The protracted progress of West Seti Hydroelectric Project in absence of financial arrangement is again taking a move ahead.

One of the senior project officials informed to start 10 km long access road, connecting project’s site and Seti Highway, to encourage the investors. “To trim down the project’s uncertainty existing among locals, government and investors, we are constructing access road with investment from SMEC,” the official told the Rajdhani.

According to an official at the Ministry of Energy, the promoter, which failed to kick-start the construction works even after a decade of acquiring the project’s license, is going to construct access road in the project’s site when the government started looking for a new investor.

The Energy Minister, Prakash Sharan Mahat informed that the project could not go ahead since the company failed to make financial closing. “The government is not going to delay the project if the construction company approaches us with an official letter regarding financial closure,” he said.

The Minister Mahat admitted the continuity of the same company in the project, although he hinted some preliminary discussions regarding the new investor. “We are analysing some clauses for amendment in the agreement with the existing company,” he said. 

Mahat also informed that the agreement was forwarded to officials at Ministry of Finance and Ministry of Law for giving a second look at some clauses.

Nepal bears a great loss since the construction company failed to make financial arrangement, said Mahat, “The government is committed to begin West Seti soon.”

The project with 750 MW installed capacity exports 90 percent of electricity to India while remaining 10 percent will be granted to Nepal free of cost.

As per the past agreement, 1.6 billion US dollars project engrosses share investment from Australian Construction Company SMEC (26 %), Government of Nepal (15%), Asian Development Bank (15%), China Machinery Imports and Exports Corporation CMEC (15%), Infrastructure Leasing and Financial Services –IL&FS (15%) and the Nepalese financial institutions (14 %) including four percent from the far western local people. The project will have 25 percent equity share and 75 percent as loan investment.

“Investments from others will flow as soon as ADB gets ready,” said the source accusing ADB for its negligence for delayed investment.

Unofficial translation from Rajdhani daily Kathmandu, Nov 17, 2009

“The reality of suggestions and activities being extended by its staffs and consultants in its Kathmandu office against Nepal’s interest and development is clarified through its West Seti policy.”   Download his article from Kantipur

It has almost been one and half decade since we hear the talks on implementation of West Seti (reservoir-based 750 MW) which is hoped to change the fate of Far Western Development Region. Taking into consideration the huge investment in needs, around US$ 1.6 billion, delay in financial management was taken as normal. The hopes had heightened after the multilateral development partner Asian Development Bank (ADB) showed the interest to invest in West Seti. Besides its own investment, the ADB had instigated Government of Nepal (GoN) for investment in West Seti through commercial loan. The bank has already signed agreement for 15 percent investment in the project. 

The tenure of this agreement has expired. The bank has neither renewed it nor has it announced to withdraw. It has also extended US$ 45 million loan to GoN for 15 percent investment in the project. The bank has involved the government through loan with high interest. Investment by the government was expected to deliver positive thoughts among the investors and create a cleaner image in international market for investment in Nepal’s hydropower.

The ADB’s entry into West Seti has created additional confusions. The involvement of ADB has put the project in dilemma. In totality, the bank has not only stopped one project but influenced country’s economic growth. ABD has neither made investment nor has it said it will not. Rather it is busy making a new agreement. It was under ABD pressure that intolerable provisions such as ‘all compensation to be made for loss caused by construction of the project (WSH) has to be made by Nepal government’ are being incorporated into the new draft agreement. There won’t be any agreement under such provisions. Failing to sign the agreement means project’s construction will not continue. At this hour, ADB has remained silent saying agreement has not been signed. As a result, it has stopped probable international investors of West Seti. In this way, the project nation was awaiting for the last one and half decade is set nowhere due to ill intention and policies of development partner such as ADB.

It should have opened ways for other investors if it can’t invest. This has exposed the bureaucracy of the ADB. The reality of suggestions and activities being extended by its staffs and consultants in its Kathmandu office against Nepal’s interest and development is clarified through its West Seti policy. What development progress has ADB expected to make through such a group of staffs? For example, when Shallow Tube-wells project reached its final stage for implementation with government grants, it had put pressure on government to stop the grant. Agricultural Development Bank used to distribute 4000 such Tube-wells annually. ABD showed its character by hindering national policy when the grant stopped. The mission had aimed at minimizing poverty through irrigation facilities to the marginalized farmers. The ADB staffs have good role in building such a character.

