Collusion when making the procedure and asking for proposals for two big projects
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The process of giving the ruling party's parliamentarians in collaboration with two major hydropower projects of Nepal, which are considered commercially attractive, has progressed. The government has also compiled a proposal to give the 1902 MW Mugu Karnali reservoir to Congress MP and industrialist Vinod Chaudhary's company and the 454 MW Kimathanka Arun project to another MP Sunil Sharma's company.
These two projects carried out by the Power Generation Company Limited (VUCL) under the Ministry of Energy must be given whatever is necessary to those close to power, the government has made a procedure keeping that standard in mind. For such big projects, proposals have been collected within a week by making a procedure and giving a deadline of 15 days in the beginning and an additional 15 days. The energy and revenue that the government will get from these 'mega projects' of Nepal, which is looking for a future in water resources, has not been determined.
With the policy consent of Energy Minister Deepak Khadka, the Power Generation Company Limited (VUCL) chaired by Secretary Suresh Acharya has proceeded with the project at an unnatural speed, ignoring the national interest and the practice so far.
The VUCL Board of Directors meeting presided over by Acharya formed a sub-committee under the chairmanship of Vinod Kumar Bhattarai, the director of the company, on November 9 to draft the 'procedures for sharing investment for project construction'. VUCL Chief Executive Officer (CEO) Bakhat Bahadur Shahi and Hydroelectricity Investment and Development Company (HIDCL) Chief Administrative Officer Arjun Kumar Gautam were members of the sub-committee. The sub-committee, which had only one week to make the
procedure, worked even faster than that, and the procedure was approved by the board on the fifth day, that is, on November 14. On the same day VUCL sent the letter, Energy Minister Deepak Khadka gave policy consent to the investment partnership process. Based on the 'Energy Development Roadmap and Action Plan, 2081', policy consent was given by the energy ministerial decision.
While the action plan was not approved by the Cabinet at that time. After a month, only the cabinet meeting held on December 16 approved the action plan. 
On the ninth day after the procedure was approved, i.e. on November 23, a 15-day notice was issued to submit proposals for financial investment in two large hydropower projects. As the information was released in a hurry, the details of the project were released only on November 28.
'In order to understand the possibility of investing in 1902 MW reservoir Mugu Karnali and 454 MW in Kimathanka Arun, conducting on-site observations, assessing the investment and return, studying the geographical and technical complexity and issuing a notification with a deadline of 15 days. It seems like a big deal, but all this has been done with a plan to coordinate the national resources,' says an official of the Ministry of Energy, 'As it happened, we ourselves We are surprised, the work has been done in such a way as to mislead the officials of the Ministry of Energy and VUCL. In the minutes of the meeting to pass the procedure, Ravi Prakash KC, Company Secretary of VUCL and Kulman Ghising, Executive Director of Nepal Electricity Authority and Board member and Executive Director of Nepal Electricity Authority, are not present.
A 15-day deadline was set for such big projects, and the 15-day deadline was extended after the Abuse of Authority Investigation Commission was interested in the matter of the details of the project being made public only later. When asked why such a short period of time was kept for the study, assessment and proposal for investors, VUCL CEO Bakhat Bahadur Shahi claimed that the set time was sufficient. "The main feature of the project is in the company's website, it is necessary to submit the letter of intent by looking at it, it is not necessary to go to the project just to submit the letter of intent, there is enough time to arrive," he said.
VUCL has asked for proposals to raise 51 percent investment in both projects. The remaining 49 percent share will belong to VUCL. Energy, Finance, Law, Electricity Authority, Nepal Telecom, Employee Provident Fund, Citizen Investment Fund, HIDCL and National Insurance Institute are the founding shareholders of VUCL. In this way, the process of handing over the majority share of the project has not been approved by the Ministry of Law and Finance.
