November 20, 2008

PTC signs PPA with ADB promoted power project in Nepal

Project today reported that Power Trading Corporation and Australian company Snowy Mountain Corporation have entered into a PPA for Asian Development Bank promoted 750 MW West Seti Hydroelectric Power Project in Nepal.

As per the report, a private Nepal party will hold 10% stake, ADB 15%, Snowy Mountain Corporation 25%, a Chinese company 15%, an equal stake by IL&FS and the rest by the Nepal government.

The EPC project has been bagged by a Chinese company. The project will be 187x 4 units with an expected generation of around 3,251 million units per year.

A total of 135 kilometer of transmission line from the project site up to the Indo to Nepal border will be laid from the Nepal side and another 100 kilometer to Atamanda near Bareilly on the Indian side. PTC, IL&FS and Power Grid are likely to take equity in this transmission line. India will buy 90% of the power under the agreement's terms and conditions and Nepal will get 10% free power.

The reported added that ADB will take up the financial approval of the project by August 2008 after which formal work on the project will start. In India, the likely beneficiaries of the project will be Uttar Pradesh, Haryana, Punjab and Delhi.