Hydropower key to economic growth: PM
KATHMANDU, MAR 15 -
According top priority to the development of hydropower sector in the country, Prime Minister Baburam Bhattarai on Wednesday coined a new slogan, “Democracy plus Hydropower equals to New Nepal.” Just as the politics of the country cannot be developed without the establishment of democracy, he asserted the economy cannot flourish without the development of hydropower sector.
Addressing the inaugural session of Hydropower Summit 2012 that kicked off on Wednesday, Bhattarai argued that the hydropower is not an end-product but an intermediary material that holds the key to the growth of other sectors including agriculture, tourism, manufacturing and information and communications services.
He also said the government is working towards the formation of Infrastructure Bank in the country to help the aspiring investors to invest in hydropower projects. Indicating at the country’s present banking system’s limit in meeting the financing needs of the hydropower developers, he said that the government has also proposed an amendment in the existing Banking Law for the creation of Infrastructure Bank.
PM Bhattarai said there is need to ensure financing facility for the developers as the government formed Hydropower Development and Investment Company has not been functional yet.
He also informed that the government will soon hold a Power Trade Agreement with India that is expected to resolve the problem of market imperfections in electricity trade. “It’s essential to hold such agreement with neighbouring countries as the electricity produced in Nepal will not only benefit it but also to India, Bangladesh and the entire South Asian region,” he said, pitching for a national strategy should be to export energy so that the country can generate resources for further investments, meet foreign currency needs for essential imports and attract investment for additional hydropower development.
Speaking on the occasion, Minister for Energy Post Bahadur Bogati said that the government is holding talks with developers for the implementation of the projects whose design has already been completed.
“Within two months, the ministry will conclude Power Development Agreement with all developers who have applied for it,” said Bogati adding that the government has lately announced several measures including the review of power purchase agreement (PPA) in an attempt to help developers complete their projects within the stipulated time.
He also said that the government is working to enhance the capacity of the installed projects as a measure to ensure normal power supply in the country. “To better supply the produced electricity from the mega projects, the government has already decided to form a separate transmission company,” said Bogati.
Pointing to Nepal’s growing trade deficit, Indian Ambassador to Nepal Jayanta Prashad said the country should shift hydropower into a trading commodity. “As the development of hydropower ensures creation of jobs and collection of revenue, the government should place high priority for this sector,” suggested Prashad.
Suraj Vaidhya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) warned that the country would never achieve economic prosperity if the political parties still keep on wrangling over the hydropower issues.
“This sector should be free from all sorts of political games and the investors should be given a platform for their investment,” said Vaidhya.
Source: Kantipur
