International power
companies
eyeing Nepalese
hydropower
resources may soon
receive the
opportunity to come
forward with
their Investment
proposals. The
ministry of water
resources, the
apex government
institution
responsible for the
development of
hydropower In Nepal,
is learnt to
have completed its
preparations to
reopen negotiations
with International power
companies to construct the 402,
megawatts (NlW)
Arun III
hydroelectric project
(AHEP).
AHEP was shelved in
1995
when the World Bank
(WO) bowed
to international
pressure and
denied loan for the
project. The WO
experts had
estimated that a baby
Arun III of 201 MW
would cost US
$740 million. but
Tate Engineering
of India and Enron
Company of the
US are learnt to
have proposed to
complete the 402 MW
Arun [it for
US $800 million.
With the signing of
a power
purchase agreement.
any Party
from Nepal or India
may enter
into an agreement
for power
trade between them,
irrespective
of such parties
being governmenit.
serni-government or
private enterprises.
The pact is
supposedly beneftal for both the
countries. Nepal
can make money by
selling power
to India and India
can get the
volume of
electricity it
requires to
support its
development drive in
the northern India
power region.
Power demand of the
northern
Indian region will
rise to over
58,000 MIN by the
year 2010. If
all goes according
to the Eighth
and Ninth Plan of
India then
the maximum
electricity India
can generate will be
wound 37,000
MW. 'They will still
be short
of 21,iMO MIN Of
electricity and
it is this demand
that the multinational investors
In Nepal envisage to fuffill,- said Lekh Man
Singh,
superintanding
engineer at
the project.
---PRAKASH KHANAL
KATHMANDU.
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