PAC to look into WSH project
Arjun Bhandari
KATHMANDU: The parliamentary Public Accounts Committee today ordered the Ministry of Energy not to enter into any other agreement with the West Seti Hydroelectric project, an undertaking of the Australia-based Snowy Mountain Engineering Corporation Ltd, until the parliamentary body gives a go-ahead. WSH aims to generate 750 MW of electricity to export to India, of which Nepal will get 10 per cent free.
“The PAC orders the Ministry of Energy not to reach any further agreement with the WSH as the committee has been studying overall aspects of the project,” a letter to the ministry stated.
The letter to this effect was forwarded to the ministry following a discussion at PAC meeting. The parliamentary committee has also asked the ministry to give it access to all missives exchanged between the WSH and the ministry, besides the details of the previous agreements, by Sunday.
Dr Prakash Chandra Lohani, one of the PAC members, said there were some key issues that needed to be clarified before the government reached a final agreement on the generation of power from the reservoir project.
He said the draft of the amended and restated project agreement sent by the Snowy Mountain Engineering Corporation Ltd had mentioned nothing about the flood control benefits of the reservoir project.
“It may set a precedent if benefits from the regulated water and flood control benefits are not well-calculated and negotiated with India,” Dr Lohani said. He urged the government to inform the parliament regarding agreement with the WSH project.
He said WSH had proposed to sell its energy to India’s power purchasing party at Rs 3.30 per unit, whereas Nepal is purchasing per unit of electricity at Rs 6.60 from India.
Dr Lohani found loopholes in the amended and restated project agreement draft. He said it could not be justified why to exempt customs duty and Value Added Tax for the power-exporting project on construction materials. He said he could not find any justification of the Asian Development Bank’s decision to provide US$ 45 million loan to Nepal meant for the project.
Lohani said there had to be a provision in the agreement under which Nepal could purchase at least 25 per cent of the total energy, apart from the 10 per cent free energy, from the project at the same price agreed upon with the Indian side.
Source: The Himalayan Times, 31 July 2009
KATHMANDU: The parliamentary Public Accounts Committee today ordered the Ministry of Energy not to enter into any other agreement with the West Seti Hydroelectric project, an undertaking of the Australia-based Snowy Mountain Engineering Corporation Ltd, until the parliamentary body gives a go-ahead. WSH aims to generate 750 MW of electricity to export to India, of which Nepal will get 10 per cent free.
“The PAC orders the Ministry of Energy not to reach any further agreement with the WSH as the committee has been studying overall aspects of the project,” a letter to the ministry stated.
The letter to this effect was forwarded to the ministry following a discussion at PAC meeting. The parliamentary committee has also asked the ministry to give it access to all missives exchanged between the WSH and the ministry, besides the details of the previous agreements, by Sunday.
Dr Prakash Chandra Lohani, one of the PAC members, said there were some key issues that needed to be clarified before the government reached a final agreement on the generation of power from the reservoir project.
He said the draft of the amended and restated project agreement sent by the Snowy Mountain Engineering Corporation Ltd had mentioned nothing about the flood control benefits of the reservoir project.
“It may set a precedent if benefits from the regulated water and flood control benefits are not well-calculated and negotiated with India,” Dr Lohani said. He urged the government to inform the parliament regarding agreement with the WSH project.
He said WSH had proposed to sell its energy to India’s power purchasing party at Rs 3.30 per unit, whereas Nepal is purchasing per unit of electricity at Rs 6.60 from India.
Dr Lohani found loopholes in the amended and restated project agreement draft. He said it could not be justified why to exempt customs duty and Value Added Tax for the power-exporting project on construction materials. He said he could not find any justification of the Asian Development Bank’s decision to provide US$ 45 million loan to Nepal meant for the project.
Lohani said there had to be a provision in the agreement under which Nepal could purchase at least 25 per cent of the total energy, apart from the 10 per cent free energy, from the project at the same price agreed upon with the Indian side.
Source: The Himalayan Times, 31 July 2009
