Energy Minister Janardan Sharma has asked ministry officials to conclude the Project Development Agreement (PDA) with Nepal Water and Energy Development Company (NWEDC) for the development of 216MW Upper Trishuli-1 Hydroelectric Project.
“I will try my best to conclude the PDA with NWEDC as soon as possible,” said Sharma at an event on “Foreign Direct Investment (FDI) in Hydropower” jointly organised by the International Finance Corporation (IFC), Independent Power Producers’ Association of Nepal (IPPAN) and NWEDC.
According to a ministry official, PDA negotiations between the ministry and NWEDC have reached final stages and that the agreement will be signed soon.
NWEDC is a joint venture company with stakes of three Korean companies—Korea South East Power Company (KOSEP), Daelim Industrial Corporation and Kyeryong Construction Industrial Corporation—the IFC and Bikesh Pradhanang, a Nepali investor.
The run-of-river type project will generate 216MW electricity through three turbines of 72MW capacity each.
It is expected to generate 1456.4 Gigawatt hours of net electricity per year, of which 1149.7 Gigawatt hours would be generated in the wet season and 306.7 Gigawatt hours would be generated in the dry season. The project site is near Dhunche, the headquarters of Rasuwa district.
Minister Sharma said it’s high time Nepal attracted FDI to exploit its rich water resources. “We have both natural and human resources. What we do not have is enough investment. Therefore, the importance for FDI is very high for Nepal,” he said.
Stating that Nepal has already signed the Power Trade Agreement (PTA) with India, the minister said the pact will encourage FDI in Nepal’s hydropower sector.
KOSEP’s chief executive Heo Yup shared Korea’s FDI-funded development story.
“Realising that borrowing foreign funds and inviting FDI were essential for infrastructure development, the Korean government took various measures to protect foreign capital, and as a result, it attracted large amounts of foreign capital,” he said.
“And, Korea was able to build a base for a sharp economic growth that surprised the whole world.”
- Plant capacity: 216MW
- Annual power generation: 1,456.4 GWh (Net)—306.7 GWh (Dry Season), 1,149.7 GWh (Wet Season)
- Concession period: 35 years, including approximately 5 years of construction period
- Shareholders: Korea South East Power Co Ltd (50pc); Daelim Industrial Co Ltd (15pc); Kyeryong Construction Co Ltd (10pc); International Finance Corporation (15pc); and Jade Power-Nepal (10pc)
Source : The Kathmandu Post