Middlemen have approached energy promoters, claiming to be associates of the Securities Board of Nepal (SEBON) chairman and demanded commissions in exchange for approving hydropower projects' initial public offerings (IPOs).
During an interaction on Nepalkhabar’s episode "Tatkalai," on Thursday, Ganesh Karki, President of the Independent Power Producers' Association of Nepal (IPPAN), made these remarks, prompting him to call an emergency meeting.
President Karki, during the meeting, revealed that brokers, allegedly linked to the Board chairman, have demanded 5-7% commissions, causing frustration among the power producers.
IPOs for hydropower projects have been stalled for 23 months, leaving around 40 projects awaiting approval, said Karki.
Despite repeated appeals to the Prime Minister, Energy Minister, and other leaders, no progress has been made so far.
Meanwhile, the Commission for the Investigation of Abuse of Authority (CIAA) seized 89 files related to pending IPOs for investigation. Reacting to the anti-graft body's move, Karki expressed hope that it might bring accountability, but warned that such corruption could tarnish Nepal’s energy sector.
With the government targeting 28,500 MW in energy production, these delays and alleged commission demands are discouraging investors, said Karki. Karki questioned, "Are middlemen more powerful than the Prime Minister?" as producers grow increasingly disillusioned with the system.
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