Kathmandu, November 24

The government has handed over Budhigandaki Hydropower Project to Nepal Electricity Authority to construct the 1,200-megawatt reservoir project within eight years on engineering, procurement and construction model. The government has decided to construct the project utilising domestic funds and technology.

Eleven days after scrapping the memorandum of understanding between the Ministry of Energy and China Gezhouba Group Corporation, the government today authorised NEA to construct the project.

“We need a reservoir project and the government decided to construct the national pride project with domestic funds and technology,” said Deputy Prime Minister and Energy Minister Kamal Thapa. “Many concerns regarding the project were raised during this short time and the government has now taken a final decision regarding the project.”

The meeting of the Council of Ministers held today also formed a recommendation committee under the coordination of vice-chairman of National Planning Commission to analyse and recommend the financial model to construct the project. Finance secretary, energy secretary, governor of Nepal Rastra Bank and joint secretary of International Economic Coordination Division of the Ministry of Energy are members of the committee and the managing director of NEA is the member secretary.

“Among the models suggested by the committee, the government will choose the best one,” Thapa said.

Citing the decision taken by the Cabinet, Thapa said the government had directed the Water and Energy Commission Secretariat to conduct the downstream benefit study of the project.

“The government is serious about building the reservoir project and the work related to distribution of the compensation to affected people and rehabilitation will be completed as soon as possible,” Thapa said after the Cabinet meeting.

The last Cabinet meeting of former prime minister Pushpa Kamal Dahal, before his resignation, had selected CGGC to develop the Budhigandaki project. However, the Cabinet meeting held on November 13 had scrapped the deal.

“All the concerned parties have been informed about the decision taken by the Cabinet to scrap the MoU,” Thapa stated.

As per the detailed study report, the total cost of the project will be around Rs 260 billion. The government has allocated Rs 5.5 billion to develop the project through the budget of fiscal 2017-18.

(UPDATED)

Govt decides to handover Budigandaki hydropower project to NEA

KATHMANDU: A meeting of the Council of Ministers on Friday decided to handover the construction of 1200 megawatt Budigandaki hydropower to the Nepal Electricity Authority.

Deputy Prime Minister and Minister for Energy Kamal Thapa speaking to media after the meeting at the Singha Durbar today said the government have decided to construct one of the biggest water reserve hydro project in Nepal, on its own capital.

He further said that NEA would construct the project within eight years.

The government has also urged the NEA to form a committee and submits its report within 15 days, according to Thapa.

The project would affect 27 villages and 150,000 ropanis of land would be inundated by the project to be constructed in Dhading and Gorkha district.

Meanwhile, the government has allotted Rs 60 billion for the land acquisition for the project, Minister Thapa shared.

Earlier, PM Pushpa Kamal Dahal led government had granted permission for the Chinese contractor for the construction of the project.

After scraping the deal with the Chinese contractors, within a week government have decided to construct the project with its own internal resources.