[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

DAM-L LS: Nepali Hydro PPAs Under Review (fwd)

----- Forwarded message from owner-irn-narmada@netvista.net -----

From owner-irn-narmada@netvista.net  Mon Sep 11 15:50:20 2000
Return-Path: <owner-irn-narmada@netvista.net>
Received: from DaVinci.NetVista.net (mjdomo@mail.netvista.net [206.170.46.10])
	by lox.sandelman.ottawa.on.ca (8.8.7/8.8.8) with ESMTP id PAA17798
	for <dianne@sandelman.ottawa.on.ca>; Mon, 11 Sep 2000 15:50:19 -0400 (EDT)
From: owner-irn-narmada@netvista.net
Received: [by DaVinci.NetVista.net (8.10.0/8.8.8) id e8BJTSr14588
	for irn-narmada-list; Mon, 11 Sep 2000 12:29:28 -0700 (PDT)
	(envelope-from owner-irn-narmada@netvista.net)]
Date: Mon, 11 Sep 2000 12:29:28 -0700 (PDT)
Message-Id: <200009111929.e8BJTSr14588@DaVinci.NetVista.net>
subject: LS: Nepali Hydro PPAs Under Review
Sender: owner-irn-narmada@netvista.net
Precedence: bulk

Source: Kathmandu Post, September 8, 2000

PPA between hydel projects and NEA under review

  By a Post Reporter

  KATHMANDU, Sept 7 - The government has started the process of reviewing
Power Purchase Agreement (PPA) between the Khimti and Bhote Koshi 
hydro-power projects
and Nepal Electricity Authority.

  NEA has been demanding a review of PPA. The Finance Committee of the
House of Representatives had concluded that the purchase rate was 
high and directed the
government to review the terms and conditions of the agreements with 
the two projects.

  Khimti-1 (60 MW) is a joint venture between NEA and Nordic Development
Fund (Finland) and the 36 MW Upper Bhotekoshi is a similar venture 
between the NEA and the
Americans, with both the foreign investors totalling 86 percent each.

  "The Ministry (of Water Resources) is studying the agreements for their
review," said Bishwa Nath Sapkota, Secretary at MoWR.

  The cost of power per unit from the two projects, signed under "take or
pay" principle, is 7 cents approximately five rupees. Even if the NEA 
cannot utilize the power
from the these two, it sill has to buy it in American dollars.

  Sapkota was speaking at a programme to mark the 15th anniversary of
Nepal Electricity Authority today.

  Sapkota said that power tariff "is too high and Nepali consumers have
tough time in bearing the heavy burden of such an exorbitant rate."

  "Both the NEA and Department of Water Resources Development have 
jointly started evaluating the costs involved and the dollar exchange 
rate," Prachar Mansingh Pradhan, Planning Chief, NEA told The 
Kathmandu Post. "The agreements have provisions for reviewing them in 
good faith."

  "We are preparing a new policy on electricity," said Ram Bahadur 
Gurung, Minister of State for Water Resources. "Nepal, capable of 
producing 83 thousand MW of power, is hardly able to generate 400 MW."

  Meanwhile, speaking on the occasion, three union leaders took both 
the NEA management and its
  Board of Directors to task. Representing three different unions, the 
three - Bal K. Shrestha, Bijay
  Chaudhary and Chandra Prakash Ghimire - demanded immediate work be 
given to eight top officials of the NEA whose had earlier been sacked 
by the Board.

  The eight - four deputy managing directors and four directors in 
chief - were relived of their job by a
  decision of the Board in the first week of January this year. The 
decision was overturned by a Supreme Court order on July 3, directing 
the Board to reinstate the officials.

  "NEA management is not serious in preventing revenue leakage," said 
Shrestha. He cited the case of
  Ashok Steel Industry as an example. This company owes the Authority 
Rs 38.3 million. The company
  appealed to Supreme Court which was rejected and directed NEA to 
collect the amount.  "Surprisingly, the NEA has referred the matter 
to a re-evaluation committee."

  Giving a reason of "unjustified" high electricity tariff, Bijay 
Chaudhary said, "We have to pay hefty interest on foreign loan. The 
interest on the loan for Kaligandaki-A hydroelectric project alone 
stands
  at four billion rupees annually." Instead of looking for better 
alternatives, the Board and NEA top brass were always looking for 
such loans, added Chaudhary.

  Earlier, Secretary Sapkota had criticised the union leaders’ demand 
for allowances, stopped by the
  government, and the "growing overtime culture of the employees". 
"The situation is such that
  employees have come to expect salary merely on the basis of 
attendance and allowance for their
  work." Sapkota also said that there was growing tendency among union 
leaders not to work.

-------------------------------------------------------------------------------------
To unsubscribe from this list, send a message to majordomo@netvista.net
with no subject and the following text in the body of the message
"unsubscribe irn-narmada".

----- End of forwarded message from owner-irn-narmada@netvista.net -----