Investment Board Nepal has decided to Statkraft Holding Singapore Pvt Ltd to exit from Tamakoshi 3 hydropower project.

The Norwegian company had said it was quitting the 650-megawatt project due to lack of viable power off-take option, lower demand and electricity price forecasts, and insufficient transmission capacity for power evacuation, among other reasons.

IBN board meeting chaired by Prime Minister KP Sharma Oli also decided to work out possible modality for development of the project in public private partnership model or any other suitable model within three months.

The Norwegian company had announced its official exit on January 13.

“The company has invested US$ 1.08 million for feasibility study, technical updates and Environment Impact Assessment of the project. It has handed over all the documents to the government,” Sandip Shah, Statkraft's country director, said.

Likewise, the meeting also has decided to seek reasons from IBN and Ministry of Energy behind delay in signing joint investment agreement between

Nepal Electricity Authority (NEA) and China Three Gorges to develop West Seti Project.  NEA's dilly-dallying over signing the agreement has affected work of the mega project.

Likewise, the board has asked IBN to work on a project for developing and operating mono rail in Kathmandu Valley. IBN has been asked to submit a proposal for the project in the next cabinet meeting.