Power play over Budhi Gandaki Project

Government could award the project to controversial CGGC

 

Sujata Awale 

Kathmandu

The Prime Minister’s Office is inclined to award the Budhi Gandaki Hydroelectric Project to China Gezhouba Group Corporation ( CGGC), following Prime Minister K P Oli’s visit to China in March. According to a source in the Ministry of Energy ( MoE), despite a proposal earlier submitted to MoE by Power China International Group to develop the Budhi Gandaki Hydropower Project, under directions from the PMO, MoE has initiated the process to provide the project to CGGC. CGGC does not appear to have a clean record and has been in controversy.

According to a document with The Himalayan Times from the source, the ministry received the letter of interest from Power China on March 22 and a preliminary proposal on May 19. According to the source, however, ignoring this proposal, MoE preceded to the proposal from CGGC that was submitted on July 12.

Like CGGC, Power China had also shown interest to develop Nepal’s national pride project via the EPCF ( Engineering, Procurement and Construction with Finance) modality. In this modality, the company will be responsible for developing technical, engineering, civil works and arranging finance.

“ As per directions from the PMO, we are in the process of studying the proposal from CGGC,” said Dinesh Kumar Ghimire, Spokesperson and Joint Secretary at MoE. Citing that it is just a mere process of investigation, he said, “ We have asked the Ministry of Finance to write to the Chinese Embassy for a report on CGGC. It is not like the MoE will award the project to the CGGC.” Ghimire informed that the process was conducted according to provision mentioned in the concept paper of ‘ National Energy Crisis Mitigation and Electricity Development Decade 2072’ which says the government may give projects on contract to develop storage kind of project under the EPCF model.

Questions raised 

When asked whether MoE received any other proposals from other companies beside CGGC, the ministry said that there was no other proposal. This statement from the ministry raises questions about why the government did not mention the proposal from Power China which was submitted four months ago? Why is the ministry showing keen interest in CGGC despite it facing allegations of tax evasion through fake invoices, not completing projects on time and even being blacklisted for earlier projects in Nepal? 

“After a government to government meeting, MoE initiated the process of endorsing our company through the government of China to find out about our capability, financial background and other aspects,” said Om Bandhu Karki, PR Manager at CGGC. Karki further said, “ As the country is reeling under acute power shortage, CGGC came up with a proposal where it agrees to implement the project on the estimated construction cost with nominal margin.” He informed that if the government does not endorse EPCF model to develop the Budhi Gandaki Project, it will take at least five to seven years to initiate construction of the project.

“ Owned by the Chinese government, access to finance, support from the Chinese government and same kind of offshore experience makes CGGC a competent company to develop this mega project,” claimed Karki, adding that they had sent an attractive proposal to the government.

Budhi Gandaki, Nepal’s National Pride

The government has completed the Detail Engineering Survey of Budhi Gandaki Project by French consultant Tractebel Engineering.

Estimated construction cost of the project is USD 2.5 billion. This storage type 1,200 MW mega project is located 80 km west of Kathmandu and it will have the largest storage volume of 446 million cubic metre in the country.

It is estimated that this project will produce annual energy of 3,384 Gwh. The project will generate 1,408 Gwh of electricity in the dry season and 1,975 Gwh in the wet season which will significantly help to reduce power cuts in the country.

Track record of CGGC 

CGGC company is not a new name in the hydropower sector in Nepal. It was awarded the 30 MW Chameliya Project in 2006. A decade has passed but CGGC could not complete the 30 MW Chameliya Project. Estimated to be completed at Rs 2.88 billion, the company has already received Rs six billion till date for the work however the project is still in limbo. According to the Large Taxpayers Office at Lalitpur, CGGC has submitted duplicate bills totaling Rs one billion for the project. The Inland Revenue Department has issued a letter to the company on July 15 for paying Rs 1.16 billion.

