Speaking at the meeting of Public Accounts Committee (PAC) in Kathmandu on Tuesday, Gyawali said the decision was taken after NEA incurred huge loss due to such decisions made in the past and also because of the lack of proper study on the impact of such agreements.
“We can think about signing PPA in US dollar only after conducting a detailed study on the issue,” said Gyawali.
PAC has started discussion on why NEA signed PPA in foreign currency without assessing its impact.
NEA has signed PPA in US dollar with six projects including the Bhotekoshi and Khimti hydropower projects.
Energy Secretary Rajendra Kishor Kshatri said there is lack of proper study on modality to sign PPA with power developers, especially those having foreign investment. “We need to conduct detailed study on the pros and cons of signing PPA in foreign currency,” he said, adding that the energy ministry has commissioned a study to sort out the problem. “It is natural for developers to propose for PPA in US dollar as Nepali currency is devaluating and also because they have to bring most of the construction materials and equipment from abroad.”
Speaking at the meeting, Mohan Bahadur Basnet of Nepali Congress asked the government to review PPA with Bhotekoshi and Khimti as the agreements have inflicted huge loss on NEA. “About two-thirds of NEA´s total loss of Rs 29 billion in the last 15 years was because of the PPA signed with those two projects,” he added.
As per the PPA signed with Khimti and Bhotekoshi, NEA will have to pay all taxes, including VAT, for those two projects. According to experts, the provision is gainst the norms of universal taxation policy.
Another lawmaker Prem Bahadur Singh urged the government to utilize all unspent budget in hydropower projects. Similarly, Dhanaraj Gurung of Nepali Congress said the government should make big investment in hydropower projects to check outflow of funds from the country to buy petroleum products and generators.
Source:- Republica
No comments:
Post a Comment