UCPN-Maoist also against signing PDA with GMR

Tue, Jul 22, 2014 12:00 AM on Others, Others,

KATHMANDU, July 21 :

UCPN (Maoist) has joined hand with CPN-Maoist to protest against the Upper Karnali Hydro Power Project, saying that the ongoing Project Development Agreement (PDA) with the Indian developer of the project should be made on the basis of political consensus.

Speaking at a press meet, Lila Mani Pokharel, chief of the energy department of UCPN (Maoist), said they have forged working alliance with CPN-Maoist on agendas related to water resources.

CPN-Maoist had split from UCPN (Maoist) two years ago.

Pokharel said that they want to have negotiations with GMR - the Indian developer of the project - to develop the project in such a way that it serves Nepal´s interest.

The protest by the third largest party in the parliament has come at a time when the Investment Board of Nepal is preparing to sign PDA with GMR.

The PDA defines the terms and conditions of the project development in detail.

The budget for fiscal year 2014/15 has announced different incentives for export-oriented hydropower projects. The incentives, including income tax holiday and grant of Rs 5 million per MW, had raised hopes that implementation of mega hydropower projects would gain pace.

“I have told my party to obstruct parliamentary proceedings if PDA is signed without forging political consensus,” added Pokharel.

When asked why his party´s stance on hydropower changes when it is not in the government, Pokharel said they were objecting the project because of a policy paper issued in 2009. Saying that the project is comparatively cheaper, he said it should be developed by mobilizing domestic resources.

“If Nepal is not in a position to develop the project, the unequal agreement of awarding the project (to the Indian developer) should be reviewed,” he added.

Likewise, commenting on the content of the draft on energy cooperation forwarded by India, Pokharel said there is no need to sign new agreement with India for hydropower development in Nepal. “Both the countries can being power trade as per the energy trading agreement of 1997,” Pokharel said, adding that the government can make some revisions in laws to facilitate bilateral energy trading.

He also termed the draft proposal a ´Bhutanese Model´.

´TRADE AGREEMENT LIKELY BEFORE MODI´S VISIT´

Minister for Energy Radha Gyawali has said energy trade agreement with India can be signed before the visit of Indian Prime Minister Narendra Modi.

She said a team from energy ministry would heat to New Delhi soon after Prime Minister Sushil Koirala arrives in Kathmandu from USA.

The government had postponed energy secretary´s visit to India on Sunday to hold preparatory dialogue on the draft proposal with his Indian counterpart.

“If the bilateral talk is in favor of India, final agreement is likely to happen before Modi´s visit,” she added.

Modi is scheduled to visit Nepal in August.

Minister Gyawali also appealed to all the political leaders to not make opinion based on media reports.

Source: Republica