Exploitation of Karnali by the local populace

February 5, 2012

To: 'Kalyan Bhattarai'

Kalyan Dev jee

Good to hear from you.

On behalf of the Karnali Basin Conservation Society (of which I am just a well-wisher, not a proponent), I can try to answer your questions:
• In my considered opinion, people from Karnali Basin (21 districts) not only should be accorded preference in the matter but should have first right. From this perspective it is but natural for the question you posed to arise. In order to implement upper Karnali project to its full potential as a storage project, 4,180 MW, the investment required will be about Rs 300 billion (ball park figure – which will be finalized after completion of DPR) and if 3:1 debt to equity ratio is adopted, equity required will be Rs 100 billion. Without undermining financial capability of the people from the area, I believe that it will not be possible to raise the required from the area. Therefore, there is room for investment by people outside the area too.

• Based on the briefing I have received from the proponents of the Society, investment will not be a problem as NRNs based in Europe too have already wished to invest in the project.

• There is no need to be for and against foreign investment. Looking at the success of hydropower projects like Chilime, Piluwa, et al the people investing in such project stand to receive handsome return upon commissioning of the project. Therefore, people from Nepal should be afforded first opportunity to invest and thereby benefit from future stream of revenue. However, if required equity cannot be mobilized from within the country, there shouldn’t be any predilection against letting foreigners invest.


With best regards,

Sincerely,



Ratna Sansar Shrestha, FCA
Senior Water Resource Analyst
http://www.ratnasansar.com/

From: Kalyan Bhattarai [mailto:kdbhattarai2009@gmail.com]
Sent: Wednesday, February 1, 2012 10:56
To: Ratna Sansar Shrestha
Subject: Re: FW: Signature campaign

Dear friend

I am not clear on the mentind issue bt interested to invest little for the Karnali project . I will appreciate to know the following.

• Your message says preference is given to the karnali area people as far as possible -in this scenario how the people other than the karnali can be member ?

• Is such priority model will generate the required investment ?

• Yes i am against the GoN policy of allowing foreign investment for any such projects -but doubt that such model will solve the purpose.

• Thanks Kalyan dev Bhattarai

On Wed, Feb 1, 2012 at 7:52 AM, Ratna Sansar Shrestha wrote:

Dear Colleague
The citizenry of Karnali Basin have formed Karnali River Basin Conservation Society (comprising 21 districts of Seti, Mahakali and Rapti zones). The main objective of this society is to exploit Karnali river system (1) for the people of the area (2) with the investment of the people therefrom to the extent possible which doesn’t preclude investment from other Nepali citizens and even foreign investment.