The protracted progress of West Seti Hydroelectric Project in absence of financial arrangement is again taking a move ahead.

One of the senior project officials informed to start 10 km long access road, connecting project’s site and Seti Highway, to encourage the investors. “To trim down the project’s uncertainty existing among locals, government and investors, we are constructing access road with investment from SMEC,” the official told the Rajdhani.

According to an official at the Ministry of Energy, the promoter, which failed to kick-start the construction works even after a decade of acquiring the project’s license, is going to construct access road in the project’s site when the government started looking for a new investor.

The Energy Minister, Prakash Sharan Mahat informed that the project could not go ahead since the company failed to make financial closing. “The government is not going to delay the project if the construction company approaches us with an official letter regarding financial closure,” he said.

The Minister Mahat admitted the continuity of the same company in the project, although he hinted some preliminary discussions regarding the new investor. “We are analysing some clauses for amendment in the agreement with the existing company,” he said. 

Mahat also informed that the agreement was forwarded to officials at Ministry of Finance and Ministry of Law for giving a second look at some clauses.

Nepal bears a great loss since the construction company failed to make financial arrangement, said Mahat, “The government is committed to begin West Seti soon.”

The project with 750 MW installed capacity exports 90 percent of electricity to India while remaining 10 percent will be granted to Nepal free of cost.

As per the past agreement, 1.6 billion US dollars project engrosses share investment from Australian Construction Company SMEC (26 %), Government of Nepal (15%), Asian Development Bank (15%), China Machinery Imports and Exports Corporation CMEC (15%), Infrastructure Leasing and Financial Services –IL&FS (15%) and the Nepalese financial institutions (14 %) including four percent from the far western local people. The project will have 25 percent equity share and 75 percent as loan investment.

“Investments from others will flow as soon as ADB gets ready,” said the source accusing ADB for its negligence for delayed investment.

Unofficial translation from Rajdhani daily Kathmandu, Nov 17, 2009

“The reality of suggestions and activities being extended by its staffs and consultants in its Kathmandu office against Nepal’s interest and development is clarified through its West Seti policy.”   Download his article from Kantipur

It has almost been one and half decade since we hear the talks on implementation of West Seti (reservoir-based 750 MW) which is hoped to change the fate of Far Western Development Region. Taking into consideration the huge investment in needs, around US$ 1.6 billion, delay in financial management was taken as normal. The hopes had heightened after the multilateral development partner Asian Development Bank (ADB) showed the interest to invest in West Seti. Besides its own investment, the ADB had instigated Government of Nepal (GoN) for investment in West Seti through commercial loan. The bank has already signed agreement for 15 percent investment in the project. 

The tenure of this agreement has expired. The bank has neither renewed it nor has it announced to withdraw. It has also extended US$ 45 million loan to GoN for 15 percent investment in the project. The bank has involved the government through loan with high interest. Investment by the government was expected to deliver positive thoughts among the investors and create a cleaner image in international market for investment in Nepal’s hydropower.

The ADB’s entry into West Seti has created additional confusions. The involvement of ADB has put the project in dilemma. In totality, the bank has not only stopped one project but influenced country’s economic growth. ABD has neither made investment nor has it said it will not. Rather it is busy making a new agreement. It was under ABD pressure that intolerable provisions such as ‘all compensation to be made for loss caused by construction of the project (WSH) has to be made by Nepal government’ are being incorporated into the new draft agreement. There won’t be any agreement under such provisions. Failing to sign the agreement means project’s construction will not continue. At this hour, ADB has remained silent saying agreement has not been signed. As a result, it has stopped probable international investors of West Seti. In this way, the project nation was awaiting for the last one and half decade is set nowhere due to ill intention and policies of development partner such as ADB.

It should have opened ways for other investors if it can’t invest. This has exposed the bureaucracy of the ADB. The reality of suggestions and activities being extended by its staffs and consultants in its Kathmandu office against Nepal’s interest and development is clarified through its West Seti policy. What development progress has ADB expected to make through such a group of staffs? For example, when Shallow Tube-wells project reached its final stage for implementation with government grants, it had put pressure on government to stop the grant. Agricultural Development Bank used to distribute 4000 such Tube-wells annually. ABD showed its character by hindering national policy when the grant stopped. The mission had aimed at minimizing poverty through irrigation facilities to the marginalized farmers. The ADB staffs have good role in building such a character.

