September 8, 2023 | Investopaper
In its 12 years since inception, the Investment Board has granted approvals for investments totaling 12.50 Kharba rupees.
On the occasion of its 12th anniversary, details released by the board on Friday reveal that only 42 percent of the approved investments have been put into action. These investments were allocated to a total of 42 projects, comprising 28 in the energy sector and 14 in the non-energy sector.
Among them, the following projects have seen implementation: Arun III, Upper Trishuli-1, Venture Waste to Energy, Upper Karnali, Lower Arun, Huaxin Cement, and Hongsi Shivam Cement, with a combined investment of Rs. 5.25 Kharba.
Of note, the 900 MW capacity Arun III hydropower project received an investment of 1.44 Kharba rupees, the 216 MW capacity Upper Trishuli-1 project received investment of 73.15 Arba rupees, the 900 MW capacity Upper Karnali Hydropower Project secured 1.62 Kharba rupees, the 669 MW capacity Lower Arun Project was funded with 92.68 Arba rupees, Venture Waste to Energy in Dharan received 24.14 crores rupees, Hongsi Shivam Cement obtained investment of 37.35 Arba rupees, and Huaxin Cement secured 14.82 Arba rupees in investments.
Despite a Project Development Agreement (PDA) worth 1.62 Kharba rupees for the 900 MW Upper Karnali project, financial management remains unresolved. The Indian company GMR, granted construction permission for the project, has faced multiple deadline extensions due to its inability to secure financial resources. Following the Supreme Court’s order not to extend the deadline any further, despite a PDA signed in 2071 BS between the Board of Investment and GMR, the project has struggled to obtain necessary funding.
Among the approved projects, Hongsi Shivam Cement and Huaxin Cement, with daily production capacities of 6,000 and 3,000 tons, respectively, have commenced commercial operation. The Venture Waste to Energy project, with an investment of 24.44 crores rupees, has been completed and is operational. Likewise, the construction is underway for the 900 MW Arun-3 hydropower project and the 216 MW Upper Trishuli hydropower project.
Regarding the Arun III project, which has Indian investment, construction progress stands at approximately 68 percent, while the transmission line work is at just 20 percent completion. The project development agreement for the 669 MW Lower Arun Hydropower Project was signed during Prime Minister Pushpa Kamal Dahal’s visit to India last Jestha. This project involves a joint construction agreement between Sutlej Jalvidyut Nigam, the developer of the Arun III Project, and the Nepal Electricity Authority.
Furthermore, a detailed project report (DPR) is in preparation in collaboration with NHPC Limited for the study and development of the national pride 750 MW West Seti hydropower project, including 450 MW Seti River-6. The construction of these projects has been entrusted to the Indian company NHPC.
The board also disclosed that the DPR evaluation for the 327 MW Upper Marsyangdi-2 hydropower project, funded by Chinese investment, is currently underway, and the Project Development Agreement (PDA) will be prepared soon. Dabur Nepal is planning to reinvest 9.68 Arba rupees for production growth and diversification.