Hydro promoters complain of injustice

  • 03/10/2008

  • Kathmandu Post (Nepal)

Promoters of the 101-megawatt Tamor-Mewa hydroelectric project in Taplejung district have accused the Ministry of Water Resources of treating them unjustly by not renewing the survey license for the project. The Ministry on Jan. 22, 2008 decided not to extend the term of the license stating that the company did not make 'significant and qualitative progress' on the project as per the conditions of the license. The ministry had issued the license to Spark Hydroelectric Company Limited on March 20, 2006 for 18 months. The company, however, has claimed that government officials took the decision with the intention of offering the license to someone else after taking it away from the company. On Sept. 7, 2007 Imex International applied for a license for the same 101-megawatt Tamor-Mewa hydroelectric project, according a statement of Spark Hydroelectric Company. But after that, Spark Hydroelectric Company applied for license renewal with a Rs. 1 million renewal charge and necessary documents. The company claims progress on the project could not be made because the Eastern Development Region was shut down most of the days since the license was issued. As per legal provisions, the company had furnished reasons for the delay with concrete evidence, it said in its statement. Chairman and Managing Director of the company Bhanendra Kumar Limbu termed the decision as biased and illegitimate and taken unilaterally. "It is totally unjust because we were not even given a chance to clarify our position, he said. Requesting for license renewal, the company on Sept. 29, 2008 submitted an application along with 3,620 signatures of locals, Constituent Assembly members and civil society members from Taplejung district to the Minister for Water Resources Bishnu Poudel. Limbu said the company has so far spent around Rs. 80 million on the project. Total investment is estimated to be Rs. 15 billion. Of the total project costs, 55 percent will be foreign direct investment and 45 percent domestic investment, according to Limbu. Locals will be given 10 percent share of the project, Limbu said.