West Seti is exactly facing the fate of Shallow Tube-wells. ABD has compelled the government to invest while it remained as an element of indecision. Other donors gave little attention when they saw ADB’s involvement. Whether ABD makes investments or not, it is a matter of reality that it has lingered a lot of Nepal’s time in West Seti. More delay in construction of the West Seti means greater loss for GoN and the people of the Far West. Not only that Nepal is losing royalty and free electricity, but thoughts of the general public for local development and economic prosperity by initiating West Seti have turned out to be just the dreams. The government has not been able to tell anything to ADB because it has provided US$ 45 million as loan. Debts always keep one dominated. ABD, which is leaving West Seti in chaos, is engaging for Upper Seti (127 MW). If ABD gives assurances of investment in Upper Seti for next four-five years without actually making, who will be responsible? What is the view of ABD headquarters regarding hydropower development in Nepal? ADB’s involvement in eighth rural electrification as well was controversial.  ABD has added poverty to poor people by hiring expensive consultants in road connectivity project.

It is to be seen how many hours of load shedding will ABD add when it moves from West Seti to Upper Seti. The results of government officials dreaming to be hired as consultants in ABD as assured by its junior staffs are gradually coming out. If not, why the government is not ready to put pressure on ADB to correct its faulty stand? The loan should be accepted in the interest of Nepal and Nepalese, not in the interest of ADB. Unless intention to compel to accept any conditions, even if they are not in nation’s interest, on pretext of giving money, changes, the loans provided by such multilateral development partners would not alleviate poverty but eradicate the poors.

(Unofficial translation from its Nepali version published in Kantipur daily , Monday, October 26, 2009)

KATHMANDU: It takes 73 days to fulfil six procedures to get an electricity connection in Nepal, according to a World Bank pilot project. The same can be done in 22 days and four procedures in Iceland but takes 424 days in Afghanistan.

Getting Electricity — the two-and-a-half-year project — presents findings on the constraints entrepreneurs around the world face in getting access to electricity and illustrates patterns in connection processes. The study also tracks all the procedures, the time, and the cost required to obtain an electricity connection for a newly constructed building.

However, in Nepal the cost of not having electricity is higher than the cost of connection, as the country reels under long hours of power outage. World Bank surveys in 89 economies of the world show that electricity tops infrastructure needs of the business entities.

Many businesses lack access to power connections and are prevented from moving into higher-value-added activities that rely on electricity-based technologies. According to International Energy Agency, in 2005 more than a quarter of the world’s population lacked access to electricity. Businesses also care about the cost of both the electricity connection and the electricity supply-because electricity-related expenditure eats up a significant share of their revenue.

Managers responding to World Bank Enterprise Surveys estimated that on average their spending on electricity amounts to four per cent of their annual sales, while combined spending on other infrastructure services like fuel, communication services and water accounts for 6.4 per cent.

Among the 140 economies surveyed for Getting Electricity, Ukraine ranks at the bottom, with 10 procedures required to get new power connection. It’s much easier to do the same in Denmark, Germany, Japan and Mauritius.

The survey details the efficiency and cost of the services provided to commercial customers by distribution utilities, the complexity of procedures, and the resources expended by businesses in obtaining a connection.

“In the 10 economies with fewest procedures, the process of obtaining an electricity connection takes only 56 days on an average, while in 10 economies with most procedures, it takes 215 days,” the report adds.

The Himalayan Times

BIRGUNJ: Minister for Energy Prakash Sharan Mahat said today that the country would face power-cuts for at least three more years.

Speaking at a press conference organised by Nepal Press Union Parsa, he said, “The dark hours will stay here as high capacity transmission line for electricity from India to Nepal won’t be in place before three years.”

According to him, the public was reeling under regular power-cuts as the internal production was not sufficient to meet the energy demands. The minister, however, informed that plans were afoot to repair the thermal plants in Hetauda and Biratnagar. “That could be some sort of a breather for the country,” he said.

He also made revelations that the government had a policy to encourage investors in hydro projects. “The government has prioritised the Upper-Seti Hydro Electricity Project in Tanahun while preparations were on for the construction of Upper-Tamakoshi as well,” he said. The minister also informed that more than a billion rupees has been allocated for rural electrification in this fiscal budget.

