KATHMANDU, AUGUST 18

The Investment Board Nepal (IBN) has signed a memorandum of understanding (MoU) with NHPC Ltd of India, entrusting it with the task of developing two hydropower projects in the country - West Seti Hydro Electric Project and Seti River-6 Hydro Electric Project.

The MoU was signed by IBN Chief Executive Officer (CEO) Sushil Bhatta and Chairman and Managing Director of NHPC AK Singh in the presence of Prime Minister Sher Bahadur Deuba, among other ministers, today.

On the occasion, PM Deuba said, 'The development of the two projects will contribute to ensuring the socio-economic prosperity of the country. The MoU serves as the initiation of the two projects as well as helps expand bilateral trade with India. I am confident that our neighbouring India will increase import of electricity from Nepal to narrow its trade surplus with us,' PM Deuba said.

Similarly, PM Deuba said that he is hopeful regarding the projects being developed in a timely manner.

'I urge all concerned authorities to make these vital projects successful through effective coordination.

The Nepali people will benefit the most from these projects of national pride and I will make utmost efforts to achieve that goal,' he added.

'We invite more investors from India to invest in Nepal. We are making constant endeavours to create an investment-friendly environment in transforming the country's developing landscape,' PM Deuba said.

Following the scrapping of an earlier agreement with a Chinese company, the 51st meeting of the IBN had decided to entrust the construction of the 750 MW West Seti Hydroelectric Project and the 450 MW Seti River-6 Hydroelectric Project to NHPC. The projects will be built in the Dadeldhura, Doti, Acham, Baitadi and Bajhang districts of Sudurpaschim Province.

As per the agreement, NHPC has to apply for the survey permit within 45 days from the date of signing the MoU for the West Seti Hydropower Project and within six months for the Seti River-6 Hydropower Project. The construction cost of the 750 MW West Seti hydroelectric project is estimated at $1,320 million, while the cost of the Seti River-6 hydroelectric project is estimated at $800 million.

NHPC Ltd will set up an office in Nepal and prepare the detailed project reports of both the projects as well as conduct environmental impact assessment after receiving the survey permission. The reports will have to be submitted to IBN within two years of receiving the survey permit.

A version of this article appears in the print on August 19, 2022 of The Himalayan Times.