Enron Invited For Negotiations

The present coalition government has decided to send an invitation letter to Enron Renewable Energy Corporation, a multinational company for preliminary negations on Karnali-Chisapani project. Enron had submitted a proposal of developing 10800 mw Karnali-Chisapani project and 402 mw Arun 3 project worth over 9 billion US dollars. Enron has aimed to export power both to India and China. Enron holds business influences in China and India, as the company has a huge amount of investment in various fields in India and China.

The government has now decided to invite Enron because other companies approached by the government showed no interest. According to the Enron proposal of last January, the company had earmarked 870 billion dollars to develop Arun 3, and two billion dollars to construct a power transmission line to Xian of south western China. During last NC-RPP coalition in January, Enron had submitted its proposal to the then prime minister Sher Bahadur Deuba. Deuba, so far, was keen to provide the project to Enron. But the then water resource minister Pashupati Sumsher Rana differed with Deuba's interest. He suggested for approaching other companies too for better opportunities.

It is learnt that Rana had made contact with Nepalese ambassador to the United States, Dr. Bhek Bahadur Thapa for approaching their companies interested on Karnali-Chisapani project. However an American company had visited Nepal after an effort of Thapa, but, during that time the RPP-NC coalition had already collapsed and Lokendra Bahadur Chand led RPP-UML government was in power. The representative of the other company could not meet Chand who had recently become the Prime Minister.

Department of State 1999:

U.S. Dept. of State - IIP: The United States and China

TEXT: GORE, ZHU ANNOUNCE ENVIRONMENTAL AGREEMENTS
(Emissions trading, technology exports, investment covered)
Washington -- Vice President Al Gore and Chinese Premier Zhu Rongji closed the Second Session of the U.S.-China Policy Forum on Environment and Development with a series of agreements that will help open Chinese markets to U.S. environmental technology, expand U.S. investment in the Chinese energy sector, and take several steps toward reducing greenhouse gas emissions in China.
In an announcement released April 9, the Vice President said: "To meet the global environmental challenge, we must all act together. Today's agreements between the United States and China are a step in the right direction."
Following is the official White House text of the announcement:
(begin text)

THE WHITE HOUSE
Office of the Vice President
For Immediate Release
Friday, April 9, 1999
VICE PRESIDENT GORE AND PREMIER ZHU RONGJI ANNOUNCE
ENVIRONMENTAL AGREEMENTS AT U.S.-CHINA POLICY FORUM ON
ENVIRONMENT AND DEVELOPMENT
U.S.-Chinese Environmental Cooperation Highlighted with Agreements on Emissions Trading, U.S. Exports of Environmental Technology, and U.S. investment in China's Energy Sector
Washington, DC -- Vice President Al Gore and Chinese Premier Zhu Rongji today at the close of the Second Session of the U.S.-China Policy Forum on Environment and Development announced a series of agreements that will help open Chinese markets to U.S. environmental technology, expand U.S. investment in the Chinese energy sector, and take several steps toward reducing greenhouse gas emissions in China.
"As we count down the time to the 21st century in days, not years, more and more of our challenges are threats all nations face together, and no nation can solve on its own," Vice President Gore said. "Nothing illustrates this better than the environment."
"To meet the global environmental challenge, we must all act together. Today's agreements between the United States and China are a step in the right direction."
In an agreement that will accelerate the export of U.S. environmental technology to China, the U.S. Export-Import Bank, the Department of Energy, the China Development Bank, and China's State Development Planning Commission have signed A Memorandum of Understanding on a $100 Million Clean Energy Program. By funding the sale of U.S. environmental technology to China, this program will accelerate the deployment of clean U.S. technologies in the area of energy efficiency, renewable energy, and pollution reduction.
In an agreement that will move China closer to a system of emissions trading, the EPA and China's State Environmental Protection Administration signed a Statement of Intent on development of a Sulfur Dioxide (S02) Emissions Trading Feasibility Study. The agreement calls for developing a study to test the effectiveness of emissions trading in China as a market-based approach to reducing greenhouse gas emissions. This approach -- which uses market mechanisms to create financial rewards for reducing pollution -- has been successful in cutting pollution at low cost in the United States.
In an agreement that paves the way for the first-ever foreign investment in an on-shore natural gas pipeline in China, Enron Corporation signed a Memorandum of Understanding on a Natural Gas Pipeline Project with China National Petroleum Corporation for the joint development of a natural gas pipeline in south central China. This pipeline would represent an important piece of China's natural gas infrastructure and help offer a cleaner alternative to fossil fuels.
The pipeline agreement came out of U.S.-China discussions on natural gas policy at the Oil and Gas Industry Forum, held under the auspices of the Energy and Environment Cooperation Initiative (EECI). The EECI is an outgrowth of the U.S.-China Forum and was established in 1997 by former Secretary of Energy Federico Pena and State Planning Commission Vice Chairman Zeng Peiyan to focus U.S.-China cooperation at the intersection of energy and environmental science, technology, and trade.
The U.S. and Chinese delegations also concluded agreements involving energy efficiency, air quality management, cleaner air and cleaner energy technology, and the impact of pollution on children's health.
The U.S.-China Policy Forum on Environment and Development was founded by Vice President Gore and then-Premier Li Peng in March 1997 to expand cooperation and intensify dialogue between the U.S. and China on issues related to sustainable development, particularly protection of the global environment. The Forum is divided into four working groups -- co-chaired by representatives from various agencies -- which act as coordinating mechanisms for activities taking place under the Forum, as well as those outside its structure.
The Energy Policy Working Group discusses issues of energy generation, and major energy-using activities in the industrial, transportation, building, and utility sectors; 2) the Environmental Policy Working Group consults and coordinates on multilateral and bilateral environmental issues, such as climate change, forestry, pollution prevention mid control, waste management, and health impact of pollution; 3) Science for Sustainable Development studies the application of science and technology to understand and foster sustainable development; and 4) Commercial Cooperation promotes trade in energy, environment, agriculture, and other aspects of sustainable development.
Working groups schedule their own meetings and projects throughout the year. The full Forum gathers in plenary session when the two countries deem necessary to report to the Vice President and Premier on the progress of projects and to discuss further cooperation.
(end text)

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