Kathmandu, September 16

The Hydroelectricity Investment and Development Company Ltd (HIDCL) and state-owned Power China Corporation have jointly submitted a project development proposal at the Investment Board Nepal (IBN) to build the 762-megawatt Tamor reservoir project, which will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts.

Prime Minister KP Sharma Oli-led meeting of IBN had shortlisted three companies and sought proposals from Power China, Nebras Power Holding, Qatar and Fuji Electric Company Ltd, Japan on August 1. However, till the final date — September 15 — to submit the power development proposal, only HIDCL-Power China has jointly submitted a proposal.

Maha Prasad Adhikari, chief executive officer at IBN, said they had given the three shortlisted companies until September 15 to submit their proposals and only one has submitted the project development proposal.

The government had showcased the project at the second Investment Summit on March 29 and 30. The project will be developed under Public-Private-Partnership (PPP) model and since only one company has submitted its proposal, it is highly likely to be awarded the development licence.

However, the IBN meeting has yet to formally award the project licence to Power China. During the summit, five companies from China, India, Japan and Qatar had expressed their interest to build the project under PPP model.

Adhikari further said that the government has formed a committee led by Minister for Energy, Water Resource and Irrigation, Barsha Man Pun, to conduct necessary assessment of the proposal and submit it to the IBN. “The IBN will study the HIDCL-Power China proposal and forward it to the IBN, which will finalise the further process.”

As per IBN, the government will acquire necessary land and provide it to the developer. The government will also provide project security. Likewise, it will facilitate in legal approvals/permits, review and monitoring of the project.

Meanwhile, the developer will plan, design, build, finance and operate the facilities during the concession period. Similarly, the project developer will also be responsible for collecting revenue from the project during the concession period.

After the concession period is over, the developer will have to hand over the project to the government.

As per an earlier study, the construction cost of the project has been estimated at $1.21 billion, including interest during construction, finance cost and the 75-kilometre-long 400 kVA double-circuit transmission line

to Inaruwa.