GMR plans to export power from its Nepal plants to Bangladesh

IFC is expected to pick up 10% stake in both the hydel projects, besides acting as lead lender

Infra major GMR Group, which is setting up two hydel power projects in Nepal, is in discussions with Bangladesh government among others to export power from the Himalayan country.

"Initial discussions were initiated for tying up sale of power with Government of Bangladesh, Power Trading Company (PTC) / NTPC / Vidyut Vyapar Nigam Limited (NVVN)," GMR said in its annual report.

It added, the International Finance Corporation (IFC), a World Bank arm, is expected to pick up 10 per cent stake in both the projects, besides acting as lead lender.

The company is in the process of setting up 600 mw Upper Marsyangdi-2 Hydroelectric Power Project on river Marsyangdi in Lamjung and Manang districts and 900 mw Upper Karnali Hydroelectric project located on river Karnali in Dailekh, Surkhet and Achham districts of Nepal.

Joint Development Agreement (JDA) was executed with International Finance Corporation (IFC) for the transmission line project on December 22, 2014 and another JDA with IFC is already in place for Upper Marsyangdi-2 project, it said.

"IFC proposes to invest in the project as a co-developer with 10 per cent equity under 'Infra Ventures' route and also act as lead lender and lead arranger for it. It is exploring for Chinese financing and various discussions were held with Chinese banks and EPC contractors in China," GMR said.

With regard to GMR Upper Karnali Hydro Power Public Limited (GUKPL) - (900 MW), it said Project Development Agreement (PDA) negotiations were completed and executed on September 19, 2014 for generation and transmission line projects with Nepal government.

Post execution of PDA, the project land has been identified and joint verification for government and forest land and cadastral mapping among others are under progress, it said.

"Upper Karnali is in the process of rerouting the transmission line as per the directions of Ministry of Energy, Government of Nepal," the annual report said.