Nepal's political, policy environment for FDI in power sector encouraging: experts

Source: Xinhua| 2018-01-28 23:34:12|Editor: Yurou
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KATHMANDU, Jan. 28 (Xinhua) -- Experts and industry insiders of Nepal's power sector said on Sunday that Nepal's policies with regard to hydropower development have been friendlier to international investors but the Nepali government agencies have been slow to implement them.

During the thematic discussions at the Nepal Power Investment Summit-2018 being held in Kathmandu, they said the Nepali government's policy of purchasing power in U.S. dollar term, flexibility in removing land ceiling for big hydro projects and availability of technical human resources are notable developments required for attracting foreign investment.

Prateek Man Singh Pradhan, one of the vice presidents of Butwal Power Company, said the government's policy of purchasing power in the U.S. dollar was one of the very encouraging policy reforms initiated in the power sector.

N. L. Sharma, chairman of India's state-owned Satluj Jal Vidyut Nigam named hassles during the land accusation and clearance of forest and environment as some of the factors distracting FDI in Nepal's energy sector.

Joseph Hoess, director of Dragon Capital, Vietnam, said hassles that any foreign investors have to go through while doing ground works could discourage foreign investment in Nepal.

"We are the private sector who looks maximized return within short period of time, but here in Nepal we have to invest more than five years doing basis things, getting approvals and clearances," he said.

Nepal's installed capacity of developed hydropower projects so far is less than 1000MW. But the Himalayan country rich in water resources offers opportunity for international investors to harness its hydropower potential.

The three-day summit organized by Energy Development Council, a body representing Nepal's energy sector, has brought together Nepali policy makers, domestic power developers, multinational companies related to power sectors, international financiers and experts to discuss on investment opportunities in Nepal's power sector and find financiers for the "ready to go" projects.