Three MNCs to compete for BPC

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KATHMANDU, Oct 19 - The second tender call for the privatization of 30-megawatt Butwal Power
Company (BPC) is likely to bring in a triangular competition among three multinational (MNC)
power developers.

Pacific Hydro, an Australian multinational power developer has entered the competition ring in
alliance with ICTC group as the local partner.

The entry of Pacific Hydro brings in a third vertex of competition as the two finalists during last
bidding—Independent Power Corporation(IPC)/PLC, an American British Power Developer and
Interkraft, a Norwegian power developer—are also competing to win BPC for the second time.

With the entry of a third party, officials in the ministry of finance are upbeat that the price offered
to BPC, one of the few profitable state-owned enterprises, would shoot up.

Though Khetan Group, one of the leading business houses, has also obtained application from
Privatization Cell, ministry of finance, Rajendra Khetan, Managing Director of Khetan Group,
informed The Kathmandu Post that it would refrain from bidding. "We are not submitting bid as
we could not reach an agreement with our prospective foreign partner," said Khetan.

Since the final deadline for submission of bid expires only on October 31st, theoretically there is
still room for more parties entering into competition. However, the government officials seem less
hopeful for other strong contenders.

The expected triangular competition is not only among the multinational power developers but
also among three leading business houses of the country. Choudhary Group, Jyoti Group
(including some other partners) and ICTC Group are the local partners of IPC/PLC, Interkraft and
Pacific Hydro respectively. The competition has an added flavour also because ICTC Group and
Choudhary Group were initially competing for BPC as local partners of IPC/PLC but ICTC Group
switched the side and joined hands with Jyoti Group at the eleventh hour during the last bidding.

The test-case privatization of 75 percent share of BPC was scrapped by the government last
December amid mounting controversy but only to recall the tender last September. Cancellation
of the first tender was prompted by IPC/PLC’s unilateral revocation of its bid alleging "irregular
circumstances surrounding BPC’s privatization." In a strong-worded letter sent to Finance
Minister Mahesh Acharya on December 7, last year, IPC had alleged the ministry of favoring
Interkraft, IPC/PLC’s only rival bidder in BPC.

Much to the frustration of Interkraft, the government scrapped the whole process only two days
after IPC/PLC’s withdrawal.

Permanent solution to bird hits sought

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KATHMANDU, Oct 19 - Tourism entrepreneurs today demanded with the government for long
term solution of bird strike at Tribhuvan International Airport (TIA).

Tourism entrepreneurs demanded this at an interaction programme on "Bird Hit and Other
problems at TIA" organized jointly by Nepal Tourism Board (NTB) and Kantipur News Club (KNC)
here Thursday.

Joy Dewan, general secretary at Board of Airlines Representatives of Nepal (BARN) said that the
government needs to work out for long term solutions for the frequent bird strikes at TIA.

"The situation has impelled airlines operators to think twice before flying their aircraft due to the
increasing cases of bird hit".

Pradeep Raj Pandey, CEO of NTB said that bird-hit and garbage problems in the valley would
affect the whole tourism industry in the long run. Hence, it should be resolved at the earliest
possible.

Medini Prasad Sharma, Director General at Civil Aviation Authority of Nepal (CAAN) said that the
government is aware of such incidents at TIA. The government has adopted preventive measures.
Almost 95 percent problem arising at TIA due to bird strike has been solved, he added.

Suresh Malla, Minister of State Minister for Local Development, however, shrugged off the
allegations levelled by the tourism entrepreneurs. Malla denied that the dumping sites at
Guheshwori and Jorpati abutted to TIA had caused bird-hit problems at the airport.

The dumping sites are scientifically managed, he claimed. He also said that the government has
already stopped dumping garbage at those locations.

There have been five cases of bird hit at TIA within three months.