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20 Billion USD Required for 10,000MW Electricity

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20 Billion USD Required for 10,000MW Electricity
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June 3: The government has announced its ambitious plan of generating 10,000MW electricity in 10 years in the budget of upcoming FY 2073/74. Experts opined that at least Rs 2100 billion (20 billion USD) will be required to achieve the target. “There is no option other than to attract big foreign investors in order to achieve the target set by the budget,” says Lila Nath Bhattarai, Deputy Managing Director of Nepal Electricity Authority.

In a recently concluded Nepal Energy Investment Conference 2016, participants had shown interest in investing hundreds of billions in medium and large size electricity projects. However, for that, they demand improvement in investment environment and formulation of one door license policy. Budhigandaki(1200MW), Nalsigha Gadh(410MW), Tamor(762MW), Aadhi Khola(180MW) are the projects that can attract the foreign investors. Apparently, the foreign investors are keen to invest in Tamakhosi Fifth (87MW), Upper Tamor( 415MW), Tamakoshi Third (650MW) and Big Bheri (530MW).

As these projects are impossible without the support of foreign investment, stakeholders demand creation of investment friendly environment to attract foreign investment. The long and procedural perplexity for obtaining license in order to work in Nepal is the biggest obstacle for investment,” says Allard Nooy, CEO of InfraCo Asia.

Nepal’s energy crisis cannot be addressed without vast investment in hydropower. Although due to political instability and lack of investment security guarantee, foreign companies are reluctant to invest in Nepal.

 

 

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