A Memorandum of Understanding (MoU) was signed between the Trust and the Upper Tamakoshi Hydropower Limited (UTHPL) last year. The Trust had then shown interest to invest Rs 2 billion in the project. [break]
"The decision to invest Rs 2 billion was taken recently by the board as per the MoU. The Trust will now also have 2% share investment," Chandra Mani Adhikari, the chairman of the Trust told myrepublica.com.
The work on Upper Tamakoshi project is to commence by June as per the government plan upon completion of the link-road, the construction of which is scheduled to be over by mid-May. The total cost of the project is Rs 33 billion. The main civil works contract worth Rs 13.63 billion was won by Sinohydro Corporation of China in December. The amount was Rs 1.50 billion cheaper than the Nepal Electricity Authority´s (NEA) original projection.
The project is totally a public-sector-initiated project with domestic investment. In the project, Nepal Telecom is investing Rs 6 billion, Employees´ Provident Fund Rs 12 billion, and the Trust and Rastriya Beema Sansthan (RBS) will invest Rs 2 billion each.
Board decides Rs 200 million share investment as well
NEA has said that the Trust board´s decision is a "welcome move". NEA sources have, however, said delay by RBS in making a similar decision has delayed the project.
"The Trust´s decision is a welcome move, but the real delay is from RBS and it will hamper the project," an NEA source told myrepublica.com on condition of anonymity.
Mrigendra Bahadur Shrestha, the project director of Upper Tamakoshi, said that the process of financial closure "is in progress". He, however, said that the completion of financial closure is contingent upon RBS´s decision.
"Financial closure will move ahead after the RBS board makes a formal decision to invest," Shrestha said.
Minister for Energy Dr Prakash Sharan Mahat informed myrepublica.com that the Ministry will soon convene a stakeholders´ meeting for Upper Tamakoshi. "We have informal understanding with all stakeholders of the project. But we need to formalize it," Minister Mahat said, adding, "We will soon convene a stakeholders´ meeting so that the process for financial closure moves ahead."
Upper Tamakoshi has been accorded high priority by the government. Nepal Telecom had agreed to invest in the project after Finance Minister Surendra Pandey himself assured that the project will get guarantee from the government.
The project is considered one of the most attractive in Nepal. The per MW construction cost of this project is Rs 120 million only. Whereas the general cost for the same in other projects is estimated at Rs 150-160 million.
Related story
Delay in Upper Tamakoshi causes huge financial loss
