MASSIVE HIKE IN LPG PROTESTED Kathmandu, 13 Feb.: Activist students of the opposition NC and UML Wednesday disrupted the movement of traffic for one hour in front of Valley campuses protesting the overnight Rs,630 per LPG hike , Protests in the Valley lasted one hou.r Protests were reported from other parts of the country. nnnn NC CENTRAL COMMITTEE MEET CONTONUES Kathmandu, 13 Feb.: NC central committee meet continued for the second day Wednesday to formulate official party policy on an election government. Committee members continued to express their views of the issue. Majority members are against a Maoist proposal to appoint Chief Justice Khil raj Regnitoheadan election government proposed by Maoists. nnnn IBA BOARD TO REVISE PDA TEMPLATE Kathmandu, 13 Feb.:Amid hectic parleys for the formation of a Chief Justice-led neutral election government, the government is set to endorse a revised power development agreement ( PDA ) template for hydropower projects on Wednesday, Ashok Thapa writes in The Kathmandu Post.. A board meeting of the Investment Board (IB) scheduled for Wednesday is expected to authorise the IB to initiate negotiations with investors as per the PDA template. “One of the agendas of the meeting is to allow the IB to go ahead with negotiations with investors,” said an IB source. “The IB has come up with a revised PDA draft, which will include comments from developers, and which the Prime Minister is expected to give his stamp of approval.” Developers have been complaining about sharing of benefits and subtle supervisions of the projects incorporated in the PDA template that was developed with support from the International Finance Corporation (IFC) under the World Bank. Though an IB meeting chaired by PM Baburam Bhattarai had endorsed the current PDA template in mid June, the IB was unable to begin negotiations with power developers after foreign developers expressed reluctance to sign the pact, terming the PDA template ‘not bankable.’ The government is preparing to sign the PDA with developers of five hydropower projects, including GMR Energy, Satluj Jal Vidyut Nigam, and SN Power. The GMR is developing Upper Karnali (900 MW) and Upper Marsyangdi (600 MW), while Satlaj is developing Arun 3 (600MW). Likewise, Norwegian Company SN Power is developing the 880MW Tamakoshi 3, while CWE Investment of China is developing the West Seti Hydropower Project (750MW). “Most of the developers have demanded sovereign guarantee (guarantee of all types of security) from the government,” said the source. “All depends on the political leadership.” The government also plans to assign its own engineers to supervise the projects to ensure that quality work has been done as they are handed over to the government after 30 years. The life of hydropower projects is usually 100 years on an average. The Energy Ministry had committed to wrap up PDA work within 18 months, while granting them survey licences. Same is the case with SN Power that is developing Tamakoshi 3. While signing the MoU for the Upper Karnali, GMR had agreed to provide 27 percent free equity and 12 percent free energy to the government. Likewise, Satluj had agreed to give 21.9 percent free energy from Arun 3. The PDA endorsement and the PM’s approval to begin the negotiations will open doors to bring in $ 6 billion in foreign direct investment, according to the source. The IB source said that Wednesday’s meeting will also give impetus to three other mega projects, including the Kathmandu Metro Rail Service, Kathmandu Waste Management Project and a Fertilizer Plant. “The meeting will also focus on these projects and is expected to take a decision to conduct a feasibility study on the Kathmandu Waste Management Project and the Fertilizer Plant and to conduct a DPR for the Kathmandu Metro Railway Project,” added the source. Nnnn SILTATION IN KULEKHANI CUTS POWER PRODUCTION Kathmandu, 13 Feb.: The power generation capacity of the Kulekhani Hydroelectricity Project, the only storage-type plant in the country, has been found decreasing in recent times, thanks to the silt deposited at the bottom of the artificial lake, The Kathmandu Post writes from Hetauda.. The drop in water storage capacity of the 92 megawatt project has reduced power generation by 63.3 million units in recent times, according to Rabindra Mahaseth, chief of the Kulekhani I Hydroelectricity Project. Kulekhani I (60MW) and Kulekhani II (32 MW) generate power from the water stored in the reservoir and contribute to the national grid. The reduced capacity of the reservoir to hold water is likely to affect the overall power supply system, particularly the load-shedding hours in the Kathmandu valley and the surrounding areas. The water stored in the reservoir used to contribute to generate around 210.1 million units of power. However, only 140 million units are generated from the plants now. "Every year, the water sources feeding the reservoir bring along boulders, stones, mud and sand which get deposited at the bottom of the reservoir," said Mahaseth, adding, "The deposition of silt and other substances that are brought by the water movement from the sources is reducing the water holding capacity of the reservoir." During the initial years of operation, the Kulekhani reservoir had the capacity to hold around 850.3 million cubic metres water, which has dropped to 590.9 cubic metres. It is estimated that the bottom surface of the reservoir has risen 13 meters above the sea level in last three decades. The reservoir has the capacity to store water up to 1,530 metres ASL. nnnn