{"id":3,"slug":"budhigandaki-hydropower-projec-77f597","public_iri":"https://jawafdehi.org/case/budhigandaki-hydropower-projec-77f597","offence_type":"CORRUPTION","case_type":"CORRUPTION","state":"PUBLISHED","title":"Budhigandaki Hydropower Project: Allegation of 9 Billion NPR Corruption","short_description":"","authors":[{"slug":"damodar-dahal","display_name":"Damodar Dahal","name_ne":"दामोदर दाहाल","photo_url":"https://jawafdehi.org/assets/teammembers/damodar.webp","title":"Software Engineer","has_public_page":true},{"slug":"rujit-kafle","display_name":"Rujit Kafle","name_ne":"रुजित काफ्ले","photo_url":"https://jawafdehi.org/assets/teammembers/rujit.webp","title":"Caseworker","has_public_page":true}],"case_publish_date":"2026-07-22","public_edit_history":[],"public_notes":"**Case drafted by Rujit Kafle**\n**First Published on 2082/04/06**\n\nPhotos: Budhi Gandaki at Arughat by Mzhushain (CC BY-SA 4.0); Baburam Bhattarai by Ashishlohorung (CC BY-SA 3.0); KP Sharma Oli, Prime Minister's Office (CC BY-SA 4.0); Sher Bahadur Deuba by Ashishlohorung (CC BY 3.0); Pushpa Kamal Dahal, US Embassy Nepal (public domain) — all via Wikimedia Commons, modified.","thumbnail":{"src":"https://s3.jawafdehi.org/case_uploads/ce14cf424459f412c0a3251ddea7158f014692e48d9817fe3eb0a9660464e1de.webp","srcset":"https://s3.jawafdehi.org/case_uploads/2f4988c17350fa034592fb1282fcfd09bb8e33b420146ecedc5bacc3f4337971.webp 400w, https://s3.jawafdehi.org/case_uploads/659a5916176e39fb51e9c3dcb764a7493168f1f998306b2a36afe98d6ae380ef.webp 800w, https://s3.jawafdehi.org/case_uploads/ce14cf424459f412c0a3251ddea7158f014692e48d9817fe3eb0a9660464e1de.webp 1200w","width":1200,"height":675,"alt":""},"banner":{"src":"https://s3.jawafdehi.org/case_uploads/9282ba7ba39551371dcb4c1d0b2eb2a3930d937d3126087fb56e9c688187b52c.webp","srcset":"https://s3.jawafdehi.org/case_uploads/54b772057f4556d28982580b597b110080279039e7baaf4165189d39cbe2c95a.webp 640w, 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Group Corporation (CGGC)"},"image":null},{"nes_id":"https://jawafdehi.org/entity/organization/political_party/nepali-congress","display_name":"Nepali Congress (NC)","entity_type":"Organization","type":"related","outcome":null,"notes":"","name":{"en":"Nepali Congress (NC)","ne":"Nepali Congress (NC)"},"image":null},{"nes_id":"https://jawafdehi.org/entity/person/nepal-communist-party-ncp-f92d53","display_name":"Nepal Communist Party (NCP)","entity_type":"Person","type":"related","outcome":null,"notes":"","name":{"en":"Nepal Communist Party (NCP)","ne":"Nepal Communist Party (NCP)"},"image":null},{"nes_id":"https://jawafdehi.org/entity/person/dr-baburam-bhattarai-a6c90f","display_name":"Dr. Baburam Bhattarai","entity_type":"Person","type":"related","outcome":null,"notes":"","name":{"en":"Dr. Baburam Bhattarai","ne":"Dr. Baburam Bhattarai"},"image":"https://s3.jawafdehi.org/case_uploads/3133e0628c73eb53fd258a361ef73f80476f250453c37c6b485d251e5a239da3.webp"},{"nes_id":"https://jawafdehi.org/entity/organization/government/body/ciaa","display_name":"Commission for the Investigation of Abuse of Authority","entity_type":"GovernmentOrganization","type":"related","outcome":null,"notes":"","name":{"en":"Commission for the Investigation of Abuse of Authority","ne":"अख्तियार दुरुपयोग अनुसन्धान आयोग"},"image":null},{"nes_id":"https://jawafdehi.org/entity/person/budhigandaki-hydropower-project-area-14d8fe","display_name":"Budhigandaki Hydropower Project Area","entity_type":"Place","type":"related","outcome":null,"notes":"","name":{"en":"Budhigandaki Hydropower Project Area","ne":"Budhigandaki Hydropower Project Area"},"image":null},{"nes_id":"https://jawafdehi.org/entity/person/kp-sharma-oli","display_name":"KP Sharma Oli","entity_type":"Person","type":"related","outcome":null,"notes":"","name":{"en":"KP Sharma Oli","ne":"KP Sharma Oli"},"image":"https://s3.jawafdehi.org/case_uploads/c371bb3cd1d9c17b430b9185348ee293b33cc9f2ec55424784c9c29142bbbae1.webp"},{"nes_id":"https://jawafdehi.org/entity/person/sher-bahadur-deuba","display_name":"Sher Bahadur