Investment board forms PDA team

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    Power development agreementsKATHMANDU: A meeting of the Investment Board of Directors today decided to form a core negotiating committee to carry out the Project Development Agreement (PDA) negotiations on the four export-oriented hydropower projects under the purview of the Investment Board.

    The meeting decided that the CEO of the Investment Board Radesh Pant would lead the Negotiating Committee. Joint Secretary of the Department of Electricity Development, Anup Kumar Upadhyaya, Joint Secretary of Ministry of Energy, Keshab Dhoj Adhikari, Joint Secretary of Ministry of Finance, Baikuntha Aryal, and a Joint Secretary from the Ministry of Law & Justice and Mukunda Paudyal are other members of the committee.

    Issuing a press statement, CEO Pant said with the formation of the committee, they were prepared to start active negotiations with the developers of the four export-oriented projects. PDA is needed for projects that bring foreign direct investment and it requires specific concentration, the statement said. “We have sent a clear indication that Nepal is ready to sit for face-to-face negotiations once they are ready,” Pant said, adding, “The developers also understand our desire to sign deals that are balanced with terms that protect and benefit both parties – investors as well as Nepal,” he added.

    CEO Pant further informed about the progress made by the investment board in carrying out the technical due diligence for the four projects: Arun III, Upper Karnali, Upper Marsyangdi II and Tamakoshi III.

    According to the board, the global engineering firm, Lahmeyer International, jointly appointed by the IBN and the World Bank has completed its first phase of investigation to assess the four projects from socio-economic, financial, environmental, geotechnical and hydrological point of view. The technical analysis will also ensure that these power projects are sustainable, it added. With an installed capacity of 3,050MW, the four projects aiming the Indian market, will first aim to satisfy Nepal’s domestic power needs.

    Source : The Himalayan Times