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The Independent Power Producers’ Association, Nepal (IPPAN) has urged the Investment Board Nepal (IBN) to introduce policy and procedural reforms to facilitate investment in large-scale power and infrastructure projects.

A delegation led by IPPAN President Mohan Kumar Dangi met newly appointed IBN Chief Executive Officer Yankee Ukyab to congratulate her and requested a review of the provision that requires all domestically financed projects costing more than NPR 6 billion to be brought under the Board’s jurisdiction.

IPPAN also called for representation of the power sector within the Board, citing the large number of energy projects under its purview. It further urged the government to create an investment-friendly environment for private sector participation in large reservoir-based hydropower projects. The association recommended strengthening the Board’s one-stop service mechanism into an empowered body capable of making decisions, granting approvals, coordinating agencies, monitoring progress, and resolving project-related issues.

The association has also demanded a separate investment and return framework for reservoir and semi-reservoir hydropower projects, long-term power purchase guarantees, scientific determination of capacity and energy tariffs, and mechanisms to manage financing costs during the construction period. IPPAN further proposed extending generation licenses for such projects to at least 50 years, or alternatively, maintaining them for 30 years from the date of commercial operation.

IPPAN suggested making processes related to forests, environmental clearances, land acquisition, transmission infrastructure, and power purchase agreements (PPAs) time-bound and predictable. It also called for clear provisions to manage foreign exchange risks and proposed holding quarterly investment facilitation dialogues with the private sector.

In addition, the association urged the formation of a dedicated facilitation mechanism under the Investment Board to support the reconstruction of hydropower projects damaged by recent disasters.

Responding to the concerns, CEO Ukyab expressed commitment to pursuing policy reforms based on the practical experience and expertise of the private sector.

Jalasarokar