Developments after Modi’s visit to Nepal

Hydropower was one of the main agendas of Modi’s visit to Nepal. A week has gone by since Modi’s visited Nepal. So what are the progresses so far? Below is the synopsis.

Nepal has no intention to sign umbrella agreement sent by India.

Nepal is not in favor of signing an umbrella agreement that allows a country as such to harness our entire hydropower resources.

Nepal has already responded the Indian proposal.  The draft of PTA which could have benefited of both the countries (Nepal and India) has been already prepared. The proposal separates generation and transmission of hydropower from the agreement as per the decision of our top leadership.

Not only Nepal, but countries around the world have show dissatisfaction regarding Indian proposal.

To recall, the United States of America expressing its serious concern over the proposed Nepal-India PTA had asked whether the agreement is an effort to bar third countries from investing in Nepal's Hydropower.

In a meeting with Nepal's Finance Minister Ram Saran Mahat, July 31, 2014, Deputy Assistant USTR (US Trade Representative) for South and Central Asia Mara Burr had asked whether the agreement was intended to bar third countries form investing in Nepal's hydropower.

Source:- Telegraph Nepal

PTA: India invites for talks, Nepal sans political consensus

August 13,2014: India has sent a formal letter inviting the Nepali side to hold bilateral talks on proposed Power Trade Agreement (PTA) between the two countries, reports Nagarik National Daily referring to Energy Minister Ms. Radha Gyawali.

Following Nepal's objection over India's proposal to monopolize Nepal's Hydropower resources and India asking more time to analyze changes made by Nepal in the Indian draft, the PTA could not be signed during the recently concluded state visit of the Indian Prime Minister Narendra Bhai Modi.

With the Nepali side requesting India to split the issues related to Power Trade and Power Generation, India had asked for more time.

During PM Modi's trip to Nepal it was agreed to sign the agreement within 45 days.

"No date has been mentioned in the formal letter forwarded by India. They have in turn asked Nepal to set appropriate date for bilateral talks. We will respond after holding discussion and also propose the date for a meeting between the two sides in New Delhi."

Minister Gyanwali talking to Annapurna Post also says, "India has not officially responded to the changes made by Nepali side in the Indian draft."

Energy Secretary Rajendra Kishor Chhetri tells Nagarik, "There is misunderstanding between our political parties on the PTA. There is thus the need for consensus between political parties prior going to New Delhi."

"The draft is going to be finalized at the secretary level, India is positive towards our agenda, we need to hold discussion over some of the issues," declares Chhetri.

Source:- Telegraph Nepal

China to aid hydropower, infrastructure development

Aug 7,2014 :China has expressed its commitment to support Nepal for hydropower and infrastructure development.

During a meeting with Finance Minister Ram Sharan Mahat in Beijing on Thursday, Chinese Finance Minister Lou Jiwei expressed China´s readiness to extend support for hydropower and infrastructure development. The two countries have agreed to work out the details of investment and financial assistance after activating Nepal-China inter-governmental mechanism.

Finance Minister Mahat, who reached Beijing at the invitation of his Chinese counterpart, had held bilateral talks on Thursday. He had later held a meeting with Chinese Commerce Minister Gao Hucheng. While policy-level decisions are taken by the finance ministry, project formulation and implementation is overseen by the commerce ministry in China.

During the meeting between two finance ministers, Nepal and China had reviewed economic cooperation, while China agreed to make additional investments in Nepal, according to Mahat. “Both the Chinese government and the private sector have been asked to invest in hydropower and infrastructure development in Nepal. The Chinese government has also expressed commitment to increase assistance to Nepal,” Mahat told Republica over telephone.

Mahat argued that the achievement of goodwill visit should not be evaluated in monetary terms. “Various issues, including the effectiveness of Asian Infrastructure Investment Bank, problems seen in China-funded projects in Nepal and ways to reduce trade deficit with China were discussed during the meeting,” he said.

The Nepali delegation led by Mahat includes Joint Secretary at Finance Ministry Madhu Marasini and Nepal´s ambassador to China Mahesh Maskey. Both the meetings that lasted one hour each were focused on Chinese assistance for hydropower and infrastructure development and formation of Asian Infrastructure Investment Bank.

see related article India and China vying for energy resources in Nepal

Source : Republica

Bangladesh, Nepal agree to set up joint power transmission line

August 7, 2014: Bangladesh and Nepal have agreed to build joint power transmission line. The decision was taken after a ministerial meeting on Wednesday.

After the meeting, a press briefing held at city hotel.

Bangladesh state minister for power, energy and mineral resources minister Nasrul Hamid and Nepal energy minister Radha Kumari Gyawali spoke at the briefing.

Regarding the meeting, they told journalists that they had talked about power import from Nepal, building a joint hydro power plant and knowledge sharing.

A memorandum of understanding (MoU) would be signed soon, they said.

A draft of MoU would be sent to Nepal, they added that a ministerial meeting between the two countries would be held in December.

They further said an Indian company called GMR would build the plant and Bangladesh would purchase electricity from the company.

Nepal has no objection regarding this, they said.

see related article India to let Bangladesh use its territory for power import from Nepal

Source : Energy Bangla

Works of dhalkebar- mujaffarpur transmission line expedited

August 11, 2014: The Dhalkebar-Mujaffarpur transmission line said to be crucial for mitigation of energy crisis of the country is expedited of late.

The project has moved ahead with great pace than expected as bodies of both countries showed concern and monitored regularly.

So far, 40 tower bases have been constructed in Nepal side and physical structure for ten towers has been prepared.    The government has given the project more importance in the budget of the current fiscal year and to complete it in time.

Indian Prime Minister Narendra Modi had also, during his visit to Nepal, made commitment to move it ahead with importance and directed to mobilize necessary mechanism. It was started since June after some procedural delays.

Project chief Badri Narayan Shaha said works are moved ahead to complete the bases within next month.  So far, 110 towers have been completed in Indian side and physical structures of 45 have been completed.

Distribution of compensation has been started to land owners in Mahottari and Dhanusha.

The project includes 112 towers in Nepal side and 230 in Indian side and are to be completed by July 15, 2015.

India will spend Rs. 1.27 billion Indian rupees and Nepal 7 million US Dollars.

In Nepal side, it will be constructed by Power Transmission Company Nepal (PTCN) and in Indian side, the Crossborder Power Transmission Company (CPTC) will construct it.

Source : The Rising Nepal

NEA to accept PPA in dollar terms under ‘certain conditions’

August 10, 2014: Nepal Electricity Authority (NEA) has said it could accept power purchase agreement (PPA) in dollar terms only under “certain conditions”.

See related article PPA in US dollar is again a hot debate