IPPAN demands relief for flood-damaged hydel projects
KATHMANDU: Independent Power Producers' Association, Nepal (IPPAN) has demanded a range of relief packages for hydropower projects damaged by floods.
At a meeting with the Minister of Energy, Water Resources and Irrigation, Kul Man Ghising, on Wednesday, IPPAN representatives emphasised that the government should announce a comprehensive relief package to reconstruct flood-damaged projects. A press statement from the ministry said Minister Ghising pledged to seek maximum relief for affected projects and to present solutions for energy projects affected by forest issues at an upcoming cabinet meeting.
IPPAN President Ganesh Karki called for a relief package covering projects damaged by floods on June 15–16, 2023, floods and landslides on various dates in June–August, 2023, floods on September 27–28, 2024, and floods on October 3–4, 2025. He urged measures addressing the revised commercial operation date (RCOD), licence duration, loan restructuring, long-term financing and customs duty exemptions.
IPPAN has demanded that the necessary machinery and equipment for the reconstruction and maintenance of flood-affected projects be allowed to be imported with a 1% customs duty.
The association has also called for the RCOD period of under-construction projects damaged by floods to be extended by three years and for permit validity to be extended by five years, with arrangements made for the restructuring and refinancing of loans for affected projects.
IPPAN urged the government to expedite the issuance of halted initial public offerings and rights issues for flood-affected projects and to declare hydropower projects damaged by natural disasters as crisis-ridden to enable rapid policy responses.
Among IPPAN’s seven demands are provisions for long-term financing for affected projects and the abolition of the automatic conversion of projects to take-and-pay power purchase agreements if they fail to generate electricity in fiscal years 2025/26–2027/28.
Minister Ghising said he would work to secure maximum relief and would present related proposals to the cabinet.
