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dam-l NEW NEPAL HYDROPOWER POLICY DRAWS MIXED REACTIONS



SOURCE: KATHMANDU POST FEB 22, 2000

New hydropower policy draws mixed reactions

 By a Post Reporter

 KATHMANDU, Feb 21 - Hydropower experts today showed mixed reaction to
the Hydropower
 Development Policy-2056 proposed by the government.

 While the supporters of the policy claimed that the proposed policy
envisaged to create a favourable
 environment for private sector participation would give new momentum to
the development of the
 energy sector, critics charged the policy of being export oriented and
not people-oriented.

 Participating at an interaction programme on the proposed policy
organised jointly by the Ministry of
 Water Resources and Water and Energy Commission Secretariat (WECS),
critics said energy should
 be looked at as a medium for industrialisation and not an exportable
commodity.

 Vice-chairman of the National Planning Commission (NPC) Prithvi Raj
Ligal said the proposed policy
 has encompassed proper utilisation of resources, positive results for
the country, export possibilities
 and minimum tariff for consumers. He expressed hope that the policy
will give a new direction to the
 hydropower sector.

 Water Resources secretary Bishwonath Sapkota said it was necessary to
encourage private sector
 participation in the hydropower sector as only 15 percent of the
population have access to electricity
 and only one percent of the total capacity is being utilised.

 Rameshanand Baidya, member of NPC, said the proposed policy was focused
on encouraging private
 sector participation and to improve the hydropower sector as a whole.

 Joint Secretary at the Ministry of Water Resources Sharada Prasad
Sharma said the proposed policy
 has arranged for the establishment of rural electrification fund,
removal of export tax and reviewed
 royalty.

 Sharma said the new policy was proposed to develop multipurpose
projects, equal sharing of benefits
 and maintain transparency.