IBN board meeting ends without decision
KATHMANDU, SEP 15 -
A board meeting of Investment Board Nepal (IBN) on Sunday failed to take a decision on Project Development Agreement (PDA) for the 900MW Upper Karnali Hydropower Project.
During the meeting chaired by Prime Minister Susheel Koirala, the participants sought clarity over the draft PDA prepared by IBN by incorporating inputs from a technical committee headed by National Planning Commission Vice Chairman Govinda Raj Pokhrel.
The meeting was participated by almost all ministers, including Deputy Prime Minister and Minister for Home Affairs Bam Dev Gautam, Deputy Prime Minister and Minister for Local Development Prakash Man Singh, Finance Minister Ram Sharan Mahat, Forest Minister Mahesh Acharya, Energy Minister Radha Gyawali.
Secretaries and members of the technical committee were also present.
“The meeting could not reach a conclusion as there were intensive discussions on several points of the PDA draft,” said Radhesh Pant, chief executive officer of IBN. “The discussions were positive and a final decision is likely to be taken within the next one-two days.”
During the meeting, the ministers focused especially on three critical issues—the impact on downstream irrigation projects, Rs 5 million per MW cash incentive and the force majeure provision.
“Almost all the participants wanted to know every detail of the draft. That’s why the meeting ended without any specific decision,” said Pokharel, adding a decision is likely to be taken within a couple of days. “The meeting was positive as all the members made their queries positively. The next meeting is most likely to be held on Monday or Tuesday.”
One of the participants of the meeting said the ministers got down to the nitty-gritty. Once the IBN board okays the PDA draft, it will be forwarded to the Cabinet, which will then direct the government to hold an agreement with India’s GMR-ITD Consortium, the developer of the project.
The PDA draft states the generation company (GMR) should carry out a study within six months of the PDA signing to ascertain the impact on all existing projects downstream as well as river training work, river banks and settlements.
And, based on the study, GMR should take measures to ensure designed flow of water to the irrigation projects, including other planned projects. The downstream irrigation projects include Rani-Jamara-Kulariya, Rajapur, Suryapatuwa, among others.
On the force majeure clause, the PDA draft has stated GMR cannot make claims for compensation in case of national strike lasting for 14 days.
Source: The Kathmandu Post
