IBN approves investment of USD 820 million for two hydropower projects

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KATHMANDU, June 21: The government has approved investment worth  USD 820 million to construct two hydropower projects.

According to the Office of the Investment Board, Nepal (IBN), its 47th board meeting led by Prime Minister KP Oli on Tuesday gave the go-ahead to construct 762 MW Tamor Storage Hydroelectricity Project and 139.2 MW Manang-Marsyangdi Hydropower Project. The board meeting has approved an estimated investment of US $ 540 million for Tamor and Rs 33.41 billion for Manang-Marsyangdi projects.

The Tamor Storage Project will be constructed by Power Construction Corporation of China (Power China). Similarly, the Manang-Marsyangdi Hydropower Project will be constructed by a joint venture of three Chinese companies — SCIG International Limited, Xinchen International Investment and QYEC International — and Butwal Power Company Limited of Nepal.

In January 2020, the IBN and Power Construction Corporation of China (Power China) inked an agreement to construct a reservoir-based project in Tamor River.

During Chinese President Xi Jinping’s two-day state visit to Nepal in October 2019, the IBN and Ministry of Energy, Water Resources and Irrigation (MoEWRI) awarded the contract to Power China to build the project under the public-private-partnership (PPP) model.

The government had showcased the project at the second Investment Summit held on March 29 and 30, 2019. The Tamor Storage Project will cover parts of Panchthar, Taplejung, Terhathum and Sankhuwasabha districts.

Likewise, the Manang-Marsyangdi Hydroelectric Project will be built on the Mangdi River in Chame and Nasong of Manang.  Last March, the peaking run-of-river type project signed a power purchase agreement with Nepal Electricity Authority.