Kathmandu: The Board of Directors of the Nepal Electricity Authority (NEA) has reconstituted a negotiation committee to advance discussions on the transfer of share ownership and future operation and management of the 60 MW Khimti Hydropower Plant.
The committee has been reformed under the coordination of board member Anshu Kiran Shahi. It will hold negotiations with the project’s promoter company on issues including ownership transfer, a new Power Purchase Agreement (PPA), royalty payments, and tax obligations.
The Khimti Hydropower Project was developed by Himal Power Limited under the Build-Own-Operate-Transfer (BOOT) model. The project began commercial electricity generation on July 11, 2000.
Under the existing agreement, 50 percent of the project’s ownership was to be transferred to the Nepal Electricity Authority 20 years after the start of commercial operation. However, the transfer process has yet to be completed due to various reasons. As a result, issues related to the project’s new electricity purchase tariff, royalties, and taxes also remain to be settled.
Meanwhile, the board has formed an Administrative Review Committee under the coordination of board member Krishna Basnet. The committee will be responsible for reviewing and resolving disputes related to electricity tariffs, penalties, and administrative decisions.
The board meeting also decided to appoint former NEA Deputy Executive Director Shanti Laxmi Shakya as an expert member to facilitate the recruitment process for various vacant positions within the authority.
Jalasarokar