Nepal | September 26, 2020

Construction of hydels with total capacity of 3,000MW stalled

Himalayan News Service
Share Now:

Kathmandu, May 21

The coronavirus pandemic has pushed back the completion date of nearly five dozen hydropower projects with total installed capacity of 3,000 megawatts that are under construction through private investment.

All construction activities of the under-construction projects have come to a standstill due to the lockdown imposed by the government to control the spread of the coronavirus contagion.

The Independent Power Producers’ Association, Nepal (IPPAN) has informed that all the projects under construction and those that have reached the construction stage with investment from the private sector have been postponed for at least a year.

According to IPPAN, since all construction works have been stopped the projects that were ready to start construction works by raising the required investment cannot move forward at the moment. Similarly, the detailed engineering work of the projects that were in the study phase has also come to a standstill.

Kumar Pandey, vice president of IPPAN, informed that nearly Rs 700 billion has been invested by domestic and foreign investors to build the aforementioned projects. This investment is about 25 per cent of the country’s gross domestic product (GDP). Due to the pandemic all construction activities have been halted and the projects under construction have to pay Rs 50 billion in interests to banks and financial institutions. He mentioned that this was adding on the financial burden of the developers.

According to IPPAN, the government’s plan to generate 15,000 MW of electricity in 10 years has come to a halt. Pandey said the loan and equity investment structure of the projects need to be changed now. The COVID-19 will also have a major impact in the electricity sector as domestic energy production had been rising and electricity import from India had been declining in recent times but the situation will soon change, as per private investors. Energy entrepreneurs have said that the power generation target has been hit hard.

The government’s plan to add 1,000 MW of electricity in the current fiscal has been affected due to coronavirus pandemic with only 123 MW being added this year.

The future of various hydropower projects is still uncertain as positive cases of the COVID19 continue to surges in Nepal.

The government has set a target to increase the installed capacity to 3,000 MW by adding 1,600 MW in the upcoming fiscal year. This target is also likely to be hit. The Nepal Electricity Authority has stated that the installed capacity is 1,386 MW so far.

A version of this article appears in e-paper on May 22, 2020, of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Perfection of Wisdom: Sacred texts of 'Pragya Paramita' inscribed in gold

KATHMANDU, SEPTEMBER 25 The holy book of 'Pragya Paramita' (Perfection of Wisdom) being inscribed in golden letters by guthi members for its preservation at the Golden Temple in Lalitpur on September 24, 2020. Thursday. The holy book contains transcriptions of Buddhist scriptures and is rewritten Read More...

Europe, UEFA

De Bruyne, Lewandowski, Neuer on UEFA player of the year shortlist

Kevin De Bruyne, Robert Lewandowski and Manuel Neuer have been short-listed for the UEFA men's Player of the Year award, European football's governing body said on Wednesday. Lewandowski guided Bayern Munich to their sixth Champions League title, finishing as the competition's top scorer with Read More...

COVID-19 pushes more children into poverty

KATHMANDU, SEPTEMBER 24 The number of children living in multi-dimensional poverty has soared to approximately 1.2 billion due to the impact of the COVID-19 pandemic, according to a new analysis published by UNICEF and Save the Children today. This is a 15 per cent increase in the number of ch Read More...

One buried to death, five missing in landslides

BHAIRAHAWA, SEPTEMBER 24 One person died and five others went missing in landslides at different places in Palpa this morning. In Surangdanda, ward 2 of Rambha Rural Municipality, Motisara Gaha, 27, died when a landslide buried his home. Similarly, in Phoksingkot of the same ward, five persons Read More...

In-person classes start in Sudurpaschim

DHANGADI, SEPTEMBER 24 Schools, which had remained shut for long due to the coronavirus pandemic, have started in-person classes in different districts of Sudurpaschim Province. The schools were closed for the last six months after the government imposed nationwide lockdown to stop the virus s Read More...

Students of public schools deprived of education

KATHMANDU, SEPTEMBER 24 Hundreds of students, mostly from public schools, across the country continue to be deprived of education due to lack of their access to electronic mediums like the internet, television and radio. The Ministry of Education has been encouraging educational institutions t Read More...

SAARC Council of Ministers holds virtual meeting

KATHMANDU, SEPTEMBER 24 Minister of Foreign Affairs Pradeep Kumar Gyawali urged member states of South Asian Association for Regional Cooperation to explore all viable options to hold the 19th SAARC Summit. Delivering his opening remarks at an informal meeting of the SAARC Council of Ministers Read More...