Kathmandu, September 22, 2024 – Final works are underway to start electricity production within a month from the 102 MW Middle Bhotekoshi Hydropower Project, which is under construction in Sindhupalchok, led by Chilime Hydropower Company Ltd., a subsidiary of the Nepal Electricity Authority (NEA).
In Barhabise Municipality-5, a 4-kilometer transmission line is being constructed from the switchyard of the project’s powerhouse to the NEA’s Barhabise substation in the same municipality (Ward 3). Two kilometers of the transmission line have been completed after reaching an agreement with the local community, and the stringing of the 220 kV single circuit transmission line will be completed before Dashain.
During a meeting on August 30 between Energy, Water Resources, and Irrigation Minister Deepak Khadka, State Minister Purna Bahadur Tamang, Federal Member of Parliament for Sindhupalchok-2 Mohan Bahadur Basnet, Ministry Joint Secretary Sandeep Kumar Dev, NEA Managing Director Kulman Ghising, Barhabise Municipality Mayor Balkrishna Basnet, Ward Chairs, Assistant Chief District Officer, the Chairperson of the Chamber of Commerce, and project representatives, an agreement was reached to resume the construction of the transmission line after a 14-month disruption.
The construction of the dam area is complete, and testing with water has already been carried out. The main 7.124-meter tunnel of the project was completed, and water filling tests were initiated in Phalgun of last year. During the testing, water leakage was detected in a 1,400-meter section of the main tunnel, which has since been repaired. The tunnel is now being cleaned, and water will be refilled in 15 days.
The civil construction of the powerhouse has been completed, and electromechanical equipment installation and dry testing are in progress. Once water flows through the tunnel, wet testing of the equipment will begin. The remaining works are expected to be completed within a month, aiming to start electricity production.
On Saturday, a team comprising State Minister for Energy Purna Bahadur Tamang, NEA Managing Director Kulman Ghising, and others inspected the project site and instructed the project management, consultants, and contractors to ensure electricity generation within a month. Minister Tamang directed the project staff to expedite the remaining work and stay on-site until completion.
Once electricity production begins at the Middle Bhotekoshi Hydropower Project, the power will be used to charge the Barhabise substation, which has already been completed. The Barhabise substation is a 220/132 kV facility.
A temporary alternative arrangement has been made to transmit electricity from Middle Bhotekoshi. Power will be transmitted from the 200 kV transmission line to the Barhabise substation, where it will be stepped down to 132 kV and supplied through the 132 kV transmission line. The 132 kV transmission line, constructed by Shree Shree Hydropower, the promoter of the 22 MW Upper Chaku A Hydropower Project, will be connected to the Barhabise substation. This work is expected to be completed before Dashain.
The electricity generated from Middle Bhotekoshi will be integrated into the national grid through the Lamusangu substation. The temporary alternative arrangement will remain in place until the Khimti-Barhabise or Barhabise-Kathmandu transmission lines are completed. Once these lines are operational, power will be transmitted through them.
Construction of the Middle Bhotekoshi project was delayed due to various factors, including the Jure landslide, the major earthquake, disruptions at the Nepal-India border, floods in the Bhotekoshi River, the COVID-19 pandemic, and poor performance by the contractor.
When a loan agreement was signed with the Employees Provident Fund (EPF), the estimated cost of the project, excluding interest during construction, was NPR 12.28 billion. The revised estimated cost, excluding interest during construction, has increased to NPR 16 billion. Fifty percent of the project’s initial cost was financed through equity, and the remaining fifty percent through debt.
The company’s issued capital is divided among 51% institutional shareholders, including the NEA with 10%, Chilime Hydropower Company Ltd. with 37%, Sindhupalchok Hydropower Co. Ltd. with 1%, Nepal Araniko Hydropower Co. Ltd. with 1%, Sindhu Investment Company Pvt. Ltd. with 1%, and Sindhu Bhotekoshi Hydropower Ltd. with 1%. The remaining 49% is held by public shareholders, including 19.5% by employees of the EPF, 3.5% by employees of the promoter organizations, 1% by employees of the lender institutions, 10% by residents of Sindhupalchok, and 15% by the general public. The company has already raised funds through the issuance of ordinary shares, and it currently has 1.075 million public investors.
The project will generate 542.2 million units of electricity annually. The NEA will purchase the electricity at a rate of NPR 8.40 per unit during the winter and NPR 4.80 per unit during the rainy season, generating annual revenue of NPR 2.8 billion for the company.
