Energy sub-committee report: Three-pronged plan suggested for power development
KATHMANDU, AUG 10 -
A parliamentary sub-committee has suggested that the government encourage the private sector to invest in hydropower projects up to 25MW and public private partnership model be adopted for developing reservoir type projects up to 100MW.
A preliminary report prepared by the energy sub-committee of the Natural Resources and Means Committee (NRMC) under the Legislative Parliament also advised attracting foreign investors in large scale projects by creating an investment friendly environment. “As domestic investment is enough to fund large and multipurpose projects, we have suggested attracting investment from neighbouring countries and donor agencies,” said Chandra Dev Joshi, a member of the sub-committee.
The sub-committee headed by Lawmaker Laxman Prasad Ghimire submitted the report on ‘water resource development’ to the main committee on Sunday for further discussions. “We have also suggested that the government declare the Power Purchase Agreement (PPA) rate prior to the construction of such projects,” said Ghimire.
One of the reasons behind the private sector not being interested in developing hydropower projects is low PPA rate. Also, rising bank interest rates, disturbance at project sites and lack of construction of transmission lines are discouraging the private sector.
The government has recently established Hydropower Development and Investment Company for funding large scale hydropower projects. The government seeks to attract funds from international financial institutions as well as domestic investors to invest in big projects.
Given the Nepal Electricity Authority (NEA) incurring huge losses and not being able to address the ongoing load-shedding, the report has suggested for the power utility's institutional and financial restructuring.
In a major departure from the past, the government recently appointed a managing director at NEA through open competition and Energy Minister Gokarna Bista stepped down as its chairman to appoint energy secretary to the top post so as to discourage political maneuvering in the only power utility of the country.
The energy sub-committee was formed to study the situation and status of hydropower projects that are in operation and their role in minimising the ongoing power crisis.
Source: Kantipur
A parliamentary sub-committee has suggested that the government encourage the private sector to invest in hydropower projects up to 25MW and public private partnership model be adopted for developing reservoir type projects up to 100MW.
A preliminary report prepared by the energy sub-committee of the Natural Resources and Means Committee (NRMC) under the Legislative Parliament also advised attracting foreign investors in large scale projects by creating an investment friendly environment. “As domestic investment is enough to fund large and multipurpose projects, we have suggested attracting investment from neighbouring countries and donor agencies,” said Chandra Dev Joshi, a member of the sub-committee.
The sub-committee headed by Lawmaker Laxman Prasad Ghimire submitted the report on ‘water resource development’ to the main committee on Sunday for further discussions. “We have also suggested that the government declare the Power Purchase Agreement (PPA) rate prior to the construction of such projects,” said Ghimire.
One of the reasons behind the private sector not being interested in developing hydropower projects is low PPA rate. Also, rising bank interest rates, disturbance at project sites and lack of construction of transmission lines are discouraging the private sector.
The government has recently established Hydropower Development and Investment Company for funding large scale hydropower projects. The government seeks to attract funds from international financial institutions as well as domestic investors to invest in big projects.
Given the Nepal Electricity Authority (NEA) incurring huge losses and not being able to address the ongoing load-shedding, the report has suggested for the power utility's institutional and financial restructuring.
In a major departure from the past, the government recently appointed a managing director at NEA through open competition and Energy Minister Gokarna Bista stepped down as its chairman to appoint energy secretary to the top post so as to discourage political maneuvering in the only power utility of the country.
The energy sub-committee was formed to study the situation and status of hydropower projects that are in operation and their role in minimising the ongoing power crisis.
Source: Kantipur
