Power pangs

-- Nepal's ministry of water resources has threatened the Bhote Koshi Power Company (BKPC), the first privately funded US power project in the country, with punitive action. Responding to the findings of a probe committee investigation, the ministry has decided to penalise BKPC for exceeding the authorised limit on installed capacity.

In breach of the initial agreement for an installed capacity of 36 mega watts (mw), the company was found to have installed machinery for producing 45 mw of power. Contrary to BKPC's claims of having two 18-mw turbines, the actual capacity of each was found to be 22.5 mw.

BKPC, however, insists that the augmentation was necessitated because it had to make up for the transmission losses between the powerhouse and the Nepal Electricity Authority (NEA) substation at Panchkhal. The production of excess electricity is allegedly a sore point with the NEA, which does not want to pay for the surplus power. Panda Energy International Incorporated, the Texas firm that has a major stake in BKPC, is said to be claiming about US $2 million in outstanding dues from NEA.