Kathmandu. The 100-point agenda under governance reforms unveiled by the government last Friday has prioritized the energy and water resources sector. According to the decision of the Council of Ministers on Friday, various important steps have been taken with the aim of accelerating the development of the energy sector.

The government plans to prepare power export strategy within a month, remove obstacles in generation, transmission, distribution and export of electricity and take decision on pending power purchase agreement (PPA) and license within 180 days. The government also aims to implement the power export strategy focusing on high-value markets, especially during evening peak hours.

Likewise, a roadmap for structural reforms of Nepal Electricity Authority (NEA) would be prepared and implementation process would be forwarded immediately. The agenda also includes a policy to develop a multidimensional financial structure that incorporates public, private, foreign and diaspora investment to ensure long-term financial resources in the energy sector.

The private sector has taken this initiative of the government positively. Independent Power Producers’ Association of Nepal (IPPAN) President Ganesh Karki said the government’s goal of making energy sector a major basis for economic transformation has enthused the investors. According to him, the decision to open the PPA, which has been stalled for a long time, within 180 days is expected to move the project forward. According to him, the policy of expanding private sector’s participation in transmission, distribution and export along with production, would help resolve the structural problems. It is also believed that the commitment to prepare energy export strategy at the earliest would help expand energy trade.

IPPAN welcomes Nepal Electricity Authority’s plan to carry out structural reforms, strengthen industrial safety mechanism and develop multidimensional investment structure for long-term financial resource management.

Similarly, an integrated mechanism under the leadership of the Office of the Prime Minister and Council of Ministers will be formed to end the lack of coordination seen in the drinking water and sanitation sectors. An integrated drinking water coordination taskforce will be formed comprising Kathmandu Upatyaka Khanepani Limited, Nepal Water Supply Corporation and the Department of Water Supply and Sewerage Management, which will submit improvement proposals within 30 days.

The government has also put forward a plan to remove the encroachment seen in the protected watershed area of Fewa Lake in Pokhara, rehabilitate it and implement programmes for climate change adaptation within three months. Likewise, preparations are underway to table the bill related to urban development and waste management to the Council of Ministers within two months.