Punatshangchhu Hydroelectric Project Authority (PHPA)-I has the highest unresolved irregularities compared to other ongoing hydropower projects. The project did not resolve irregularities of about Nu 1bn till March this year as per the recent Annual Audit Report 2018.
The highest amount of irregularity of about Nu 600 M resulted from the cases of shortfalls, lapses and deficiencies. This included avoidable payment made at higher rates, excess payment to contractor, irregular payment made on account of payment arrears. And the slope movement and stabilisation work on the right bank of the dam site, which has caused excessive time and cost overrun.
Similarly, the cases of non-compliance to laws and rules have added Nu 481 M to the total irregularity. The computation of labour wages, wrong analysis of rate for cement and reimbursement of central excise duty is cited under it.
Meanwhile, the total unresolved irregularities of PHPA-II amounted to about Nu 657 M.It was due to delay in construction of residential and non-residential buildings, non-adherence to contract provisions leading to extra payments and due to incorrect computation, which resulted in excess payment for one of the contract packages.
The Mangdechhu Project has the least unresolved irregularity of about Nu 108 M. The shortfalls, lapses and deficiencies as a result of excess payment to the contractor were the leading cause.
The Public Accounts Committee (PAC) will review the report and present in the next session of the parliament.
