Government sign Final PDA with Chinese firm for 135 MW Manang Marshyangdi Hydro


The government on Sunday signed a project development agreement with a Nepal-China joint venture power developer to construct a $322 million project under the build, own, operate, and transfer modality.

The 135 MW Manang Marsyangdi Hydro-electric Project (MMHEP) is located on the Marsyangdi River in Manang district of Gandaki Province of Nepal. The Project area lies in Annapurna Conservation Area (ACAP).

The project will be constructed by Manang Marshyangdi Hydropower Pvt. Ltd., BPC and three Chinese companies (SCIG International Limited, Zhecheng International Investment Company Limited and QIEC International Company Limited Hong Kong) will invest in SCIG have set up SCIG International Nepal Hydro Joint Development Company Private Limited to invest in hydropower. Nepali company will hold a 20 percent stake in the equity of the project, according to the officials.

The project will be constructed by the joint venture—Manang Marsyangdi Hydropower Company.

Madhu Prasad Bhetuwal, joint Secretary at the Energy Ministry and Uttar Kumar Shrestha from Manang Marsyangdi Hydropower Company, signed the project development agreement on behalf of their respective organisations in Kathmandu on Sunday.

The project will generate 766.6 GW hours of energy annually.

On the occasion, Dinesh Kumar Ghimire, secretary of the Energy Ministry, urged the company to complete the project on time.

Under the build, own, operate, and transfer modality, the energy production licence has been issued for 35 years, beginning in December 2018.

In March 2020, Nepal Electricity Authority signed the power purchase agreement with the company.

The project development agreement includes subjects like project inspection, permission to use the water, royalty and taxes, use of Nepali resources, generating employment and skill growth, environmental and social development, and risk management among others.

The agreement states that the project-affected locals will get a 10 percent share in the project.

The SCIG International Nepal Hydro Joint Development Co. Pvt. Ltd, the joint venture of the Chinese and Nepali companies, is also preparing to develop Manang Marsyangdi Hydroelectric Project (135 MW) and Upper Marsyangdi-2 Hydropower Project (327 MW) on the same river.