IBN, SN Power hold PDA talks

The two-day negotiation talks on project development agreement (PDA) between the government and SN Power, a Norwegian power developer, for Tamakoshi III (650 MW) hydropower project concluded here on Monday.
Officials of the Investment Board Nepal (IBN) said the talks became successful in setting the ground for further discussion. Both the sides have agreed to hold next round of meeting soon, according to a source that attended the meeting.
Radesh Pant, CEO of IBN, had led the government side in the meeting while Dr Sandeep Shah, vice president and country director of SN Power, led the Norwegian firm in the meeting.
The IBN, which was formed around one and half years ago with the aim of facilitating the implementation of large scale projects on a fast track mode, held the discussion based on the PDA template developed with the help of London-based legal consulting firm Herbert Smith.
SN Power is the first power development to sit in PDA negotiation for the development of large scale hydropower projects (above 500 MW).
The PDA negotiation indicates that SN Power is serious about developing the project.
“The project will materialize if the government concludes PDA negotiation with the developer successfully," an official at the Office of the Prime Minister and Council of Minister (OPMCM) told Republica.
The IBN and SN Power signed the project negotiation agreement (PNA) a couple of weeks ago. As per existing rules, PDA talks should be finalized within one and half years of signing the PNA.
SN Power had received survey license of the mega hydropower project in 2007. It has already completed the environment impact assessment (EIA) of the project that is estimated to cost Rs 120 billion.
Meanwhile, the IBN is also trying to finalize PDA with two Indian power developers -- Sutlej Jal Vidyut Nigam and GMR. Sutlej is developing the Arun III (900 MW) project, while GMR is involved with Upper Marsyangdi and Upper Karnali projects.