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CGGC claims govt cannot scrap Budhigandaki project deal, terms it invalid

Gorkha Post



Land ownership certificate asked from Budhi Gandaki affected people for compensation

KATHMANDU — The China Gezhouba Group Corporation (CGGC) has claimed that the government’s decision to scrap the Budhigandaki Hydropower project deal is against the conditions set in the memorandum of understanding (MoU) signed with the Company.

Writing a letter to the Ministry of Energy (MoE), Yuan Zhixiong, Nepal representative of CGGC, has claimed that the government had to give the company a notice 30 days before taking the decision as per the provision of the MoU. A copy of letter was also sent to the Prime Minister’s Office.

The Chinese company has also said that it would refuse the unilateral declaration to terminate the MoU.

The incumbent government had scrapped the 1200-megawatt reservoir plant project MoU with the company on November 13, following instruction of the House panels to scrap the deal that was signed by the Maoists Centre Chairman Pushpa Kamal Dahal-led government.

The company has expressed reservation over the decision, saying that it was also not given prior information of the termination as per the Clause 9 of the MoU.

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“The abrupt action on behalf of the Government of Nepal to terminate MoU specifies no ground nor we bound by any reasons to the decision of the termination, which in itself didn’t entertain the basic rule of game as stipulated under Clause 9 of the MoU,” the letter addressed to senior divisional engineer of MoE, Raju Maharjan, reads.

“Any party may terminate the MoU, with reasons, at any time by giving a 30-day advance written notice to the party.The government has the right to scrap the deal with reasons but no notice was furnished to us as per the MoU,” it states.

The Chinese company has also mentioned that the MoU with the CGGC had been endorsed by the Cabinet meeting of August 15 led by Prime Minister Sher Bahadur Deuba and it had decided to put the project under Belt and Road Initiative (BRI) of the government of China.

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A joint meeting of the Finance Committee and Agriculture and Water Resources Committee of then Legislature-Parliament had instructed the government to scrap the deal with the Chinese company citing the Dahal-led government had handpicked the company to award the contract under EPCF (engineering, procurement, construction and financing) contract breaching the set standards of competitive bidding.

After the deal with the Chinese company was scrapped, the Ministry of Energy recently handed over the project to Nepal Electricity Authority (NEA).

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TIA to operate services for 21 hrs daily from upcoming mid-May





KATHMANDU — Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari has said that the Tribhuvan International Airport (TIA), the only international airport in the country, would be operated for 21 hours daily.

In an interaction organized by the Nepal Tourism Infrastructure Development Council here in the Ministry on Tuesday, Minister Adhikari shared that the Ministry was preparing to operate the TIA for 21 hours daily from upcoming mid-May.

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He added that the move was targeted to lessen air traffic pressure as the TIA is facing acute air traffic pressure as of late.

He added that though he was planning to operate 24 hours services in the TIA, it takes time to this effect. He also shared that night flights currently available from Kathmandu to Dangadhi will be extended to Bhadrapur of Jhapa in the near future.

Experts in tourism and culture sectors suggested Minister Adhikari to adopt effective plans and programmes for the development of these sectors.

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