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Congress questions decision on Budhi Gandaki
The opposition Nepali Congress has raised serious questions over the government’s decision to rope in the China Gezhouba Group Corporation (CGGC) to develop the Budhi Gandaki Hydropower Project.The opposition Nepali Congress has raised serious questions over the government’s decision to rope in the China Gezhouba Group Corporation (CGGC) to develop the Budhi Gandaki Hydropower Project.
Speaking at the House of Representatives on Wednesday, NC lawmaker Gagan Thapa expressed his party’s reservations over the government’s preparations to award the power project to the CGGC without competitive bidding.
Reminding the directive of the joint meeting of the parliamentary Agriculture and Water Resources, and Finance Committees last year, Thapa said, “The last Cabinet meeting of the erstwhile Pushpa Kamal Dahal-led government had awarded the project to Gezhouba despite strong reservations from the ministers.” He reminded lawmakers that the parliamentary committees had directed the government to scrap the decision as it went against the country’s laws, particularly the Public Procurement Act.
The Dahal government in May last year signed an MoU with the CGGC to execute the project. However, the Sher Bahadur Deuba-led administration scrapped the deal in November citing irregularities in the process.
According to Thapa, if Budhi Gandaki is awarded to the Chinese company without competitive bidding, it will cost the nation dearly. “Around Rs1 billion has been spent on the study of the Budhi Gandaki project. If bids were invited on the basis of this study, the project cost would have been reduced by 10-18 percent,” said Thapa.
He clarified that his objection was not over the Chinese government or Chinese investments, but over the Oli government’s ways. “The government can take loans from China. And the project can be awarded to a Chinese company through competitive bidding,” said Thapa.
A Cabinet meeting on Friday directed the Energy Ministry to initiate the process to award the project to the Chinese developer. The ministry has been ordered to hold talks with the Gezhouba, prepare a proposal, and reach a deal for executing the $2.5 billion reservoir project.
Multiple sources at the Energy Ministry said the proposal was presented to the Cabinet directly by the Prime Minister’s Office, without involving Energy Ministry officials.