Saturday, August 13, 2011

Export oriented hydropower projects

August 13, 2011
Narayan Prasad Silwal

Dear Narayan

You have put your finger where it hurts most (speaking from national perspective).

However, it isn’t true that all foreign developers are looking for licenses for export oriented projects. There is Norwegian investment in Khimti, but the power isn’t exported to Norway. Similarly, American investors implemented Bhote Koshi for Nepal’s internal electricity need. Korean’s are investing in Chamelia and the power from there too is for Nepal.

Some Indian investors have come to Nepal with vested interest and politicos and bureaucrats have played hand in glove with them. They haven’t chosen to make the power plant dedicated for export merely because of low tariff. They plan to export at very low rate to India too; like west seti @ US 5 ¢.

I call it “resource colonization abetted by reverse colonialism” on the part of Nepali people.

With best regards,


Ratna Sansar Shrestha, FCA
Senior Water Resource Analyst

From: Narayan Prasad Silwal []
Sent: Friday, August 12, 2011 16:56
Subject: querry

Dear Ratna Sansar,

I am curious why most of the foreign power developers are intent for generation licensing destined for export when demand and price of energy in nepal is comparatively better than exporting in India, besides transmission line and payment problems. Similarly,why GON do not exclusively invite developers for catering indigenous demand. Is the price offered in PPA is really below the IRR; or some other factors are there to influence the investment decision.


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