West Seti is exactly facing the fate of Shallow Tube-wells. ABD has compelled the government to invest while it remained as an element of indecision. Other donors gave little attention when they saw ADB’s involvement. Whether ABD makes investments or not, it is a matter of reality that it has lingered a lot of Nepal’s time in West Seti. More delay in construction of the West Seti means greater loss for GoN and the people of the Far West. Not only that Nepal is losing royalty and free electricity, but thoughts of the general public for local development and economic prosperity by initiating West Seti have turned out to be just the dreams. The government has not been able to tell anything to ADB because it has provided US$ 45 million as loan. Debts always keep one dominated. ABD, which is leaving West Seti in chaos, is engaging for Upper Seti (127 MW). If ABD gives assurances of investment in Upper Seti for next four-five years without actually making, who will be responsible? What is the view of ABD headquarters regarding hydropower development in Nepal? ADB’s involvement in eighth rural electrification as well was controversial.  ABD has added poverty to poor people by hiring expensive consultants in road connectivity project.

It is to be seen how many hours of load shedding will ABD add when it moves from West Seti to Upper Seti. The results of government officials dreaming to be hired as consultants in ABD as assured by its junior staffs are gradually coming out. If not, why the government is not ready to put pressure on ADB to correct its faulty stand? The loan should be accepted in the interest of Nepal and Nepalese, not in the interest of ADB. Unless intention to compel to accept any conditions, even if they are not in nation’s interest, on pretext of giving money, changes, the loans provided by such multilateral development partners would not alleviate poverty but eradicate the poors.

(Unofficial translation from its Nepali version published in Kantipur daily , Monday, October 26, 2009)

KATHMANDU: It takes 73 days to fulfil six procedures to get an electricity connection in Nepal, according to a World Bank pilot project. The same can be done in 22 days and four procedures in Iceland but takes 424 days in Afghanistan.

Getting Electricity — the two-and-a-half-year project — presents findings on the constraints entrepreneurs around the world face in getting access to electricity and illustrates patterns in connection processes. The study also tracks all the procedures, the time, and the cost required to obtain an electricity connection for a newly constructed building.

However, in Nepal the cost of not having electricity is higher than the cost of connection, as the country reels under long hours of power outage. World Bank surveys in 89 economies of the world show that electricity tops infrastructure needs of the business entities.

Many businesses lack access to power connections and are prevented from moving into higher-value-added activities that rely on electricity-based technologies. According to International Energy Agency, in 2005 more than a quarter of the world’s population lacked access to electricity. Businesses also care about the cost of both the electricity connection and the electricity supply-because electricity-related expenditure eats up a significant share of their revenue.

Managers responding to World Bank Enterprise Surveys estimated that on average their spending on electricity amounts to four per cent of their annual sales, while combined spending on other infrastructure services like fuel, communication services and water accounts for 6.4 per cent.

Among the 140 economies surveyed for Getting Electricity, Ukraine ranks at the bottom, with 10 procedures required to get new power connection. It’s much easier to do the same in Denmark, Germany, Japan and Mauritius.

The survey details the efficiency and cost of the services provided to commercial customers by distribution utilities, the complexity of procedures, and the resources expended by businesses in obtaining a connection.

“In the 10 economies with fewest procedures, the process of obtaining an electricity connection takes only 56 days on an average, while in 10 economies with most procedures, it takes 215 days,” the report adds.

The Himalayan Times

A source close to Water and Energy Users’ Federation Nepal (WAFED), which has been raising the issues of high dam projects and environment degradation due to such projects in Nepal, disclosed the fact that the latter is working for a demonstration against 750 MW West Seti Hydroelectric Project in the 42nd Annual Meeting of the Board of Governors of the Asian Development Bank (ADB), which will be held in Nusa Dua, Bali, Indonesia from 2 to 5 May 2009. For the purpose, some visual documents have also been prepared where some youths can be viewed chanting slogans with English placards in rural Nepal.

The most important international economic and development gathering in Indonesia in 2009, the ADB Annual Meeting will bring together more than 3,000 people from across the globe. As per the information posted on the official site of ADB, the annual meetings are statutory occasions for governors of ADB members to provide guidance on administrative, financial, and operational directions. Additionally, the meetings provide opportunities for member governments to interact with ADB staff, non-government organizations (NGOs), media, and representatives of observer countries, international organizations, academe and the private sector.

