KATHMANDU, Oct 23 — Nepal is likely to witness significant German investment in its hydropower sector as the recently signed power trade agreement (PTA) between Nepal and India has guaranteed export of Nepal’s electricity to India without hassles and restriction.
German Ambassador to Nepal Matthias Meyer, talking to a select group of media persons, on Wednesday said that there will definitely be more investment from Germany in Nepal’s hydroelectricity projects as the necessary ground has been laid by the PTA between Nepal and India.
Nepal and India signed the PTA on Tuesday that allows any government, semi-government and private agency to export electricity produced in Nepal to India, for which both the countries have agreed to construct necessary transmission lines.
“This has paved the way for more foreign direct investments in Nepal’s hydroelectricity generation as surplus electricity produced in Nepal can be exported to India in a hassle free manner,” said ambassador Meyer.
Earlier, foreigners were reluctant to invest in Nepal’s big hydropower projects as there was no guarantee that the electricity produced would be purchased in the absence of power trade agreement between Nepal and India, while Nepal does not have capacity to absorb all electricity.
The PTA ensures unrestricted energy trade and inter-connectivity between Nepal and India.
“If the PTA is implemented, it will have positive impacts in Nepal’s overall development,” he said.
Source — BERNAMA