May 2: The government has not insured the hydropower projects it has constructed so far. Due to which, the private sector is also being insensitive regarding this issue.

However, the hydropower promoters have now realized the need of insurance due to the heavy damages caused by the devastating earthquake two years ago.

The private sector is now attracted towards insurance assuming unexpected damages of tens of millions of rupees caused by natural disasters. But most of the private sector hydropower projects have insured only after generating electricity.

According to Bir Bikram Rayamajhi, CEO of Rastriya Beema Company, there are very few companies which are interested in insurance. “It is important to insure at the very time of construction of the project,” he said.

While developing hydropower projects, construction phase is regarded as a sensitive stage. Sanjeev Neupane, Managing Director of Api Power Company says there is no clear policy regarding the basis for which insurance can be done. “The size, investment and capacity of hydropower projects are different,” he said, adding, “The implementation will be easy if the policy clearly mentions the insurance amount according to its size.”

However, Rayamajhi says that a company can opt for insurance as per its own interest. All kinds of damages can be fulfilled by insurance in hydropower projects, he added.

The Insurance Company has already issued Rs 3.5 million to Chilime Hydropower Project for the damage caused on its administrative building by April 25, 2015 earthquake. Nevertheless, he informed that no other companies have claimed for insurance as yet.

Likewise, Uttar Kumar Shrestha, CEO of Butwal Power Company (BPC) says that the insurance has provisions that damages caused by fire, floods and landslides and earthquakes are fulfilled by insurance companies, but the general understanding is the opposite. He said the promoters only insure projects for formality. He further added, “Therefore, there is a need to make people aware about the reality.”