KATHMANDU, Oct 27 : Nepal Electricity Authority (NEA) has scrapped Power Purchase Agreements (PPAs) signed with the developers of Midim Khola (3 MW) and Madqu Khola (9.96 MW) after they failed to generate power within the given timeframe.
NEA took the decision as per the direction issued by the Commission for the Investigation of Abuse of Authority (CIAA) issued on August 29. Both the projects have already missed the Required Commercial Operation Date (RCOD) mentioned in the PPA document.
According to a statement issued by CIAA on Monday, NEA has seized bank guarantee of Rs 1.8 million and Rs 5.98 million furnished by the developers of Midim Khola and Madqu Khola, respectively. Earlier, CIAA had directed the Ministry of Energy and Department of Electricity Development to scrap survey and generation licenses of 10 projects.
Source : Republica
