Vision 2020: A Vision for Hydropower Growth

Vision 2020: A Vision for Hydropower Growth
Govt confused about hydel growth: Private sector
ekantipur, 24-Nov-08

Participants in a half-day seminar on 'Vision 2020: A Vision for Hydropower Growth' said on Monday that the government was confused on how to achieve its goal of producing 10,000 MW of power within the next 10 years. The government had prioritised the sector in its policy and programmes, and budget.

"The government has failed to specify how the target will be achieved, which point to start from and where to end," said Gyanendra Lal Pradhan, coordinator of Hydropower Development Forum of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI).

But, director general of the Department of Electricity Development Sriranjan Lacoul said that license had already been issued for the projects to produce about 13,000 MW so far.

Pradhan said the government was yet to take the first steps toward realising its goal although national consensus had been achieved on the fact that the development of the hydropower sector was critical for national development.

He said that the country's existing installed capacity of just 619 MW was too small against the rising demand of energy in the country. The demand for power reaches 720 MW in the peak season, according to Nepal Electricity Authority (NEA).

However, Pradhan was optimistic about the progress. "Much has been achieved over the last five years in the hydropower sector in terms of policy prioritisation," he said.

Banks which were mostly reluctant to invest in the sector, are now eager to pour investment into it, thanks to the growing realisation among them that their investment would be safe in the sector, Pradhan added.

In the hydropower symposium organised by FNCCI to find out ways to realise the target, its president Kush Kumar Joshi stressed on the need on the part of the government to ensure an investment-friendly environment to attract local and foreign investment in the sector.

"The country's saving of about Rs. 200 billion would not be sufficient for generating the targeted power within the next 10 years," he added.

Lauding the government's policy of public private partnership (PPP), he stressed that action should also be directed toward taking the private sector into its confidence.

Reminding about the recent petroleum problems, he stressed that the country should be self sustained on energy.

Minister for Water Resources Bishnu Prasad Poudel said that many foreign investors were interested in investing in Nepal and the government would take appropriate decisions by preparing a transparent base.

Mentioning the government's policy of producing 10,000 MW of power within the next 10 years and electrifying all households of the country, Poudel said that the objective would not be met without attracting local and foreign investors.

He also said that the government would shortly be announcing a package with short-term and long-term measures to address the problem of load shedding by announcing that the 'country is in an energy crisis'.