Re: Mirage of illusionary benefit of Rs 45 billion from Pancheshwar Project

August 19, 2009

Mr Jeewan Thanju
Edigor-in-Chief
Hydro Nepal

Dear Jeewanjee

I am very happy that you agree with my analysis. You may have a very valid point with regard to royalty. And if your line of thinking is right then Nepal will stand to get NOTHING from this project and the treaty. This is high treason on the part of those who signed the treaty.

I wonder if DB Singh will dare to do as per your suggestion.

In view of PM's visit to India I have got similar article published in today's Gorkhapatra, too.

With best regards,

Sincerely,

Ratna Sansar Shrestha,

From: Jeewan Thanju [mailto:jpthanju@yahoo.com]
Sent: Wednesday, August 19, 2009 9:48
To: Ratna Sansar Shrestha
Subject: Re: Mirage of illusionary benefit of Rs 45 billion from Pancheshwar Project

Dear Ratna ji,

I agree with your view point. In the past Nepali people had been taken for a ride such as saying the Sun will rise from west after implementation of the Pancheshower Project. Now there are many rumours of inflated benefits to Nepal from the said Project. This will serve the interest of our neighbours. Nepali people have a right to know the truth.

The benefits from fishery Rs.16 Arabs is highly inflated. There is no substantial fishery benefits from Kulekhani reservoir. The carbon trading benefits of Rs.4.7 Arab will not accrue to Nepal unless it is in the Treaty.

Regarding the Rs. 45 Arabs revenue from sale of electricity, my assumption is below which is dependent on selling rate. (6161Gwh*1000*1000*96% (4% outage assumed)*Rs.4.60/unit (max. price = 20% more than 4.95cents) = Rs. 27.20 Arabs

Like in 50% share of water to Nepal, the actual happened to be 3.5%, we do not know what surprise there will be in the price determined by the avoided cost basis.

Regarding the energy royalty & capacity royalty I am not sure as GON is the half owner of the Project. GON collecting royalty from itself ?. It is certainly useful in determining cost price & selling price for electricity.

It is my suggestion that Mr. DB Singh being Chief of the Pancheshower project, must rectify the previous inflated figures by releasing Press Release.

Thanks for pointing the mistakes at the right time of PM's visit to India.

Regards
Jeewan Thanju