Bernama: World Bank Advises Nepal To Export Power To India: Nov 4, 2006

“If Nepal makes delays in making decisions in constructing new hydro power projects it will be very costly for the country,” Ken Ohashi, World Bank Country Director in Nepal, said in his address at an international seminar on “Powering Nepal: Connecting Markets” here.

Pointing that the private sector can play a vital role in Nepal’s power sector, he said its is high time the country mobilizes necessary resources to export power to India, which can help Nepal boost its economy.

Press Trust of India (PTI) quoted Osahi said the World Bank is prepared to facilitate power transaction between Nepal and India if both the governments request us.

“We can also provide advice on pricing and other technical matters through our expertise to help power dealing in a fair and neutral way,” Ohashi was quoted as saying by the news agency.

Nepal has the potential to generate 83,000 MW hydro power out of which 44,000 MW is economically feasible. However, the country is utilising about 600 MW hydro power, which is less than two per cent of its capacity.

Speaking on the occasion, Finance Minister Ram Sharan Mahat asked both domestic and international private sector investors to invest in the hydropower sector of Nepal.

He assured the government will implement financial sector reforms and introduce investment-friendly rules and regulations and appropriate policies to attract foreign direct investment in hydropower sector.

“Nepal has vast potential to generate hydropower and North India is facing power shortage, so we should go for new projects very soon,” Mahat said.

“We can at least generate 5,000 MW electricity in the next 10-15 years with foreign and domestic investments in the sector,” he said.