Laxmi Capital News
Budhi Gandaki Hydro Project Committee submits report with possible investors

he committee formed to sketch a draft of anestimated cost for constructing Budhi Gandaki Hydro Project has submitted areport with possible domestic investors to the government on Monday.  

Those possible domestic investors identifiedby the Committee include Nepal government, Nepal Electricity Authority,Karmachari Sanchaya Kosh, (Employees Provident Fund), Rastriya BeemaSanthan, insurance companies, hydropower investment and development companies,Nepal Telecom, Upper Tamakoshi Hydropower Company, Chilime Hydropower Company,welfare funds related to army and police, among others.

Similarly, the investors will also includecommon people and non-banking financial institutes.

Meanwhile, the Committee led by NationalPlanning Commission Vice-Chairman Swarnim Wagle has suggested that thegovernment should bear 35 percent cost of the total investment.

The total estimated cost to be incurred in theproduction of the Budhi Gandaki hydropower project will be around 270 billionrupees. To realize the hydro project the Committee has asked the government tocontribute 35 percent of the total cost to be incurred for requiredinfrastructure development, land acquisition and rehabilitation under ViabilityGap Funding.

On November 13, Deuba government had scrappedthen Pushpa Kamal government’s decision to award Budhi Gandaki hydro powerproject to Chinese company Gejuwa Group of Power Company.

Led by Swarnim Wagle, Nepal Rastra Bankgovernor, finance secretary, joint secretary at the Energy Ministry andManaging Director of Nepal Electricity Authority are members in the Committee.

The report also touches upon the presentinvestment situation of the hydro power, investment scenario in the next10 years, gap between demands and supplies, among others.


Source: My Republica, 19thDecember, 2017

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