Interview"Nepal’s hydroelectric sector has strong potential with favorable policies": PowerChina
After President Xi Jinping’s meeting with Nepal Prime Minister Pushpa Kamal Dahal during the 8th BRICS Summit in Goa, India starting on Saturday, Sheng Yuming (Sheng), chairman of State-owned PowerChina Resources, spoke to Global Times reporter Li Xuanmin (GT) in Beijing on Sunday. They discussed the opportunities and challenges related to the company’s investment in Nepal and the nation’s overall business environment.
GT: What is the status of PowerChina’s current investment in Nepal?
Sheng: PowerChina has carried out 11 projects in Nepal since entering the market in 1989, and most of them are hydro-electric stations. The $165.9 million Marsyandi-A hydro-electric station with installed capacity of 50 megawatts (MW), which started generating electricity on September 27, 2016, is the first hydropower project invested in by a Chinese company in Nepal.
Another hydroelectric project, the -65-MW Kaligandaki Upper hydroelectric station, has passed the local authorities’ environmental impact assessment and is under negotiation over power purchase agreements with local authorities. The total investment for the project is about $234 million.
We will keep exploring the market and follow up with several other hydroelectric projects.
GT: Why did PowerChina decide to invest in Nepal?
Sheng: Nepal is a landlocked mountainous country with abundant hydropower resources, yet the country has long had power shortages. The lack of electricity hampered the country’s economic growth. Nepal is estimated to have the potential of hydropower generating capacity of a total of 42,000 MW, but it only has installed capacity of 824 MW and has a power deficit of up to 800 MW in total.
Based on the current situation, we think that Nepal’s hydroelectric sector has full potential to grow, and this is one of the reasons behind PowerChina’s investment in Nepal.
Besides, Nepal’s abundant and inexpensive labor force, the popularity of English among its citizens, and the government’s favorable policies for private investment in the electricity sector also drew our investment.
GT: What are the benefits those investments brought to China and Nepal?
Sheng: The hydroelectric stations ameliorate Nepal’s chronic energy deficiency and optimize its power structure. For example, the electricity generated by the Marsyandi-A hydroelectric station, which will be handed over to the Nepalese government for nominal price after the 35 years of licensed operation ends, represents 5.72 percent of the country’s total supply.
The hydroelectric projects also help the Nepalese government turn its resource advantages into economic engines. In the long run, it not only accelerates the development of Nepal’s tertiary industry such as the transportation system but also provides job opportunities for the locals.
PowerChina’s investment in Nepal comes amid a growing number of Chinese enterprises “going global,” which can facilitate the exports of Chinese technology, equipment and labor to foreign markets. It also fits the government’s agenda to tighten economic cooperation with countries and regions along the “Belt and Road” (B&R) initiative.
GT: How’s the business environment in Nepal? Any challenges during the investment process?
Sheng: Nepal remains quite stable and safe despite its political power struggle. It also has a relatively sound legal system and a promising market.
However, there are certain challenges. For example, the massive earthquake that took place on April 25, 2015 seriously delayed the Marsyandi-A hydroelectric project, not to mention the subsequent Indian blockade of key border trade points with Nepal, which led to a shortage of essential goods and energies.
Also, the nation’s impoverished basic infrastructure, especially the under-developed electric transmission lines, as well as the frequent changes in government leadership and local authorities’ low efficiency have also posed difficulties to the project’s construction.
GT: What is the Nepalese government’s support for foreign investment? Do you expect more favorable policies in the future?
Sheng: Overall, the Nepalese government supports private and foreign investment. In the electricity sector, the local government has issued relevant guidelines and laws to offer favorable treatment to investors.
Economic ties between China and Nepal are also getting stronger under the B&R initiative. China and Nepal have signed agreements on avoidance of double taxation and bilateral investment treaties. When Nepal’s former prime minister Khadga Prasad Sharma Oli visited China in March, the two countries signed 10 agreements and memorandums of understanding, and this will further drive Chinese investment in Nepal.
However, some of the policies in the electricity sector were announced a long time ago and have had limited effect. So we hope that those rules can be amended to address the demand in different periods. Besides, we expect that the Nepalese government will keep supporting Chinese investors, offer more tax incentives, and simplify the procedures for importing and exporting electrical equipment.
