Kathmandu, Mar. 8: The United States government sponsored conference on energy in South Asia concluded in the capital today, that the organisers said was aimed at complementing President Bill Clinton’s visit to the region scheduled for later this month. The participating private companies demanded private sector friendly policies without delay for the increment of private sector participation in the “huge and untapped” South Asian energy sector.

Prime Minister Krishna Prasad Bhattarai in his inaugural speech Tuesday said that Nepal gives high priority to power development and encourages the participation of private sector, both national and international, in the power sector. He also assured of more liberal attitude towards international companies to attract foreign investment in the sector.

(RSS adds: There is a big potential for the development of hydropower in South Asia, and if it could be harnessed, the economic condition of the region would improve a lot resulting in the improvement of national economy, he added.

In the present age of economic liberalisation and globalisation, private sector has been encouraged to make investment in the energy sector, Prime Minister Bhattarai said, adding that the government is active in launching new power projects.

Stating that after the implementation of big projects such as Pancheswar and Karnali Chisapani, the hydropower capacity of Nepal would rise tremendously, Prime Minister Bhattarai expressed the conviction that the conference being held in Nepal would help in harnessing the abundant water resources of the country.)

“Nepal is in the process of reforming the power sector so as to increase participatiuon of the private sector,” assured Bishwo Nath Sapkota, the Secretary with Water Resources Ministry.

According to the US officials here regional co-operation in the energy sector will be a major point of discussion during the President Clinton’s visit to India and Bangladesh slated for March 20-25, therefore, the conference hold “special meanings” for the region. The President’s visit is expected to boost US economic ties with the region.

Representatives of nearly 40 US companies and agencies involved in various projects in the region and 60 regional companies participated the two-day coference.

“If serious US energy companies are not involved in South Asia, then they are making a serious mistake,” J. Joseph Grandmaison, Director of the US Trade and Development Agency told during the inauguration of the conference on Tuesday. “The energy is here and market is here. It is just the policy that is delayed.”

South Asia accommodates nearly one-fourth of the global population, but its people consume only 3.8 per cent of the world’s total energy. Only 40 per cent of South Asians have access to reliable electricity. The percentage is mere 15 per cent for Nepal.

Nepal’s total hydroelectricity potentiality is calculated to stand at 83,000 mw, while production of about 40,000 mw is studied to be economically viable. Presently Nepal produces 253 mw of electricity that is only 0.3 per cent of the total potentiality. According to the official data demand for electricity in Nepal increasing by 8 to 10 per cent annually, meaning yearly 40 to 50 mw of additional electricity is needed to meet the demand.