KATHMANDU,
NOV 05 - Project Development Agreement (PDA) negotiation for Arun III
hydropower project started in Kathmandu on Tuesday.
The talks between Investment Board Nepal (IBN) and India’s Satluj Jal Vidyut
Nigam Limited will continue on Wednesday.
IBN
CEO Radhesh Pant said Tuesday’s meeting mainly focused on legal aspects. “Legal
teams from both the countries participated in the negotiation,” said Pant,
adding since there aren’t many issues to be resolved, the negotiation is likely
to complete soon.
One
of the critical issues to be settled is share allocation to locals. Pant said
Sutlaj is positive on allocating shares to the locals. “We will definitely
negotiate over the issue. There is a need for making the project bankable while
allotting shares to the locals,” said Pant, adding the number of affected
people too will be taken into account while taking a decision.
The
PDA template for Arun III will basically be similar to that of Upper Karnali
Hydro Power Project. IBN and India’s GMR Company recently signed the PDA for
Upper Karnali.
As
far as the project’s downstream impact is concerned, the two parties are likely
to agree on the same conditions set for Upper Karnali, according to IBN. GMR
has agreed to conduct a study on downstream impact within six months from PDA
signing, and construct a re-regulating dam, if needed.
An
IBN team also recently carried out a on-site study of the project based in
Sankhuwasavha district.
The
IBN had sent the PDA draft to Satluj on October 4. As per the agreement, Nepal
will get 21.9 percent free energy, or 197MW. Issues regarding facilities for
locals, and the developer’s corporate social responsibility initiatives are yet
to be cleared.
The
Nepal government and Satluj had entered into a Memorandum of Understanding (MoU)
in March 2008. Sources say the much-awaited PDA is likely to happen on the
sidelines of the 18th Saarc Summit, amidst the presence of Indian Prime
Minister Narendra Modi.
Source:-
e-Kantipur
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