THIRA L BHUSAL

KATHMANDU, Aug 13: The Public Accounts Committee (PAC) of the parliament has found the proposed agreement between the government of Nepal and West Seti Hydro Limited "extremely objectionable". The government was shortly going to sign the agreement on implementation of the 750-MW storage-type hydroelectric project on Seti River in the far-western part of the country. 

Finding some clauses in the proposed agreement prejudicial against the government of Nepal, the parliamentary committee started investigation into the matter. The committee has sought clarification from the Ministry of Energy (MoE) and has instructed the government not to reach any agreement on the matter until the committee comes up with a conclusion.

The draft of the agreement has a clause which says that the law of Britain will be applicable if any dispute surfaces regarding the project. "This is an objectionable clause for any country. Moreover since the government of Nepal itself is one of the parties in the agreement, it is unacceptable. Law of the land must be applicable," Dr Prakash Chandra Lohani, a member of the committee actively involved in the investigation, told myrepublica.com.

A member of the committee argued that this is a well-calculated move to have their upper hands. Once the government of Nepal accepts the clauses, not only the laws of Nepal will be ineffective but also the institutions for instance Commission for Investigation of Abuse of Authority (CIAA) will have no right to probe into irregularities in the project, he said.

There is another "unacceptable" clause in the proposed agreement. The clause has said that the government of Nepal will be liable to compensate if there is disturbance, strike or any other obstructions in the project. Also, according to the clause, the government of Nepal will have to compensate for any loss incurred due to change in policy of the government of Nepal.

"Such a provision can never be accepted," said an expert. Lohani said that there are about 20 clauses which are ´objectionable´ in the draft to the Nepal government.The committee last week corresponded to the MoE asking to provide the copies of proposed agreement and other details. "But the ministry has not sent the documents to the committee so far. The ministry seems to be hesitant to provide the details," he said.

The PAC committee summoned senior officials from the Water and Energy Commission Secretariat to inquire the facts. Lohani said they could not provide satisfactory answers to the committee.

Soruce: Republica daily, 13 August 2009