Indian Firm 'Bags' Arun III, Upper Karnali
Indian firm GMR Infrastructure has reportedly bagged the Upper Karnali (UK) and Arun III hydroelectricity projects, while it is expecting to also bag Upper Marshyangdi II and III, reports The Himalayan Times daily.
The company has plans to generate 952 megawatt of power in Nepal and market it in India through Power Trading Corporation (PTC). The report to this effect, filed from Mumbai, appeared in July 5 edition of the Economic Times. While the installed capacity of UK and Arun III is 300 MW and 402 MW respectively, that of Upper Marshyangdi II and III put together in 250 MW.
Both the export-oriented hydro electricity projects (Arun III and UK) are to be implemented on a Build Operate Own Transfer (BOOT) model for a 30-year period that includes construction.
Under the conditions, which have come to light earlier, ownership will be handed over to Nepal after three decades. Besides the free power, Nepal also retains the right to purchase up to 10 percent of the power generated at the projects, the report further said. GMR has offered Nepal 33 percent free equity in the UK, apart from 7.5 percent free energy.
The proposal also includes two and a half years to prepare for the project and four and a half years for construction, including financing with debt-equity of 75:25.
In Arun III, the company will share 15 percent of the power in the first 15 years of operation and 10 percent for the remainder of the license period. The report has quoted sources, saying, "The Ministry has decided to award the hydropower projects to GMR, at the recommendation of the evaluation committee."
But spokesperson at the Ministry of Water Resources Anup Kumar Upadhyaya, temporized when asked to comment on the latest development merely saying, "I am not aware of such a decision." It may be recalled that the task force headed by former secretary Bhanu Prasad Acharya had recommended that GMR be awarded the two projects in a report submitted to the government two months ago.
