No PPA in USD for projects less than 100 MW: Lawmakers

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    KATHMANDU, June 29: 

    Course dollar increaseAt a time when debates on signing Power Purchase Agreement (PPA) in USD are yet to be settled, voices are being raised for signing PPA in USD for hydropower projects above 100 Megawatts only.

    Speaking at meeting of the Public Accounts Committee (PAC) of the Constituent Assembly (CA) on Sunday, most of the lawmakers agreed that PPA in USD is necessary to attract foreign investment. 

    They, however, said that it should be implemented in the hydel projects above 100 MW only after formulating a standard.

    Almost all lawmakers expressed a uniform voice that foreign investment should not be sought for projects less than 100 MW, as according to them, banking sectors have enough capital for investment. 

    They also suggested the Energy Ministry and Nepal Electricity Authority (NEA) not to repeat ‘wrong’ PPA agreements in Bhote Koshi (45 MW) and Khimti (60 MW) hydropower projects.

    Saying that the NEA’s economic status has failed to improve as it signed expense deal for electricity purchase of Bhote Koshi and Khimti projects, lawmakers suggested the government purchase the projects if the provisions allows it to do so.

    Lawmaker Ram Hari Khatiwada said that the government should formulate clear policy for PPA at the earliest than getting itself involved in PPA debates in each hydel projects.

    Also speaking lawmaker Top Bahadur Rayamajhi asked the government to review the PPA of Khimti and Bhote Koshi Hydropower projects.

    Source : Republica