Kathmandu, June 22

The government has officially dissolved the Nalsing Gad Development Committee and Budhigandaki Development Committee.

Issuing a gazette notice recently, government announced the dissolution of both committees, which were set up as special purpose vehicles to develop Nalsing Gad and Budhigandaki hydropower projects.

Both the projects will be developed and operated through Electricity Generation Company or through its subsidiaries, as per the gazette notice. “The government will hand over all the rights, assets and liabilities of these projects to the Electricity Generation Company.”

Nalsing Gad Hydropower Development Committee has been defunct since April, as the Commission for the Investigation of Abuse of Authority had filed cases against the senior officials of the project accusing them of engaging in fund embezzlement during the feasibility study of the project.

Likewise, Budhigandaki Development Committee has also been dissolved as previous government had awarded the engineering, procurement, construction and financing contract of Budhigandaki project to a Chinese company — China Gezhouba Group Corporation (CGGC) — on May 23.

Both Nalsing Gad and Budhigandaki are storage projects of 410 megawatts and 1,200 megawatts, respectively.