6.9.1 Hydropower project, transmission system and distribution system established by the private sector shall not be nationalized during the valid period of the license.
6.9.2 Exchange facilities shall be provided to the foreign person, firm or company making investment for the power generation, transmission or distribution project to be constructed by the private sector to repatriate the following amount from Nepal of Nepal in foreign currency at the prevailing exchange rate:-
(a) Amount necessary for repayment of the principal and interest of the approved loan borrowed in foreign currency for the hydropower project.
(b) If the electricity has been sold within Nepal. the amount earned as profit or dividend in lieu of the foreign investment.
(c) In the case of an export-oriented power project, cent per cent of the payment of principal and the interest on the loan, profit and dividend may be repatriated in the currency in which the income has been received in Nepal by selling the electricity.
(d) The amount received from the sale of the share of foreign investment as a whole or part thereof may be repatriated in the same currency in which the share has been sold. Provided, however, that if the share has been sold in Nepalese currency, foreign currency exchange facility shall be available only for seventy- five per cent thereof.
(e) Other facilities to the foreign investor in relation to the foreign currency shall be as provided for in the prevailing Foreign Investment and Technology Transfer Act.
6.9.3 If there occurs a geological and hydrological condition that is adverse than was anticipated at the time of granting the hydropower generation license or a force majeure event occurs, provisions shall be made to extend the term of the generation license up to a period not exceeding five years as compensation, by evaluating the nature of risk and its impacts in order to mitigate the impacts resulting from such risk.
6.9.4 The customs and value-added tax facilities equivalent to which a new project may be entitled under this Policy shall also be provided for upgrading the capacity of the electricity generation centre or for carrying out the repair and maintenance required because of exigency or natural calamity.
6.9.5 A licensed company, corporate body or a person may arrange for the security of the project on its own or may request Government of Nepal for the same. Government of Nepal may, if it thinks necessary, arrange for security of such a project. In case where Government of Nepal has made such security arrangement, the licensed company, corporate body or person has to bear the actual cost of such security arrangement.
6.9.6 If, after the project license has been granted, the licensed company, corporate body or person suffers from any loss or damage because of the failure of Government of Nepal to carry out the duties required to be carried out by it, as stipulated in the license and in accordance with this Policy, issues related to such loss or damage shall be as set out in the agreement.
6.9.7 In cases where Government of Nepal is required to bear the compensation pursuant to paragraph 6.9.6 above, Government of Nepal may extend the license period in lieu of such compensation amount by evaluating the license period in terms of money.
6.9.8 Government of Nepal shall not revoke the license in contravention of the terms stipulated in the licensee once the license is granted. If the license is revoked contrary to paragraph 6.9.8, Government of Nepal shall bear compensation for the actual loss resulted therefrom. Provided, however, that in cases where the licensed company, corporate body or individual fails to carry out the activities in consonance with the progress, goal, quality standard as well as other terms set forth in the license, Government of Nepal may revoke the license; and in such cases, Government of Nepal shall not bear any kind of compensation.
6.9.9 Government of Nepal shall, prior to revocation of the license on the basis of the terms as referred to in the license, provide an opportunity to the licensed company, corporate body or person to defend, by providing prior information in writing.
6.9.10 Clear provisions shall be made in respect of the procedures on providing opportunity for defense pursuant to paragraph 6.9.9 above, the warning or direction to be issued after defense and the action to be taken in the event of subsequent violation of the terms of the license.
6.9.11 Settlement of disputes shall be governed by the agreement or by the prevailing law on foreign investment and technology transfer.
6.9.12 No additional or new tax, charge, tariff or governmental revenue under whatever title shall be levied on the existing hydropower project except those levied in accordance with the agreement entered at the time of issuance of the project license. In respect of the license issued or agreement entered into prior to the commencement of this Policy, it shall be as stipulated in the license or the agreement.