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 Kathmandu Tuesday November 28, 2000 Mangshir 13,  2057.


His Majesty inaugurates Khimti-I

By Surendra Phuyal

KIRNETAR, Dolakha, Nov 27 - His Majesty King Birendra formally inaugurated the Khimti-I hydro-electricity project, Nepal’s first private sector power project, here on Monday amidst the chanting of holy text from the Veda.

Her Majesty Queen Aishwarya was also present at the function, which was attended by an overwhelming number of government officials, diplomats, donors and energy-hungry locals of this backwater district in the central hills.

Developed by Himal Power Limited (HPL), a Norwegian undertaking, the run-of-river hydro-electric power generation plant has an installed generating capacity of 60 MW and an annual production estimated at 350 million kilowatt-hours (units) of electricity.

Addressing the inaugural function, Deputy Prime Minister Ram Chandra Poudel announced that the government will soon introduce an investment-friendly water resources policy, and called on private investors to harness the country’s vast hydro-power potential which could later be sold out at an affordable price.

The DPM’s comments comes at a time when serious concerns are being raised on the per unit price of electricity generated from Khimti-I project. The per unit price of Khimti-I is among the costliest in the region, thanks largely to inflation, leakage, and difficulty of constructing projects in the fragile Himalayan environment.

Speaking at the function, Norwegian Deputy Minister for International Development, Sigrun Mondegral expressed happiness over the successful completion of the project - "first of its kind ever supported by the Norwegian government," he said, adding, "the project represents something new: that Nepal is slowly graduating from donor dependency."

The US $ 140 million HPL project is financed by the International Finance Corporation (IFC), the Asian Development Bank (ADB), Eksportfinans a.s., the Norwegian Agency for Development) and the Nordic Development Fund. The construction works of the project, which is also Nepal’s first project based on a Build-Own-Operate-Transfer (BOOT) structure, began seven years ago after Butwal Power Company completed feasibility study.

Presenting his welcome speech, HPL Chairman Sverre Nygaard expressed happiness that the project helped Nepal get rid of the problem of load-shedding and said that the project will contribute to sustainable economic growth of Nepal.

HPL General Manager Harold O Skar also presented souvenirs - a statue of water goddess and the national dress of Norway - to Their Majesties. The royal couple also observed the project’s control room, model display room and the underground power house.

Addressing the function, District Development Committee (DDC) Chairman of Dolakha, Lal Bahadur K.C. said that the project is a big achievement for Dolakhalis, but expressed deep concern that the very locals have been deprived of the hydro-electric power.

"That this project contributed to bring an end to load-shedding problem is indeed remarkable, and hence this project remains as a landmark in the history of Nepal," K.C said. "But the locals have been deprived of the opportunity to consume the electricity generated from their very own surrounding. The locals’ demand is that first priority to consume power be granted to them."

Although HPL is said to be working on to electrify the villages of Dolakha and Ramechhap districts that are located in and around the project site, locals complain that neither the government nor HPL has looked into their key demand - electricity supply to their houses.

HPL also operates a 500-KW mini-hydro plant, the Jhankre plant, whereby 300 houses have been electrified. But locals here are demanding that all the 43 villages - 21 of Dolakha and 22 of Ramechhap, through which the 33 KV transmission line of the project passes - be electrified.


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