Kathmandu, October 24: The Ministry of Energy, Water Resources and Irrigation has issued a survey licence to Nepal Electricity Authority (NEA) for the 1,061-megawatt Upper Arun Hydroelectric Project (HEP).
The peaking run of river power project, situated in the eastern mountainous district of Sankhuwasabha, is fully owned by Nepal Electricity Authority (NEA).
Detailed study of the project is taking place that is being undertaken with a concessional loan from the World Bank. Additionally, the detailed engineering works and environmental impact assessment of the project are also going on.
The World Bank has committed to invest between Rs 400 million to Rs 500 million for the project. In fact, the European Investment Bank, Employee’s Provident Fund and the Citizen Investment Trust, among others, have also agreed to finance the project. The estimated cost of the project stands at Rs 120 billion ($1.20 billion)
The project will manage 30 per cent of equity and the remaining 70 per cent of investment through loans, according to the NEA.
The project is expected to be accomplished in seven years. According to the NEA, the detailed project report and tender documents will be completed by March 2020 and the project will be ready by 2026.
After its completion, the Upper Arun Hydroelectric Project (HEP) will generate 4.47 billion units of electricity annually and 28 per cent of the electricity will be generated in the dry season.
The electricity produced the Upper Arun Hydroelectricity Project will be connected to the national grid through a substation located at Shittalpati of Khadbari Municipality through 40-kilometer-long 400 KV double circuit transmission line. Kulman Ghising, managing director of NEA, said that the project will be high priority as it could well a ‘game-changer” in the country’s power sector.
