Kathmandu, 6 Mangsir 2081 (November 22, 2024): The electricity generated by the 111 MW Rasuwagadhi Hydropower Project, constructed under the leadership of Chilime Hydropower Company, a subsidiary of Nepal Electricity Authority (NEA), has been connected to the national transmission line. Located in Gosainkunda Rural Municipality, Rasuwa, the project began test production from one of its three 37 MW units on Wednesday.
During the test run, the project produced 4.2 MW of electricity. Following the successful test, electricity production will gradually increase. According to Chhabi Gaire, Managing Director of Rasuwagadhi Hydropower Company, commercial electricity generation from all units is expected to commence within a month after completing testing and meeting specified standards.
Electricity generated at the powerhouse in Timure (Tatopani) is transmitted through a 10 km, 132 kV transmission line constructed by the project itself. It is connected to the NEA’s 220/132/33 kV substation at Thambuchet, Aamachodingmo Rural Municipality, Rasuwa, and integrated into the national transmission system. From there, the electricity is transmitted via the Chilime–Trishuli and Trishuli–Kathmandu 220 kV transmission lines. The Chilime–Trishuli transmission line was completed and operational since Kartik 21 (November 7).
Electricity from Rasuwagadhi will help manage the electricity demand in Kathmandu Valley during the winter season. As the dry season begins, water flow in the Bhote Koshi River decreases, preventing full-capacity generation at Rasuwagadhi. During winter, the project is expected to generate around 37 MW.
The powerhouse, dam, tunnel, and other civil structures, as well as electromechanical works, were constructed under an Engineering, Procurement, and Construction (EPC) contract with China International Water & Electric Corporation, signed on Poush 30, 2070 (January 5, 2014). The electromechanical works contract was signed with Voith Hydro Pvt. Ltd., India, on Shrawan 15, 2071 (July 31, 2014).
The project faced multiple challenges, including the 2072 earthquake, aftershocks, landslides, logistical issues during the Madhesh movement, continuous landslides along access roads, COVID-19, and flooding during monsoons, which delayed its completion. Although construction was completed by Chaitra (April), commissioning was delayed due to pending work on the Chilime–Trishuli 220 kV transmission line.
The estimated cost of the project, excluding construction period interest, was initially set at NPR 13.68 billion, based on 50% equity and 50% debt financing. However, due to factors like currency depreciation and project delays, the revised cost, excluding interest, increased to NPR 15.18 billion. The final estimated cost, including an anticipated NPR 6 billion in interest during construction, is NPR 18.69 billion.
The company’s equity structure comprises 32.79% from Chilime Hydropower, 18% from NEA, and 0.21% from Rasuwa’s local governments. Employee Provident Fund (EPF) financed the project loan. With extended construction, the debt-to-equity ratio shifted to 60:40.
Additionally, 49% of the company’s shares are public, distributed as follows:
- 15.5% to EPF contributors,
- 4.5% to employees of NEA, Chilime, and Rasuwa’s local governments, as well as EPF staff,
- 10% to project-affected Rasuwa residents, and
- 15% to the general public.
The project is expected to generate 613.875 million units of electricity annually, yielding an annual revenue of NPR 3.25 billion for the company through electricity sales.
