Upper Marsyangdi -II PDA soon: Investment Board

LAMJUNG:

The Investment Board is preparing to ink Project Development Agreement (PDA) on the 600 MW Upper Marsyangdi- II Hydro Project within three months.

The board, which successfully arranged agreements on Upper Karnali and Arun-III earlier, has initiated talks with India’s GMR Energy Limited. The project is located along the Lamjung-Manang border.

PDA of Upper Marsyangdi-II and 650MW Tamakoshi-III are yet to be signed. Radhesh Pant, Chief Executive Officer of Investment Board, said they were preparing to hold talks with India’s GMR Company as soon as the agreement drafts were ready.

India’s GMR and the investment board had reached understanding on free energy, shares for locals and other matters six years ago. “As we are yet to forge consensus on many things, it may take little more time to sign the PDA,” said Pant.

GMR and International Finance Corporation under World Bank had signed an agreement for joint project development last year. According to the agreement, IFC is supposed to invest 10 per cent and grant 15 per cent loan for the project.

According to a GMR survey, more than Rs 100 billion will be invested on the project. Besides GMR and IFC, Nepali agent Brinda Man Pradhananga will also invest in the project. Himal Hydro power under GMR will be responsible for construction work. The company will be provided with power generating licence soon after the power development agreement.

According to sources, Himal Hydro has completed extensive study of the project development and prepared the environmental impact report. The people of Dharapani area of Manang and Taghring and Ghermu of Lamjung will be affected. However, the project has invested more than Rs 1 billion for community development in the project area. It has been estimated that the project may take around five years to be completed. The dam will be constructed at Talgaun whereas the power house will be located at Taghring-based Syange.

Source: THT