The
newly elected deputy prime minister and energy minister Mr. Top Bahadur
Rayamajhi has recently expressed his verbal commitment to provide equal
treatment between domestic (private), NEA's projects and foreign funded
projects. Let's find out what additional benefits NEA and foreign funded
projects are getting at the moment.
1)
Sanjen Jalavidyut Company Limited, a subsidiary company of Chilime Hydropower
Company Limited (NEA owned), is entitled to get nine escalations even with the
new PPA rates while others are getting only five. From tenth year of operation
and onwards, its PPA rates will be NRs. 6.45 and NRs. 11.29 per kWh during wet
and dry seasons respectively. Others will have NRs. 5.52 and NRs. 9.66 per kWh
during wet and dry seasons respectively from the sixth year of operation and
onwards. Click here for the full comparison.
2)
NEA pays royalty for Khimiti hydropower project, a Norwegian funded project. No
other hydropower company except Khimti has got this facility. Click here.
3)
Khimti (Norwegian) and Bhotekoshi (previously owned by an American company)
received as high as NRs. 11 and NRs. 13 per kWh respectively during dry seasons
in the fiscal year 2013/14. Nepali companies are no way near as of now.
Click here.
4)
GMR (developer of Upper Karnali) is entitled to get an exclusive benefit of 50
percent discount on custom for construction materials such as cement and steel.
Click here for the detail.
5)
Similarly, the same company GMR is entitled to claim compensation from
government of Nepal in case of national strike. No Nepali developers get this
benefit.
6)
For projects above 500 MW, Investment Board of Nepal (IBN) acts as the 'one
window stop'. Projects below this capacity have to go through various
ministries and line agencies for approval. Click here for the detail.
7)
The previous government was preparing to provide housing facility for foreign
investors investing more than US 1 million for the tenor of project operation
(I am not sure whether it is implemented or not). Such facility was supposed to
be borne by Government of Nepal. Click here for the detail.
I
seriously doubt his (Top Bahadur Rayamajhi) understanding about the preferential
treatments. Was he actually aware of these benefits when he made the bold
statement? Is he going to keep up with the promises?
I
would like to quote the exact wordings of ex. energy minister Mrs. Radha
Gyawali during an interaction program few months back "I knew nothing
about hydropower when I took the post for the first time. Now I have began to
understand the barriers slowly. But it looks like my tenure is coming to an
end." Her statement explains what sort of people is appointed in the apex
level.
Leading Energy Ministry without Ground Knowledge.
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