West Seti Hydro

History

1997- Current

  • 11 May 1997: Export Agreement signed between the Government of Nepal (GoN) and WSH
  • 27 June 1997: Project Agreement signed between GoN and WSH to build a 750 MW scheme.
  • 4 December 1997: Asian Development Bank (ADB) expert report to GoN recommends that the GoN takes 10% revenue share in lieu of ‘free energy.’
  • 22 December 1997: Detailed Engineering Report (DER) completed by SMEC International Pty Ltd (SI) and submitted to the GoN.
  • 11 December 1998: Amendment 1 to the Project Agreement confirms GoN decision to take the 10% revenue share option of the Project Agreement.
  • 27 January 1999: GoN approves the DER.
  • 6 August 1999: Environmental Impact Assessment (EIA) completed by SI and submitted to GoN.
  • 1999: Power Trading Corporation of India Ltd. (latterly PTC (India) Ltd.) formed by the GoI to facilitate power purchasing from private suppliers. PTC also mandated to undertake cross- border trading.
  • 31 October 2000: GoN approves the EIA.
  • December 2000: GoI instructs PTC to commence negotiating a Power Purchase Agreement with WSH.
  • 2001 - 2002: On-going negotiations in Thailand, India and Europe with construction contractors, energy off- takers and equity investors.
  • 23 March 2003: SMEC signs MoA with GoN’s MoWR to provide, from a second project, 10% “free power” in lieu of West Seti revenue share.
  • 3 October 2003: Power Purchase Agreement initialed with PTC.
  • 17 May 2004: WSH signs MoA with the China National Machinery and Equipment Import and Export Corporation (CMEC) to negotiate a construction contract
  • December 2004: after a study of six potential sites nominated by GoN in the Gandhak Basin for a second project for the provision of “free power”, SMEC advises GoN of the selection of the Upper Seti project.
  • 13 April 2005: Plant Design Build Contract (PDB) signed with CMEC.
  • March 2006: WSH agrees to offer Power Debentures to Nepalese Financial Institutions (NFIs).
  • 7 April 2006: MOU signed between SMEC Holdings Ltd. and the Asian Development Bank (ADB) for the participation of the ADB in the project.
  • 24 April 2006: WSH sign mandate letter with the ADB.
  • October 2006: Sinosure of China agrees in principle to provide US$400 million of Political Risk Insurance for the Project.
  • November 2006: three Chinese banks, the China EXIM Bank, the Industrial and Commercial Bank and Bank of China, provide Letters of Interest to fund US$900 million of debt for the project.
  • May 2007: GoN agrees to take a 15% equity stake in the project, to be funded by a loan from the ADB.
  • 15 May 2007: first meeting of prospective WSH shareholders - SMEC, GoN, ADB, CMEC, IL&FS of India and NIBL representing the NFIs.
  • 21 May 2007: transmission line tender documents issued to five potential contractors.
  • 5 July 2007: Summary EIA submitted to the ADB.
  • 6 July 2007: second meeting of prospective WSH shareholders in Kathmandu.
  • 31 July 2007: transmission line tender bids received.
  • 21 August 2007: Summary EIA posted on the ADB web-site.
  • 14 December 2007: EIA for Transmission Line submitted to GoN for approval
  • 23 December 2007: Letter from DoED to WSH seeking reversal of the agreement of 11 December 1998 whereby WSH acceded to request for GoN to take 10 % revenue share in lieu of free energy
  • 27 April 2008: Letter of acceptance issued to successful bidder for Transmission Line contract
  • 13 May 2008: Revised Project Agreement submitted to DoED to enable GoN to take 10% free energy from the project
  • 1 June 2008: WSH submits formal applications to DoED for grant of Generations and Transmission Licenses
  • 7 August 2008: 3rd meeting of Prospective shareholders in Kathmandu.