Kathmandu, February 21:

At a time when the country is reeling under an acute power shortage, a group of Nepali developers under the initiation of Hydro Solutions today announced launch of Kali Gandaki Gorge Hydropower Project (KGGHP) for domestic consumption.

The 100 MW power project to be built on the border of Mustang and Myagdi districts, is a domestic project led by Nepalis, said Gyanendra Lal Pradhan, chief strategist at the Hydro Solutions. “This is a national initiative to take care of current power shortage. Such initiatives can solve load shedding and help alleviate basic power needs in future.”

“If everything goes as planned, we will start generation by 2012,” Pradhan claimed adding that the construction would start from the beginning of next year. According to him, the installed capacity of the project is 100 MW that can generate about 650 million units of energy annually. Pradhan further said that the technical and environmental study is at an advanced stage and is scheduled to complete by the end of this year.

The project site lies on the way to Beni-Jomsom Road, which is being built by Nepal Army and be completed within this fiscal year. The water from Kali Gandaki River at Ghasa will be delivered to the powerhouse at Dharap of Mustang through a six-km tunnel. The project has a net head of more than 500 metre.

“The high head gained through a relatively short tunnel along with the high discharge available in Kali Gandaki river makes the KGGHP an attractive project,” Pradhan said, adding that easy access to the site has made it more lucrative for the investors. The project will be the first one being promoted by Nepali and for Nepali that can significantly reduce the burden of load shedding and energy crisis, he claimed.

Pradhan claimed that ‘financing is not problem’, as they have already received commitment from local ba-nks, business houses and developers such as Butwal Power Company.