KATHMANDU, Jan 4: The government requires an investment of Rs 6.5 trillion to produce 28,500 megawatts of electricity. Of this investment, Rs 4 trillion will remain within the country.
Ganesh Karki, the president of the Independent Power Producers' Association Nepal (IPPAN), highlighted that a large-scale investment will have a positive impact. He made this remarks at the financial management agreement signing ceremony for the 49.95 MW capacity Dhanakhola Hydroelectric Project, promoted by Lalupate Hydropower Company.
The signing ceremony took place in the presence of Minister of Energy, Water Resources, and Irrigation, Deepak Kharaka. President Karki emphasized that if domestic industries such as cement factories and hydropower projects are developed within the next 10 years, it will require Rs 4 trillion in raw materials and employment, which will boost Nepal's economy.
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Karki also recalled the chain of cross-border electricity trade that started with a 400 MW export agreement during former Prime Minister Sher Bahadur Deuba's tenure, followed by a long-term agreement for 10,000 MW export during former Prime Minister Pushpa Kamal Dahal’s tenure. He mentioned that 40 MW of electricity export to Bangladesh had started, and recently, the roadmap for 28,500 MW of electricity export with a target of 15,000 MW export was movedforward, signaling a bright future for Nepal's energy sector.
While there is a positive environment for the development of the energy sector, Karki cautioned that if the issues within this sector are not addressed, its growth would not materialize. He pointed out that the public offering for 41 hydropower projects has been stuck at the Securities Board for a long time, stating that if banks do not provide funding and public offerings are blocked, projects will fail to progress.
Among the 4-5 good hydropower projects in Nepal, Dhanakhola is one of them, and he wished the company success in completing the project on time. Mohan Kumar Dangi, chairman of the promoter company Lalupate Hydropower, emphasized that unless water is converted into electricity, any investment in hydropower would be futile. Failure in building the project is not an option, he added.
A total of Rs 9.96 million has been secured for the project. Of this, Rs 740 million will be raised through local shares, Rs 1.74 million through the operator, and the remaining funds will come as a loan from the bank. The project will be developed in the Naso Rural Municipality of Manang.
