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Nepal : World Bank supports NEA's 25 MW solar plant project
Publish Date : 12-Oct-2017

The World Bank is said to be backing the Nepal Electricity Authoritys (NEA) project for the installation of a 25 MW solar plant.

The project contract will be offered to a Chinese firm, Raijin Energy Co.

In early 2015, the bank had announced it will offer $130 million to the government for the construction of solar stations to reduce power shortages.

$37 million was already designated to set up solar plants at Devighat and Trishuli in Nuwakot district.

The ex-NEA managing director, Mukesh Raj Kafle decided to appoint a Chinese firm to build the project, but the building work hasnt started due to controversy in the selection of the contractor.

The firm was later said to be unqualified by a committee of global experts. This led the new NEA managing director, Kulman Ghising to offer the contract to Raijin Energy Co. However, as per PAC, the Rs 3.7 billion quoted by Raijin Energy Co was Rs. 680 million higher than previous contract.

Saying that it was against the procurement law, Public Accounts Committee (PAC) ascked NEA to scrap the contract. At present, the contract has been suspended, but the World Bank defends NEA saying that the procurement policies and practices adopted by 189 member-governments of the World Bank Group and the funding deal signed with Nepal were followed.

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