EU energy project further delayed

Kathmandu: An energy related project of the European Union (EU), which was passed five years ago, has not even been implemented with the deadline of the project about to end. The project launched with the aid of Rs 1.5 billion from the EU in 2003 is scheduled to end in December 2008. However, the project could only carry out preliminary tasks such as establishing offices in the five development regions, energy service-motive selection, and selection of districts to implement the project, demand collection and a feasibility study.

As per the mandate, the project should have bought solar energy worth Rs 10 million by now. But it still remains a far cry. The project has not been able to even buy the necessary computers, informed a staff connected to the project.

The project has been using computers on rent for all its offices in all the five development regions and the total amount paid in rent has even exceeded the actual price of the computers, according to him. Moreover, the project has been unable to afford any vehicles and motorbikes either.

“A global tender has to be issued even for minor necessities as per the conditions set by the EU. The complexity of the whole process has affected the effectiveness of the project,” he added.

The project was to be implemented in a total of 24 districts in all five development regions lacking access to the national electricity supply at least for the next five years(after the initiation of the project) and lacking infrastructure for cottage level hydroelectricity production.

EU, the donor of the project, had second thoughts on whether to go along with the project or not after the February 1st move by King Gyanendra informed project director Mangal Das Maharjan. Moreover, it took a long time for the EU to pass the project’s work programme.

The Ministry of Finance has requested the EU to extend the work period of the project by two more years and the EU head office In Brussels has verbally agreed to the extension, Maharjan informed.

Although all the formal agreements on the project’s implementation were signed in 2003, the project was also delayed as it took two years to pass the work programme of the project. “All the infrastructure required for solar energy production in rural areas has been set in place. We aim to complete the project in two years after a formal agreement is reached for the extension of the project,” said Maharjan.

The project aims to provide energy services for rural health centres, primary and secondary schools, clean drinking water projects and communities and solar energy for processing of agriculture products.

The project will be implemented through the Alterna.