He, however, said that the budget deficit of the Nepal Electricity Authority had reached Rs 14 billion. Saying that the electricity in the country was being sold at a price lower than the production cost, Mahat hinted at a possible hike in the electricity tariff.

The Himalayan Times

Pashupatinagar, Oct 22 :Electricity in the remote Yaktapa village has been generated with the use of improved water spin, popularly known as pani ghatta. It is the first time in the whole eastern region that pani-ghatta has been used to generate water-mill power.

The active involvement of the residents of Yaktapa and Phakaphok has been able to produced 5 megawatt electricity with the help of improved water-spin from the river of Phakaphok situated at the middle of Yaktapa and Phakaphok VDC.

The remote VDC has situated 60 kilometers away from the district headquarter. After the production of electricity, a total of 47 families have benefited from it.

The water-spin started producing energy, the locals of the Yaktapa and Phakaphok people have got the facilities of grinding their paddy and maize products.

The electricity generation project was completed under the assistance of help of Center of Alternate Energy (CRD). The CRD has helped Rs 27000 and the invested another Rs. 2,33,000 for the construction of the project.

A local, Ash Bahadur Limbu, had donated Rs. 1,50,000 for the construction of water spin, said Dil Bahadur Limbu president of consumers and electricity and improved water spin construction committee.

The capacity of project will be increased to 7 megawatt of power generation after some time, said Krishna Khanal, Eastern Region Supplier of the CRD.

According to the Limbu, after increasing the capacity of the project, about 90 families will be benefitted by electricity.

The Rising Nepal

संविधान सभादेखि विभिन्न गोष्ठी सेमिनार भाषण लेखोट टेलिभिजनलगायतका संचार माध्यममा आईएलओ महासन्धि १६९को प्रसंग उप्काएर आदिवासी जनजातिको जल जङ्गल र जमिनमा अधिकारको चचालाई उत्कर्षमा पुर्याइएको छ। त्यति मात्र हैन केही ठाउँमा जबर्जस्ती अधिकार स्थापना गर्ने प्रयासमा अरुलाई निषेध गर्ने सार्वजनिक उपयोगका प्राकृतिक स्रोतलाई कुनै खास जात वा समुदायको पेवा मानेर विक्री गर्ने कार्य भइरहेको छ।

राज्यको मूल चरित्र सामूहिकतामा हुन्छ। व्यक्तिगत र सार्वजनिक वा सामूहिक सम्पतिको विभेद र परिभाषा राज्य संचालनको प्रमुख आवश्यकता हो। प्रत्येक व्यक्ति र समुदायले राज्यका लागि अधिकार र कार्यक्षेत्र छोड्नुपर्छ र आफ्नो अधिकार सीमित गर्नुपर्छ्र। हामी संविधान बनाउन लागेका छौँ। यही दस्ताबेजमा नै त्यस्ता सबै अधिकारको व्याख्या गर्नुपर्छ। त्यसैले यस विषयलाई कॆलाउनु र बुझ्नु आवश्यक छ।

पूरा लेख /Nagariknews

नेपाल समाचारपत्र, (सिन्धुपाल्चोक) बहुप्रतीक्षित मेलम्ची खानेपानी आयोजनाको शुभारम्भ भएलगत्तै मेलम्चीस्थित फिल्ड कार्यालयमा लगाएको तालामाथि ताला हुँदै चारवटा ताला लागेको र खुलाउनेतर्फसमिति सकारात्मक नदेखिएको स्थानीयले आरोप लगाएका छन्।

प्रभावित क्षेत्रका बासिन्दाले साउन १९ गते लगाएको ताला खुल्न नपाउँदै एक सातापछि लार्के याङ्ग्री सरोकार समितिले अर्को ताला थपेको थियो। वार्तामा नबोलाई ताला खोल्ने चासो नदेखाएको भन्दै ज्यामिरे गाविस र शिखरपुर गाविसले पुनः ताला थपी हाल चारवटा ताला लागेको हो।

