PM Koirala ordered Ministry of Energy to Review Decision

Prime minister order Ministry of Energy to implement Tanahun hydel project

Dec. 23, 2014, 5:45 p.m. Published in Magazine Issue: Vol: 08 No. -12 December. 5- 2014 (Mansir 19, 2071)

Prime Minister Sushil Koirala said no one should try to dampen country’s investment climate, in a dig at energy minister, whose recent decision to scrap the consultant selection process for Tanahun Hydropower Project has plunged implementation of the 140-megawatt project into uncertainty.

The meeting was called to brief the PM and senior leaders of the NC and the CPN-UML on the latest developments concerning the hydropower project, whose fate continues to hang in the balance due to controversial decision by the energy minister.

Energy Minister Radha Kumari Gyawali, who is also a senior CPN-UML member, last week scrapped the consultant selection process executed by the Asian Development Bank — one of the financiers of the $505-million project — and decided to start a fresh one. Since then she has not revealed how she plans to proceed ahead.

The Ministry of Finance, which deals with development partners like ADB to mobilise funds to build projects, is expected to make an official statement on the decision taken by the energy minister on Wednesday.

The project landed in controversy after the ADB shortlisted joint venture between Lahmeyer International of Germany and Manitoba Hydro International of Canada as the preferred bidder for project supervision consultant.

As controversy heightened, MoF appointed a joint review committee, which concluded saying it did not come across anything that gives a firm ground to question the credibility of the ADB Consultant Selection Committee. 

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