Kathmandu, August 23 :

The three-day long Hydropower Invest Mart 2006 concluded here on Tuesday with 12 parties agreeing to make an investment of Rs 5.5 billion to generate 45mw of electricity.

Jointly organised by the Confederation of Nepalese Industries (CNI), Small Hydropower Promotion Project-GTZ and Winrock International, the first of its kind of the event, had brought together all players in the hydropower sector like policy makers, entrepreneurs, investors, regulatory bodies, power purchasers and distributors, insurance agencies, hardware suppliers, contractors and others on to a common platform.

“The Nepali private sector is keen to invest in hydropower sector and the event has proved to be a step forward in this regard,” said Binod Chaudhary, president of CNI, at the concluding ceremony of the Mart.

He further informed that a written agreement has been signed to establish various small and medium-sized hydropower projects to generate 45mw power.

However, the name of investors and projects have not yet been disclosed.

On the occasion, Gyanedra Bahadur Karki, state minister for water resources said that the government would soon bring in a new hydroelectricity policy to promote both domestic as well as foreign private sector investment.

He also promised to improve intra-ministerial and inter-departments coordination to avoid bureaucratic hassles, ensuring smooth and effective implementation.

Karki also assured to form a high-level committee to resolve problems raised by the private sector regarding hydropower development, comprising representatives from the government and line ministries, Nepal Electricity Authority, private sector and concerned stakeholders.

Chaudhary said that CNI has set up a facilitation desk at its secretariat to assist private investors, power producers and purchasers.

“The desk will also comprise of power experts, planners and developers as well as financial institutions like banks and insurance companies to assist potential investors,” Chaudhary added.

Stating that the Nepali power sector lacks institutional investment from commercial banks, he floated the idea of issuing government bonds or setting up of a mutual fund, especially for hydropower projects.

Earlier, discussions were held on different topics such as electricity development policies, power purchase arrangement, management of investment in hydro-electricity and small-scale hydro projects.

Five small hydropower projects — Hadi Khola, Nyadi Khola, Hewa Khola, Mailung Khola and Madi Khola were showcased at the mart as an avenue for investment.