Kathmandu — The 106-megawatt Jagdulla Hydropower Project contract has been successfully finalized.
In the tender issued by Jagdulla Hydropower Company Limited, both Sino Hydro and JCE/ANK JV passed the technical evaluation. Following the opening of financial proposals, JCE/ANK JV, with the lowest bid, was awarded the contract. An agreement has been signed between Jagdulla Hydropower and JCE/ANK JV, and the contract was officially finalized on Monday.
Sino Hydro submitted a bid of Rs 13.33 billion, while JCE/ANK JV submitted Rs 12.18 billion, following the standard procedure of awarding the contract to the lowest bidder.
The project achieved financial closure in the first week of Jestha last year, led by Nabil Bank. Nabil Bank, leading the consortium, invested Rs 4.4 billion. Other members of the consortium include Hydro Electricity Investment and Development Company Limited (HIDCL), Employees Provident Fund, Laxmi Sunrise, and Everest Bank. HIDCL will invest Rs 4 billion, the Employees Provident Fund Rs 4 billion, Laxmi Sunrise Bank Rs 2 billion, and Everest Bank Rs 1.5 billion.
The construction of the project is estimated at Rs 23 billion, with around Rs 16 billion raised as debt and Rs 7 billion as equity (shares). The project is expected to begin production five years after construction starts.
Located in Dolpa, the project is a major step for the development of the Karnali region. The company is also planning the 120-megawatt Jagdulla ‘A’ Hydropower Project, which will be a cascade of the existing Jagdulla Hydropower Project. Studies are currently underway for this project as well. Both initiatives are set to significantly contribute to the growth and energy infrastructure of Karnali.
Source: NepalPurbadhar