E-Kantipur

KATHMANDU, OCT 14 -

From the prime minister to the energy minister and the energy secretary, speakers representing the Nepal government turned on their charm to impress and assure potential international investors and hydropower developers gathered at the Nepal Energy Investors Forum (NEIF) on Thursday.

The first day of the conference saw the government going all out to provide assurances in an effort to encourage prospective investors made wary by a series of recent disturbances in the power sector.

Reaching out to investors and financers and allaying their fears, Prime Minister Baburam Bhattarai said the government was ready to revise its policies if needed, provide special security to power projects and keep political risks away. Stating that public sector funding alone would not be adequate, Prime Minister Bhattarai said that private sector investment would be needed and welcomed.

Addressing the inaugural session of the NEIF, Bhattarai said, "I would like to assure all investing and financing communities, domestic or foreign, that our policies are naturally geared towards being investment-friendly as possible. If there are any shortcomings, we are prepared to revise them."

The few incidents of disturbances at hydropower projects, according to the prime minister, are sheer violation of the laws of land and cannot be consistent with any political party's policy. "The government is resolute in matters of maintaining law and order," said Bhattarai. "Special security measures will be taken at power projects sites whenever necessary."

When there is a growing sense of reluctance among potential foreign investors to put money in Nepal's power sector due to disturbances and lack of a stable regulatory framework, the prime minister assured investors by saying that there would be no or negligible political risks for private sector investors in the future. According to the prime minister, the government during his forthcoming India visit will move to conclude a Power Trade Agreement between Nepal and India. The prime minister and the energy minister both stressed the need for reservoir-type projects and invited the private sector to invest in such projects.

With power development agreements (PDAs) of seven projects delayed for more than a year, Energy Minister Post Bahadur Bogati assured investors that the government would expedite the process of the PDA..

The government also promised one more cross-border transmission line apart from the Muzaffarpur-Dhalkebar Cross-Border Transmission Line that is ready to go into construction.

ADB Vice-President Xiaoyu Zhao said that the hydropower sector features as a key area for assistance in the ADB's assistance programme to Nepal. "The ADB will continue to support construction of medium scale power plants for domestic use and private sector initiatives for large scale export-oriented power projects," said Zhao.

The NEIF, jointly organised by the government and the ADB, reflects a resurgence in the government's efforts to woo hydropower investors after lying low for three years.

Govt Promises

    No or negligible political risks

    Special security to power projects

    More transmission lines

    Resettlement and rehabilitation policy for reservoir projects

    Guidelines to set the norms and standards of CSR

 

Posted on: 2011-10-14 08:38

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