GMR is not abandoning Upper Marsyangdi-2

ShareSansar, January 3:

Rubbishing speculations by some Indian media that GMR Energy Limited has abandoning Upper Marsyangdi-2 hydropower project, the Indian power developer has clarified that it is not abandoning the project.

Sending a tweet yesterday afternoon and a press release later in the evening, GMR officials said that they were very much committed to work with International Finance Corporation (IFC) of the World Bank Group on the 600 MW project.

GMR has singed a Joint Development Agreement (JDA) with IFC only in December.

As per the agreement, IFC has agreed to hold 10 percent equity in the project and lend 15 percent of the project cost to the company. The project, to developed by Himtal  Hydropower Company, a Nepalese subsidiary of GMR, is estimated to cost US$ 1 billion.

The Detailed Project Report and Environment Impact Assessment (EIA) reports have already been submitted to the Ministry of Energy, and GMR is currently discussing Project Development Agreement (PDA) with the Investment Board of Nepal (IBN).

A consortium comprising GMR Energy Limited, GMR Infrastructure Limited (GIL) and Italian-Thai Development Project Co. is also developing the 900 MW Upper Karnali Hydroelectric Project.

The project was awarded to GMR consortium after the government based on the International Competitive Bidding (ICB) process which followed a rigorous multi-layered evaluation process, lasting 12 months.

The project will be developed on a Build, Own, Operate and Transfer (BOOT) basis.