IPPAN Delegation Team led by Dr. Subarna Das Shrestha , IPPAN President met with Mr. Balananda Paudel, the newly appointed energy secretary at the Ministry for Energy on June 2, 2011 , Thursday. Others present in the meeting were: Mr. Kiran Malla, Mr. Bijaya Man Sherchan, Mr. Krishna Acharya and Mr. Pradeep Gangol.

Dr. Subarna Das Shrestha congratulated Mr. Poudel on his appointment as Secretary of the Ministry of Energy and presented him IPPAN's latest publication: Hydropower Nepal Book .

On the occasion, Dr. Shrestha requested for:   Including projects under constructions as well for new PPA rates; Prompt processing of registration and renewal of generations licenses; Facilitation of ministry of energy in maintaining peace and security in the project areas; Planning and Construction of storage reservoir etc.

Mr. Balananda Paudel,  Energy secretary :

The proposal to include projects under construction also for new PPA rates will be studied seriously, but there may be problems in implementation, due to precarious financial condition of NEA. However, ministry will make a study to examine various ways to help make these projects financially viable.

Regarding the delay in the construction of Transmission Lines , the ministry is serious working on it. There will be substantial increase in the forthcoming budget for the implementation of transmission lines.

Regarding security issues , the ministry is well aware of the security problems and the Government of Nepal is planning to deploy Army or Armed Police Force in the project areas. However, the government will ask for provision of water and electricity for the Security Personnel. The Ministry is also thinking of drafting a commitment letter for co-operation in power projects, to be signed by political parties. The ministry will request for feed back in its draft commitment letter.

Regarding liquidity crunch and high bank interest rates , the ministry is effortful to create Power Finance Corporation to make accessible easy, cheap and long term loans for power companies.

Regarding expeditious processing of documents , esp. related to EIA, IEE, and ministry is thinking of hiring EIA/IEE consultants, with the provision of final seal of approval by the Ministry of Energy.

Regarding issuance and renewal of Generation Licenses , Ministry will soon take decision whether to wait until the proposed electricity bill comes into effect or process the licenses, based on policies to be developed later.

It is obvious that the private sector will invest in hydropower projects, only if there is reasonable rate of return. And it is the government's duty to make the investment climate more favourable, so as to attract prospective investors in Nepal's power sector.

Mr. Bijaya man Sherchan made the comment that the government should not shy away from providing sovereign guarantees for international loan to the power projects, since the power projects will be the assets of the government, after the expiry of the generation license.

Pradeep Gangol

Executive Manager

IPPAN

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