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दिलबहादुर छत्याल, धनगढी, भदौ १६- एकिकृत नेकपा माओवादी सेती महाकाली राज्य संगठन समितीले पश्चिम सेती परियोजना देशको हित विपरित भएकोले अहिलेकै सम्झौता बमोजिम संचालन गर्न नदिने निर्णय गरेको छ। पाँच दिनसम्म चलेको राज्यसमिती बैठकले केन्द्रीय नेतृत्वलाई सेती-महाकालीलाई टाढाको ब्यवहार नगर्न सुझाव दिने निर्णय पनि गरेको छ।

लगानी मुनाफा उपभोग र स्वामित्व पनि बिदेशीको हुने गरि पश्चिमसेती परियोजना संचलान गरेर नेपालीहरुलाई ठग्न खोजिएकोले बिरोध गने निर्णय गरेको माओवादीका सेती महाकाली राज्य समितीका सचिव खगराज भट्टले बताए।

Read more from Nagariknews.com

101 MW Tamor-Mewa Hydroelectric Project (TMHP) of Taplejung district is a well-debated power project in Nepal, next to West Seti, Arun-III and Upper Karnali. Geographically, TMHP falls in Khokling and Phongling village development committees, both in the self-declared Limbuwan Autonomous State.  The project has been as issue of power-debate since a year when the Ministry of Water Resources (MoWR) refused for renewal of the survey licence, which was issued with a validity of 18 months. The Ministry on January 22 last year decided not to extend the term of the license stating that the promoter company, Spark Hydroelectric Company Limited (SHCL), did not make significant and qualitative progress on the project as per the conditions mentioned the license.

Tamor-Mewa
The interesting aspect regarding this project is that water from Tamor River and Mewa River will be technically merged to generate 11 MW additional power than the individual potentiality of the river. The preliminary studies have shown that 18 MW of electricity can be feasibly exploited from Mewa River while 72 MW from Tamor River is technically feasible. The water combination from both the rivers will add 11 MW to generation capacity of Tamor River.

Unlike in other projects, TMHP will have two powerhouses, one having a net capacity of 18 MW and another with 83 MW capacity. Water from 18 MW powerhouse will be diverted through a 5.5 kilometre long diversion tunnel into Tamor River.

The chairperson and director of SHCL, Bhanendra Kumar Limbu, said the company has so far spent around Rs. 80 million on the project, of the total investment of Rs. 15 billion. SHCL is working for 55 percent foreign direct investment and 45 percent domestic investment. The project has also promised to extend 10 percent share to the affected locals.

License issue
The MoWR issued the survey license to Spark Hydroelectric Company Limited on March 20, 2006 for a period of one and a half year. According SHCL, of the 540 days granted for the survey, 333 days remained as Nepal Bandh due to various uncertainties and the company could not work as expected. Thus, the company could work only for 207 days, which is not even seven months. Even during such harsh timings, the company updated its progress to Department of Electricity Development (DoED) as required by the terms and conditions in the survey license.

However, on January 22, 2008, the MoWR refused to renew the survey license despite the deposition of Rs. 1 million renewal charge and the required documents. According to the company’s statement which appeared after the rejection from the ministry, Imex International applied for a license for the same project on September 7, 2007.

The company claims that the progress on the project could not be achieved due to the continuous bandh in the eastern region of Nepal. One of the provisions, 7(d), in the survey license requires the company to furnish the appropriate reasons in case of seeking extension of the license period. The company has been trying a lot to convince the ministry for license renewal. On September 29 last year it even submitted an application along with 3,620 signatures of the affected locals, law makers and civil society representatives from the district to the MoWR and officially met Minister for Water Resources.

Such a public pressure in allowing the hydropower project goes ahead must be a lesson to project-affected locals of power projects like 750 MW West Seti in the Far Western Development Region,  402 MW Arun-III in Sankhuwasabha district and GMR promoted 300 MW Upper Karnali. Several groups are quite active in these areas and do not want the hydel projects to kick-start.

Conclusion
The Electricity Act 2049 has set enough provisions for granting renewal of project’s license for power projects like Tamor-Mewa, viewing its inescapable situations which crippled Nepal, especially the Eastern Development Region and the Terai districts, parlaying everything for months.

The project having construction period of five years, will provide employment to around 1500 individuals. Besides the tax, annual royalty and share dividends, the region will have 19 kilometre long black-topped road and a concrete motorable bridge, which will join other villages beyond the Tamor River. The project, which has received the support and solidarity from the locals and other regional stakeholders, will be one of the development assets for the eastern region in the coming days when it starts commissioning.

