Kathmandu, Sept 19

GMR Energy of India — the developer of 900 megawatt Upper Karnali Hydroelectricity Project (UKHP) — has failed to achieve the financial closure within the deadline of today. However, the latter has sought extension of one year for the same with the Investment Board Nepal (IBN).

GMR had sought extension of a year to achieve the financial closure stating that the Nepal government has yet to provide the land that had been agreed in the project development agreement.

The Ministry of Forest and Soil Conservation is yet to clear the process to provide the land to develop the project.

Similarly, the earthquakes and supply disruptions have affected its work-schedule, according to the developer.

As the meeting of IBN board has been stalled since the new government was formed, the proposal put forth by GMR has not been discussed yet. Only the prime minister-led board can extend the time for financial closure.

According to the IBN officials, GMR’s proposal will be submitted in the next board meeting of the IBN. The IBN had signed PDA with GMR in September of 2014 and the latter had agreed to achieve financial closure within two years of the PDA signing date.