By A Staff Reporter
Kathmandu, May 20: Nepal Infrastructure Bank Limited (NIFRA) has proposed to establish a power trading company to ease the energy trade.
According to a statement issued by the bank on Wednesday, the company would be established with the participation of the government, bank and financial institutions and private sector companies.
“To make the company technically capable and maintain professionalism as well as facilitate in arranging a large-scale investment in the future, government, private sector companies and public are proposed as the investors,” read the statement.
The bank also said that it was putting its efforts to bring in Indian and Bangladeshi companies as the investors to the company.
“The proposed company will not affect any Power Purchase Agreement (PPA) signed by the Nepal Electricity Authority (NEA) and import and export modalities implemented now. It will facilitate in the PPA, production and export of large-scale hydroelectricity projects being developed in the Karnali, Bheri and Seti corridors,” said the bank.
The bank has said that since the NIFRA is investing 50 per cent of its fund in hydroelectricity development and other banks and financial institutions have already invested Rs. 500 billion in the sector, entire banking sector would be collapsed if there is no proper mechanism for the marketing and trading of the energy produced by the government and the private sector companies.
The power purchase mechanism is extremely crucial for about 4,500 megawatt electricity that would be produced by Phukot Karnali, Betan Karnali, Jagdulla, Bheri, West Seti, Tila 1 and Tila 2 projects, read the statement.
“The proposed company would facilitate in mobilising investment in these projects. It will help the NEA as well,” said the bank.