Parties for free energy from West Seti

Parties for free energy from West Seti, Against separate project for Nepal
eKantipur.com, 25-Jul-07

Parliamentarians representing the major parties in the Interim Parliament demanded on Monday that the government amend the agreement with Australia's Snowy Mountain Engineering Corp (SMEC) so that it provide free energy to Nepal from the 750 megawatt West Seti project, instead of providing cash benefit.

In a meeting of the Interim Parliament's Natural Resources and Means Committee, parliamentarians representing NC, CPN (UML), NSP (A), PFN, and United Left Front also asked the government to ensure that SMEC provides free energy from West Seti itself, instead of building another project to give Nepal the free energy.

Furthermore, the parliamentarians told the government to ensure that Nepal gets 10 percent of total generation, instead of just 75 megawatts, as it is possible that the project's installed capacity will cross 750 megawatts.

"We should ask for ten percent free energy from West Seti itself, and we should get the free energy right from the day the project starts generation," said NC's Ananda Dhungana.

Parliamentarians Hridayesh Tripathi of NSP (A) and Lilamani Pokharel of PFN expressed doubts that the project's developer would build another project for providing free energy. They therefore pushed for 10 percent free energy from West Seti itself.

United Left Front's C P Mainali also said that Nepal should ask for benefit in kind instead of cash. Mainali also asked the government why the provision of 10 percent free energy was revised in favor of either free energy or cash, and finally in favor of cash.

However, parliamentarians representing CPN (Maoist) urged the government to halt all decisions on mega projects. Parliamentarians Dinanath Sharma and Lokendra Bista said that the country's priority at the moment is conducting constituent assembly election, and not making decisions on mega projects. RPP's Govinda Bikram Shah concurred with them.

Answering the parliamentarians, Acting Secretary of the Ministry of Water Resources Jitendra Ghimire said that a minute has been signed with SMEC for free energy to Nepal. Ghimire added that the government will ensure increment in free energy to Nepal in the event the project's installed capacity increases.

The government had signed an agreement with SMEC in 1994 for 10 percent free energy to Nepal. The agreement was revised to "either free energy or cash" in 1997, and later to cash benefit in 1998.

In 2003, during the tenure of former Minister of Water Resources Dipak Gyawali, a minute was signed with SMEC stating that the government would identify another project so that SMEC would build it for Nepal for providing free energy. Discussions had taken place then to award the 122 megawatt Upper Seti to SMEC for the purpose.