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Committee formed to decide on compensate outgoing owners of hydro projects

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Kathmandu, May 1, 2018: A committee has been set up by the Energy ministry to make an outline on how to compensate the promoters of the Kabeli-A and Lower Hewa hydro projects which will be inundated by another larger plant the Nepal Electricity Authority(NEA) plans to build on the same river.

A tripartite meeting between the ministry, power utility and projects developers held a few weeks ago had decided on the formation of the committee. NEA officials and representatives of both the projects are members of the committee.

As the state-owned power utility is planning to increase the capacity of Tamor Hydroelectricity of the project to 762 MW from previously set target of 200 MW, the two smaller projects downstream would be inundated and the NEA will have to compensate the owners of those projects to make them abandon their plans.

Even though the NEA has received go-ahead for the project, the NEA is yet to receive a survey liscence for the project as it is yet to receive consent from the projects being submerged. The NEA has secured funds from the Asian Development Bank (ADB) for the project and also called global tenders to prepare a detailed project report (DPR) of the same.

Kulman Ghising, Managing director at NEA said that they have had a few round of talks with the private developers and they have already sent a draft of the memorandum of understanding (MOU) with them within a month.

Upon the completion of the Tamor Hydroelectricity project, the country’s energy production will see a massive jump helping the it to become self-sufficient in electricity generation and a net exporter.

Photo source: MyRepublica