SJVN Arun-3 set to get generation licenceSJVN Arun-3 Power Development Company (SAPDC), the developer of 900MW Arun-3 Hydroelectric Project, is all set to get the generation licence.
SJVN Arun-3 Power Development Company (SAPDC), the developer of 900MW Arun-3 Hydroelectric Project, is all set to get the generation licence. The 29th board meeting of the Investment Board Nepal (IBN) on Friday decided to mandate its CEO to license the Indian developer.
The IBN will now publish a 35-day public notice stating its intent to award the licence to the Indian firm. “If any stakeholder makes a claim against project development or shows any concern within 35 days, it will be addressed before our CEO awards generation licence to the company,” said Madhu Prasad Bhetwal, joint-secretary at the IBN.
The SAPDC, around one-and-a-half months ago, had applied for generation licence of the project located in Sankhuwasabha district. It has already hired the contractor for the first package of civil works that includes construction of dam, diversion tunnel, intake tunnels and head race tunnel.
The contractor has already mobilised a team to the proposed dam site. The project developer is in the process of hiring contractors to build a power house and transmission lines, and to execute electro- and hydro-mechanical works.
The IBN and SJVN, the Indian government-owned entity, signed an agreement in November 2014 for the development of Arun-3 hydropower project. The project was supposed to start energy generation by 2020 as per the agreement.
But that deadline is unlikely to be met as the financial closure deadline has been pushed back twice by one year and six months. Yet, the project has achieved important milestones like acquisition of private land and is in the process of acquiring public forest land.
According to the IBN, Nepal will receive Rs348 billion over 25 years from the 900 megawatt project. The project developer will also provide 21.9 percent of the energy generated free of cost, which is worth Rs155 billion, plus another Rs107 billion in royalties.
Board forms panel on West Seti project
KATHMANDU: The 29th board meeting of Investment Board Nepal (IBN) on Friday formed a committee to suggest the government ways to take forward development of the 750MW West Seti Hydropower Project, which is in limbo after the Chinese developer of the project asked Nepal to increase the power purchase rate of the project.
The board meeting chaired by Prime Minister KP Sharma Oli formed a committee led by Mahendra Gurung, secretary at the Prime Minister’s Office, to undertake a study and present a report to the board within a month. The team includes technical officials from the Nepal Electricity Authority (NEA) and a joint-secretary from the Energy Ministry. (PR)