Domestic investors have expressed their willingness to invest in the Upper Arun Hydropower Project if the government and promoter company were clear about not increasing the time and cost of this mega project.
At a discussion program organized by Nepal Electricity Authority (NEA) on Tuesday, domestic investors stressed taking forward this hydel project at the earliest, stating that the reservoir-based project was needed in Nepal for energy security.
Furthermore, the prospective investors viewed that the government should come up with an investment modality, the process of costing and guarantee of timely completion of this 1,061-megawatt project. The capacity of the project could be increased up to 1,500 megawatts through technical enhancement. Currently, the country has only one reservoir-based hydel project in Kulekhani.
All sort of studies and research has been conducted on the Upper Arun hydel project and is ready for the implementation phase. Multilateral donor agencies such as the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank are willing to invest in the Upper Arun hydel project.
The Nepal Electricity Authority has set up the Upper Arun Hydroelectricity Company, a subsidiary company, to move the project forward. Participants in the discussion included representatives from banks and financial institutions and public financial institutions among others. They reiterated their intent to invest in the Upper Arun hydel project which could yield multifaceted benefits.
No market issues: Minister Bhusal
Participating in the discussion, Minister for Energy, Water Resources and Irrigation Pampha Bhusal assured the local investors not to worry about the market for electricity.
“We are holding talks with India politically and through diplomatic channels. The environment is being positive gradually. We will reap huge benefits from this” According to her, China had also articulated its intent to invest in the Upper Arun hydel project and to import electricity.
She assured of timely completion of the project and no increase in the cost for the project. The Minister shared that the construction entrepreneur who will complete the project on time would be rewarded.
No investment problem: Minister Sharma
Likewise, Minister for Finance Janardan Sharma, participating in the discussion, shared that there was no issues regarding investment in hydel projects like Upper Arun.
Minister Sharma mentioned that the government was ready to move ahead with reservoir-based hydel projects like Budhigandaki, Upper Arun, Mugu Hydel Project, Karnali Hydel Project among others.
Sharma informed that a share structure would be prepared to ensure the investment of the locals and underscored the public participation in the project.
The Finance Minister called for devising a monitoring mechanism at the public level, at the government level, and non-government level for the project.
