Kathmandu, Nov 21: Another sign of good omen in the energy sector looks to be emerging . A meeting of Investment Board Nepal on Friday evening is set to discuss Project Development Agreement (PDA) document on Arun III.
Scheduled to be presided by the Prime Minister Sushil Koirala in the capacity of IBN Chairman, the meeting is likely to give the final nod on the PDA document prepared by IBN after series of negotiations.
A cabinet approval is needed for the government to ink the final deal with Satluj Jal Vidyut Nigam Limited (SJVNL) for the development of 900-MW hydropower based in Sankhuwasabha.
Preparations are underway to sign the agreement in the sideline of SAARC Summit in presence of India’s Prime Minister Narendra Modi, a source at Prime Minister’s Office informed. SJVNL is an India’s government- owned company.
Ghanashyam Ojha, IBN’s spokesperson, informed that the SJVNL board has already consented on the PDA draft finalized by IBN and SJVNL representatives in Kathmandu two weeks ago.
The effort for the development of the mega project was stalled after the World Bank had pulled back amid local protests and political bickering two decades ago. The energy generated from the project is to be exported to India.
IBN meeting today is also likely to approve foreign investment worth Rs 40 billion for the Reliance Cement Factory in Nepal.
IBN has already signed a PDA to develop 900 MW Upper Karnali with GMR, an Indian private sector company two months ago. The estimated cost for Upper Karnali project is US$ 1.5 billion.
