Nepal to Begin Construction on 128 MW Hydroelectric Project in 2024

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The construction of the 128 MW Tamor-Mewa hydroelectric project, which has been in discussion for a long time, is set to begin this year.

Spark Hydroelectric Company Limited said that after entering into a Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA), Spark will proceed with the construction of the Tamor-Mewa Hydroelectric Project. According to the PPA, the company has to produce electricity by October 10, 2028. Spark’s President Bhanendra Kumar Limbu said that preparations have been made to lay the foundation stone of the construction from the first week of mid-March this year.

He said that various banks and financial institutions under the leadership of Kumari Bank have committed to invest. According to him, within the next six months, all financial management work will be completed through banks and financial institutions. According to President Limbu, until the task of ensuring the investment commitment of banks and financial institutions is completed, it is planned to mobilize investment from share capital.

Limbu said that the doubt whether the hydroelectric project will be built has now been cleared. “We will get ready to go to the construction site from the month of November,” Limbu said. He informed Republica that the construction work will start from mid-March this year and the project will be completed within the next four years. According to the PPA agreement, the authority will purchase Rs 4.80 per unit during the rainy season and Rs 8.40 per unit during the dry season. The project is anticipated to generate 714.33 million units of electricity annually.

The project is anticipated to generate 619.4 million units of electricity in the rainy season and 91.69 million units of electricity in the dry season. The rainy season lasts from mid-April to mid-December and the dry season lasts from mid-January to mid-March. The project should generate 60 percent of the total energy produced during the rainy season in the dry season and 90 percent in the rainy season. According to Spark, 75 percent of the total cost of the project, which is estimated at Rs 24.32 billion, will be generated from loans from banks and financial institutions and 25 percent from promoters. This project is located in Aathrai Triveni Rural Municipality and Fungling Municipality of Taplejung District. On October 11, 2020, Spark received permission from the Department of Electricity Development to produce 128 megawatts of electricity.

 

Source: Republica