Financing ensured for Upper Tamakoshi Hydroelectric Project (UTKHEP).
REPUBLICA
With the confirmation of Rastriya Beema Sansthan (RBS) to invest Rs 2 billion in the Upper Tamakoshi Hydroelectric Project (UTKHEP), the required financing of Rs 22 billion has been lined up paving the way for the commencement of the project beginning June. At a time when Nepalis are enduring 11-hours of load-shedding everyday, the confirmation by RBS comes as a welcome relief. Once completed, the highly-attractive and low-cost 456-MW project will play a big part in easing Nepal’s power woes. Nepal’s present power demand stands at about 1,000 MW but the existing hydro-power projects have a combined capacity to generate just about 700 MW. Factor in leakages (25 percent of the production capacity) and annual growth in demand (about 10 percent) and it gives a sense of how urgent it is for us to bring projects such as UTKHEP and Upper Karnali Hydropower Project (UKHP) into operation as quickly as possible.
An uninterrupted supply of power is vital for the growth of the economy. When companies and industries have to resort to alternate sources of energy to run their businesses, it eats into their profits by taking up their operational costs. This is a big deterrent to entrepreneurs who have already invested huge amounts of money in businesses or are planning to do so. The manufacturing sector is especially hit hard by power cuts. At a time when it is crucial for us to ensure the rise of this sector—its contribution to the economy presently is dismal to say the least—the power scenario as it exists today is crippling its growth. That is also exactly the reason why the Maoists should think twice before needlessly voicing their protests against hydro projects such as the 300-MW UKHP. They must remember that these projects, once complete, will become the lifelines of our economy.
While new mega projects are essential to meet our long-term needs, we should also encourage the development of small and medium-scale projects to meet our short- and medium-term needs. What is equally essential is to ‘unbundle’ (gradual reforms ultimately leading to privatization) Nepal Electricity Authority. While we have allowed the entry of Independent Power Producers, we also need to gradually allow competition in the distribution service. It is only such competition that will ensure quality.
Coming to UTKHEP, it is the largest project being commissioned solely by domestic investors. The success or the failure of the project will indicate whether or not Nepalis have the capacity to work together for a larger good. Since our pride is at stake, it is imperative for us to weather all odds and complete the project on time.
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