Chinese firms attending power summit

 Chinese companies have shown little interest for attending the Power Summit scheduled to be held on April 18-19 in Kathmandu, The Kathmandu Post reported citing the event's organiser.

The eighth edition of the power summit is being organised by the Independent Power Producers Association of Nepal (IPPAN). Participation of around 800 delegates from the power sector, including 300 representatives from more than 30 countries is expected at the summit.

IPPAN Vice President Ganesh Karki said, "We have sent invitations through diplomatic missions to foreign companies, including those in China. We have also invited individual companies." He further said, "But no Chinese company nor their representatives have confirmed their participation," according to The Kathmandu Post report.

Ganesh Karki said there were not aware of the exact reason why there is less enthusiasm among the Chinese companies to attend the event, as per the news report. According to IPPAN's office bearers, the participation of Chinese firms used to be high in past.

Ashish Garg, another Vice President of the IPPAN, said that they were not expecting large-scale participation from the Chinese in the summit this year. The IPPAN expects good representation from the Indian companies considering the Indian embassy in Nepal is the country partner for the event.

Indian companies -- Energy Exchange and Manikaran Power Limited -- will be attending the event as the exchange and trading partners, respectively. Nepal and India's cooperation in the power sector has been enhancing while Kathmandu's cooperation with China in the power sector has been minimal, as per the news report.

Indian companies, particularly the state-owned ones, have shown interest in creating mega hydropower projects on Nepal's rivers. In May last year, SJVN Limited and Nepal Electricity Authority (NEA) signed a memorandum of understanding (MOU) to create the 679 megawatt Arun-4 hydropower project, jointly. In addition, it is also creating a 900 MW Arun 3 project, as per the news report.

In August last year, another state-owned Indian company NHPC Limited was given the 750 MW West Seti hydropower project and the 450 MW Seti River 6 project. Earlier, the Three Gorges Corporation of China was given the West Seti Project for its creation, as per the news report.

According to the Nepal-India Joint Vision Statement on Power Sector issued in April last year, the two nations have pledged to cooperate in creating the power projects jointly, developing transmission lines, including cross-border infrastructure and bi-directional power trade.

Nepal has been exporting power to India with the country. Meanwhile, Hydroelectricity Investment and Development Company Ltd (HIDCL) is likely to stop its cooperation with Power China Corporation to build the 762-megawatt Tamor reservoir hydropower project, The Kathmandu Post reported citing a senior official of Investment Board Nepal.

An office bearer of IPPAN said, "With India deciding not to buy electricity from the projects developed with Chinese investment, the Chinese companies might be concerned over market guarantees," according to The Kathmandu Post report Karki said that China has just emerged from a zero-COVID policy might have played a role in their lack of excitement for attending the power summit.