The Nepal Electricity Authority says it will sign the power purchase agreement (PPA) with the promoter of 216-megawatt Upper Trishuli-1 Hydropower Project in US dollar terms.
The Authority’s Managing Director Kul Man Ghising says the PPA will be signed with the promoter of Rasuwa-based project, Nepal Water and Energy Development Company Pvt Ltd.
“The Authority’s policy is that the PPA will be signed in the Nepali currency, but the share of foreign loans in projects with more than 100 megawatt capacity will be paid in the US dollars,” Ghising says, “The dollar-denominated PPA for Upper Trishuli-1 will be effective for maximum 10 years or the time equal to the period from commercial operation to the pay-back period, whichever is shorter.”
The agreement will be signed after the company pays Rs 216 million for its performance guarantee, according to Ghising.
Various Korean companies, the International Finance Corporation of the World Bank Group and Nepali entrepreneurs will have their investments in the project.
The Nepal government and the promoter company had signed a project development agreement for the project last year.