Run Mid-Marsyangdi under PPP model: PAC

KATHMANDU, May 25: The Public Accounts Committee (PAC) of parliament has recommended the government to establish a separate Middle Marsyangdi Hydro Power Company to run the 70 megawatt Middle Marsyangdi Hydro Project which is in operation since January 2009.



The parliamentary committee is for detaching the project from the management of the Nepal Electricity Authority (NEA) and to convert it into a public-private partnership (PPP) model.



"This is the costliest project in terms of the per kilowatt generation cost. But if the project is managed under the public-private partnership model, it will not only give good returns to the investors but it can also help generate resources for new projects," a report passed by the committee said. The report was prepared by a subcommittee formed under the PAC.



The PAC has also recommended the government to establish the new company with 50 percent NEA shares and 50 percent shares for the public. The committee has also suggested that the locals in the vicinity of project site be made beneficiaries of the project.

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