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Govt revokes the decision of awarding Budhigandaki Hydropower Project to the Chinese company

KATHMANDU — The government has revoked the decision to award the the contract for development of the Budhi Gandaki Hydro Project to China Gezhouba Group Corporation (CGGC).

The Cabinet meeting held Monday morning took this decision, Deputy Prime Minister and Energy Minister Kamal Thapa informed.

DPM Thapa has said that the agreement with the CGGC has now been scrapped by the Monday’s cabinet meeting.

“The Cabinet meeting today has revoked the agreement on Budhi Gandaki done with China Gezhouba Group in an irregular and whimsical manner as per the instruction of parliamentary committee,” Thapa tweeted after the Monday’s meeting.

On May 23, Pushpa Kamal Dahal led government had decided to award the the project to CGGC under the engineering, procurement, construction and finance (EPCF) model without a bidding process.

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The decision to award the 1200 MW project to the Chinese company on June 5 received a wide criticism from academia and also parliamentary committees for awarding the project which was being developed on its own.

On September 26, a joint meeting of parliament’s Agriculture and Water Resources Committee and Finance Committee of Parliament had directed the government to scrap the decision.