Widespread irregularities suspected in several of 400 executed irrigation projects

KATHMANDU, Nov 7: Around 400 irrigation-related projects worth nearly Rs 6 billion were carried out through consumers’ committees in the fiscal year (FY) 2024/25 by water resources and irrigation management project offices and other offices under the Department of Water Resources and Irrigation.

A report prepared by a study committee formed by the Ministry of Energy, Water Resources and Irrigation (MoEWRI) indicates widespread irregularities in the projects executed through consumers’ committees. The committee concluded that many offices awarded projects to consumers’ committees arbitrarily in the previous fiscal year.

The five-member committee, coordinated by Joint Secretary and Head of the Planning and Program Division Maheshwar Shrestha, submitted its report to the ministry on 31 October. According to one of its members, 60 water resources and irrigation management offices across the country implemented high-value projects through consumers’ committees.

Ministry sources said nearly 400 projects were found to have been implemented through consumers’ committees. Some offices handled up to 50 such projects, bypassing procurement laws and regulations.

Some project offices reportedly diverted budgets allocated for one project to entirely different projects, which were also implemented through consumers’ committees. According to the MoEWRI, the study committee was formed to discourage this trend and to promote project implementation through competitive contracting in FY 2025/26.

The committee was also tasked with making the use of consumers’ committees more systematic and transparent. As per the Cabinet’s decision on 1 October, only projects up to Rs 1 million may be carried out through consumers’ committees. However, in the last fiscal year, some offices implemented projects ranging from Rs 500,000 to Rs 10 million through consumers’ committees, raising concerns about intent, the source said.

The study committee provided several recommendations to the government. It advised that consumers’ committees should be used only for disaster-related and emergency works (such as flood or landslide response). “The practice of awarding projects through consumers’ committees should be discouraged. If unavoidable, a clear procedure must be followed,” the recommendation states.

Last year, some offices created their own procedures to implement projects through consumers’ committees, prompting the committee’s concerns.

The committee also recommended that no consumers’ committee should be assigned more than one project. However, last year, several committees handled multiple projects. It further recommended full compliance with the Public Procurement Act and Regulations whenever consumers’ committees are involved.

Only projects justified by strong necessity should be assigned to consumers’ committees, it said, noting that many projects last year were awarded without adequate justification.

On 21 August, the MoEWRI issued a circular to all project offices under the department with five directives. “While carrying out construction works through consumers’ committees or obtaining related services in accordance with Section 44 of the Public Procurement Act, 2063 BS, and Section 97 of the Public Procurement Regulations, 2064 BS, it shall be mandatory to publish a public notice and invite proposals as per Section 97(2) of the Public Procurement Regulations, 2064 BS,” the circular states.

The second directive requires the notice to be posted at the District Administration Office, Area Administration Office, and the concerned project office. The third directive instructs office heads to send the public notice and project agreement details to the department’s Director General electronically at least 15 days before issuing work orders.

The fourth directive instructs offices to conduct site inspections and verify cost estimates before construction begins.

The fifth directive warns that failure to comply with these instructions will result in holding the concerned office or project chief responsible and initiating further legal action.

According to a MoEWRI source, the circular was issued based on complaints and feedback from civil society and from the Auditor General’s report regarding works carried out through consumers’ committees by various bodies, projects, and offices under the Department of Water Resources and Irrigation.

Regarding the matter, MoEWRI spokesperson Sandeep Kumar Dev said he was not aware of the report submitted to the ministry by the study committee formed by the ministry.