wait
April 1, 2012 : NRMC directs govt to go ahead through Investment Board
Source: Kathmandu Post
