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Nepal to seek clarification from China Power Company on Tamor

Signs PDA with Indian company for Lower Arun hydro construction


 |  Kathmandu

The Nepal government has decided to seek a clarification from the Chinese company responsible for the development of the Tamor hydropower project.

This decision was taken by a meeting of the Investment Board of Nepal (IBN) held at Singha Durbar on Sunday under the chairmanship of Prime Minister Pushpa Kamal Dahal ‘Prachanda’.

According to a member of the Board, the meeting decided to enter into a project development agreement (PDA) with an Indian company in Lower Arun.

The decision to give Lower Arun to the Indian company Satluz Jal Vidyut Nigam (SJVN) had been made in 2078. Accordingly, a memorandum of understanding (MoU) was signed between the IBN and the Indian company for project development.

A year after the agreement for the development of the project, the government has decided to enter into an agreement with the Indian company to take it forward.

Earlier, the Nepal government had reached an agreement with a China Power Company for the construction of the Tamor hydropower project. But, Nepal has decided to seek an explanation from the company saying that the company has delayed the work.

Lower Arun
The investment of 92.68 billion rupees by the Indian company for the Lower Arun project has been approved by the previous NIB meeting.

The government approved the investment last March. There was an agreement to prepare the DPR for this 679 MW project earlier. Now the contract has been prepared for construction of the power project.

A Memorandum of Understanding (MoU) was signed between the Office of the IBN and the SJVN when KP Sharma Oli was the Prime Minister.

From the project, Nepal will get 21.9 percent (i.e. 197.1) megawatt electricity for free. The remaining electricity produced from this project will be exported to India.

Earlier, it was decided to give the 756 MW reservoir Tamor hydropower project to the China Power Company of China.

An agreement was reached with Nepali company Hydroelectricity Investment and Development Company Ltd (HIDCL) to develop the project.

The IBN has decided to ask the company for an explanation saying that the work has not progressed according to the agreement reached when Chinese President Xi Jinping visited Nepal.


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