If all goes well, Interkraft Nepal, a consortium of Nepali and Norwegian investors will finally win the majority stakes in Butwal Power Company (BPC) in the next few days. Last week, a proposal submitted by the Privitisation Committee at the Finance Ministry went to the cabinet for final approval. By late Thursday, as we went to press, the council was expected to approve it.

BPC's privatisation has been a saga of red tape, lobby pressure and even Maoist damage to the 12 MW Jhimruk plant earlier this year (see pic). The plant in Pyuthan district suffered a loss of nearly Rs 270 million. The Norwegian government earmarked $3.1 million for repairing it, and the cabinet meeting took on added urgency because the once-extended deadline for this money expires Friday. "Undue delay in the process of privatisation would drive potential investors away as they would find alternative projects for investment elsewhere," said Norwegian official.

BPC is Nepal's biggest privatisation project, and Interkraft Nepal had bid for 75 percent shares of the BPC at Rs 950 million. Its rival, Independent Power Company (IPC) Nepal had offered Rs 866 million. Nepali officials invited Interkraft for negotiations in March this year, but by then the plant was bombed by the Maoists.

Established jointly by the Nepal government and United Mission to Nepal in 1966, Butwal Power Company manages and operates two hydropower stations with a total capacity of 17 MW and owns 14.9 percent of Himal Power Limited. Himal Power is currently owner and operator of the $135 million 60 MW Khimti hydropower project.