Deuba","entity_type":"Person","type":"related","outcome":null,"notes":"","name":{"en":"Sher Bahadur Deuba","ne":"Sher Bahadur Deuba"},"image":"https://s3.jawafdehi.org/case_uploads/454dab0de71588ee181f01dc0627d6a90e6d0f09a1754ded69321c8e48eb0315.webp"},{"nes_id":"https://jawafdehi.org/entity/person/pushpa-kamal-dahal-prachanda","display_name":"Pushpa Kamal Dahal (\"Prachanda\")","entity_type":"Person","type":"related","outcome":null,"notes":"","name":{"en":"Pushpa Kamal Dahal (\"Prachanda\")","ne":"Pushpa Kamal Dahal (\"Prachanda\")"},"image":"https://s3.jawafdehi.org/case_uploads/f33c4f3feac803d8c8cbfd0aed75b850ff34b19fdbac8b3d0b5a3720405408e6.webp"}],"tags":["Hydropower","Corruption Allegation","Political Corruption","Unsubstantiated Claim","Budhigandaki Hydropower Project","Public Procurement"],"description":"**Overview of the Allegation** \n\nThe Budhi Gandaki Hydropower Project is one of Nepal's largest and most important storage-type hydropower projects. Located in the Gorkha and Dhading districts, the project is expected to generate around 1,200 MW of electricity. However, instead of being known for its progress, it has become widely discussed because of political disputes, policy changes, compensation-related controversies, and allegations of corruption. Since the beginning, questions have been raised about its financing, construction model, land acquisition, and the transparency of government decisions. The controversy became more serious in 2017 when the Government of Nepal decided to award the construction contract directly to the Chinese company China Gezhouba Group Corporation (CGGC) without an open international bidding process. Many political leaders, experts, and civil society members criticized the decision, arguing that it violated the principles of transparency, fair competition, and good governance. Following this decision, former Deputy Prime Minister Kamal Thapa filed a complaint with Nepal's Commission for the Investigation of Abuse of Authority (CIAA), requesting an investigation into the Cabinet's decision and possible financial irregularities. His complaint formally brought the issue under the attention of the country's anti-corruption agency.\n\nThe project later experienced repeated changes in government policy. At different times, the government announced that Nepal would build the project on its own, then decided to hand it over to a foreign company, and later reversed that decision again. These frequent policy changes created uncertainty and delayed the project for many years. At the same time, several concerns were raised regarding land acquisition and compensation for affected local communities. Allegations included unfair land valuation, weak record management, the involvement of middlemen, and financial irregularities in compensation payments. Nepal's Office of the Auditor General also reported accounting errors and weaknesses in compensation payments involving millions of rupees and recommended recovering the money and taking action against responsible officials. However, these findings mainly identified administrative and financial weaknesses and did not automatically prove criminal corruption.\n\nThe controversy became even more serious in 2020 when former Prime Minister Baburam Bhattarai publicly claimed that around NPR 9 billion had been paid as commission during the process of awarding the Budhi Gandaki contract to CGGC. He publicly mentioned the names of then Prime Minister KP Sharma Oli, former Prime Minister Pushpa Kamal Dahal (Prachanda), and Nepali Congress President Sher Bahadur Deuba, alleging that the commission had reached top political leaders. His statement created a major political debate across the country. The leaders he named strongly denied the allegations, calling them false and politically motivated, and challenged him to produce evidence. Although the allegations received widespread public attention, no official investigation has publicly confirmed the NPR 9 billion commission claim, and no court has found the accused leaders guilty. Therefore, these allegations remain political claims rather than legally established facts.