Retendering for privatisation of BPC recommended

BY A STAFF REPORTER

Kathmandu, Sept. 10: The privatisation committee today recommended the government that there should be retendering for the privatisation of Butwal Power Company (BPC).

The committee made the recommendation after it found the financial bid of Interkraft Nepal (IN) – a consortium of seven Nepalese investors and a Norwegian Company -- too low. "The bid was too low," said Dr. Dilli Raj Khanal, one of the members in the committee. "That was why we have recommended for retendering."

IN had offered Rupees 730 million for the 75 per cent shares of the BPC – presently valued at Rupees one billion. That way, the price of one share – tagged at Rupees 100 by the government – has been offered at Rupees 122 by IN.

According to an official in the committee there were also some mistakes in the financial bid of Interkraft Nepal. "Under such circumstances, we simply could not accept the bid," he said. "And now we have decided to send the committee's decision to the cabinet for approval."

The government last month (on August 16) had opened the bid of IN after the Finance Ministry disqualified the technical bid of Chaudhary Group – another bidder for BPC shares. CG was out of the race after the Finance Ministry found errors in its technical bid. That was why its (CG's) financial bid was returned to it unopened while IN's was declared opened.

Ever since, till today, the Finance Ministry took time to analyse the IN's financial bid.

IN's representatives, however, cried foul over the privatisation committee's decision. "We were not given even a single chance to clarify our position," said Gyanendra Pradhan, one of the investors in the IN consortium. "If they think our offer was so low, they should have stated the minimum bar (to quote the offer)."

He further reasoned that since BPC, under its Power Purchase Agreement (PPA) with Nepal Electricity Authority, has its electricity's selling price fixed at Rupees 2.36, the company cannot fetch any better deal than what the IN has offered. "If only they increase the power tariff, we also can increase our offer."

But, some in the privatisation committee said that IN's offer was indeed too low and that it was not good to have only one bidder.

If the government decides to go for retendering of the BPC shares, it would be doing so for the second time in the last three years. When the sealed tenders were invited for the first time some three years back, IN and Chaudhary Group together with Independent Power Corporation (IPC) had offered their bids.

Then IN had quoted Rupees 135 per share (conditional) and Rupees 90 per share (unconditional) while Chaudhary-IPC consortium had offered Rupees 109 per share. Later, when the government asked both the parties to revise their bids, IN had quoted Rupees 115 per share while IPC chose not to change its earlier offer.

While the decision had to be made, IPC cried foul that the government was favouring IN and it pulled out last year. Following that incident, the government decided to cancel the entire bidding process and go for a retendering.

And this time, it was Chaudhary Group versus IN. But again, with CG having been disqualified on technical grounds and IN not successful to impress the privitasation committee, retendering for the BPC shares has once again been the recommendation.

BPC has the installed capacity of 17.1 MW with two of its power plants – Jhimruk (12 MW) and Aandikhola (5.1 MW). It also owns 15 per cent shares of the 60 MW Khimti Hydropower Project.

Wastes dumped on no-man's
land causing health hazards

By Krishna Sharma

Bhairahawa, Sept. 10: The growing use of no-man's land between Nepal and India as a dumping site by the people of both sides is creating a grave health hazard to the people living in the bordering towns. As there is no regulation barring the dumping of waste in the international border, people have been using it without any restriction and without concern about their own health.

The problem is, there is no clear circular to the local governing bodies about prohibiting the throwing of waste in the no-man's land. Moreover, the problem of managing the waste within the borders is also one of the root causes of the deteriorating environmental situation of the bordering areas.

"It is not only during the rainy season that dasa-gaja (or ten yards for it being about 10-meter away from the international bordering pillar on each side) becomes so dirty and polluted and stinking. We are used to living in such a dreadful situation for years," Resham Raj Khati, a restaurant owner near the international border at Belahia, Bhairahawa, says.

"It would have been better if the culvert or a small bridge was made on the road that joins both the friendly countries. Because the land is low and the water always remains on the way, it decomposes the waste fast giving out foul and stinking smell," Assistant Sub-inspector of Belahia Police Post Shambhu Nath Upadhyaya told The Rising Nepal. He pointed out the area near the Post that has turned into a cesspool.

And when the stinking smell of the decaying waste and the rotting carcasses of the dead animals makes life unbearable, ASI Upadhyaya says they dig holes and dump them there with the understanding of police from both the sides. "But we can do nothing when it comes to managing the garbage," he said.

When asked about the provision of dumping the waste piled at the international border, mayor of Siddharthanagar Municipality Sagar Pratap Rana said that they have no right to clear the garbage thrown in the no-man's land. "However, our people do clear those which might pose serious health hazard on humanitarian ground. But on legal terms nobody is supposed to do anything in such a sensitive area," Rana said.

"We only make provisional arrangements in serious conditions, but we do not have the authority to manage the garbage," he concludes.

The garbage problem is not the case with Belahia-Sonauli border only, there are borders like Krishnanagar in Kapilvastu district, which have multiple problems.

"The reason behind the increasing garbage problem in the international border here is not only because people are irresponsible and unaware of the health hazards but also because of the narrow border," Nanda Kishor Sharma of Badani (India), which adjoins Krishnanagar, told The Rising Nepal.

According to him, the border at Krishnanagar town must be the narrowest one existing in the more than 1000-kilometre long border shared by Nepal and India since time immemorial. Sharma says there is no ten-gaja on each side of the pillar in Krishnanagar.

