KATHMANDU, March 17: The Agriculture and Water Resources Committee (AWRC) of legislature-parliament on Tuesday said the Investment Board Nepal should clearly state whether the government should be equity partner for the development of West Seti Hydropower Project.
In a Memorandum of Understanding (MoU) signed with CWE Investment Corporation (CWEI) in 2012, the government had agreed to have equity investment of 25 percent in the project.
CWEI is a subsidiary of China's Three Gorges Corporation.
The government's decision on shareholding would be important to register a company and start initial works of the project.
After holding discussion with officials of Ministry of Energy and IBN, the committee on Tuesday said the MoU was signed in a different context and that it should be revised.
Stating that the MoU was signed for development of project for domestic consumption, committee's Chairman Gagan Thapa said the project will now focus on export as the government has already sign Power Trade Agreement (PTA) with India.
The committee has asked IBN to decide about government's involvement in the project within a month. It has also directed the Ministry of Energy and IBN to work together and expedite the project without further delay.
Earlier this week, Chairman of China's Three Gorges Corporation Lu Chun had met with Prime Minister Sushil Koirala, Energy Minister Radha Gyawali and IBN officials and urged the government to look after resettlement and rehabilitation of the families that will be displaced by the West Seti Hydropower Project. It also enquired about transmission line to evacuate the power generated by the project based in far-western development region.
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