CGGC was awarded the 60 MW Upper Trishuli 3A in EPC ( Engineering, Procurement and Construction) model with the initial agreement at USD 89.1 million. The company could not complete the project despite NEA extending the deadline many times. The last deadline to complete the project was on June 30, however it is yet to be completed. Issue to augment the project from 60 MW to 90 MW was major reason for delays. Though the project cost has swelled, and the company has already received Rs 10 billion for construction, the project is yet to be completed.

“ It is not fair to only blame contractors for the delay in project completion,” said Karki, when asked about these issues, adding, “ Delay in land acquisition, local obstruction, lack of proper feasibility study, land acquisition and right of issue, geological and technical hazard and delayed government decisions are hassles we faced for not meeting deadlines.” He further said, “ Due to tunnel squeezing in Chameliya Project, we could not move the project ahead.” According to him, they have completed 97 per cent of the work on that project.

Talking about the Upper Trishuli 3A, Karki said, “ We asked the government to reconstruct the access road to the project site as last year’s earthquake totally damaged the roads. Due to the slow pace of work by the government, construction work at the project is totally halted leading us not meeting the deadline again.” Furthermore, CGGC was blacklisted by Chilime Hydropower Company for three years in 2013 for no procurement for the civil works of 42.5 MW Sanjen Hydroelectric Project.

As per the press release of the World Bank ( WB) published on May 29, 2015, it debarred four subsidiaries of CGGC in connection with misconduct involving three WB funded projects in China. It debarred Gezhouba No 1 Engineering Co Ltd, Gezhouba No 5 Engineering Co Ltd, Gezhouba No 6 Engineering Co Ltd and their affiliates for a period of 18 months whereas China Gezhouba Three Gorges Engineering Co Ltd and its affiliates debarred for a period of six months. The mother company CGGC also received a letter of reprimand which is valid for six months.

The fact remains that many red signals have been raised in the way interest is being shown by the government to award the Budhi Gandaki project to CGGC. Perhaps more transparency and checks and balances are required before the project is awarded.

(Published on The Himalayan Times, Perspectives, on July 31, 2016)

http://epaper.thehimalayantimes.com/Details.aspx?id=10853&boxid=81530615&dat=7/31/2016

Damaged monuments pose a threat

Indifferent authorities put people’s lives in danger

Sujata Awale

Photos by: Sujata Awale

Kathmandu

Kathmandu denizens are obliged to live in constant danger as the concerned authorities have not taken steps to protect them from vulnerable structures. More than a year has passed since the earthquake damaged and destroyed several buildings, monuments and structures. Due to negligence and slow pace of work even today many damaged structures pose a threat to locals and people passing by them.

A real threat 

One example is the Bhimsen Thapa Durbar at Lagan Tole. Last year’s earthquake led to the collapse of three fourth of the palace. The remaining portion is in a critical condition and could collapse any moment especially with the heavy rains now. The walls of the palace have severe cracks and the northern part is tilted. Two weeks ago, Kathmandu Metropolitan City constructed a surrounding walls, however, after heavy rainfall on July 1, the new wall on the northern part collapsed. Luckily nobody was injured or killed.

English Preparatory School ( EPS) located in the north escaped a tragedy, as the palace could have collapsed on top of the school premises. “ The damaged Bhimsen Thapa Durbar poses a constant risk to 300 school students and staffs. Why the government has not demolished such a vulnerable structure is an answer we are demanding,” said Nirmala KC, a non- teaching staff at EPS who also lives on the school premises. According to her, there are three schools — Gautam High School, EPS and Green Peace School in the locality plied by school- goers in and the road section is one of the busiest that leads to Sundhara.

Whose job is it anyway?

Bhimsen Thapa Durbar is public property under the Nepal Army’s Gyarijun Gaan. “ After heavy rainfall, a landslide took place and the constructed wall collapsed.

