The Investment Board Nepal (IBN) has approved the estimated investment cost for the 439 MW Betan Karnali Hydroelectric Project.
In its 67th meeting held on Wednesday, the board—chaired by Prime Minister Sushila Karki—endorsed the projected cost of Rs 93.4076 billion for the semi-reservoir-type hydropower project, according to the IBN.
The board has also decided to form a committee to negotiate and finalize the project development agreement. While the detailed project report (DPR) has already been completed, the environmental impact assessment (EIA) is currently in its final stage.
Betan Karnali Sanchaya Karta Hydropower Company Limited holds the license for the feasibility study and project development. Contributors to the Employees’ Provident Fund (EPF) are the major shareholders, owning 40 percent of the paid-up capital, with the EPF allocating this share to its 600,000 depositors.
Of the total project equity, the EPF holds 15 percent, Nepal Electricity Authority 10 percent, and Electricity Production Company Limited 10 percent. Another 13 percent will be raised through the issuance of primary shares to the general public.
Located on the Karnali River near Chaur Amari in Surkhet district, the project was originally expected to begin civil construction by late 2023. However, progress was hindered due to a boundary dispute with the Indian-backed GMR Upper Karnali Hydropower Project.
Despite the delays, over Rs 150 million has already been spent on preparatory work, including engineering studies, the EIA process, expansion of access roads, construction of a test hall, and staff compensation.
Meanwhile, the IBN has approved the draft of the project license for the 669 MW Lower Arun Hydropower Project and authorized its CEO to issue the license. The board had earlier awarded the project to India’s Satluj Jal Vidyut Nigam and approved an investment of Rs 92.68 billion for its development.
The board also decided to forward the draft of the direct agreement for the 900 MW Arun-3 Hydropower Project to the Council of Ministers for final approval. Additionally, the survey license deadline for the 800 MW West Seti Reservoir Hydropower Project has been extended, the IBN stated.
