Chilime Awaits PPA, Financial Closure for New Hydropower Ventures

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Kathmandu — Chilime Hydropower Company Limited, one of Nepal’s leading hydropower developers, is preparing to further expand its generation capacity by launching the construction of several new projects. The company is moving ahead with the development process of three major hydropower projects that have already received generation licenses from the Department of Electricity Development.

The new projects being prepared by Chilime include the 87 MW Seti River-3 Semi-Reservoir Hydropower Project, the 81 MW Budhigandaki Prok Hydropower Project, and the 45 MW Chumchet Syarkhola Hydropower Project. In addition, the company is also continuing the feasibility study of the 91 MW Budhigandaki Hydropower Project.

Seti River-3: Awaiting Financial Closure and PPA

Chilime has prioritized the 87 MW Seti River-3 project as the access road to the project site has already been completed. Discussions are underway with various banks and financial institutions for financial management, with Hydroelectricity Investment and Development Company Limited expressing interest in providing long-term loans while coordinating with other institutions.

However, the company stated that financial closure cannot be finalized until a Power Purchase Agreement (PPA) is signed with Nepal Electricity Authority. As a result, negotiations for the PPA have been intensified. Chilime also plans to jointly construct the transmission line for the project in collaboration with other companies.

Budhigandaki Prok and Syarkhola: Construction to Begin After Road Access

According to the company, immediate construction of the 81 MW Budhigandaki Prok and 45 MW Chumchet Syarkhola hydropower projects remains difficult due to the lack of access roads and PPAs. At present, road construction in the region is progressing rapidly under the leadership of the Nepali Army. The company said physical construction work on both projects will begin as soon as road connectivity is established and PPAs are signed with the NEA.

Ongoing Production From Existing and Subsidiary Projects

While preparing for new projects, Chilime has continued successful commercial power generation from its existing and subsidiary hydropower projects.

Chilime Hydropower Project (22.1 MW):
The parent project, constructed by the company itself, has been generating electricity regularly for many years.

Sanjen and Rasuwagadhi Projects:
Electricity generated from the Upper Sanjen (14.8 MW), Sanjen (42.5 MW), Rasuwagadhi (111 MW), and Middle Bhotekoshi (102 MW) hydropower projects — all completed under Chilime’s leadership — is currently connected to the national transmission grid and being supplied to the Nepal Electricity Authority.

With the completion of these new projects, Chilime Hydropower’s total generation capacity is expected to increase significantly, further strengthening its contribution to Nepal’s energy sector.

 

Urjasanchar