Seventy-five percent of the shares of Butwal Power Company (BPC) is open for sale once again as part of the move to privatise the company. Bidding had been cancelled in December last year after one of the bidders pulled out citing irregular circumstances about the entire process.

Interested companies can bid until November after which the government will begin evaluating the technical proposals. Another 12 percent of the shares will be offered to BPC employees (at special rates) and to the general public within a year after privatisation is complete. The government plans to retain 10 percent of the shares.

BPC, which became a limited liability company in 1997, employs 300 people and owns and manages two hydropower stations that generate a total of 17 megawatts. It also owns 15 percent of Himal Power Limited, which owns and operates the 60 MW Khimti hydropower project. The government owns 96.1 percent of BPC shares.

Of the two foreign bidders in the earlier round,Independent Power Company, a British/ American party, withdrew its offer alleging the government of favouring Interkraft, its Norwegian rival. IPC had offered US$ 10 million for 75 percent shares while Interkraft had said it would pay US$ 8.25 million, adding that it would offer more if the government agreed to an advance Power Purchase Agreement to be effective from 2001. Both companies had two powerful local business lobbies as local partners.