Home National Parliament Committee To Probe Into Cancelling Of Hydro Project License

Parliament Committee To Probe Into Cancelling Of Hydro Project License

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Kathmandu, Nov 4,2014: The Agriculture and Water Resources Committee under the Legislature-Parliament is to probe into the CIAA directive related with the Kabeli ‘A’ hydropower project.

The Committee’s meeting today decided to look into the directive issued by the CIAA to the Ministry of Energy to cancel the license of projects that had entered the construction phase after fulfilling all required procedures, and its subsequent impact on the investors, said the Committee Chair Gagan Thapa.

The Commission for Investigation of Abuse of Authority (CIAA) had directed the Ministry to cancel the license of the 37.5 MW Kabeli ‘A’ project, reasoning that the progress on it was not satisfactory.

Butwal Power Company is building the project with investments from the World Bank and International Monetary Fund.

The Company had received production license in 2012 and had to sign the power purchase agreement (PPA) within a year from it. However, it failed to do so while the capacity was also increased from 30 MW to 37.5 MW in the Power Development Agreement (PDA). The project is being developed in the Kabeli river located in between Taplejung and Paanchthar districts.

Meanwhile, Minister for Energy Radha Kumari Gyawali said the Ministry was ready to move ahead with the projects that have International investment will be encouraged and obstruction removed, she said.

Speaking at the Committee meeting today, she said the Ministry had initiated effective steps recently for the development of the hydropower sector in the country.



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