Bhotekoshi offers 5% shares to Sindhupalchowk locals

KATHMANDU, Nov 10:

Bhotekoshi Power Company has offered 5 percent shares of Upper Bhotekoshi Hydropower Project to the people of Sindhupalchowk district.

Nepali Congress lawmaker Mohan Bahadur Basnet told Republica that the company has already agreed to distribute 5 percent shares of the 45-MW project to the locals.

Leaders of five political parties -- UCPN (Maoist), CPN-UML and CPN-Maoist, Rastriya Prajatantra Party and Nepali Congress -- however, have denied the offer. They are pressing for 22 percent shares instead.

The meeting held in Kathmandu on Sunday between company officials and local leaders of political parties ended inconclusive. But both sides have agreed to forge consensus in the next meeting, according to Madhav Sapkota, president of Sindhupalchowk chapter of UCPN (Maoist).

Locals are obstructing works to erect the project’s transmission towers, which were washed away by Jure landslide on August 2, pressing forth different demands, including allocation of shares to the locals. The company is losing Rs 8.6 million per day due to obstruction, according to company officials.
Bhotekoshi Power Company is a joint venture between US and Nepali investors. It has invested US$ 90 million in the project.

Narendra Prajapati, general manager of Bhotekoshi Power Company, didn’t deny the claims that the company has offered five percent shares to the locals. He, however, chose to keep mum on the issue, saying that talks with the locals were progressing.

Prajapati also said the company officials were soon meeting with Prime Minister Sushil Koirala to discuss the issue.

The Public Accounts Committee of legislature-parliament has started study on power purchase agreements (PPAs) signed by Nepal Electricity Authority (NEA), including the one signed with Upper Bhotekoshi Hydropower Project, in US dollar.

NEA had signed PPA with Upper Bhotekoshi Hydropower Project at 6 cents per unit in 1997. Because of the agreement, NEA has suffered a huge loss due to devaluation of Nepali currency vis-à-vis US Dollar.

The PPA is valid for 25 years from the commercial operation date of January 24, 2001. As per the agreement, 50 percent of the project assets will be transferred to NEA after 25 years.

The company has generation license for 50 years.

Source: Republica