Nepal | August 05, 2020

House panel seeks Khimti Hydropower Project study report

Himalayan News Service
Share Now:


As the government has been dilly-dallying in acquiring 50 per cent ownership of the 60-megawatt Khimti Hydropower Project, the Agriculture, Cooperatives and Natural Resources Committee under the Federal Parliament forwarded a letter on Sunday to the Ministry of Energy, Water Resources and Irrigation (MoEWRI) directing it to submit the project’s study report within three days.

The committee has also started a study on the transfer of ownership of the Khimti Hydropower Project. It decided to intervene after there was delay in the new power purchase agreement (PPA) and transfer of rights.

Earlier too on July 19, the committee had written a letter asking the energy ministry for documents related to the PPA and Project Development Agreement (PDA) of the project.

Meanwhile, Purna Kumari Subedi, chairperson of the committee, has formed a sub-committee to study all the documents related to Khimti project. “We have sought details on the management, operation and transfer of rights of Khimti in the study,” she informed.

According to the PPA and PDA of Khimti Hydropower Project signed with Himal Power Ltd — the project developer — 50 per cent ownership of the project needs to be acquired by Nepal Electricity Authority (NEA) after 20 years of operation. As per the same provision, the PPA was completed on July 10.

NEA had formed four sub-committees to study the new PPA, transfer of ownership and management of the project. The study report was submitted to the MoEWRI earlier.

The energy ministry had previously formed a team led by Joint Secretary Prabin Aryal, and comprising of officials of NEA to facilitate the ownership transfer process and form a joint venture company to operate the project.

However, there has been no tangible progress in forming the company yet.

Citing the difficulties created by the outbreak of the coronavirus pandemic, both NEA and MoEWRI have been delaying in inking the new agreement.

Meanwhile, NEA has yet to fulfil the set preconditions before taking 50 per cent ownership from Himal Power Ltd (HPL), which currently has 100 per cent ownership of the project. HPL has been tasked with developing the project under a 50-year lease contract with government.

As per the Project Development Agreement, a joint venture (JV) company needs to be formed. The JV company will then determine and certify the valuation of the project site, undertake share distribution, and determine new power purchase rate. Likewise, the company will also form a new board of directors, set up a management team and integrate employees, among others.

NEA had initially signed the PPA with Khimti at 5.2 US cents per unit, which was later revised to 5.9 cents. The authority is buying power at up to Rs 21 per unit of electricity generated from the project as the price of the dollar has surged massively.

A version of this article appears in e-paper on July 28, 2020, of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Former king Juan Carlos decides to leave Spain amid corruption allegations

Prosecutors looking into bribe allegations Pressure had been building on royals to take action Former king remains "at the disposal" of prosecutors The 82-year-old helped guide Spain back to democracy MADRID: Spain's former king Juan Carlos has decided to leave his country, a drama Read More...

Ruling party co-chairs stick to their guns

Oli to remain PM till general election, co-chair till General Convention: NCP leader Gokul Baskota Kathmandu, August 3 Co-chairs of the ruling Nepal Communist Party (NCP) Pushpa Kamal Dahal and KP Sharma Oli held talks today in an attempt to break the current impasse in the party, but failed to Read More...

Airlines seek permission to resume flights

Airline companies have to resubmit their proposal for slots if flight operations are halted for more than 60 days Kathmandu, August 3 The government's decision to resume domestic and international flights from August 17 has prompted airline companies to start submitting their proposals to the Ci Read More...

Dhading bans sand mining during monsoon

Dhading, August 3 In view of increasing deaths related to river mining, the authority in Dhading decided to impose a complete ban on sand mining from rivers in the district during the monsoon season. There is already a rule that bans mining of river products using heavy equipment during the ra Read More...

File photo of Melamchi Water Supply Project tunnel.

‘Technical error caused Melamchi tunnel accident’

Kathmandu, August 3 A committee formed to investigate Melamchi tunnel incident has concluded that one of the sluice gates on the tunnel of the Melamchi Water Supply Project had broken due to a technical error. A project engineer and a driver had died due to the flood resulting from the breakag Read More...

reproductive health, Minister of State for Health and Population, Padma Kumari Aryal

Work responsibly, Minister Aryal directs employees

Kathmandu, August 3 Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has directed government employees to work responsibly as the ministry has the responsibility of protecting the property of over 30 million people of the country. She said this at the annual Read More...

PM visits under-construction museum at his private residence

Bhaktapur, August 3 Prime Minister and Co-chair of the ruling Nepal Communist Party (NCP) KP Sharma Oli today visited his private residence at Balkot and met with people from different walks of life. This is the third time the prime minister has visited his private residence after being electe Read More...

‘Harsher punishment against acid attackers’

Kathmandu, August 3 Women and Social Welfare Committee of the House of Representatives has directed the home ministry to make some amendments to the legal arrangement and punishment related to incidents of acid attack, pointing out the need of timely revision. After the discussion held on ‘a Read More...