KATHMANDU: A US-based development company has expressed interest in developing a reservoir type hydroelectric project in eastern Nepal.

The Washington-based Hillsdale Group is keen on developing the 500-megawatt Tamor Khola Hydroelectric Project, located at Panchakanya Village Development Committee of Tehrathum and Mauwa VDC of Panchthar districts.

It applied with the Department of Electricity Development (DoED) for a survey licence, with a deposit of Rs 1 million last year. DoED officials said they were studying the company’s technical and financial prospects and would issue the license if they proved to be a genuine hydropower developer.

Sam M Sainju, formerly a Nepali national who has

now acquired the US citizenship, Chairman and Chief Executive Officer of Hillsdale Group, said the company would approach the World Bank, Asian Development Bank and other multilateral financial institutions once the DoED issued it the

survey license. “We expect political stability in Nepal

by the time we complete

our survey. We will have enough time to mobilise financial resources by that time,” said William C Hogan, III, Chief Operating Officer, Hillsdale Group.

Sainju is the man behind the idea of developing the mega project in Nepal, where power cuts reach up to 16 hours a day during winter. Initially, the Hillsdale Group had envisaged exporting the energy generated from the project to India.

But it decided to sell the power to the state-monopoly — Nepal Electricity Authority (NRA) — considering the perennial power shortage in the country.

While in the capital, the group met Maoist chairman Prachanda, CPN-UML president Jhala Nath Khanal, Nepali Congress vice-president and parliamentary party leader Ramchandra Poudel, Energy Minister Dr Prakash Sharan Mahat and his secretary Shankar Prasad Koirala. It also met Jivendra Jha, MD, NEA, and discussed the prospect of developing the project.

“The party leaders and the Energy Minister are positive to our proposal and have pledged every possible support to the project,” Sainju said. He, however, lamented that the DoED has not yet issued them the required survey licence, without which the feasibility study for the project cannot be undertaken.

Sainju and Hogan III also said people in the project districts would be sold shares in the venture. Job opportunities would be provided for the locals during the construction of the power station and local communities would be supported in their needs.

CIAA ire at default licence-holders

KATHMANDU: Commission for the Investigation of Abuse of Authority (CIAA) today issued a

directive to Minister of

Energy (MoE), Office of Company Registrar and Ministry of Industry

(MoI) to proceed with

annulling licence of hydroelectricity promoters that have failed to work as per the work schedule.

CIAA in a press statement accused the governmental bodies’ inability in regulating the licencing, surveying and other activities that the promoters ought to do. It further stated that the companies with licence were unable to show result and other new companies, though competent were not getting licence.

CIAA has ordered to start cancellation process of licence of defaulters within the next three months.

It further asked these bodies to establish a monitoring section for timely evaluation and supervision of companies and their work-progress.

It further directed the MoE to provide needed human resource to the

Department of Electricity Development and asked for creating environment for giving licence to

new companies.

CIAA urged not to renew the licence for more than five years and asked for monitoring of the companies time and again.