Talks for 650 MW project gathers pace, SN Power and IB hold negotiations for two days

Sharesansar, May 29:

Officials of SN Power, a Norwegian power developer, and Investment Board Nepal held talks for two days to negotiate on Tamakoshi III (650 MW) hydropower project. The deliberations were aimed at thrashing out a project development agreement (PDA) between the government and SN Power.

The PDA discussion is a breakthrough in the hydropower sector of Nepal as no other foreign hydropower companies interested in large size hydropower have taken the process so far.

A project negotiation agreement (PNA) was signed by IBN and SN Power recently and existing rules says that PDA talks should be settled within one and a half years of inking the PNA.

The government granted survey license for the mega project to SN Power in 2007. The company has already completed the environment impact assessment (EIA) of the project that is estimated to cost Rs 120 billion.