Parliament´s Public Accounts Committee (PAC) formed a sub-committee under the coordination of Constituent Assembly (CA) member Dr. Prakash Chandra Lohani to study the reasons behind the delay in completion of MMHP and the cost overruns.
Members from both PAC and the sub-committee made a two-day visit to the project site in Lamjung district and interacted with officials, locals and other stakeholders.
PAC formed the sub-committee as the 70-MW (megawatt) MMHP, the second largest hydro project in operation in the country, was completed only in December 2008. Construction work started in June 2001 with a target of completion by December 2004. Upon completion, the cost of the project stood at over Rs 28 billion against the original estimate of Rs 13.65 billion.
The run-of-river project with an installed capacity of 70 megawatts and an average annual energy generation of 398 gigawatt hours, was inaugurated by then prime minister Pushpa Kamal Dahal on Dec. 14, 2008, four years behind original schedule.
"Our observation is that the construction and operational condition of the project and machinery parts are okay. But we found a dramatic increase in the cost of civil construction and that needs further explanation [from officials concerned]," Lohani told Republica. He said the price escalation of raw materials and some other costs are justified due to delay in project completion. Likewise, another factor that caused cost overruns was the strengthening of the Euro against the Nepali currency, which he described as acceptable.
The project officials said the Maoist insurgency, frequent termination of contracts and the strengthening of the Euro against the Rupee led to the delay and cost overruns.
Sub-committee members and officials said that work at the site was halted for about 800 days during the construction period due to obstructions.
PAC president Ram Krishna Yadav, members Deep Kumar Upadhyaya and Lalbabu Pundit and sub-committee members Kamala Pant and Ravindra Adhikari, among others, visited the project site.
Locals demand participation in project
Representatives from all the political parties in Lamjung district, local officials and other stakeholders unanimously insisted on local participation in building hydropower projects.
At an interaction organized by the sub-committee at the project site, local representatives complained against the authorities for ignoring the locals´ role in the decision-making process.
They said learning from the weaknesses of MMHP, the authorities must adopt policies to promote local participation in such projects from the very beginning of the project and during the construction and operation periods.
"In future, the government or the project builders should ensure a sense of ownership by the locals to make the project a success," said Tulasi Narayan Shrestha, district president of the Nepali Congress.
Mayanath Adhikari of CPN-UML, Devendra Parajuli and Mohanhari Poudel of Unified CPN (Maoist) and Balchandra Shrestha of Rastriya Prajatantra Party echoed the NC leader´s view.
Besides Middle Marsyangdi, the 69-MW Marsyangdi Hydro Project is also in operation in the district. Several other hydro-projects including Marsyangdi-III (42 MW), Upper Marsyangdi-A (50 MW), Upper Khudi (19.5 MW), Upper Marsyangdi-I (100 MW), Marsyangdi Besi (50 MW), Nyadi Khola (20 MW), Madi Seti (86 MW) and Chhahare Khola (17.5 MW) are located in the district. Study or work on these projects is underway.
"We demand that locals be consulted right from the initial period of project construction as project partners, not as beggars," UML leader Adhikari said.
thira@myrepublica.com
Related story
RSP seeks explanation from General Secretary Dhakal
-1200x560-1779899638.webp)
-1779842101.webp)
