Ramhari Pandey/Rajdhani
Kathmandu, Sept 4:

Chinese company, China National Machinery Equipment Import & Export Corporation-CMEC is pulling out from the West Seti Hydroelectric Project. According to one official of the Ministry of Energy, CMEC is withdrawing from the project citing Australian company SMEC with whom it has done the joint work to conclude the West Seti project is not reliable and when it found that they will not get the tender for it.

According to the official of the Ministry there was long running disputes between the constructing company in the project and the Chinese Company was showing its disagreement from the past few years. According to the agreement done earlier CMEC was investing 26 per cent in share. CMEC earlier has informed that they will be investing in the project by taking loan from the Chinese Export Import (EXIM Bank) bank of China.

Nepal government, SMEC from Australia, CMEC from China, India and Asian Development Bank (ADB) were all indulge in this project which has the capacity of generating 750 MW of electricity. Official at the Ministry of Energy said the confusion has been created regarding the project after China has pull out from the project. Field survey has shown that along with almost 3000 hectare of Nepali land that will be drowned by the project more than 4000 home and families will be displaced by the project which is situated in the Doti and Dadheldura in the far-western region. According to the agreement India will be taking 90 per cent of the total generated electricity and Nepal will get 10 per cent of electricity free of cost.

In the project which was to be concluded with the investment of 1.6 billion US dollar, 25 percent of investment was from within the nation and 75 per cent was to be invested in project as a foreign loan. Although, the agreement letter regarding the project was made prepared in the 1994, the government of Nepal has done the signature in the year 1997 only. Although they had aimed to conclude the project in 2001, they had managed to prepare the extensive engineering report in the year 1999.

In the agreement, it was agreed that Nepal will invest 15 per cent in the project by taking loan form the Asian Development Bank-ADB. In between, Public Account Committee (PAC) of the legislative parliament has shown immense interest in regards to investment matters of the West Seti project. The committee on Friday has summoned Ministry of Energy Dr. Prakash Saran Mahat to clarify the total cost of project and directed him to present it before the PAC.

The committee has also demanded for the clear reply in the matter of the dispute which takes place time and again regarding the company and investment to conclude the project.

Source: Rajdhani Daily, 5 September, 2009

Unofficial translation