PM calls for Norwegian investment in hydropower

Kathmandu, Mar. 31 - Prime Minister Pushpa Kamal Dahal ‘Prachanda’ Tuesday met with investors interested in Nepal’s hydropower sector, Tuesday.

Prachanda visited Oslo-based Statkraft and SN Power and learnt about Norwegian hydropower experiences and the potential for cooperation between Nepal and Norway in the sector.

"Nepal has a vast hydropower potential, and SN Power wants to be a partner in developing this," said Øistein Andresen, CEO of SN Power.

Andresen said that the Nepalese Prime Minister highlighted investment in hydropower as the main priority for his administration, and the goal was to develop 10,000 MW of hydropower by 2020. "To reach this ambitious goal, they (Nepalese) need foreign investors and partners."

Øistein Andresen said, "We believe Nepal will succeed in developing their hydropower potential, but we have to recognize that this will take time. In Norway, we spent several decades, and so will Nepal. Nepal can play a role as a swing producer in the region, especially towards India, which is dependent on energy from coal. This is the same role Norway is playing towards Europe."

The Nepalese delegation commented that Nepal today could be compared to where Norway was when starting to develop hydropower in 1905. Norway had just gained independence, was one of the poorest counties in Europe, and needed foreign capital. Nepal is coming out of a civil war and is striving to build a stable democracy and economic prosperity.
SN Power’s Executive Vice President for South Asia, Nadia Sood, stressed how Nepal formed an important part of SN Power’s global growth strategy, while at the same time the country had challenges to address in order to accommodate for large investments.
"Although Nepal is striving towards political stability, the current investment climate in Nepal is still quite uncertain. Nepal is on its way to formalizing a number of regulations and policies that will be critical to ensure that it can continue to attract foreign investors. We look forward to following this development and will certainly be keeping a close eye on this as we continue to consider our investment strategy."
The delegation welcomed SN Power as an investor and would work to ensure that the investment climate is improved in a manner that makes investments of the magnitude SN Power is planning feasible.
The meetings at Statkraft’s headquarters was followed by a visit to Solbergfoss hydropower plant.

SN Power owns 57 per cent of Himal Power Limited, which operates the 60 MW Khimti Hydropower plant. Khimti contributes 10% of the total installed generation capacity in Nepal.

SN Power also has survey licences to develop the Kirne hydropower plant (50 MW) and the Tamakoshi plants (approx. 600 MW). These projects are in the feasibility stage.

Director of SN Power, Nepal, Dr, Sandip Shah said that his company would invest US$ 90 million on Kirne and US$1.5 billion on Tamakoshi III.

Meanwhile, PM ‘Prachanda’, will visit Finland on 1-3 April at the invitation of Prime Minister Matti Vanhanen. The Prime Ministers will meet on Thursday. Prime Minister Dahal will also have meetings with President Tarja Halonen and Minister for Foreign Trade and Development Paavo Väyrynen.

The topics of discussion will include the status of the peace process in Nepal and the drafting of the new constitution, the relations between Finland and Nepal, and the development co-operation between the countries. Other topics on the agenda will be international issues of current interest, such as the economic crisis, the climate change and energy issues.

During his visit, Prime Minister Dahal will also meet Pekka Hallberg, President of the Supreme Administrative Court, and Pertti Salolainen, Chairman of the Parliamentary Foreign Affairs Committee. In addition, Prime Minister Dahal will make visits to Finnish companies and institutions.

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