The Asian Development Bank (ADB) is likely to withdraw its investment from West Seti Hydro (WSH) project to which the bank had earlier agreed for 15 percent investment share.

Nagarik daily quoted sources at the energy ministry to have said that the ADB is reluctant to invest in WSH saying the project is not commercially attractive.

The 750 MW project is designed for commercial production of the electricity of which 10 percent will be supplied to Nepal free of cost while the rest will be sold to India.

Following hints from ADB for withdrawing from the project, Sowing Mountains Engineering Corporation (SMEC), the other investor of the project, is looking for another partner willing to have 50 percent share. The Australian firm SMEC has 26 percent share in the project.

WSH-government agreement expires on December 31. The parliamentary committee and other lobbying groups have pressurised the government for not renewing the agreement saying the project is more beneficial to India than Nepal. According to agreement, the WSH needs to finalise its financial management before getting license. nepalnews.com 

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