KATHMANDU, Nov 5: Investment Board Nepal (IBN) and Satluj Jal Vidyut Nigam (SJVN) on Wednesday finalized the draft Project Development Agreement (PDA) on Arun III (900 MW) Hydropower Project.
Though the two sides finalized the draft, it has yet to be approved by the SJVN board, said Chief Executive Officer of IBN, Radesh Pant.
A team of SJVN led by RK Agrawal and IBN team led by Pant had held negotiations over the draft PDA in Kathmandu. SJVN is a company owned by the Indian government.
According to IBN officials, SJVN has agreed to distribute certain percent of the project shares to the locals and also to build other infrastructures for the locals of Sankhuwasabha district.
The draft PDA document says that an independent team would study the possible impact the project would have on downstream areas. This provision is similar to the one in the PDA document on Upper Karnali Hydropower Project being developed by a private company of India. The government signed PDA with GMR, an Indian company, for developing Upper Karnali in September.
The developer has already agreed to provide 21.9 per cent of the electricity generated by the project free of cost to Nepal. IBN officials said PDA on Arun III is likely to be signed in Kathmandu on the sidelines of SAARC Summit scheduled for November 26-27.
Source : Republica
