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Power plans

International power companies eyeing Nepalese hydropower resources may soon receive the opportunity to come forward with their Investment proposals. The ministry of water resources, the apex government institution responsible for the development of hydropower In Nepal, is learnt to have completed its preparations to reopen negotiations with International power companies to construct the 402, megawatts (NlW) Arun III hydroelectric project (AHEP).

AHEP was shelved in 1995 when the World Bank (WO) bowed to international pressure and denied loan for the project. The WO experts had estimated that a baby Arun III of 201 MW would cost US $740 million. but Tate Engineering of India and Enron Company of the US are learnt to have proposed to complete the 402 MW Arun [it for US $800 million.

With the signing of a power purchase agreement. any Party from Nepal or India may enter into an agreement for power trade between them, irrespective of such parties being governmenit. serni-government or private enterprises.

The pact is supposedly beneftal for both the countries. Nepal can make money by selling power to India and India can get the volume of electricity it requires to support its development drive in the northern India power region. Power demand of the northern Indian region will rise to over 58,000 MIN by the year 2010. If all goes according to the Eighth and Ninth Plan of India then the maximum electricity India can generate will be wound 37,000 MW. 'They will still be short of 21,iMO MIN Of electricity and it is this demand that the multinational investors In Nepal envisage to fuffill,- said Lekh Man Singh, superintanding engineer at the project.

---PRAKASH KHANAL KATHMANDU.

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