Kathmandu: The Board of Directors of the Nepal Electricity Authority has reconstituted a negotiation committee to finalize the transfer of share ownership and future operational management of the 60 MW Khimti Hydropower Plant.
The committee has been formed under the coordination of Anshu kiran Shahi, a member of the NEA Board of Directors.
The newly formed committee has been tasked with holding detailed discussions and negotiations with the project developer on issues including ownership transfer, a new Power Purchase Agreement (PPA), royalty payments, and tax obligations. The NEA stated that the committee was reconstituted to institutionally resolve long-pending issues related to the Khimti project.
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 ownership of the project was to be transferred to the NEA after 20 years of commercial operation. However, the process has yet to be completed due to various legal, technical, and administrative challenges.
According to NEA sources, preparations are underway to address ownership transfer alongside related issues such as setting a new electricity purchase tariff, royalty distribution, tax liabilities, and the future operational modality of the project. The move is expected to support the project’s long-term management and strengthen the electricity supply system.
Meanwhile, the Board has also formed an Administrative Review Committee under the coordination of Krishna Basel. The committee will review disputes related to electricity tariffs, penalties, and administrative decisions and provide recommendations for their resolution.
The Board has also decided to appoint former Deputy Managing Director Shanti laxmi Shakya as an expert member to support the recruitment process for various vacant positions within the authority.
The NEA said it will continue implementing necessary measures to improve human resource management, institutional reforms, and service delivery.
Urjasanchar
