Nepal | October 21, 2019

CIAA seeks action against energy minister

Gyawali accused of awarding power project to the second lowest bidder

Pushpa Raj Acharya
Commission for the Investigation of Abuse of Authority

Commission for the Investigation of Abuse of Authority

Kathmandu, Sept 18

Commission for the Investigation of Abuse of Authority today wrote to the prime minister seeking departmental action against Minister of Energy Radha Gyawali for her alleged improper action in making the decision to award the Solu corridor project to Mohan Energy Corporation Pvt Ltd.

Solu corridor transmission line project consists of 90-kilometre Mirchaiya-Tingla 132 KV double circuit transmission line and substation of a similar capacity at Tingla in Solukhumbu district. The project is going to be developed with financial assistance from the line of credit facility extended by the government of India and the project would be implemented on turnkey basis. CIAA issued a press release today, stating that Gyawali, who is also the Chairperson of Nepal Electricity Authority Board, and some other Nepal Electricity Authority officials decided to award the project to Mohan Energy Corporation Pvt Ltd, the second lowest bidder, against the lowest bidder company, Jaguar Overseas Limited & BS Limited.

According to CIAA, the cost of construction of the transmission line proposed by Mohan Energy is $2.62 million higher than the cost proposed by the lowest bidder — a joint venture between Jaguar Overseas and BS Ltd. Mohan Energy had proposed $22.97 million, whereas Jaguar Overseas and BS had proposed $20.35 million, for the construction of the project. This is the second time CIAA has written to the PM, seeking departmental action against a minister.

CIAA said Gyawali and some other employees of the NEA decided to award the project to the second lowest bidder that had quoted a price that was almost Rs 27 crores higher than the lowest bidder.

CIAA has sought departmental action against Gyawali as per Section 12 (a) of the CIAA Act, 1991. It stated that Gyawali, board members Laxman Prasad Agrawal, Manoj Kumar Mishra and Suraj Lamichhane, Member Secretary Mukesh Raj Kafle and members of the Bid Evaluation Committee Janardan Prasad Gautam, Indira Shrestha, Ramesh Prasad Paudel, Dhurbaraj Bhatta and Rajan Dhungl did not follow the appropriate procedures and should be booked under Section 3 (b) and 3 (g) of the CIAA Act. CIAA recommended departmental action against Gyawali under Section 12 (a) of the act.

CIAA decided to write to Ministry of Energy, seeking departmental action against board members Laxman Prasad Agrawal and Manoj Kumar Mishra.

CIAA also decided to seek clarification from board member Suraj Lamichhane, Member Secretary Mukesh Raj Kafle, Janardan Prasad Gautam, Indira Shrestha, assistant managers Ramesh Prasad Paudel and Rajan Dhungel and Legal Officer Dhruba Raj Bhatt as per Section 11 (1) of the CIAA Act.

NEA’s bid evaluation committee, based on the report of the project management consultant, Lahmeyer International (India), had disqualified Jaguar and BS for the JV’s lack of experience in installing transmission lines in hilly areas. However, Jaguar has experience of working in Nepal and is developing the Kabeli-Damak 132 KV transmission line, being financed by World Bank.


A version of this article appears in print on September 19, 2015 of The Himalayan Times.


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