Friday, January 25, 2008

Hydel promoters will have to find their own buyers [ 2008-1-7 ]

http://www.gorkhapatra.org.np/content.php?nid=33751

By A Staff Reporter Kathmandu, Jan. 6: Minister for Water Resources Gyanendra Bahadur Karki said Sunday that the promoters of Upper Karnali, Arun III and Budhi Gandaki hydro power projects themselves should search for electricity market after the completion of the projects.

Speaking at a press meet today, Minister Karki said the government had made the policy of buying 10 per cent electricity for domestic use from the exportable project.

The Upper Karnali, Arun III and Budhi Gandaki hydropower projects have the capacity of 300 MW, 400MW and 600MW respectively.

He said that the ministry has formulated a four-member task force under former secretary Bhanu Prasad Acharya for providing permission for the construction of the projects.

According to the Ministry of Water Resources, it had received 14 proposals for Upper Karnali, nine for Arun III and two for Budhi Gandaki projects. There are 11 Indian, two Chinese and one Dutch companies bidding for the Upper Karnali. For Arun III, there are seven Indian and two Chinese companies.

After the evaluation by the task force, the GMR Energy Limited, India has been placed top for the Upper Karnali hydropower project. The others in chronological order are Karmachari Sanchaya Kosh (KSK), Electricity Financing Pvt. Ltd., India, Reliance Energy Limited, Mumbai, India, Satluj Jal Vidhyut Nigam (SJVN), Jindal Steel & Power Ltd., Athena Projects Pvt. Ltd., Larsen and Toubro Limted, Jaiprakash Associates Limited, National Hydroelectric Power Corporation Ltd. Bhilwara Energy Limited (LNJ Bhilwal Group) and Maytas Infra Pvt. Ltd. The two Chinese companies are Sinohydro Corporation Ltd. and China Overseas Engineering Group Co. Ltd and the Dutch company is Brakel Corporation NV. The three non-Indian companies have come at the bottom in the evaluation criteria.

For Arun III project, also GMR Energy Limited of India has been placed at top in the evaluation criteria. The other companies are Satluj Jal Vidhyut Nigam, Jindal Steel & Power Ltd, Reliance Energy Limited, Jaiprakash Associates Limited, Larson and Toubro (all Indian), Sinohydro Corporation Limited of China, Maytas Infra Pvt.Ltd. of India and China Overseas Engineering Group Co. Ltd. of China.

The statement said none of the two companies bidding for the Budhi Gandaki project could meet the required criteria.

The Minister said that the cabinet had decided to award only one project to one company and the top bidder would be invited for negotiation with the provision of providing the maximum percent of free energy as provided by other bidders before awarding the contract. If the top bidder fail to meet the condition then other bidders in chronological order will be invited for negotiation. If that too failed, then the bidder offering maximum free energy would be awarded the contract.

According to the ministry, the bidders will have to deposit in advance of Rs. 100,000 per MW before the permission of survey license. This is done to ensure the construction of the project after the contract negotiation, it said.

He said that the government is preparing to import 40 MW electricity from India to help ease the shortage of energy.

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