NEA back decision to upgrade Upper Trishuli 3A

Kathmandu, June 12 – The Nepal Electricity Authority has revoked its earlier decision to upgrade the multi-million dollar Trishuli 3A hydropower project.

A meeting of the NEA board, presided over by Energy Minister Umakanta Jha, took the decision to this effect today.Various trade unions, and former finance and energy ministers had protested the May 31 decision of the project upgrade from 60 MW to 90 MW.

They had argued that the increase in the project capacity from 60 MW to 90 MW would inflict huge losses on the state power monopoly due to the delay in the completion of the project.

In the wake of the protests from various quarters, Chairman of Interim Council of Ministers Khil Raj Regmi stepped in and told the NEA to revoke the controversial decision, sources claimed.

Earlier, China Gezhouba Group Company had won the project as the lowest bidder and the agreement was signed on engineering, procurement and construction model on June 1, 2011. According to the revised decision, the cost of the project had increased to USD 132 million from USD 89 million. It was agreed to spend USD 20 million in addition to the company’s proposal of USD 111 million for upgrading the project to 90 MW.