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“The Plan Will Have Short Term, Middle Terms And Long Term Strategy On Water Resources Development”
-- BINOD KUMAR SHAHA
Assistant Minister for Water Resources, BINOD KUMAR SHAHA, was former member of dissolved House of Representatives. Shaha was elected from Dailekha district as a CPN-UML candidate. Following the October 4, 2002 move of King Gyanendra, assistant minister Shaha left the party. Shaha spoke to KESHAB POUDEL on various issues relating to water resources and the recently announced load shedding. Excerpts:
As Nepal Electricity has already announced the load shedding program, how long will it last?
As you know, the government does not want to see load shedding but we don’t have any other option. This load shedding was not an implication of the last few years but is the result of visionless policies of past 12 years. Since the past policymakers have not proposed any power projects to meet the future demands of electricity, it is inevitable to have load shedding.
Do you mean load shedding will continue for many more years?
Since the rainfall was very poor last year and there is inadequate water accumulated at Kulekhani reservoir, I don’t think it will end before the onset of monsoon. The construction of hydropower project is time consuming. It will take many years to see the relief from load sheeding. We know the country will face many difficulties but we don’t have other options. If the plans move accordingly, there will be surplus power by 2010 in the country.
Don’t you have any plan to import power to maintain supply?
We are also considering importing power to reduce the load shedding. The government is serious about it.
You have recently assured the industrialists in Birgunj that the interruption of power supply in the industries will end soon. What is the basis in your statement?
The construction of Parwanipur sub-station as well as 132 KV Pathlaiya- Parwanipur transmission line is also going on smoothly. The project will complete by end of April. After the completion of the project, the power supply in Birgunj will improve.
What future programs do you have to meet the requirement of energy?
First of all, we are working to complete the middle Marsyangdi project in next one and half years. For long term and cheaper power supply, we are working to develop upper Tamakoshi project. We are in the process of constructing the access road to upper Tamakoshi. We are searching financier to construct this project. I think Upper Tamakoshi will be our major hydropower project. We are in the process of making its detailed design. We are also finalizing the Chamelia project of Darchula district. Along with them, we have hydro power projects like Upper Trishuli , Upper Karnali of mid-western region, Kulekahni III, Kabeli, Heba and Mewa of eastern region.
Do you think Kulekhani III project will start soon?
Since it is one of the viable projects, this is a priority of the government. As there is no need to construct the access road, it is not difficult to start the construction. Being a project with the capacity to supply peaking power, Kulekhani III is our main priority at present.
What is the status of power exchange with India ?
Nepal and India do not have any power trading agreement but we are sharing the power under power exchange programs. Currently, Nepal imports about 40-50 MW power from India under the exchange program.
How many points are there between Nepal and India to exchange power?
Nepal is currently exchanging power from, Biratnagar in eastern region, Nepalgunj in mid-west and Kanchanpur of far western region.
What is happening with the Butwal-Sunauli transmission line?
We have signed agreement with India for the construction of the transmission line but it is yet to take off.
What is the policy of this government regarding the hydropower development?
We are in the final stage of announcing two ordinances under the energy reform program. They include Electricity Development Management Ordinance 2062 and Regulatory Commission Ordinance 2062. The Electricity Development Management Ordinance will pave the way for the unbundling of Nepal Electricity Authority (NEA) into three different entities including Generation, Transmission and Distribution. This Ordinance aims to encourage the private sector giving many long term and short term benefits to them. Under this ordinance, a private developer will be given waiver of income tax up to 15 years of generation of electricity. There are also provisions to waive VAT on the equipment imported to construct the power plant. There are many other such facilities included in the ordinance.
As it has already been delayed for couple of years, what is the state of middle Marsyangdi project now?
Problems are there but we have made much progress in the construction of the project. If it goes as per schedule, the project will be complete by August 2007.
What mechanisms do the second ordinance has introduced to establish National Regulatory Commission?
The regulatory commission will be autonomous and independent body, which will take care of all matters related to the electricity including tariffs. The unbundling of NEA will begin after strengthening regulatory commission. We hope that the establishment of regulatory body will facilitate the private sector.
What is happening to Upper Karnali project as the NEA and India’s National Hydropower Commission (NHPC) had already signed understanding on the project a couple of years ago?
We have already asked NHPC to start the construction of the project in accordance with the understanding. The NHPC is said to be studying our proposal. We are yet to receive any concrete response from India . If NHPC will not start the construction, we will do it on our own. We are waiting for reply from them. We will give first priority to NHPC. If NHPC does not respond to us, we are considering constructing this project on our own.
For a long period of time, West Seti project is also lingering. Do you think the construction of West Seti will start soon?
Since China ’s bank has agreed to invest in the project, the construction will begin after completion of certain formalities. Since Power Purchasing Agreement has already been signed, I don’t think there is any more hindrance there. This is one of the most viable projects for peaking power supply. In economic terms, it is beneficial to Nepal .
What are other sectors of reform?
After the announcement of ordinance, the government will issue license just to one area either in transmission, generation or distribution. The ordinance will end the monopoly of generation, transmission and distribution. Under the reform program, only one license will be given to one company.
How viable is it to unbundle a small NEA which has capacity of generating just 600 MW of electricity?
Unbundling is not related to size. Since we are unable to run Nepal ’s biggest public utility effectively, the unbundling will open new opportunities. In the process of power reform, other stakeholders and experts have suggested that it is necessary to unbundled the NEA. Our unbundling process will begin stage by stage.
What are the new things in the National Water and Energy Strategy?
The strategy was developed keeping in mind Nepal ’s future demand of water and energy. This will help to identify the long term and short term projects for irrigation and energy.
As you know eastern development region needs more energy but there is no power plant there. Do you have any plan to construct the hydropower project targeting the eastern region?
We are planning to start Kabeli project in eastern region. The government is negotiating with the World Bank on its financial issues. We want to use the money of Power Development Fund in the Kabeli project. So far as I know, the Bank is positive on the construction of the project. This project is in the process of pre-qualification. In the Heva-mewa project, a private party has shown interest.
What is happening in Kosi high dam project?
Under the agreement between Nepal and India , investigation process is going on. After the investigation and study, then the issues of Kosi Highdam will be finalized. Nepalese and Indian technical teams have been doing various kinds of studies including topography.
What about the forthcoming Nepal Water Plan?
The government has already endorsed Nepal Water Plan, which discuses the long term, short term and middle term plans and programs in the water resource sector. This plan is an integrated broader strategy of Nepal ’s water resource management. We will see this as a guideline for water resources mobilization in future. This plan covers 10 to 14 plans. This is prepared under the various guidelines of water resources program.
What will be the main implications of the plan?
It will draw the line on how to move ahead for the implementation of water resources projects. We will have short term, middle terms and long term strategy to move on water project. It is a visionary plan.
How much electricity Nepal is getting from Tanakpur?
We are now getting about 18 MW electricity from Tanakpur. We are making efforts to secure 25 MW electricity from Tanakpur.
Do you have any new irrigation projects in your hand?
In irrigation sector, we will start Integrated Water Resources Management Project (IWRMP). This project will be run under the World Bank’s support. Another important project is Shikta Irrigation Project. With a capacity to irrigate 36,000 hector of land in mid-western region; this project will change the fate of people living in the area. The government has already sanctioned Rs. 350 million rupees for the project. The construction of the project will begin in second week of March.
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