Prime Minister Balen Shah Discusses Energy Sector Development with Producers

Kathmandu. Prime Minister Balen Shah discussed the overall development of the country's energy sector, existing problems, and future direction with energy producers at the Office of the Prime Minister and Council of Ministers in Singha Durbar. The meeting, which lasted for about an hour and a quarter, discussed the feasibility of the government's goal of generating 30,000 megawatts of electricity, sources of investment, management, and legal and policy hurdles in the energy sector. During the discussion, representatives from the Independent Power Producers' Association of Nepal (IPPAN) presented their suggestions focused on six main points for the development of the energy sector. According to IPPAN Senior Vice President Uttam Bhlon, the Prime Minister's attention was drawn mainly to policy reforms, Power Purchase Agreements (PPAs), and issues related to the Nepal Electricity Authority. IPPAN has demanded the speedy implementation of the proposed Electricity Act and the end of delays in land acquisition and forest area processes through the 'sunset law'. Discussions were also held on IPO and right share issuance related to the Securities Board of Nepal (SEBON) in the context of investment security and capital market stability. Discussions were also held on involving the private sector in electricity trading and making energy trading more effective by 'unbundling' the Nepal Electricity Authority with government participation. In the meeting, Prime Minister Shah stated that his focus is on maximizing the country's benefits through the development of the energy sector and increasing state revenue. The Prime Minister's main interests are the government's share of revenue from electricity trading, institutional reform of the Nepal Electricity Authority, and how the general public can directly benefit from this sector. Senior Vice President Bhlon, quoting the Prime Minister, said, 'Your Excellency spoke about the overall industry regarding energy.' He added, 'What is his main dream, the 30,000 megawatts production, what is the feasibility, what is its fund? What is the management? What are the problems? And in which sectors are the problems, we discussed all that.' According to Bhlon, the Prime Minister's main interest was in how to generate more revenue for the government from power trading, how to save and improve the Nepal Electricity Authority, and how to deliver these benefits to the general public. After the discussion, Prime Minister Shah urged IPPAN to submit a detailed report after further homework on the revenue sharing model for electricity trading and other technical issues. It was also agreed to hold further discussions with ministers on this matter. Regarding transmission line construction, IPPAN has proposed that the private sector should also be involved in production and transmission, and the government should focus investment on inter-country transmission lines and distribution. The Prime Minister obtained detailed information about the transmission line model proposed by the private sector, its cost, and its benefits. The Prime Minister assured that the problems raised by IPPAN regarding the appointment process of the Securities Board Chairman and capital market issues would be resolved through discussions with the relevant bodies.