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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.

“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.

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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Govt, transport entrepreneurs strike eight-point agreement

Gorkha Post



KATHMANDU — The government and agitating transport entrepreneurs have stroked an eight-point agreement on Friday.

The government has also agreed to amend provisions of the new Criminal Code as demanded by the transport entrepreneurs.

With the agreement, the agitating transport entrepreneurs have called off their protest programs after the government agreed to address their demands.

Tanker transport entrepreneurs had been staging protest since Tuesday against provisions in the penal code, including 10-year imprisonment for accidents and life imprisonment for causing death.

Following the agreement, the ongoing fuel supply crisis is now expected to end.

The entire country has been facing short of fuel due to the disruption of fuel supply after tanker drivers went on a strike to press for their demands.

Earlier today, after nation wide fuel shortage, the Nepal Oil Corporation has decided to start rationing of fuel citing depleting stock due to inadequate supply of petroleum products.

According to the NOC, a two-wheeler will be allowed to purchase 5 liters of petrol and light four-wheeler vehicle will be allowed to purchase 15 liters of petrol.

Likwise, the state oil monopoly has urged the petrol pumps to sell maximum 50 liters diesel to short-route vehicles and maximum 100 liters to long-route vehicles.

The NOC has also urged the fuel stations to prioritise ambulances, school buses and government vehicles while selling the fuel.

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