Following pressure from the parliamentarians, the Water Resource State Minister Gyanendra Bahadur Karki has urged domestic investors to come forward to fund 309 MW-strong Upper Tamakosi project.

Even though earlier the government had considered providing this project to foreign investors citing lack of domestic fund, the pressure mounted by MPs and ‘financial attraction’ of the project has led the Water Resource Ministry to change its tone.

Addressing a press meet on Wednesday, Karki said he is hopeful that the Nepal Electricity Authority (NEA) will be able to mobilize domestic resources to build the project. He informed that resources from Citizens’ Investment Fund, Employees Provident Fund, Army Welfare Fund, local commercial banks and financial institutions could be mobilized to build the project.

The Upper Tamakosi project needs Rs 30 billion of investment and is regarded as the most viable project for producing economical electricity and remove load shedding. A study conducted nearly two years ago by Norwegians had shown that the cost of production of its electricity will be 1.6 US cents (Rs 1.12) per unit – way below the average cost of 4 cents per unit in other projects. As a result, MPs from Dolakha district –where the project site is located, have pressed on the NEA to build it by their own resources as they believed that “giving it away to foreign investors would jack up its cost.”

Meanwhile, at the press conference, Minister Karki informed that a few foreign investors had shown interest to develop projects like Upper Karnali (300 MW), Arun III (402 MW) and Budhi Gandaki (600 MW).

All of these projects come under the priority of the government. Two months ago, Tika Dutta Niraula, Secretary at the Ministry of Water Resource, had informed the parliament that the government is working to generate 1000 MW of power in next six years.

He had told the members of Natural Resources Committee at the House of Representatives that the government was engaged in homework to develop three mega projects to generate 1000 MW of electricity in six years. Niraula said the government is studying to develop 402 MW-strong Arun project in the eastern region; 309 MW-strong Upper Tamakosi in the central region; and 300 MW-strong Upper Karnali in the western region.