Kathmandu – The cost of the 1,200-megawatt Budhi Gandaki Reservoir Hydropower Project, a national pride project, can be reduced, according to a hydropower expert. He stated that the project could be completed at a lower cost than the currently estimated Rs 398 billion, of which Rs 43 billion has already been spent.

He believes the cost can be minimized by altering the project’s structural design.

“This project includes the world’s most expensive dam design. A dam with the same capacity, quality, and long-term durability can be built at half the current cost,” he told Urja Sanchar.

According to him, the dam alone costs Rs 198 billion. “The plan is to build an ‘Arge Concrete Gravity’ dam, which is the most expensive dam design globally,” he said. “A different dam with the same capacity could be constructed for that amount. There is no record of failure for such a dam worldwide. It also has self-healing properties.”

The government has been collecting infrastructure tax on petroleum products for the past 10 years to fund the project. By fiscal year 2081/82, Rs 159 billion had been collected, but the project has seen limited progress aside from compensation distribution.

The tax, introduced in fiscal year 2072/73, began with Rs 5 per liter, later increased to Rs 10 per liter from Falgun 2076.

Nepal Oil Corporation has been depositing the collected tax into the government's account.

Image Source : Urjasanchar

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