KATHMANDU, JAN 28 - The much-awaited power development agreement (PDA) with three export-oriented hydropower projects is finally gaining momentum.
Investment Board Nepal (IBN) on Monday said PDA negotiations with Upper
Karnali Hydro Electricity Project will be completed in a couple of
months. According to IBN, 90 percent of the talks with Upper Karnali has
been completed. “Agreements on many issues have been reached. Now, it
is being given a legal shape,” said IBN CEO Radhesh Pant.
The negotiations with the 900MW project, being developed by India’s GMR
Group, was started even before the formation of the IBN. In September
2010, the government and GMR had begun the talks, but the talks were
stalled following a spat between the then Energy Minister and Energy
Secretary.
When the government formed the IBN two years ago, the whole PDA process was started again with a new PDA template in place.
The negotiations were halted again after the Supreme Court in July 2012
issued an interim order asking the government not to proceed ahead with
the PDA negotiations with GMR.
However, the court in August last year scrapped its earlier interim order, paving the way for the resumption of the talks.
According to the IBN, PDA talks with two other projects—Arun 3 and
Tamakoshi 3—are also moving ahead. Arun-3 (900MW) is being developed by
Satluj Jal Vidyut Nigam of India, while 650MW Tamakoshi- 3 is being
developed by SN Power of Norway.
Investors seek the government’s assurance through the PDA, which helps
avert any possible social, economic or policy-level uncertainties during
the construction phase. Generally, issues related to taxes, licence
period, free energy, royalty, repatriation rights and parties’
obligations are included in the PDA.
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