Nepal Electricity Authority Reconstitutes Committee for Khimti Hydropower Project Share Transfer

Kathmandu. The Nepal Electricity Authority (NEA) board of directors has reconstituted the negotiation committee formed to discuss the share ownership transfer of the 60 MW Khimti Hydropower Project and its future operation and management. The committee has been reconstituted under the convenership of NEA board director Anshukiran Shahi.

The committee will negotiate with the promoter company on issues including project ownership, new Power Purchase Agreement (PPA), royalty, and tax payments.

Himal Power Limited has promoted the Khimti Hydropower Project under the Build, Operate, Transfer (BOT) model. The project started commercial electricity generation on Ashad 27, 2057 BS. As per the existing agreement, 50 percent ownership of the project should be transferred to the Nepal Electricity Authority 20 years after the start of commercial production. However, this has not happened due to various reasons.

Along with this, the new purchase rate of electricity produced from the project, royalty, and tax-related arrangements also need to be finalized.

Similarly, an administrative review committee has also been formed under the convenership of NEA board director Krishna Basnet. This committee will work for the review and resolution of disputes related to electricity tariffs, fines, and administrative decisions.

The board of directors' meeting also decided to appoint former NEA Deputy Executive Director Shantilaxmi Shakya as an expert member to advance the process of filling vacant positions in various posts at the authority.