Two panels in House tell government to scrap Budhigandaki agreement with Chinese company

File image: Minister for Energy Janardan Sharma (l) exchanges an agreement with the representative of Gezhouba Group for the construction of Budhigandaki Hydroelectric Project, in Kathmanndu, on Sunday, June 4, 2017.

Kathmandu, September 25

Two committees in Parliament have told the government to scrap an agreement signed with  the Chinese company, Gezhouba Group, for the construction of Budhigandaki Hydroelectric Project.

A joint meeting of the Finance Committee and the Agriculture and Water Resource Committee of Parliament held in Singhadarbar today told the government to scrap the deal citing the Chinese company was not efficient for the big project.

The lawmakers have cited that the company had taken 10 long years to construct the 30-megawatt Chilime Hydropower Project, hence it could not complete the 1,200-megawatt Budhigandaki on time.

Likewise, the committees have said the government violated various laws including the Public Procurement Act in granting the contract to the Chinese company.

They have said the project should be built on domestic investment.

The Cabinet on May 23 had decided to handover the assignment to the Chinese firm.

Accordingly, the two sides have already signed an agreement on June 4.

The Chinese company would construct the project in engineering procurement contract with finance (EPCF) model.

According to the model, the company itself will make investments in the project, which Nepal will pay back after the construction.

The detail project report has estimated that the project would cost Rs 250 billion.

Around 20,000 population living by the river in Dhading and Gorkha districts will be displaced by the project.


Published on September 25th, Monday, 2017 12:09 PM

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