PPA disagreement could make West Seti return
BHIM GAUTAM
Saturday, Jan 20, 2018
151

The West Seti Hydropower project's fate seems to be hanging on uncertainty as the Chinese developer and Nepal Electricity Authority (NEA) has not been able to finalize the Power Purchasing Agreement (PPA) rate.
China Three Gorges International Corporation could be the second Chinese firm to return after China’s Gezhouba Group's agreement being scrapped by the government claiming that the deal is not transparent.
The government had scrapped Budhigandaki Hydropower deal signed with China’s Gezhouba Group,
The Chinese firm has expressed its dissatisfaction over the power purchase rate policy proposed by the Investment Board Nepal (IBN), said a source near to the developer.
The company has also written a letter to the IBN last month informing that it is not willing to go ahead with the project under the current rate proposed by the board. “If Nepal Government or NEA does not like to revise the Power Purchase Rate policy to improve the economic conditions of the project, the project will become economically infeasible according to the result we carefully calculated,” the letter reads, adding that it becomes no necessary to consider any next work plan or action.
The IBN is also responding soon. "The IBN has also made up its mind to cancel the deal," an official at the Board said, adding that the IBN is planning to write a reply letter clearing asking the Chinese developer to either go ahead or it will scrap the deal.