The northern part of the palace has parted and tilted more than before,” informed an army officer deployed at the palace. He further warned that the building can collapse anytime as rainfall makes it more dangerous. But even the army is helpless. “ This Durbar is a public historic monument that falls under the jurisdiction of the DoA. Being a historic monument, our hands are tied,” said Brigadier General Tara Bahadur Karki, Spokesperson at Nepal Army. According to him, they have written to the concerned department about the status of the building.

The status of the Mangalbazar Police Station building is no different. The government pasted a red sticker on it after quick assessment of the building. The threestorey building has severe cracks and is smack in the middle of a busy road in Patan. As a temporary solution, the police station functions from a tent in front of the building. “ We are aware of the risk that the building poses to the general public as well as police officers working here,” said Resham Bohara, Police Inspector at Mangalbazar Police Station.

He further said, “ As this building is at a World Heritage Site, Lalitpur Sub- Metropolitan City Office needs to take permission from the DoA in order to demolish or retrofit the building.” According to him, they got a letter to empty the building from the municipality and also to assist with manpower to demolish the building. However, he said that they are yet to decide and analyse available human resource to demolish the building.
According to him, Three Star Club is still using the building. Citing that the status of Police stations in other locations are also pathetic, he said, “ Police stations lack proper infrastructure and we are obliged to reside in temporary shelters or in makeshift tents.”

Real risks 

These two are just examples. There are hundreds of monuments, buildings, structures, temples, private properties damaged by the earthquake that pose a risk. It is clear that the state of such partially damaged structures is worsening day by day. However, the concerned authority DoA is in no hurry. Even after a year it has not even started structural analysis of partially damaged monuments.

“ Due to lack of resources and technical expertise, we are not able to conduct structural analysis of damaged monuments ,” said Damodar Gautam, Chief Archaeological Officer at DoA. He further said, “ We agree that it is already late for reconstruction of monuments.
But it doesn’t mean that DoA is not working. We are making a detailed documentation of partially and completely damaged monuments with drawings.” According to him, World Heritage Sites are their top priority and focus is on their documentation and study. On the status of Bhimsen Durbar, he said, “ We have conducted a preliminary study after the earthquake but at that time due to lack of resources we could not do anything.” He further said that he will deploy staff for site inspection to report the current status and as a preliminary mitigation option they will keep wooden beams as support and curtains to protect the building.

When asked on the plans for the building, he said, “ I cannot say it right now without the site inspection report. But we will take care of the property and make sure their won’t be any human casualty. If necessary, we will demolish the building.” According to him, they have Rs 340 million for reconstruction of monuments and till date they are in the bidding process for reconstruction of 49 monument projects.

Dr Sudha Shrestha, Professor, Department of Architecture and Urban Planning at the Institute of Engineering, said, “ It is already too late to manage or demolish vulnerable structures that pose a constant threat to the city dwellers. While city dwellers have to live with the threat everyday, it shows the failure of the government.” She added “ It has already been a year after the earthquake and the Department of Archaeology is still doing nothing about vulnerable structures.” Citing that the process of documentation of cultural and heritage buildings and temples takes time, she said, “ However, it does not mean that the government should take forever to demolish or retrofit such structures. In this emergency, the DoA in associated with NRA has to introduce required Emergency Policy to work on fast track.”

Published on July 17, 2016, The Himalayan Times, Perspectives

http://epaper.thehimalayantimes.com/epaperpdf/1772016/1772016-md-hr-17.pdf 

“ I’m excited about the partnership and there are more opportunities”

Mary Hawkins, President of Bellevue University US, has established herself as a leader and national voice in higher education since joining the university in 1995. Before becoming University President in 2009, Hawkins served as Vice President of Enrollment and Outreach until 2000. She visited Kathmandu for the signing of an agreement between Himalayan Education Network and Bellevue University. She talks to Sujata Awale of THT Perspectives about the agreement and plans for Nepal. Excerpts:

 

How has Bellevue University’s journey been so far?

