Call to rescind MoU about Budhigandaki construction


KATHMANDU — Corruption at the policy level reported while awarding the contract for construction of the Budhigandaki Hydroelectric Project has riled the people concerned.

The erstwhile government on June 4 signed a Memorandum of Understanding with the China Gezhouba Group Corporation for the construction of 1,200- megawatt project on the basis of EPCF model.

Legal and policy-level flaws have been claimed during the signing of the MoU.

Legislature-Parliament’s Public Account Committee president Dor Prasad Upadhyay has accused the then Energy Minister Janardan Sharma of striking the MoU with the Chinese Company, breaching the Public Procurement Act.

“The Committee is investigating into the matter,” he said, speaking at a face-to-face programme organised by Reporters’ Club here today.

The PAC President stressed that the project promoter should be selected through an international bidding process, but this did not happen in the case of the Kaligandaki project which was a matter of concern.

The Council of Ministers on May 23 gave an approval in principle to go with a necessary process for the implementation of project, and the June 4 decision came on the same basis.

A French company has already prepared its detailed project report (DPR) at a cost of two billion rupees.

“The MoU must be rescinded. Irregularities have taken place here. Authority to mobilise the resources should never given to a disputed company.”

CPN (UML)’s leader Ananda Pokhrel was of the view that the construction of the Budi Gandaki project was possible through the utilization and mobilization of internal resources and skills.

Federal Socialist Forum leader Dr Shivaji Prasad Uadav expressed his discontent over the government decision in regard with the project construction. RSS