Certainly, it is not a wise decision to make the investors suffer. The government must create congenial atmosphere to those who have come forward for developing hydroelectric projects, costlier among other development projects. It is the government, but not the investor, responsible to check bandh and other probable public obstacles. Also, the investors must work seriously towards accomplishing the project’s gaol. Renewing license a number of times citing inability to make financial closure is not a logical deal at all and such practices require immediate correction.

Therefore, both the MoWR and DoED must rethink of renewing the license of Tamor-Mewa including others viewing the legal provisions. It is not wise to paralyse the projects when the government is working with a vision to generate 10,000 MW of electricity by 2020.

The Rising Nepal/May 15, 2009

KATHMANDU, May 14: Senior government officials and noted experts have come up with an idea that can be instrumental in tackling the country´s acute power shortage relatively cheaply and fast.

Huge volumes of water can be stored during the monsoon season with dams built in open and flat areas in the foothills of the high Himalayas, with the water to be used during the dry season by hydro-power projects located in the lower regions.

Experts argue that this idea can be an appropriate answer to Nepal´s electricity demand. The country faces acute power shortage mainly in the dry season as all the hydro-power projects except Kulekhani are built on the run-of-river model.

With the help of such storage, even the existing run-of-river projects can perform like storage projects to some extent, the experts believe.

“By constructing a dam in the Jomsom area in Mustang district, we can store a large volume of water during the monsoon season,” said Sheetal Babu Regmee, joint secretary at the Ministry of Water Resources. “Once we release water from the storage, Kaligandaki-A, the largest hydro project in operation in the country, can significantly increase its generation capacity in the dry season also.”

Electricity generation at Kaligandaki-A, which has a 144-MW installed capacity, goes down at times to about 40 MW during the dry season due to receding water levels in snow-fed rivers.

Building a storage dam in the Jomsom area has multiple benefits for Nepal, argues Regmee. “Not only Kaligandaki-A, but other projects to be built along the Kaligandaki corridor can use the same water to enhance their generation capacity,” he said.

Different hydro-power promoters have acquired licenses for various projects along the Kaligandaki, and they have about 1,000-MW generation capacity altogether.

Similar storage dams can be built in the upper part of the Marsyangdi River. Two major run-of-river model hydro projects - 69 MW Marsyangdi and 70-MW Mid-Marsyangdi - are in operation on the river. A single storage project can help optimize the generation capacity at these and other new projects in the dry season, Regmee said.

He added that the Budhigandaki is another river where such storage dams can be feasible.

Regmee is not alone in believing in such an approach.

Kumar Pandey, Chief Technology Officer at Hydro Solutions Pvt. Ltd., said that building storage projects should be given priority in the Kaligandaki.

“Because access by road is available in various regions through which the Kaligandaki flows,” Pandey, who has conducted a study on the possibility of such storage dams in the region, argued, “the projects on the river would be located in the middle part of the country which balances out the power supply system in the national grid.”

The regulated water flow from storage dams can be used to enhance the capacity of different projects in the lower parts of the river on a cascade model, something which is not possible if such storage dams are built in the plains. The regulated water run from storage projects in the Tarai districts goes directly into Indian territory, the experts pointed out.

Different institutions have identified several locations with huge swathes of plain and open area suitable for the construction of storage dams. However, no one has conducted a detailed study of such locations. Experts suggested detailed geological and other studies to identify any risks or problems in building such projects in the region.

The Water and Energy Commission (WEC) under the Ministry of Water Resources identified such projects and had put forth this idea to the authorities concerned and stakeholders some four years ago, according to Regmee.

Building storage projects in the hills is feasible because such areas would not be densely populated and eventual resettlement costs would be significantly lower in comparison to the Tarai plains.

The idea is widely practised in other countries and has become common in China, according to Pandey.

“The idea has been broadly discussed among engineers and other experts and they have taken it positively but we have not fully succeeded in convincing the policy makers so far,” he said.

Pandey points out the immediate need of a river basin management policy to regulate projects dependent on a single storage dam and other related issues.

The cost and time factors in constructing storage dams would be significantly lower compared to building a complete storage-type hydro-power project, the experts said.

Source: Republica/THIRA L BHUSAL