The cost of the Kali Gandaki project has escalated by almost 40 percent, or $78 million more than the $330 million it was expected to cost. The parliament's Public Accounts Committee says the cost escalation is against financial regulations, but project officials claim it resulted from appreciation of the US dollar against the rupee ($1:Rs 56 four years ago to $1: Rs72 today) and the "unfavourable" geology of the project site.Only 65 percent of the 144 MW project has been completed and it will come online only in 2002.