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termination of PPA of BPCL

Moderators: बिमलमान, Dilbert.

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Moderator
Registered: Jun 2013
Posts: 574
Location: Kathmandu, Nepal
I highly doubt NEA will let the PPA lapse. Those two projects are too important to the national gird.
Member
Registered: Jun 2013
Posts: 1
Hopefully the PPA will be renewed with new rates of Rs.4.80 (wet season, 8 months) and Rs. 8.40 in the dry months (4 Months). If it happens then BPC will be earning more than what it earns today. The chances of non renewal is too remote as BPC continues to hold the generation licence after the termination of the PPA and if it stops generating the electricity there would be total blackout in at least 4-5 districts which would be hard to withstand for the government at the time of energy crisis. So a new PPA with increased rate is eminent.
Member
Registered: Jun 2013
Posts: 42
Buffet Ji, i've already mentioned. Please read the my blog
Member
Registered: Jun 2013
Posts: 42
i've already mentioned. Please read the my blog
Member
Registered: Jun 2013
Posts: 144
What kind of action MOney control jee. Seems you really have news about this project. Please feel free to share with us.
Member
Registered: Jun 2013
Posts: 42
Get ready to see action.
Member
Registered: Jun 2013
Posts: 105
Money Control ji,

Andhi Khola had problem with employees as their salary and perks were slashed by the management and they had shut the project down. Jhimruk was vandalized by the locals and there was heavy damage of project infrastructure and property.

But, I have no idea if there was problem of PPA. May be other friends could enlighten in this regard.

Thank you.
Member
Registered: Jun 2013
Posts: 42
Dear Sharma Ji
I'm telling about Jhimruk and Aandhi Khola Project. Tell about these projects.
Member
Registered: Jun 2013
Posts: 94
Thank you so much Dilbert ji for sharing the information..

This would definitely help me to retain my stake in this company for sometime now.
Member
Registered: Jun 2013
Posts: 105
Money control ji,
Please read the following news item regarding PPA related to Kabeli project of BPCL.

ompany News
BPC refuses to decrease PPA rate for Kabeli-A
Monday - 29th April, 2013 | ResCon

Butwal Power Company (BPC), the developer of the 37.6 MW Kabeli-A Hydropower Project, has refused to revise the power purchase agreement (PPA) for the project’s increased capacity of 7.6 MW.

The Ministry of Energy (MoE), acting upon instructions from the Cabinet, had asked BPC to consider decreasing the PPA rate for its added capacity two weeks ago. The PPA defines the price at which BPC will sell power to the government after the project comes online.

The Cabinet had asked the MoE to renegotiate with BPC for a reduction in the PPA rate after the project was upgraded to 37.6 MW from 30 MW.

Although the MoE and BPC had settled all the issues including the PPA rate while increasing the project’s capacity, the Council of Ministers had told the ministry to arrange a fresh deal. Responding to the ministry’s letter a week ago, BPC said it could not agree on decreasing the PPA rate as all the topics had already been settled.

“The project’s financial health will be affected if the PPA is revised,” BPC wrote to the ministry. “It will make the project unfeasible.” BPC vice-president Prateek Pradhan confirmed that his company had refused to reduce the PPA rate.

A high-level BPC official criticized the MoE for not being able to convince the Cabinet that the deal had been settled and could not be changed. A ministry official admitted the weaknesses of the MoE in not being able to communicate properly with the Cabinet.

A committee led by Dilli Bahadur Singh, joint secretary at the Water and Energy Commission Secretariat, had conducted the negotiations and settled the financial matters including the PPA rate. After the discussions, the PPA rate had been fixed at 6.21 cent per unit.

The Nepal Electricity Authority will pay 60 percent of the bill in US dollars and 40 percent in Nepali rupees as per the accord. The payment in local currency will be calculated on the basis of the exchange rate of the US dollar at the time the contract for the project was awarded.

The government approved the project on Oct 7, 2009 and awarded BPC the contract to build it under the build own operates and transfer (BOOT) model with a 35-year concession period. The government signed the project development agreement with BPC on Jan 31, 2010.

BPC has formed Kabeli Energy Limited, a special purpose vehicle, to build the project. The company has paid Rs 12 million in taxes to the government for project development.


http://www.resconbiz.com/news/pop/news/13656
Moderator
Registered: Jun 2013
Posts: 574
Location: Kathmandu, Nepal
I don't think there are any news of any BPCL PPA. The only argument BPCL has with NEA is NEA asking BPCL to lower their rate for one of the upcoming projects (I forgot which one) and BPCL refusing to do so since an agreement has already been signed long time ago.
Member
Registered: Jun 2013
Posts: 33
Ja paya tai kura nagarnu na ho Money Control JEe. Aba you mean to say that PPA terminate huncha ani BPCL ko renuew Zero huncha hoina?? Yesto ni kai huncha ta. Testo news ayako vaya BPCL ahila 100 authiyo.
Member
Registered: Jun 2013
Posts: 42
I heard PPA is going to terminate end of this FY. That means if not renew PPA may terminate and Revenue 000000. and 0000.
Member
Registered: Jun 2013
Posts: 18
Sorry for replying late Money Control ji. I don't have any information about the termination of PPA agreement of BPCL.





With Regards,
Freak Money
Member
Registered: Jun 2013
Posts: 42
Anyone who know the termination of of PPA of BPCL? Expecting answer from Freaky Money & others

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