File Photo: Upper Bhote Koshi HEP Intake

The 45-megawatt Upper Bhotekoshi Hydropower Project, which had been halted for about a month due to the so-called “Genji movement,” is set to resume operations.

The project will resume operations following a tripartite meeting-initiated by the Chief District Officer of Sindhupalchok-which included representatives from the project and the Gen-Z group, and resulted in an agreement resolving the share dispute. After the agreement on Sunday, the Bhotekoshi power house has come back into operation.

Bhotekoshi Power Company has agreed to act as a guarantor for a bank loan to Bhotekoshi Genji Public Investment Public Limited, a company formed by locals from the project-affected area, so they can acquire 10 percent of the project’s shares. It has been agreed that the shares demanded by the local group under the name of “Genji Youth” will be provided to them.

According to the agreement, the second party (Bhotekoshi Company) will provide 10 percent of the shares through a public company established by including local residents. The public company will apply for a bank loan to purchase the shares, and Bhotekoshi Company will act as the guarantor for that loan. Furthermore, it has been arranged that if the project operates regularly and distributes dividends within the next year, the loan and interest will be repaid from those dividends.

It has been agreed that, after making the locals shareholders in this way, the formal process for distributing the 10 percent shares will be initiated.

Since September 10 , a group active under the name “Gen-Z” had halted electricity production from the project and threatened not to allow its operation until they were given 10 percent free shares. As a result, the project remained completely shut down for 28 days, causing a loss of more than 270 million rupees in revenue, according to Bhotekoshi Power Company’s Chief Executive Officer, Bikram Ratna Shrestha.

When operating at full capacity, the project generates electricity worth about 9.8 million rupees per day.

The agreement was signed by Phurpa Sherpa, Chairperson of Gen-Z Public Investment Public Limited, and Bishwomohan Karmacharya, Secretary of Bhotekoshi Power Company.

Earlier, representatives of the Independent Power Producers’ Association of Nepal (IPPAN) had met with Home Minister Om Prakash Aryal, requesting him to ensure that hydropower projects would not be disrupted by anarchic activities. Although the Home Minister had instructed the Armed Police Force and Nepal Police to take action, the dispute could not be resolved, and ultimately, an agreement was reached through local mediation.

The project has been operating under a 25-year generation license and a 25-year power purchase agreement with the Nepal Electricity Authority (NEA). It sells electricity at a rate of Rs. 1.6256 per unit, which is among the lowest rates in Nepal.

The company is currently owned and managed by one of Nepal’s leading business groups. Siddhartha Sumsher Rana, Chairman of the Sipradi Group, serves as its Executive Chairman. The board and executive leadership include experienced professionals.

BiznessNews