The estimated cost of the Kimathanka Arun hydropower project, located in North Bhotkhola Rural Municipality-2 of Sankhuwasabha, is 93 billion 800 million. Similarly, the estimated cost of the Mugu Karnali project, which will affect the Mugu, Humla, Bajura, Kalikot and Jumla areas, is 4 trillion 60 billion. The basis of the amount that investors have to pay to the government to take up such large projects is kept like a cow.
It was asked to add a total of 5 percent 'overhead' to the expenditure incurred by the government for the construction of infrastructure at the project site and submit a proposal considering that amount as the minimum. Based on the expenses so far, five percent overhead and inflation, the minimum price has been fixed at 908.1 million rupees for Kimathanka Arun and 487.2 million rupees for Mugu Karnali.
Even looking at other projects of Arun and Karnali, the current standards are unnatural. 669 MW Lower Arun, 900 MW Arun-3, 490 MW Arun-4, 800 MW West Seti, 450 MW Seti Nadi-6 and 480 MW Fukot Karnali hydropower projects have been contracted to get 21.9 percent free energy from each. An agreement has been reached that 108 MW of electricity will be free from the company building the 900 MW Upper Karnali and Nepal Electricity Authority will get 27 percent of the shares for free.
Previously, the most revenue-generating, free energy, share in the project and the price of the electricity sold to the government were made and entrusted with the construction of the project. The decision was made by the Council of Ministers when Fukot Karnali, which is under VUCL, was given to the Indian company NHPC. Solu River, Singti, Khare River, Maya River, Lower Solu River and Mewa River Hydroelectric Project
was based on giving more revenue to the private sector. However, the benefits directly obtained by the state from the projects of 1902 MW and 454 MW capacity have not been made a criterion. Energy officials say that even the company offering the highest amount will get only 10 marks, weaken it in the overall evaluation, give the project to the company it wants and harm the state as well. The basis of marks in the
technical assessment is also kept unique. It is said that 5 points will be given to experience in energy sector, 4 points to health, education and tourism sector and 3 points to other sectors. According to the energy officials, when asking for proposals for the construction of hydropower projects, 5 points were allocated to energy experience and 4 points to health, education and tourism. The variation also revealed why there was so much deliberation when making the
procedure and asking for proposals. Only CG Energo Pvt Ltd of Chowdhury Group has been proposed for Mugu Karnali with 1902 MW reservoir. The CG Group led by Vinod Chaudhary, who is also a Congress MP, has so far constructed only the 18 MW Madhyamodi hydropower project, while the Dudhkoshi-5 hydropower project is in the pipeline.
If the current process continues, Mugu Karnali will get Mugu Karnali no matter how much he has given because the procedure has a provision that even if there is only one proposal, it can be evaluated. After taking over the project, the company can sell it to any foreign company at its own terms and price. Similarly, proposals from five companies namely Nobel Group of Hydro Energy, Bela Nepal Industries, Vision Energy and Power, NJ Hydro Energy and Anak Hydropower have been received for the 454 MW Kimathanka Arun.
The Nobel Group of Hydro belongs to Sunil Sharma, another MP of the Congress. Similarly, TN Acharya is the executive chairman of Vision Energy and Power Public Company, while Bela Nepal Industries is working in the field of housing construction. Anak Hydro Power Company has Chairman Sriram Maharjan and Managing Director Amrit Kumar Maharjan.
About 900 ropani of private land required for Kimathanka Arun, about 300 ropani have been acquired by paying compensation. For Mugu Karnali, a 280 meter high dam will be constructed between Jagannath and Swamikartik Khapar Rural Municipality of Bajura at a place called Piluchour. When the Karnali river is blocked by the construction of the dam, the reservoir of the project will be around 45 km up to the upper coastal area.
The areas of Mugu and Humla in Karnali region will be affected due to the reservoir. The electricity from the project will be fed into the Jodi National Transmission System at the proposed Rengil Substation in Khandachakra Municipality through a transmission line of about 46 km.
