IBN endorses Arun III PDA

Arun Hydropower

Arun HydropowerKATHMANDU, Nov 22 : The board meeting of Investment Board Nepal (IBN) has endorsed the Project Development Agreement (PDA) for the Arun III Hydropower Project.

The meeting of IBN, which was chaired by Prime Minister Sushil Koirala, held on Friday took the decision.

Govind Raj Pokharel, vice-chairman of National Planning Commission, said the document will be tabled in the cabinet with minor correction on Monday. IBN will sign the PDA with Satluj Jal Vidyut Nigam Limited — the developer of the 900 MW project — in Kathmandu during the visit of Indian Prime Minister Narendra Modi for the 18th SAARC Summit.

The SAARC Summit is scheduled for Wednesday and Thursday.

The project was awarded to SJVNL in 2008 following an international biding. The developer has agreed to provide 21.9 percent free energy free of cost to Nepal.

The developer will provide 20 units of energy free of cost to the households affected by the project, according to Pokharel.

SJVNL will also issue shares worth Rs 800 million to the locals at Rs 100 each during the construction of the project which is expected to take seven years. It will distributes shares additional shares worth Rs 800 million at a premium price of Rs 250 per share to the locals after it begins power generation.

The project´s estimated cost is Rs 104 billion.

Ghanashyam Ojha, spokesperson of IBN, said they would seek suggestions from political leaders on Sunday and table it in the cabinet on Monday after making minor corrections.

Pokhrel said all the provisions in the PDA of Arun III, which is an export-oriented project, is similar to the PDA of Upper Karnali Hydropower Project that IBN signed with GMR in September.

Source : Republica