He wonders at the indifference shown by the bilateral meetings of Nepal and India on border talks. "I think this issue should now come up in those meetings," said Sharma, who is also a former journalist.

'44 airfields to be operational before Dashain'

Pokhara, Sept. 10 (RSS):  Minister for Culture, Tourism and Civil Aviation Bal Bahadur K.C. has said that arrangements will be made to operate all the 44 airfields being built throughout the Kingdom prior to Bada Dashain festival.

Speaking at a meet-the-press programme organised by Reporters' Club, Kaski, Minister K.C. said that the Ministry was working with RNAC and private sector airline companies to operate air services as early as possible.

He also gave assurance that the six airfields which are under construction will be completed within the next two years.

The licenses of the private airline companies which have not been operating after its registration will be cancelled while the other airlines providing services will be thanked for its services, he added.

He also disclosed that talks are being held with France and the United Kingdom in connection with the construction of B.O.T. system airport in Lumbini and Pokhara respectively.

Due to the ineffective internal management and political interference, RNAC has been suffering from irregularities since its very inception, he said, adding that regulations introduced with a view to curbing such irregularities has been implemented since September 3.

The government, tourism entrepreneurs and the citizens should play a positive role in maintaining law and order for development of the tourism industry in the country, he said and hoped that the fourth estate should also give serious attention to this end.

He also said that no compromise should be made with any one on the issues of constitutional monarchy and parliamentary democracy.

MP Shiva Raj Joshi alleged that the forces which failed to digest democracy are attemping to upset the peace talks between the government and the Maoists.

Another MP Ram Hari Dhungel said that the government and Maoists should make full use of the talks in order to maintain peace in the country.

MP Rishikesh Gautam said that a conspiracy is always being hatched against democracy in the country. The present upheaval is also intended to finish off democracy, he added.

President of the district Reporters' Club Raj Bahadur Gurung presided.

Deliver good governance: MPs

Kathmandu, Sept. 10 (RSS): Deliberations on the appropriations head pertaining to the Ministries of Home and Local Development in the Appropriations Bill-2001 continued at the House of Representatives today.

Altogether 34 MPs took part in the deliberations today.

Opposition Party MPs taking part in the deliberations said the home administration has not been able to provide relief to the people victimised by Maoist terror, despite increase in its budget it has not been able to guarantee law and order, transfers and promotions have been based on political belief, the national investigation department has been ineffective, revenue employees are not honest in their work, the department of immigration has not been able to work properly and corruption is rampant in the police.

They recommended re-establishment of the displaced police posts and banks, stopping of the Maoists gathering scheduled for September 21, a halt to collection of donations by Maoists, serious effort in taking the dialogue with the Maoists in a positive direction and improvement in the condition of jails in the country.

Likewise, Opposition Party MPs taking part in the deliberations on the approriation head pertaining to the Ministry of Local Development said the Local Development Ministry has become a centre-point of corruption, amouts dispatched for the local bodies and for agricultural roads did not reach on time, the government is not serious about the problem of solid waste in Kathmandu, separate programmes have not been introduced for the Dalits and oppressed and no effort has been made for the management of the monasteries.

Increase grants at the DDCs, build link rural roads to the district headquarters, enforce the concept of decentralisation, keep local development programmes aloof from politics, do not send temporary employees on project work worth millions of rupees, remove the internal security and development package which is impractical, recruit police personnel impartially, make arrangements for VDC secretaries, boost the morale of the police and renovate the dilapidated border pillars were some of the recommendations received from them.

Opposition Party MPs taking part in the discussion were CPN-UML's Rajendra Prasad Lohani, Asta Laxmi Shakya, Raghuji Panta, Bir Bahadur Lama, Krishna Lal Maharjan, Bhadra Bahadur Thapa, Bijaya Subba, Sohan Prasad Chaudhary, Kamal Prakash Sunuwar, Prem Bahadur Singh, Nar Bahadur Hamal, Yog Narayan Yadav, Ratna Prasad Sharma Neupane, Tuk Raj Sigdel, Yadav Bahadur Rayamajhi, Om Prasad Ojha, Bidhya Devi Bhandari, Damber Singh Sambahamphe, Subash Karmacharya, Devi Lal Thapa, Gokarna Raj Bista, Durga Linkha, Sherdhan Rai, Gorakh Bahadur Bogati, Jagannath Khatiwada, Pashupati Chaulagain, Fatik Bahadur Thapa and Ananda Prasad Pokharel.

Likewise, the treasury bench MPs suggested that the government-Maoist talks should be resumed immediately, the government should consolidate the security system, police posts in the villages should be re-established, the budget for agriculture should be increased, the capabilities of the Home Ministry enhanced, the bill on indigenious people and nationalities passed in the current Parliamentary Session, the amount dispatched for the districts and villages should be monitored and reviewed, and as the amount allocated for Dalits and the oppressed has not been able to reach them due to absence of citizenship certificates, attention should be given to this.

Those making the recommendations were MPs Ram Nath Sharma Adhikari, Hari Bhakta Adhikari, Ram Bahadur Gurung, Uma Kanta Chaudhary and Tanka Prasad Sharma Kandel.

Nawaraj Subedi of Rastriya Janamorcha also took part in the deliberations.

The House of Representatives is to meet again at 11:00 am tomorrow.