Weather ADB silence on Kali Gandaki
FROM
ISSUE #164 (26 SEPT 2003 - 02 OCT 2003)
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A special review team of the Asian Development Bank has mediated an agreement between the government and the Italian civil works contractor of the Kali Gandaki A hydro project on environment and resettlement issues, according to a bank statement Thursday. But glaringly absent in the statement is any mention of a US $50 million cost overrun controversy. The Nepal Electricity Authority paid the contractor, Impregilo SpA, this amount without the NEA even notifying its board (Nepali Times #155). NEA the amount was due to unforeseen delays and complications in the construction. In its statement, the ADB said its review team had found that the overall project cost was still below the appraisal estimate of $450 million. Responding to a public interest writ filed last week by a Syangja resident, the Supreme Court has issued a show cause notice to NEA on the excess payment made to the contractor.
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