[Archive] Arun 3rd, ensnared in Daupech

Baishak 28, 2082

Kantipur Reporter

[Archive] Arun 3rd, ensnared in Daupech

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Arun is the third hydropower project to be developed as an ambitious project after the 2046 change. The government led by Girija Prasad Koirala, formed after the election of 2048, tried to advance the Arun 3rd hydroelectric project, not only for the operation of factories, but also for the general public who do not have access to electricity. But due to the reluctance of lenders, various conditions and protests in the name of environment and compensation, the future of this project was questioned, and the construction work was delayed.

Due to increasing internal strife, some of the officials implementing the project started losing faith in the progress of the Arun project . The main loan investor, the World Bank, has also received information that the provision of investment in electricity has been changed, and the uncertainty of what will happen next has increased. 

The World Bank has been saying that there is no need for projects other than the Arun project, and now Nepal needs 400 megawatts of electricity. Among the construction companies participating in the tender process for building 117 km of roads, 11 km of tunnels and sand-filling reservoirs and buildings of the project, the French-Italian joint investment company proposed to work for the lowest amount of 300.29 million US dollars . But the authority could not decide to give responsibility after discussing with the said company .

At that time, a certain official of the World Bank accused the authority of being a commission-oriented incompetent organization, the private sector was not included in Arun and the project was not self-sustainable.  It was estimated that 764 million US dollars would be spent for the production of 201 megawatts of

project. The main creditor of the project was the World Bank. The World Bank promised to provide 175 million loans at 0.75 percent interest. But the implementation was delayed due to the World Bank putting forward 39-point conditions to Nepal.

Environment protection, rehabilitation of the displaced, strengthening of the authority, end of political interference, increase in electricity tariffs, reduction of staff were put forward . The World Bank had proposed to remove the provision that the chairman of the board of directors of the authority should be the Minister of Water Resources to end the influence of political pressure on the project. The Asian Development Bank, Germany, Sweden, Finland and Japan have pledged to invest in the construction of the project . 

Although the government had to negotiate with the World Bank to finalize the investment, it was difficult to raise investment for the construction of the project due to the fact that the date was moved. In addition, the officials of the authority said that the conditions put forward by the World Bank were an "iron chin" for the government. But the then Minister of State for Water Resources Laxman Ghimire said that the talks with the World Bank in January-February 2050 will be clear about investment.  It was estimated that the tariff of one unit of electricity produced by the

project would be maintained at Rs. On the other hand, if the contract of the proposal for physical construction is not accepted within the second week of January, i.e., January 27, the specified period will expire . A meeting of the board of directors of the authority was also called to discuss these matters.

Ajay Khanal's reporting on the democratic government's ambitious project proposal and the problems encountered in it was published by Kantipur Dainik under the title 'Searching for a contractor for Arun, investors still uncertain' on November 8, 2050.

presentation: Rishiram Paudyal

Kantipur

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