NRN's plans to invest in hydro-electricity sector go kaput

Non-Resident Nepalis (NRNs) are likely to give up their plans to invest more than Rs 2 billion in the country's hydro-power sector owing to what they call indecision of the state-run Nepal Electricity Authority (NEA) in this matter from almost two years, news reports said.

Non Resident Nepalis Association (NRNA) president Dr Upendra Mahato recently wrote a letter to Minister for Water Resources, Gyanendra Bahadur Karki stating that as NEA is making delays in signing the Power Purchase Agreement (PPA), they are giving up on their plans to invest in the sector, Kantipur Daily reported The construction work on the ambitious project is due to start only after NEA signs the PPA.

On behalf of the NRNs, Sanima Hydro Power had applied for the PPA of 14.5 megawatt Mai Khola Hydro-Electricity Project last year. Sanima has already constructed 2.5 megawatt Sunkoshi Hydroelectricity Project by investing Rs 330 million.

NEA has been purchasing power from multinational hydroelectricity companies in US dollars. NRN's, however, are seeking to seal a PPA on condition that they would invest in dollars but would take the payments in rupees.

The NRNA regional conference held in Kathmandu on June 4, 2006 had announced plans to invest Rs 7 billion in Nepal's hydroelectricity sector. nepalnews.com ag Jan 21 08