Delegation

WAFED’s campaign coordinator Ratan Bhandari is leading the Nepali delegation that includes Deependra Bista from Dadeldhura, Bheem Bhandari from Bajhang and Raj Kumar Lekhi from Terai. As per the coverage from the Far West dallies last month, Ratan Bhandari and Bheem Bhandari played a crucial role in organizing a demonstration at Deura of Bajhang district when a special ADB mission was in the site for fact finding on West Seti. Those dailies reported that Bheem, who is a Maoist district level leader and said to be under special observation from his own party, was seen in the demonstration where the mob chanted slogans against ADB and West Seti. While Bista, a permanent resident of Dadeldhura, who claims he to be a journalist, is in close allies with the Maoists but he is not involved in any media organization so far.

The next high-profiled delegate Lekhi is a Tharu leader from Terai. Since a few years, Tharu have been opposing the group relocation of people from the West Seti affected areas to Kailali and Kanchapur. The Lekhi’s involvement in the Ratan’s campaign will disrespect the sentiments of whole Tharu populace. In the past, several Tharu leaders spoke formally that their community is just against group relocation from the Hills to Terai but they want West Seti for the development of Far Western Nepal.

So, this is a sad story of misusing the dignified personality for the sake of opposing ADB’s involvement in Nepal and for the sake of money to run WAFED to ruin the national development. Not only Lekhi, other potential leaders from Far West like Shankar Khadka, LB Rawal and Dharmendra Bastola have been misused for making propaganda by the Kathmandu-based NGO.

The WAFED source said that the event is of great importance for several organization to which the former is affiliated. WAFED is either a member of or funded by several organizations like Himalayan & Peninsular Hydro-Ecological Network, World Commission on Dams, Narmada Bachao Andolan, International Rivers Network, NGO Forum on ADB, Both Ends of The Netherland and Japan Center for a Sustainable Environment and Society.

 The NGO Forum on ADB stated that Forum has been active during the Annual Governors’ Meeting (AGM) of the ADB. “During the AGM, the Board of Governors, who are representing ADB’s member countries, make important decisions that set the direction of the Bank in terms of its policies and programmes”, reads the forum’s website. According to the website, the NGO Forum on ADB is a network of civil society organizations that has been monitoring the projects, programs and policies of the ADB since 1992.

The interesting fact regarding this forum is that it neither accepts money from the ADB nor is it in any way part of it. More precisely, it’s a group of civil society organizations that are active enough to oppose the ADB’s investments in major energy projects.

Visa

Launching the official host country-site of the AGM, Sri Mulyani Indrawati, Minister of Finance Republic of Indonesia said, “The 2009 Annual Meeting will provide an important opportunity to ADB’s 67 members and representatives of the business, academic, non-government and private sectors to discuss far-reaching global issues.”  She said that together with ADB’s management, all Indonesians are determined to ensure the gathering delivers meaningful conclusions. For fulfilling the goal of ADB- reduction of poverty in Asia and the Pacific-the AGM will certainly be a pioneer for making important decisions regarding the development of several member states.

When the Maoists-headed government is vowing generation of 10,000 MW of hydropower power in the next 10 years, certainly opposing West Seti is not a logical step in terms of developing Nepal. It is another laughter that few Maoists, including Bhandari brothers, would be standing outside the AGM venue opposing the power project with direct foreign investment, while Maoist ideologue Finance Minister Dr. Baburam Bhattarai would be yelling for the support from the global financial community. Is not a shame for the nation? People in the venue must pay mercy for the stupidity to those people who are making hue and cry against the national development.

If this project is not as per the interest of Nepal and the Nepali citizens, the government should come forward to say strong ‘No’ to West Seti. But, sending such a negative-mission-delegation to Bali for the sake of opposing West Seti can never be a good deal between the Government of Nepal (GoN) and ADB. If not in high dam hydropower projects, ADB can support development of Nepal in various sectors like health, water, education and poverty reduction. So, the responsible ministry of GoN, as well as, Indonesian Embassy in Kathmandu should check visa permit to this delegation, which will bring back the negative impression in Nepal.

(The writer is the Editor of Hydronepal.org, and can be commented at editor@hydronepal.org)

 Note: The article is reproduced from The Rising Nepal, April 30, Thursday