By A Staff Reporter
Kathmandu, Dec. 9: Russia has expressed its desire to invest in a large hydropower project in Nepal.
A team led by Russian Ambassador to Nepal Aleksei Novikov met Minister for Energy, Water Resources and Irrigation Barshaman Pun at the Ministry on Tuesday and expressed interest to bring investment in hydropower.
Russia's two largest banks, Lanta and Moscow Industrial Bank, have offered to invest in Nepal's hydropower project, Ambassador Novikov said.
The delegation has said that they want to make such investment in government-to-government agreement, according to a press statement of Ministry of Energy, Water Resources and Irrigation.
The representatives of the delegation have shown their interest to know about the scenario of power generation, distribution, market potential and the legal provisions related to hydropower sector.
"Initially, we will invest in a 'pilot project' and both the public and private sectors will be encouraged to invest in Nepal by understanding the market situation," said Novikov.
Good regional market for Nepal's hydropower: Minister Pun
On the occasion, Minister Pun informed that the government projected about 10,000 MW of electricity would be consumed in the domestic market in the next 10 years.
He said that electricity trade agreement has been signed with India and Bangladesh to export the surplus power.
He said that there is a good environment for foreign investment in Nepal as flexible legal provisions have been formed to export electricity directly to the foreign market in the coming days.
The foreign companies could invest in hydropower alone, in joint ventures with Nepali companies or government companies, he said, adding that Russian investors would be welcomed in Nepal.
"Which of our modalities do you find most convenient? We are ready for that, we welcome it,” said Minister Pun.
Minister Pun said there is no shortage of electricity market as the demand for power in India and Bangladesh is high.
Minister Pun clarified that there was no need to worry about the market as there was an agreement in principle with India to export electricity to Bangladesh using the Indian grid.
Stating that both the countries are currently buying and selling electricity as per the Nepal-India Power Exchange Agreement, he said that Nepal sold electricity worth Rs. 350 million to India during the rainy season last year alone.
Nepal produces more electricity in the rainy season and less in the winter, Minister Pun said, adding that India-Bangladesh is a reliable market for Nepal as the demand for electricity in the Indian and Bangladeshi markets will decrease when the production of electricity in Nepal decreases.
Minister Pun said that Nepal has set a target of generating 15,000 MW of electricity in 10 years.
Current total installed capacity of Nepal is about 1,400 MW and the same amount will be added within this fiscal year, he said.
He clarified that projects financed by India, China, Korea and Norway were under construction in Nepal's hydropower so far and other countries including Australia had also shown interest in investing in Nepal.
Ambassador Novikov, senior officials of Lanta Bank and Moscow Industrial Bank, as well as the founder of the Non-Resident Nepali Association (NRNA), Dr. Upendra Mahato, Vice President of NRNA Badri KC and general secretary of Independent Power Producers Association, Nepal (IPPAN) Gore Sherpa were present in the meeting.