According to the sources, the document sent by India indicates that without India`s agreement, no major hydroelectric project could be developed in Nepal. “How can we allow our officials to participate in such a crucial meeting without cabinet being on the agenda,” said a senior government source. For a meeting of great importance, it is necessary to make a cabinet sign. According to one minister, the cabinet made the decision amid the controversy over “cooperation in the energy sector” draft agreement from India and the Ministry of Energy does not reveal much about the agenda for the JCWR. Following the conclusion of the agreement with the GMR, the Board of Directors will conduct discussions on the PDA with another Indian energy developer Sutlej Jalvidyut Nigam for the 900 MW Arun 3 hydroelectric project in eastern Nepal. The Ministry of Energy (MoE) will sign a Project Development Agreement (PDA) with the Nepal Water and Energy Development Compa-ny (NWEDC) for the development of the Hydroelectric Project 216 MW Upper Trish-uli-1 project. According to the IBN, the controversial issues addressed in the 2008 agreement between the Nepalese government and the GMR were addressed in the PDA. It also asked the GMR to authorize future electric projects to use the transmission lines it will set up to evacuate electricity from the Haut-Carnali project. The GMR has two years to obtain its financial degree and five years to complete the construction of the project. The IBN, which was responsible for holding the PDA talks, and the GMR have held discussions over the past five days. Under the IBN plan, a first agreement could be signed by Wednesday, before being submitted for approval to the IBN board of directors, chaired by Prime Minister Sushil Koirala.
Ministry officials said negotiations with NWEDC were in their final stages and an agreement would soon be signed. “Negotiations are over and the final PDA project is ready,” the official said. “We`re all going to sign the agreement. It will probably be signed in a few weeks. MoE spokesman Dinesh Kumar Ghimire said: “The deadline for signing the PDA is mid-October, and we will complete it by then,” he said. The race flow project will generate electricity from three turbines with a capacity of 72 MW each. The project is expected to generate 1,456.4 gigawatt hours of net electricity per year, of which 1149.7 gigawatt hours in the rainy season and 306.7 gigawatt hours in the dry season. The project site is located near Dhunche, the headquarters of Rasuwa district. The Upper Karnali and Arun 3 projects are being developed as part of the Build-Own-Operate-Transfer (BOOT). Energy developers will hand over the projects to the Nepalese government after operating them commercially for 25 years. KATHMANDU: Negotiations between the Nepal Investment Council (IBN) and the Indian consortium GMR-ITD for an Energy Development Agreement (PDA) for the Upper Karnali Hydropower project have entered their final phase, and informed sources indicate that a first agreement could be reached in the coming days. According to the source, the themes of this roundtable were the use of transmission lines that were to be built for Upper Carnali for other projects, the purchase of transmission lines by Nepal, if necessary at a later date, and the first Nepalese priority to purchase the rest of the electricity after the signing of an AEA by GMR to sell 55% of the energy produced to another party.
In the meantime, the Ministry of Energy has agreed to share the content of the Indian proposal with other departments. At Friday`s cabinet meeting, Energy Minister Radha Gyawali agreed to share the document following criticism from her cabinet colleagues. The severance provisions are much better than those for the Khimti and West Seti projects, the source added. Similarly, both sides discussed whether Nepal will receive dividends, as it will receive 27 percent of free equity in the Upper Karnali project.