Source : The Global Timescomments powered by Disqus
Interview+ View All
झोलामा खोला बोकेर हिड्ने दलालका कारण वास्तविक लगानीकर्ता मारमा परेका छन्: उर्जामन्त्रि महेन्द्रबहादुर शाही
विद्युत बिलिङ प्रविधि पुरानो र परम्परागत छ । अब स्मार्ट मिटर जडान गरेर पुरानो प्रणाली हटाइनेछ । कुन ग्राहकको माग कति हो त्यहीअनुसार वितरण हुन्छ । ग्राहकले बढाउन खोजे आफैँ विद्युत काटिने स्वचालित प्रणाली राखिन्छ । यसमा ग्राहकलाई अभ्यस्ता बनाउँदै जाने हो ।
आगामी पाँच वर्ष ऊर्जाका लागि स्वर्णिम युग हुन्छ
गत भदौ २९ मा सरकारले कुलमान घिसिङलाई नेपाल विद्युत् प्राधिकरणको कार्यकारी निर्देशकमा नियुक्त ग-यो । २०२७ मंसिर १० मा रामेछापको बेथानमा जन्मिएका घिसिङ विगत २० वर्षदेखि विद्युत् प्राधिकरणमा कार्यरत छन् । कार्यकारी निर्देशकमा घिसिङ नियुक्त भएपछि गत तिहारको ....
Article+ View All
बिस्वब्यापी तेल सङ्कट र नेपाल
बेलाबेलामा नेपाल आयल निगमको पेट्रोल/डिजलको स्टक सकिनु सामान्य भएको छ। यो आर्थिक वर्षमा पनि पटकपटक अभाव भयो। सँगै खाना पकाउने एलपि ग्याससमेत लामो समय अभाव रह्यो। पेट्रोलियम पदार्थ नेपालको उत्पादन होइन। जहाँ उत्पादन भए पनि यो ऊर्जाको नविकरणीय स्रोत पनि हैन। नेपाल आयल निगमको स्टक सकिएझैं पृथ्वीको गर्भमा रहेको पेट्रोलियम पदार्थको स्टक सिध्दिने पक्का छ। कतिपय वैज्ञानिक अनुसन्धान भन्छन्- सन् २०८० को हाराहारीमा ती दिन आउन सक्छन्।
जलविद्युत्का चुनौती र लगानीको आवश्यकता
नेपालमा जलस्रोतको अपार भण्डार भए पनि बहुसंख्यक जनता टुकीको उज्यालो र दाउराको आगोमा निर्भर हुनु दुःखद हो। बहावको आधारमा मात्रै ८३–८४ हजार मेगावाटको सम्भावना र त्यसमध्ये ४२–४३ हजार मेगावाट...
Challenges of E-Waste
"Electronic waste" or "E-Waste" may be defined as discarded computers, office electronic equipment, entertainment device electronics, mobile phones, television sets, and refrigerators. This includes used electronics which are destined for reuse, resale, salvage, recycling, or disposal. Others are re-usables (working and repairable electronics) and secondary scrap (copper, steel, plastic, etc.) to be "commodities", and reserve the term "waste" for residue or material which is dumped by the buyer rather than recycled
वातावरणीय सेवाको भुक्तानी कार्यान्वयनका लागि सम्झौता
जलविद्युत् आयोजनामा थेग्रिने समस्यालाई न्यून गर्न वातावरणीय सेवाको भुक्तानी कार्यक्रमको प्रभावकारी कार्यन्वयन गर्न एक सम्झौतापत्रमा आज हस्ताक्षर भएको छ । मस्र्याङ्दी जलाधार क्षेत्रका जलविद्युत् प्रर्वद्धकहरुको सञ्जाल र मस्र्याङ्दी वातावरणीय सेवा व्यवस्थापन सञ्जालले कार्यक्रम कार्यान्वयनका लागि उक्त सम्झौता...
पूर्व–पश्चिम राजमार्ग आठ लेनको बनाउने तयारी
पूर्व–पश्चिम (महेन्द्र) राजमार्गको स्तरोन्नति तथा विस्तारको काम चालू आर्थिक वर्ष २०७४/७५ देखि शुरू हुने भएको छ । यस राजमार्गलाई स्तरोन्नति गर्दै आठ लेनको सडकको रूपमा विस्तार गर्न आगामी माघदेखि निर्माण कार्य थालिने भौतिक पूर्वाधार तथा यातायात मन्त्रालयले बताएको हो ।