NEA to give NT 10% in Upper Tamakoshi

After a month-long disagreement over equity participation, Nepal Electricity Authority (NEA) has finally agreed to provide 10 percent equity shares to Nepal Telecom (NT) in the 456-MW Upper Tamakoshi hydroelectric project. The decision to this effect was taken at a meeting organized to brief Prime Minister Madhav Kumar Nepal on the project at Singha Durbar on Friday. During the briefing, the PM directed NEA to work toward the financial closure of the project. According to the sources present in the meeting, NEA had to give in to NT´s demand as Minister for Information and Communications Shankar Pokharel had directed NT not to invest in the project unless equity shares worth the investment were provided to it. He had cited poor management and over-politicization of NEA as reasons behind such a stand.
"NEA is willing to award up to 10 percent equity participation to Telecom as per its stance," an NEA official told myrepublica.com, adding, "The formal decision to this effect will be taken soon." Earlier, a joint task force comprising representatives from NT and NEA had decided that NT would invest Rs 6 billion as loan in installments for the project. This means, it will get 10 percent share worth Rs 600 million. The project expected to complete in four years, requires about Rs 33 billion. The project plans to have 30% of the cost as share investment and the remaining as a loan. NEA has also been urging Nepal Army to invest in the project from its Welfare Fund.

During the technical briefing, issues relating to the Pancheshwar High-dam and Saptakoshi High-dam were also taken up. "We conveyed to the PM the decision to go ahead with the survey of Saptakoshi dam," Minister for Energy, Dr Prakash Saran Mahat said, adding, "As India is very close to our agenda in Pancheshwar, we told PM that the government is pursuing the project with the Indian government." Capacity upgradation of the power houses in the country and power import from India were also discussed in the meeting, Dr Mahat informed. While India is giving only 20 MW from Tanakpur, Nepal has sought 70 MW extra imports to mitigate power crisis at home, he said. Nepal has sought to import additional 30 MW via Biratnagar, another 30 MW via Gandak corridor and 10 MW via Birgunj.

The PM was also briefed on the agenda of the tripartite cross-border transmission line talks between Nepal, India and the World Bank to be held on Sunday in Kathmandu. The PM was briefed by Dr Mahat, Director General of Department of Electricity Development, Shriranjan Lacoul and Sher Singh Bhat, Director of System Operation Department, NEA. Asked to comment, Bhat said, "The NEA´s tentative demand and supply of power for the winter was presented to the prime minister."

Hope This will bring better revenue and profit for NTC and its shareholders. (Please put your views).