KATHMANDU, May 24: Hydroelectricity Investment and Development Company Limited (HIDCL), a public enterprise that was formed to address energy crisis in the country by injecting investment in the hydropower sector, is mulling over investing in Upper Dordi ´A´ hydropower project.
The project, which is estimated to cost Rs 4 billion, is being developed by Liberty Energy Hydropower Company Limited (LEHCL). The HIDCL has formed a risk assessment cell (RAC) to conduct a study on whether to invest in the project.
According to a source at the Ministry of Energy (MoE), the four-member RAC has already completed field study of the Lamjung-based project.
Keshav Dhwaj Adhikari, joint secretary at the MoE, leads the RAC. The other members of the RAC are Sagar Raj Gautam, senior divisional engineer at the Department of Electricity Development (DoED); Churna Bahadur Oli from DoED; and Sanjeev Baral, senior divisional engineer at the MoE.
Kush Kumar Joshi, chairman of LEHCL, said the HIDCL has agreed in principle to invest in the project. “Similarly, Nepal Investment Bank Limited (NIBL) is leading a consortium of banks to invest in the project. State-owned Nepal Bank Limited has also agreed to invest,” Joshi said. He further added that NIDC Development Bank, Global Bank and Grameen Bikas Bank are also in the consortium.
However, the HIDCL, which has already invested Rs 1 in Myagdi-based Mistri Khola (42 MW) hydropower project, has not taken any official decision about investing in the Upper Dordi ´A´ project.
“The HIDCL will decide on the issue only after the RAC gives its suggestion,” the source said. “The HIDCL does not have its own Act regarding investment.”
Nepal Rastra Bank (NRB), the central monetary authority, has allowed it to make investment through commercial banks until it develop its investment regulation.
The project has already signed power purchase agreement (PPA) with Nepal Electricity Authority (NEA). As per the agreement, NEA will purchase power generated by it at Rs 4.8 per unit in the wet season and Rs 8.4 per unit in the dry season.
“We hope to get power generation license from the DoED soon,” Joshi said.
The electricity generated from the proposed run-of-the river type project will be connected to the national power grid through the proposed Udipur Hub near Middle Marsyangdi Hydropower Project.
According to the company, it would need to build about 12 km long transmission line to connect energy generated from the project to the national grid.
“The project has payback period of be five years and seven months,” according to information posted on LEHCL´s web portal.
The project will start generation within three years of the start of construction works.
Source : Republica
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Regarding Upper Dordi ‘A’ Hydroelectric Project
Proposed Upper Dordi ‘A’ Hydroelectric Project, is a run-of-river type project with design discharge of 9.8m3/s and annual energy generation capacity of 138.398 GWh. The gross head and rated net head of the project are 325.56m and 299.31 m. The power generated from this project will be connected to proposed Udipur Hub near Middle Marsyangdi Hydropower Project. The length of proposed transmission line is about 12.0 km.
Total cost of the proposed Project is NRs. 3,490 million (excluding IDC). The financial cost of the project is NRs. 3,962 millions. Payback periods for the proposed project have been found to be 5 years and 7 months. The internal rate of return (IRR) of the project is found to be 17.20%. Similarly, the benefit cost ratio (B/C Ratio) of the project has been computed to be 1.54. The construction period of the project has been estimated 3.0 years.
With number of above mentioned positive aspects of profitability and ease of implementation; company is confident to complete the project timely and effectively.
Source : Company Website
