The next board meeting of Investment Board Nepal (IBN) will decide whether to extend deadline for financial closure of the GMR Upper Karnali Hydropower Project (900 MW).
According to the Project Development Agreement (PDA) signed between GMR and IBN on September 2014, the deadline expired on Sunday.
“There has been a major default of the deadline from the developer,” said IBN CEO Maha Prasad Adhikari. “However, we haven’t thought of terminating the PDA. The upcoming board meeting of the IBN chaired by the Prime Minister will decide on the issue.”
In April, GMR had written a letter to IBN seeking a one-year extension to the deadline to complete the financial closure, citing affected work schedule of the project due to disruption of supplies as a result of last year’s earthquakes and subsequent Tarai unrest.
“A decision on GMR’s application is still pending as we have asked it to come up with more detailed description of the condition that barred it from arranging funds for the project development,” said Adhikari.
Source : eKantipur