Miscellaneous
Cabinet overturns ministry’s decision
A Cabinet meeting on Thursday overturned Ministry of Energy’s decision to scrap the consultant appointment process of the 140MW Tanahu Hydropower Project.Sanjeev Giri
Energy Minister Radha Gyawali tabled the proposal in the wake of severe criticism from Prime Minister Sushil Koirala, CPN-UML Chairman KP Oli, the Asian Development Bank (ADB) and Japan International Cooperation Agency (Jica), mong others.
“Since the government does not have financial, technical and time-bound liabilities and responsibilities of the project, the Cabinet meeting concluded that the project should be executed,” said Minister for Information and Communications Minendra Rijal.
Minister Gyawali said that her ministry forwarded the proposal to the Cabinet after the ADB, a key financier of the project, assured them in a letter that it would address the issues raised by the ministry, while upholding the decision to scrap the consultant appointment process.
“We had taken the ADB letter positively. As it has agreed to address our concerns,
we have decided to review the decision,” said Gyawali, adding, “
The ADB, along with Japan International Cooperation Agency (Jica) and European Investment Bank (EIB), has pledged funds totalling around Rs 50 billion for the project.
ADB Country Director Kenichi Yokoyama confirmed that they had sent a letter to the ministry. “The ministry had some concerns and we wrote to them, saying that the ADB will address the concerns and help the consultants in every possible way to complete the project on time and without running over costs,” Yokoyama said, adding that the ministry particularly had concern that the economic life of the project should be maintained as per the design.
The ADB, Yokoyama explained, had assured the ministry that the consultant selected is qualified to execute the task and that the bank will be facilitating the Tanahu Hydro Project in every possible way. However, the ADB said it has not yet received the official information regarding the government decision.
The reservoir type project has been shrouded in the controvesry since the Energy Ministry decided to scrap the consultant appointment process, rejecting the ADB’s selection of a joint-venture between Germany’s Lahmeyer International and Canada’s Manitoba Hydro as the project’s consultant for sedimentation flushing. Sedimentation flushing is a process of removing clay deposits in the reservoir.
While the Energy Ministry questioned the ADB selection citing the consultant’s little experience in sedimentation flushing, the bank said the pick was based on holistic merits-tendering process, construction supervision and operational maintenance.
A complaint was lodged at the Commission for Investigation of Abuse of Authority, questioning the consultant’s qualification. The Energy Ministry, following an anti-graft body’s directive, formed a probe committee in August under its joint secretary Keshav Dhwoj Adhikari.
Then a joint review committee was formed with representation from ADB, Finance Ministry and Energy Ministry, leaving out individuals involved in the consultant selection process.
The committee report had suggested there was no firm ground to question the ADB’s selection of the consultant.