Kathmandu, Nov 25,2014: The Investment Board and Satjal Electricity Corporation â€“ the promoter of Arun III Hydropower Project â€“ signed the project development agreement on Tuesday.
Investment Board’s Chief Executive Officer Radhes Pant and Satjal Electricity Corporation’s CMD RP Singh signed the project agreement in the presence of Indian Prime Minister Sushil Koirala and his Indian counterpart Narendra Modi amid a programme organized at Singha Durbar on Tuesday.
This is the second time that Nepal is signing the PDA with the promoter of a mega hydropower project. Earlier, project development agreement was reached with the promoter of Upper Karnali Hydropower Project having capacity of 900 Megawatt.
The Board had started negotiation with the promoter of the project with capacity of total 900 MW since 2013. The government had granted approval to sign PDA with the Indian promoter on last Monday.
With this agreement, the much awaited Arun III project will enter into construction phase after 20 years of its publicity. The promoter has pledged to provide shares of the project to locals and develop and expand social and economic infrastructures in the project sites in addition to free power supply.
According to the agreement, the Indian promoter would provide 24 unit power to the local amounting 21.9 per cent of total electricity to Nepal without any cost. It means Nepal would get 197 MW electricity.