IBN-SJVN MoU on 679-MW Lower Arun Project

KATHMANDU: On 11th July, Investment Board Nepal (IBN) of Nepal government and SJVN Limited India signed a Memorandum of Understanding (MoU) for issuing survey license for 679 MW Lower Arun Hydro Electric Project to be developed in Sankhuwasabha and Bhojpur districts of Province 1.  The MoU was signed between IBN CEO Mr. Sushil Bhatta and Chairman-Managing Director of SJVN Mr. Nanda Lal Sharma, in presence of Honorable Deputy Prime Minister and Finance Minister Mr. Bishnu Prasad Poudel and Excellency Indian Ambassador to Nepal Mr. Vinay Mohan Kwatra. The total cost of the Picking Run of the River (PRoR) of the project is estimated at USD 1300 million (2017 price rate). The 35th meeting of IBN had decided to showcase the project at Nepal Investment Summit in 2019. The 46th meeting of IBN decided to select the proposal of SJVN Limited India through the international bidding process to develop the project in Build, Own, Operate, and Transfer (BOOT) modality under the Public-Private Partnership approach. The 47th meeting of IBN had approved the draft of the MoU and authorized IBN CEO to sign the MoU and issue a survey license to the project proponent. As per the Terms of Reference (ToR) in the MoU, the developer company is required to submit the Detailed Project Report (DPR) to the Office of the Investment Board (OIBN) and complete the Detailed Project Study within two years from the date of MoU signing. The MoU requires OIBN to facilitate the study.

Speaking at the MoU signing program as the chief guest, Honorable Deputy Prime Minister Mr. Poudel, who is also the Vice-Chairman of IBN Mr. Poudel expressed a belief that the process of project development will be accelerated and assured of necessary support from Nepal government commitment to project developer company. Stating that the MoU will add a new dimension to national development, Mr. Poudel said that the MoU highlighted the commitment of Nepal government to the overall economic development of the country.  ”  I believe that development such crucial projects will greatly help to achieve national aspiration-‘Prosperous Nepal Happy Nepali’.  IBN CEO Mr. Sushil Bhatta said implementation of the Arun-3 Project is smooth due to effective facilitation from OIBN stating that OIBN is ready to render maximum facilitation for Lower Arun Project. Stating that signing the MoU is a milestone in the business relation between India and Nepa, Mr. Bhatta said such a project with zero carbon emission green energy projects will be supportive for a carbon-neutral economy. Mr. Bhatta also said IBN is committed to promoting investment big transformational Public-Private Partnership (PPP) projects and private projects offering necessary facilitation. Chairman-Managing Director of SJVN Limited India Mr. Sharma expressed gratitude to Nepal government for selecting the company to develop the project and expressed willingness to strengthen partnership with Nepal to develop other hydroelectricity projects.  H.E. Indian ambassador to  Nepal Mr. Vinay Mohan Kwatra said the MoU singing is a great event between Nepal and India for the development of hydropower in Nepal. On the occasion Chief Secretary of Nepal government Mr. Shanker Das Bairagi, secretaries of Nepal government, members of IBN and other high-ranking officials of Nepal government, and other officials of SJVN Limited India.

Major Photos of the event