March 22, 2021
Kathmandu: Nepal Electricity Authority formally signed the Power Purchase Agreement with Manang Marshyangdi HPP (135 MW) marking the key milestone for the Project which is invested and developed by Sichuan Investment Group with Nepali partner Butwal Power Company. This Project aims to start the construction work within 1 year.
The signing of the PPA agreement for this project marks the initial achievements of Sichuan Investment Group in Nepal market, and has a major demonstration and benchmarking effect on Sichuan Investment Group’s implementation of the “One Belt and One Road” strategy, and will effectively lead foreign investment in Nepal.
The project has set a number of “first” records-the first foreign PPA project approved for signing after Nepal’s power policy adjustment, the first project approved and signed by the newly formed Electricity Regulatory Commission, and the first public hearing to determine the price of electricity sold. This project is also to be first for signing a power purchase agreement under the hedge fund new guideline.
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.
The company is owned by 19.5 percent of BPC and the remaining 79.5 percent by Chinese. The project is estimated to cost Rs. 33.37 billion. The feasibility study has shown that the project will generate an average of 759.48 million units of electricity annually.
BPC has also entered into an agreement with China to bring in more than Rs 200 billion in foreign investment from China to generate 1,000 MW of electricity in Nepal. The target is to generate additional 1,000 MW of electricity in the next five years through the holding company.
