IBN approves Rs. 97 billion investment for hydel projects

Kathmandu, June 22

The Investment Board of Nepal (IBN) has approved investment worth Rs. 97 billion for large hydropower projects.

A meeting of the board held on Tuesday approved estimated investment of US$ 540 million for Upper Tamor Hydroelectricity Project, and Rs. 33.41 billion for Lower Manang Marsyangdi Hydroelectricity Project.

The meeting led by IBN Chairman, Prime Minister KP Sharma Oli, also accepted the Detailed Project Report (DPR) of the China-Nepal Friendship Industrial Park being developed in Damak of Jhapa district and directed the Office of the IBN to make preparations for the Project Development Agreement (PDA) signing agreement with the developer.

The high-tech industrial infrastructure would be developed in 1,600 hectares of land at a cost of Rs. 113 billion. However, it will be developed in four phases and the IBN had approved the investment of US$ 586 million in the first phase. First phase will be completed in three years.

Likewise, it approved the draft of memorandum of understanding to be signed with the developer of the 679 Megawatt Lower Arun Hydroelectricity Project –SJVN India Limited- to issue license for the survey of the project in Sankhuwasabha district.

The meeting has decided to instruct the Ministry of Energy, Water Resources and Irrigation to make reforms in legal provisions to issue license for the survey of reservoir-based 756 MW Lower Tamor Hydroelectricity Project.

Similarly, a committee is formed under the leadership of the Vice-Chairman of the National Planning Commission to prepare investment framework of the joint hydroelectricity project of West Seti and SR-6 and recommend it to the IBN.

A direction is also issued for the Office of the IBN to take further the process of land compensation at the Chyankuti-Diding section of Arun-III Hydroelectricity Project’s access road.

The 900-MW project is being developed by the SJVN in Makalu Rural Municipality in Sankhuwasabha district. Estimated cost of the project is Rs. 104 billion while another Rs. 11 billion will be invested in transmission line construction to supply electricity from the project. Nepal will get 21.9 per cent, or 197 mw, energy and 29 per cent equity in the project free of cost.

PM Oli directed to make decision about the hydroelectricity projects only taking transmission line as well as the consumption and export of the electricity generated into consideration.

“We must not continue the mistakes that we made in the past, otherwise we will generate electricity but fail in the construction of transmission lines but continue to pay the price of the wasted energy,” he said.

Stating that the country should develop effective plans for the transmission system along with the energy projects and implement them in coordination with the respective agencies, he directed the concerned stakeholders to make necessary collaboration and facilitation in such initiatives.

According to him, to increase the consumption of generated energy within the country, industrial development must be expedited.

Finance Minister Bishnu Prasad Paudel emphasised that the proposals forwarded to the meeting of the IBN should be effectively implemented as they had the potential to support in the economic development of the country.

Published in The Rising Nepal daily on 23 June 2021.