\n\nAs of today, several complaints related to the Budhi Gandaki Project, especially regarding compensation payments, government decision-making, and administrative irregularities, have been submitted to the CIAA, and some investigations and reviews have taken place. However, there is no publicly available record showing that the CIAA has filed a corruption case covering the overall project or that any court has delivered a final judgment proving the major political corruption allegations. This means that while serious concerns about transparency, accountability, and governance continue to exist, the most widely discussed corruption allegations have not been legally proven. The Budhi Gandaki Hydropower Project therefore remains one of Nepal's most controversial national infrastructure projects, highlighting the importance of transparent procurement, stable government policies, effective financial oversight, and independent investigations in large public projects.","key_allegations":["Direct award of the Budhi Gandaki Hydropower Project to China Gezhouba Group Corporation (CGGC) without an open and competitive bidding process.","Alleged irregularities in land acquisition and compensation payments, including unfair valuation, financial mismanagement, and procedural weaknesses.","Alleged payment of NPR 9 billion in commission during the contract award process, as claimed by former Prime Minister Baburam Bhattarai."],"timeline":[{"date":"2017-05-23","title":"Project Awarded to CGGC","date_bs":"2074-02-09","description":"The cabinet led by Prime Minister Pushpa Kamal Dahal decides to award the Budhigandaki project to China Gezhouba Group Corporation (CGGC) without competitive bidding."},{"date":"2017-11-13","title":"Contract with CGGC Scrapped","date_bs":"2074-07-27","description":"The cabinet led by Prime Minister Sher Bahadur Deuba scraps the contract with CGGC, citing irregularities and a lack of competitive bidding."},{"date":"2018-09-21","title":"Contract Reinstated with CGGC","date_bs":"2075-06-05","description":"The cabinet led by Prime Minister KP Sharma Oli reinstates the project, awarding it back to the China Gezhouba Group Corporation (CGGC)."},{"date":"2020-10-08","title":"Public Corruption Allegation","date_bs":"2077-06-22","description":"Dr. Baburam Bhattarai, speaking in Gorkha, publicly accuses KP Sharma Oli, Pushpa Kamal Dahal, and Sher Bahadur Deuba of embezzling 9 billion NPR in commission from the project."},{"date":"2020-10-11","title":"Nepali Congress Denies Allegation","date_bs":"2077-06-25","description":"The Nepali Congress (NC) issues a formal statement refuting the allegation against its president Sher Bahadur Deuba and challenges Dr. Bhattarai to prove it."},{"date":"2020-10-14","title":"Nepal Communist Party Denies Allegation","date_bs":"2077-06-28","description":"The ruling Nepal Communist Party (NCP) releases a statement calling the accusation 'baseless, false, and ill-intentioned' and challenges Dr. Bhattarai to present evidence."},{"date":"2020-10-16","title":"Prime Minister Dismisses Claim","date_bs":"2077-06-30","description":"Prime Minister KP Sharma Oli publicly dismisses Dr. Bhattarai's claim as an 'irresponsible comment' and 'baseless'."},{"date":"2022-10-15","title":"Baburam Bhattarai retracts the allegation, saying it was based on \"unconfirmed information\"","date_bs":"2079-06-29","description":"Former Prime Minister Baburam Bhattarai later retracted his allegation regarding the Giribandhu Tea Estate case, stating that his earlier claim had been made on the basis of unconfirmed information. He clarified that he had no verified evidence to support the accusation and therefore withdrew his statement."}],"ai_generated_sections":[],"evidence":[{"material_iri":"https://jawafdehi.org/material/news/20251202.1a50bde1","additional_details":"Case no. 86","material":{"display_name":"Annapurna News (2080 Shrawan 9)","material_type":"news","urls":[{"link":"https://annapurnapost.com/epaper/?date=2080-04-09&type=","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/bb7e1f0c05ae7e6559d46a8802c12bd484209def1981cbc67e00c1351cc9091a.