Kathmandu, January 16

An engineering, procurement and construction (EPC) contract has been signed today between Nyadi Hydropower Ltd and Zhejiang Hydropower Construction & Installation Co Ltd, China for construction of civil, hydro-mechanical and electro-mechanical works of 30 MW Nyadi Hydropower Project in Nyadi River located at Bahundanda VDC of Lamjung district.

The contract was signed by Rajib Rajbhandari, chairman of Nyadi Hydropower, and Liu Guoqing, chairman of Zhejiang, as per statement issued by Nyadi Hydropower Ltd. "Construction works will start from February, with construction period of around 38 months, and aim to bring project into commercial operation by April 2020."

Nyadi Hydropower Ltd is a joint venture between Butwal Power Ltd and Lamjung Electricity Development Co Ltd with shares being offered to the project locals and the general public.

The consortium of banks and financial institutions led by Everest Bank Ltd and co-led by Nabil Bank Ltd and Global IME Bank Ltd, with participation of Himalayan Bank Ltd, Sunrise Bank Ltd and Hydroelectricity Investment and Development Co Ltd will finance the project, reads the statement.

Land acquisition, construction of access road, power purchase agreement, appointment of supervision consultant and the financial closure have been completed.

In this project, the water will be diverted from Nyadi River to underground settling basin and will be conveyed through around four-kilometre long tunnel and about 750-metre long penstock pipe to powerhouse to generate electricity.The power generated from the project (168 GWh per annum) will be sold to Nepal Electricity Authority.