A committee led by Vice Chairman of the National Planning Commission Swarnim Wagle has submitted a report to Deputy Prime Minister and Minister for Energy Kamal Thapa with potential sources for funding the 1,200-megawatt Budhigandaki reservoir project.

Located in the Gorkha and Dhading districts near major load centres of Kathmandu, Chitwan and Pokhara, the report says Nepal could generate enough resources over the next 10 years to cover the cost of construction.

The committee report has said the government could generate around Rs 140 to 160 billion from petroleum tax over 10 years. NEA as developer could chip in equity investment worth Rs 10 to 20 billion. The Employees Provident Fund could make reinvestment of Rs 30 to 50 billion. Similarly, Citizen Investment Trust (Rs 30-40 billion), Nepal Telecom (Rs 15-20 billion), and Beema Sansthan and insurance companies (Rs 10-20 billion) could also contribute.

Thus, the country could mobilise Rs 270 to 367 billion over the next 10 years to develop the project, which is listed as a national pride project. According to a 2013 study by Tractebel Engineering (France), the cost is expected to be around Rs 260 billion.

The previous government had handed the project to China Gezhouba Group Corporation (CGGC) under an EPCF contract. After the deal landed in controversy, House panels instructed the government to scrap it. Deputy PM Thapa subsequently scrapped the deal and decided to hand the project to Nepal Electricity Authority (NEA).