Ghising urged the company management to immediately determine and submit the investment modalities through a financial analysis of the project.
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Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kulman Ghising has said that the investment modalities for the 1,200 MW Budhi Gandaki Reservoir Hydropower Project, a national pride, should be finalized immediately.
Minister Ghising, while discussing the progress of the project with Chiranjivi Chataunt, Secretary of the Ministry of Energy, Water Resources and Irrigation, and officials of the promoter Budhi Gandaki Company Limited, said that the project should not be kept in the status quo. He said that an immediate decision should be taken on the investment modality.
Ghising urged the company management to immediately decide on the investment modality through the financial analysis of the project and submit it.
‘If the expenses incurred so far for land acquisition, compensation for land use in forest areas and trees to be felled, customs duty and value added tax are given, the project can become feasible for investment. If arrangements can be made to deposit half of the infrastructure tax levied on petroleum fuel imports directly into the project account, there will be no problem in investment. The amount can be spent. Money for the project is also collected by issuing ordinary shares of the Nepal Electricity Authority to the general public,’ he said.
‘Prepare and submit the investment modality immediately so that the project will have 50 percent equity and 50 percent debt and the Government of Nepal will not be burdened,’ said Minister Ghising.
According to the report prepared by the consultant in 2015, the estimated cost of the project was 2.59 billion US dollars. When reviewed at current prices, the estimated cost has reached 2.77 billion US dollars (about 332 billion rupees). The construction period of the project will be 8 years.