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/social_media/20251206.95f0b2a7","additional_details":".","material":{"display_name":"Baburam allegations top leaders on Budhigandaki Case (2078 Asoj 23)","material_type":"social_media","urls":[{"link":"https://www.youtube.com/watch?v=nBG8EchPso0","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/cb7a02c0e94e8b3de076cc121c2fbdb61de05ae8ed8813135b20cfb5b818ba6a.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/social_media/20251206.1b9fd4c3","additional_details":".","material":{"display_name":"सेतोपाटी: देउवा–ओली र प्रचण्डले बुढीगण्डकीमा ९ अर्ब खाएको आरोपमा बााबुरामले बोली फेरे","material_type":"social_media","urls":[{"link":"https://www.youtube.com/watch?v=BNK_7trFZ2M&t=66s","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/021baf3c9ab3f61d61a6b3fef156101b791693ed77c114d9a71df6d1f3c87afc.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/news/20251206.4c6e4456","additional_details":".","material":{"display_name":"The Kathmandu Post: Policy inconsistency delays Budhi Gandaki project (April 14, 2023)","material_type":"news","urls":[{"link":"https://kathmandupost.com/national/2023/04/14/policy-inconsistency-delays-budhi-gandaki-project","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/c788483cf414853c8cfd3dabdb22f50e11bb6cb054531e2bc849b6dfea1956d0.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/news/20251206.0d9e336a","additional_details":".","material":{"display_name":"Dr Baburam Bhattarai alleged Prachanda, Oli, and Deuba of Rs 9 billion commission","material_type":"news","urls":[{"link":"https://myrepublica.nagariknetwork.com/news/who-pocketed-nine-billion-rupees-commission-on-budhi-gandaki-project","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/5e21486914e3b794541eab0da08a4575f2af90f7be97e432bee80e150b0cd880.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/social_media/20251206.0a8833d6","additional_details":".","material":{"display_name":"10xt Nepal: Budhigandaki Hydropower: a failed project","material_type":"social_media","urls":[{"link":"https://www.youtube.com/watch?v=t1eRK3e3gh0","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/6981bcf4e208945eaf2ea4b4018c2fbd4b2577c5e804bbc58e1f99c891725bad.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/news/20251206.18b146d2","additional_details":".","material":{"display_name":"Republica: Worth over Rs 300 billion, Budhi Gandaki project does not have even Rs 10 million (March 21, 2023)","material_type":"news","urls":[{"link":"https://myrepublica.nagariknetwork.com/news/worth-over-rs-300-billion-budhi-gandaki-project-does-not-have-even-rs-10-million","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/713e21a3efbe6a1f5a736a4c0540a25ad44aeaa9c6de9a056afb0bb3dbea673b.md","role":"MARKDOWN"}]}},{"material_iri":"https://jawafdehi.org/material/news/20251206.14f0f3ec","additional_details":".","material":{"display_name":"My Republica | Thirteen years on, Nepal’s biggest hydropower project still in limbo | December 4, 2025","material_type":"news","urls":[{"link":"https://www.myrepublica.nagariknetwork.com/news/thirteen-years-on-nepals-biggest-hydropower-project-still-in-limbo-34-80.html","role":"RAW"},{"link":"https://s3.jawafdehi.org/case_uploads/de46f4cfec0a50a72433c84d96d3ffc1789529553e9a7b86c75f44830c2baae9.md","role":"MARKDOWN"}]}}],"notes":"","court_cases":[],"missing_details":"- Status of CIAA investigation remains unclear.\n- No official findings on the alleged NPR 9 billion commission.\n- Accountability of key decision-makers remains unresolved.\n- Extent of financial loss has not been conclusively established.\n- No final court verdict on the major corruption allegations.","bigo":9000000000,"weight":110,"versionInfo":{"action":"published","datetime":"2026-07-22T17:36:04.828217+00:00"},"created_at":"2025-12-02T09:44:39.016000+05:45","updated_at":"2026-09-03T09:17:04.018632+05:45"}