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DAM-L LS: Nepal inaugurates Khimti-I Hydro Project (fwd)
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Date: Tue, 28 Nov 2000 17:48:58 -0800 (PST)
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subject: LS: Nepal inaugurates Khimti-I Hydro Project
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His Majesty inaugurates Khimti-I
By Surendra Phuyal
Kathmandu Post
November 28, 2000
KIRNETAR, Dolakha, Nov 27 - His Majesty King Birendra formally inaugurated
the Khimti-I hydro-electricity project, Nepal's first private sector power
project, here on Monday amidst the chanting of holy text from the Veda.
Her Majesty Queen Aishwarya was also present at the function, which was
attended by an overwhelming number of government officials, diplomats,
donors and energy-hungry locals of this backwater district in the central
hills.
Developed by Himal Power Limited (HPL), a Norwegian undertaking, the
run-of-river hydro-electric power generation plant has an installed
generating capacity of 60 MW and an annual production estimated at 350
million kilowatt-hours (units) of electricity.
Addressing the inaugural function, Deputy Prime Minister Ram Chandra Poudel
announced that the government will soon introduce an investment-friendly
water resources policy, and called on private investors to harness the
country's vast hydro-power potential which could later be sold out at
an affordable price.
The DPM's comments comes at a time when serious concerns are being raised
on the per unit price of electricity generated from Khimti-I project. The
per unit price of Khimti-I is among the costliest in the region, thanks
largely to inflation, leakage, and difficulty of constructing projects in
the fragile Himalayan environment.
Speaking at the function, Norwegian Deputy Minister for International
Development, Sigrun Mondegral expressed happiness over the successful
completion of the project - "first of its kind ever supported by the
Norwegian government," he said, adding, "the project represents something
new: that Nepal is slowly graduating from donor dependency."
The US $ 140 million HPL project is financed by the International Finance
Corporation (IFC), the Asian Development Bank (ADB), Eksportfinans a.s.,
the Norwegian Agency for Development) and the Nordic Development Fund. The
construction works of the project, which is also Nepal's first project
based on a Build-Own-Operate-Transfer (BOOT) structure, began seven years
ago after Butwal Power Company completed feasibility study.
Presenting his welcome speech, HPL Chairman Sverre Nygaard expressed
happiness that the project helped Nepal get rid of the problem of
load-shedding and said that the project will contribute to sustainable
economic growth of Nepal.
HPL General Manager Harold O Skar also presented souvenirs - a statue of
water goddess and the national dress of Norway - to Their Majesties. The
royal couple also observed the project's control room, model display room
and the underground power house.
Addressing the function, District Development Committee (DDC) Chairman of
Dolakha, Lal Bahadur K.C. said that the project is a big achievement for
Dolakhalis, but expressed deep concern that the very locals have been
deprived of the hydro-electric power.
"That this project contributed to bring an end to load-shedding problem is
indeed remarkable, and hence this project remains as a landmark in the
history of Nepal," K.C said. "But the locals have been deprived of the
opportunity to consume the electricity generated from their very own
surrounding. The locals' demand is that first priority to consume power be
granted to them."
Although HPL is said to be working on to electrify the villages of Dolakha
and Ramechhap districts that are located in and around the project site,
locals complain that neither the government nor HPL has looked into their
key demand - electricity supply to their houses.
HPL also operates a 500-KW mini-hydro plant, the Jhankre plant, whereby 300
houses have been electrified. But locals here are demanding that all the
43 villages - 21 of Dolakha and 22 of Ramechhap, through which the 33 KV
transmission line of the project passes - be electrified.
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