This is the first time that the international monetary agency has shown interest in making investments in Nepal after withdrawing from the 402 MW Arun III hydropower project in 1995. [break]
“World Bank is ready to invest in one mega project in Nepal, which will be finalized by the government at the earliest,” Energy Minister Dr Prakash Sharan Mahat said after a meeting WB delegation at the Ministry. “We will decide after consultations to request for its investment in Upper Arun or Upper Tamakoshi,” Mahat added.
At the meeting, World Bank Vice-President, Isabel M Guerrero had expressed the agency´s interest to support one mega project in Nepal.
Meanwhile, a statement issued by the Ministry on Sunday said that the WB is keen on Upper Arun. During their talk, Minister Mahat had drawn the attention of the delegation at the possibility of upgrading the capacity of this project, which is located in Sankhuwasabha.
WB officials had inquired about investment and security situation in the project site as well. The statement said that the WB has sought security guarantee from Nepal government, especially in view of the ongoing obstructions created by the UCPN (Maoist) in Upper Karnali and Upper Marsyangdi projects.
The Maoists have obstructed both the projects as part of their fourth-phase protest against “Indian interference”. Both the projects have investment from GMR, an Indian infrastructure developer.
Minister Mahat informed WB officials that all obstacles in the Upper Karnali have been removed. In addition, he assured them that the problems in Upper Mashyangdi will be resolved through dialogue, the statement added. However, work at Upper Karnali is yet to resume.
Upper Arun is estimated to generate more than 3000 GWH annually. The total project cost, including access road and transmission line, is about $400 million, according to Nepal Electricity Authority.
To support transmission line project
Mahat also told the delegation that the government will leave no stone unturned to end the power crisis facing the country.
During the talk, the WB also reiterated its commitment to begin the 400 kv Dhalkebar-Muzafffarpur transmission line at the earliest. The donor agency had shown keen interest in supporting the power line project between Nepal and India few months ago. It has already held initial talks with both the governments in this regard.
“The transmission line work will begin after the financial closure,” Mahat said.
Moreover, Vice-President Guerrero also showed interest in capacity enhancement of East-West transmission line, operation of thermal plants, works at Bhairahawa and other border points and construction of medium-sized hydro projects in Nepal.
akanshya@myrepublica.com
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