We are celebrating our 50 th year and there has been lot of changes in education over the last 50 years, but the core value of the university staff and faculty has remained the same; it’s always been about the students and their success. At Bellevue University, our students are mostly studying business, technology and healthcare. We try very hard to make sure that the degrees they are earning are the ones that lead to good jobs. Besides college experience most students care about career opportunities in the future. They want to build their future.

How will the MoU signed benefit Nepali students? 

Our hope is that students in Nepal in the Himalayan Education Network who wish to earn the US Bachelor’s degree can now easily transfer to Bellevue University and take a four- year programme that builds on what they have learnt. We are especially looking at health care, business and computer science right now but there are other choices if we grow the partnership but we want a start with leveraging what the students are learning here. The other thing that will happen for the students of Bellevue is they will be students from not only the United States but also from many other countries. We have students from 70 countries studying in Bellevue and we try very hard to connect the students with employers in the area. There are some major employers and they not only learn their academic subjects but they also benefit from learning and experiencing US business scenario. And sometimes that leads to internships and to jobs. It is a robust experience.

What is the significance of this MoU? 

There’s basically the agreement to transform the education from Nepal and recognise level 12 here as equivalent to a US level 12 to find a smooth transfer in admission, visa and other documents and to make everything very efficient for students here. We are going to the US Embassy here to explain what we are doing so that they understand and support the partnership we have. The other thing that we are looking at is some financial opportunities and scholarship opportunities even though we don’t have everything ironed out.

I think one exciting thing is visiting professorships to share the teachings in US and teachings in Nepal and have faculty exchange. It will also be beneficial to students who don’t come to the US to study because their professors will have some experience from US. It will also be good for our professors from the US to get to learn about how Nepali education and the Himalayan Education Network works.

How many students enroll in Bellevue University from Nepal? What are the basic requirements a student should meet to pursue a degree in the university? 

We’ve had about 600 Nepali students over time. In total we have around 13,000 students. We have different centres so some of the students study at other centres. We also have online learning options and we have many students enrolled in those.

To be eligible to enroll in our university, the students certainly need to have a proficiency in English, because they’ve got to be able to keep up with the studies, the standards that the international students have and the same as the standard of US students. The other thing I think would be attention to basics, the fundamental classes. The Nepali education system is different from some of the international schools we work with and what I like about teaching here is that there is a lot of group discussions, group work and team projects which is similar to how we do it in the US. In the US it is not just lecture and test, it’s the types of things that you do here. So I think it would make for a smooth transition.

Photos: Bikesh Shrestha/ THT

How is your university different from the others in the US?

Most universities in the US are in the public domain and classes are conducted in larger groups sometimes in a lecture hall with three to four hundred students whereas our professors work in classes with a smaller number of students.

The second is the fact that we are private, and we are able to respond to the students’ needs quickly. We can adopt to new technologies and new methods of teaching or experiment with a new programme faster than the public universities which have to go through a lot of government approvals.

We are credited by the United States Department of Education but because our budget is separate from the government budget we have a little more flexibility and that is important. One of the fortunate things about a private university environment is professors like to teach in private institutes because there is not so much red tape.

One of the important things about Bellevue University is that we encourage students to come and study and finish their degree; but we also want them to return to Nepal and apply their learning and build their economy and the country.

What are your future plans for Nepal? 

One is to get the agreement actually materialised with all of the procedures and processes and to work with the US embassy. Another is to identify curriculum paths. It’s figuring out how and what additional programmes to line up. I’m excited about the partnership and as we talk there are more opportunities that we are not thinking about now. We will start with basics and I have a feeling that will grow and take on a different path. That will be interesting and beneficial here and in the US.

(Published on THT Perspectives, July 10, 2016)

http://epaper.thehimalayantimes.com/Details.aspx?id=10468&boxid=25117106&dat=7%2f10%2f2016