Nepal government is planning for a trilateral power purchase agreement between Nepal, India, and Bangladesh on the Upper Hydropower Project. The agreement can be part of the upcoming investment summit to be held on March 29 and 30, said the Minister for Water Resources and Irrigation.
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“The agreement would facilitate export of 500MW energy generated from the 900MW Upper Karnali project to Bangladesh”, said Barsha Man Pun during a question-answer session in the House of Representatives.
During his recent visit to India, Pun attended meetings with his Indian counterpart from India’s Power Trade Company and GMR, the Indian company developing the project. “Indian authorities have expressed commitment to sign the PPA during the investment summit,” Pun added.
Nepal’s minister for water resources also gave an extra proposal if the Indian company was not able to develop the project, Nepal government would establish it. “Locals are expressing frustration over the delay in the project construction, and we are also feeling the same. We do not want to delay the project anymore” he replied. On January 23, GMR had submitted its progress report, seeking a one-year extension for the project’s financial closure. It mentioned in the progress report that PPAs with Bangladesh and India’s Haryana state government (300MW) would be done in the next two months.
On December 4, Nepal-Bangladesh Joint Steering Committee meeting was held in Kathmandu. “The Indian side told me the draft PPA to be signed between GMR and Bangladesh government was in the final stage and that they were ready to sign a trilateral agreement, including Nepal,” Pun informed.
“We will export energy worth billions of rupees from next year after Upper Tamakoshi project starts generating 456MW electricity. We are not very far from becoming self-reliant in energy. We will export our surplus energy to whoever gives a better price among India and Bangladesh,” said the minister.
Announcing the government plans to generate 15,000MW in 10 years, Pun said: “We are planning to invest Rs 3 trillion to complete the projects. We will raise the funds from the general public, foreign investors and loans, and grants”.
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