Friday, 6th March 2015

Four mega projects towards signing PDA

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Four mega hydropower projects identified as the backbones for the economic development of the country supplying round-the-clock power are at a stage of signing the project development agreement (PDA).

Works in this connection are being carried out in close contact and coordination with the government and the political parties for expediting these projects that fall under the scope of the Investment Board (IB) of Nepal.

In a programme of discussions the board held in the capital on Monday with the economic journalists, Chief Executive Officer of the board Radhesh Panta said that preparations are being made to enter into PDA of the four projects.

According to Panta, the 900MW Upper Karnali and Arun Third, 750MW West Seti and the 650MW Tamakoshi Third are at a PDA stage.

He said a letter of commitment was send to CWEI, a Chinese government company that has expressed its interest in building the West Seti project, last month and the company has replied in the positive.

Stating that discussions were underway with all the political parties, local people of the project areas and all the stakeholders to pursue the works on all the four projects without any hindrance, he said there would not be any difficulties in the PDA as the works were being carried out with positive thinking and good intention.

Panta expressed the confidence that the PDAs of these projects would be done in two months as most of the problems like extension of transmission line, use and purchase of the power generated, income tax, VAT and royalty have been addressed.

He said that the Finance Ministry has given positive response regarding the topic of tax as it is a matter to be addressed by the budget. He added that provisions would be made for bonus also as per the Electricity Act.