RE: 900 MW RoR Upper Karnali Hydro Power Project & GMR

Prof. Dr MP Lohani
Kathmandu

Dear Prof. Lohani

I beg to differ with you on your statement that you aren’t a specialist. I too am not a specialist; I am merely a student of management but with ability to read and understand dcouemtns executed in English. Arun III documents were also in English and these contain are very little engineering/technical details. Therefore, someone like you, with due respet to you, cannot hide behind the statement as such. I, however, appreciate your solidarity with me and also thank you.

There is an interesting facet re cancellation of Arun III. Former PM Madhav Nepal or my close friend like Dipak Gyawali other “environmentalists” (strangely I wasn’t painted as a villain in the fiasco of Arun III although I deserve blame in the same quantum if what happened calls for blame). From my analysis below I already have succeeded to establish that the cancellation of Arun III was a boon/blessing not otherwise. Therefore, those involved in its cancellation deserve credit for its cancellation.

However, those blamed for Arun III cancellation aren’t entitled to the credit (I am sure that my close friends like Dipak Gyawali et al will mind). The CREDIT should go to the then policy/decision makers like Dr Ram Sharan Mahat (VC of NPC), Laxman Ghimire (State Minister for Water Resources), et al. including PM Girija Koirala. You must be wondering if I have lost my mind. No Sir, nothing as such has happened to me.

If you recall correctly, it were these very people who were instrumental in signing Project Agreements and PPAs with Khimti in March 1994. Since, the main negative covenant of Arun III is restriction on implementation of any hydropower projects larger 10 MW and the then government had itself signed project documents for Khimti in 1994, the World Bank was left no choice but to cancel Arun III.

Therefore, the CREDIT for addition of 346 MW in the system instead of 201 MW goes to Dr Ram Sharan Mahat, Laxman Ghimire, et al. Nepali people should ever be grateful to them.

From another perspective, if Nepal had failed to attract FDI in Khimti, no private investment in hydropower sector could have been mobilized. With the cancellation of Arun III and implementation of Khimti, now private sector firmly believes that infrastructure projects like hydropower sector is also lucrative.

With best regards,


Sincerely,

Ratna Sansar Shrestha, FCA
Senior Water Resource Analyst
www.RatnaSansar.com

From: Mohan Lohani [mailto:m_p_lohani@yahoo.com]
Sent: Wednesday, April 2, 2014 10:59
To: Ratna Sansar Shrestha; Madhukar SJB Rana; Dwarika Nath Dhungel; Shyam Adhikari; Misra; Dipak Gyawali; Basanta Lohani; Bihari Krishna Shrestha; Shreedhar Gautam; Rajeshwar Acharya; Aditya Man Shrestha; Upendra Gautam; Dhruba Hari Adhikary; Sharad Sharma
Subject: Re: 900 MW RoR Upper Karnali Hydro Power Project & GMR

Thank you, Ratna Sansarji, for your detailed information about Arun III . Since I am not a specialist in this field, I know very little about how hydroelectric projects like Arun III are negotiated and agreed upon on dubious terms unknown to gullible people like me .I have been a strong admirer of your nationalistic stand and commitment. My best wishes and solidarity are with you on issues of national interest. Please act according to your conscience.
With best regards,
MP Lohani