Economic Calendar

Thursday, December 18, 2008

Nepal Declares Power Crisis, Cuts Electricity by 10 Hours a Day

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By Michael Heath

Dec. 18 (Bloomberg) -- Nepal’s Maoist-led government declared a national power emergency and said consumers will face electricity cuts of as much as 10 hours a day.

The Himalayan nation will experience cuts for 63 hours a week, up from 45 hours before, Nepalnews.com reported. The Cabinet met late yesterday and agreed to look into building power plants to try to meet the electricity shortfall.

Water levels in Nepal’s mountain rivers have dropped, reducing the generation capacity of the nation’s hydroelectric plants, according to the report.

Nepal is among the world’s 50 least-developed nations, according to the United Nations, and about a third of its 26.4 million people live below the poverty line.

The Communist Party of Nepal (Maoist) waged a decade-long insurgency until a 2006 peace accord and went on to win most seats in general elections in April.

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net.




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