Kathmandu, Aug. 18
The Investment Board Nepal (IBN) has signed
a Memorandum of Understanding (MoU) with an Indian government company, NHPC Limited, to develop the 750 MW West Seti and 450
MW Seti River-6 hydroelectricity projects.
Chief Executive Officer of the Office of
the IBN Sushil Bhatta and Chairman and Managing Director of NHPC Abhay Kumar
Singh signed the MoU at a programme organised in the capital on Thursday.
The document was signed in the presence of
Prime Minister Sher Bahadur Deuba, Minister for Finance Janardan Sharma,
Minister for Energy, Water Resources and Irrigation Pampha Bhusal, Minister for
Industry, Commerce and Supplies Dilendra Prasad Badu and Chief Minister of
Sudurpaschim Province Trilochan Bhatta.
The estimated cost of the West Seti project
is US$1,320 million, and Seti River-6 will need about US$ 450 million.
PM Deuba, on the occasion, appreciated the
cooperation of India in Nepal's development including in tapping the hydropower
potential.
"Hydropower is one of the areas for
competitive investment in Nepal," he said while maintaining that the
construction of the two large energy projects will support in the
multidimensional development in the Sudurpaschim Province.
PM Deuba also expressed his hope that the
two projects would be developed in a timely manner and directed the IBN to make
effective cooperation and collaboration. "I would like to express my
commitment that the government of Nepal will facilitate the NHPC in developing
the projects," he stated.
IBN’s CEO Bhatta said that both the
projects are national priority projects and expressed his hope that the
sincerity exhibited by the company so far would be continued in the days to
come in order to complete the projects within the stipulated time.
Likewise, Singh pledged that every possible
effort would be put in the development of the projects since they are connected
with the sentiment of the people of west Nepal.
A meeting of the IBN chaired by Prime
Minister Sher Bahadur Deuba on August 8 had approved the MoU to conduct
feasibility study for the development of the two hydel projects, to be signed
with the NHPC.
Earlier in May this year, PM Deuba and his
Indian counterpart Narendra Modi, during the latter's visit to Lumbini on the
occasion of Buddha Jayanti, had agreed to handover the two projects to Indian
government run company for their development.
The two projects will be based in five
districts in Sudurpaschim Province.
Nepal will get about Rs. 167 billion in
royalties and taxes from the two hydroelectricity projects. Likewise, people in
the project affected areas will get shares of the company. The regulated flow
of water in the Seti River will also help in irrigating land in Kailai and
Bardiya districts while at the same time, the projects are expected to support
in minimising damages downstream caused by the floods in the river.
Both the projects will be developed in the
same river basin at a distance of about 50 km. The two projects were showcased
in Nepal Investment Summit 2019.
NHPC has already developed various energy
projects, including solar and hydro energy, of 7,500 MW installed capacity and is
developing projects of the same capacity.
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