June 5: A study committee formed by Investment Board Nepal (IBN) has recommended constructing the West Seti Reservoir-based Hydro Power Project in Public-Private Partnership (PPP) model.

IBN had formed a committee to study the best modality of the project. The committee has recommended the board to build the project in the PPP model. Prime Minister Sher Bahadur Deuba, who is also the chairman of the board, had hinted at a public event last month that an Indian company would be allowed to build West Seti Hydro Power Project.

However, the study committee chaired by National Planning Commission Vice-Chairman Biswanath Poudel submitted a report to the board with the conclusion that it would be better to build the project in the PPP model. It will be implemented after being passed by the board meeting of IBN.

IBN spokesperson Amrit Lamsal said that the study committee has submitted the report with the conclusion that it would be better to build the West Seti project in the PPP model. He said that the report will be presented at the upcoming board meeting.

“Studies have shown that it would be better to build the project in the PPP model,” he said, adding that if investors and promoters are not attracted, other models can also be considered. “Let's see what the board decides, then the construction work will move forward.”'

The selected promoter company will also be able to review the capacity of the project. Earlier, a study conducted in 1997 had shown the capacity of the project to be 750 MW.

It has been 25 years since the study was conducted. It is estimated that the previously determined production capacity may change during this period due to natural changes.

Therefore, the company selected to build the project could conduct further study and review the capacity, said Lamsal. 

A new study by the board has shown that making the project a semi-reservoir will generate 615 MW of electricity. Spokesperson Lamsal said that the investment would be Rs 150 billion.

This project was first discussed in 1980. At that time, a French company had shown the possibility of constructing a 37 MW capacity project in Baitadi. Ten years later, the government made it a national pride project. In the meantime, various studies were conducted on the project. In the end, the capacity was determined to be 750 MW.

The project was initially undertaken by an Australian company in 1994, which said after almost two decades that it could not proceed ahead with the project.

Then in 2068 BS, it was given to the Chinese company Three Gorges. Later, Three Gorges also withdrew from the project. The project, which has been in limbo since then, is now expected to go into construction.