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Minister, lawmakers criticise CIAA for cancelling generation licence of Kabeli A Hydel project

KATHMANDU: Minister and Lawmakers on Tuesday came heavily over the Commission for the Investigation of Abuse of Authority (CIAA) for its decision to cancel the generation license of Kabeli A Hydropower Project.
Speaking at the meeting of the Agriculture and Water Resources Committee under the Legislature Parliament today, Minister for Energy Radha Kumari Gyawali and majority of the lawmakers who expressed their view in today’s meeting blamed the CIAA for going beyond its jurisdiction and taking decisions haphazardly, without taking the practical aspects into consideration.
Minister Gyawali stated that the CIAA decision to cancel the generation license of Kabeli A had sabotaged the rights and jurisdiction of the executive body.
“There is ministry to look after such cases. We cancel licenses as per the existing rules and policies,” Gyawali said adding that the decision was not a welcome step.
She further said that Ministry would request the CIAA to withdraw its decision and would extend the time of the project taking it to the cabinet if CIAA did not agree.
She was of the opinion that the project like Kabeli A should not be stopped.
Stating that the CIAA decision spoils the investment climate in the country, they urged the CIAA to re-think its decision.
Lawmaker Jamindra Man Ghale said that the CIAA should reconsider the decision as such abrupt decisions would damage the investment climate of the country.
Lawmaker Ananda Pokharel said that the CIAA had been ‘anti-development’ and promoting load-shedding in the country.
He said that the cancellation of licenses comes at a time when the country is reeling under hours long load-shedding.
Lawmaker Amrit Kumar Bohara said that the CIAA entered into many sectors in ‘cheap manner’.
He said that the decision taken by the CIAA without going into depth of issues had created problems and should be re-considered.
Recently, the CIAA had decided to cancel the generation license of 37.6MW Kabeli A Hydropower Project stating that it failed to complete financial closure and power purchase agreement (PPA) as per the condition of the license.
The project has not completed the financial closure and signed the PPA yet though the investment of the World Bank, Hydroelectricity Investment and Development Company Limited, Nepal Electricity Authority, private sector and general public are almost certain.
The deadline of the license ended on September 5, 2014. The project has applied for the extension of the license period for six months more in July this year, which is pending at the Department of Electricity Development.
Speaking at today’s meeting, Padma Jyoti, representative from BPC-JV, said that the project had already completed financial closure and they were signing final deal of the financial closure shortly.
“The agreement between the Government of Nepal and the World Bank was supposed to be held in July this year. However, it could not happen for some special reason. We have requested both the parties to do it earliest,” he said.
Lawmakers Bhawani Prasad Khapung, Gyanendra Bahadur Karki, Amrit Kumar Bohara, Rekha Sharma, Kashi Nath Adhikari, and Sudhir Siwakoti expressed their views in today’s meeting.

Published Date: Tuesday, November 4th, 2014 | 10:55 PM

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