KATHMANDU, APR 24 -
A long-standing turf war between the Investment Board Nepal (IBN) and
line ministries over the ownership of mega projects could find an
amicable solution.
An IBN board meeting on Wednesday discussed a middle path to give a
fair share to both IBN and the ministries concerned. As per the new
proposal, IBN will handle the mega projects until their financial
closure, and then the ministries will take them over. “There was a broad
understanding in this line, but we have yet to take a decision,” said a
senior government official attending the meeting.
Ever since the IBN was formed and was handed over 14 projects, the line
ministries that used to handle infrastructure projects were not keen to
let the IBN run the show. The ministries have been questioning IBN’s
capability, saying it doesn’t have the expertise and human resources to
handle mega projects.
An IBN board meeting on May 26, 2012, had decided to entrust IBN with
the job of developing 14 national pride projects, including five
hydropower and seven infrastructure projects.
But the IBN-ministries ownership row continued with senior officials at
Energy Ministry, Tourism Ministry and Physical Infrastructure and
Transport Ministry raising the issue time and again.
This debate is seen especially in Kathmandu-Tarai Fast Track, Tribhuwan
International Airport upgradation, Second International Airport and
hydropower projects above 500MW capacity.
The National Planning Commission’s decision to transfer the Fast Track
project to the Ministry of Physical Infrastructure and Transport from
the IBN encouraged other ministries to claim mega projects under IBN.
Tourism Minister Bhim Acharya had also said the Tourism Ministry would
bring the Second International Airport project back to its fold amid no
sign of progress. The Energy Ministry is also lobbying hard to take back
hydropower projects under IBN.
In Wednesday’s meeting, Energy Minsiter Radha Gyawali strongly opposed
the IBN handling of mega hydropower projects. The meeting mostly dwelt
on issues of bonus, royalty and transmission line construction of
hydropower projects under the IBN.
“With the Bonus Act stating 10 percent bonus and the Electricity Act
saying 2 percent, there was a confusion about which Act to follow when
it comes to bonus distribution,” said Industry Minister Karna Bahadur
Thapa. “As other hydropower projects follow the Electricity Act, we have
also agreed to follow the same.”
Established as a high-level agency to work towards attracting foreign
investment for mega projects and provide potential investors a
one-window solution, the IBN of late, is under pressure for “slow
progress” of the projects under its purview. Non-cooperation from the
ministries also pegged back the IBN. Despite its repeated request, the
Tourism Ministry refused to hand over a detailed feasibility study
report of the Second International Airport to the IBN.
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