Lamjung, October 15

Works on the proposed Ngadi Hydropower Project is all set to start from mid-December. The 30 megawatts project located in Bahundada, Lamjung is being developed by Ngadi Hydropower Limited, a subsidiary of Butwal Power Company.

“Though the Power Purchase Agreement had been signed long ago, work on the project had not begun as the company had to resolve other internal matters,” said Chief Executive Officer of the project Uttar Kumar Shrestha, adding, “Nepal Electricity Authority will purchase the power generated from the project at Rs 4.80 during the rainy season and Rs 8.40 during dry season.”

The PPA with NEA was signed about 16 months ago. As per the agreement, the purchase rate will rise by 3 per cent per annum for eight years. The PPA period is of 30 years.

According to Project Chief Uttam Amatya, the estimated cost of the run-of-the-river project is around $ 59 million. “As we’ve completed financial closure, construction of the project will start in two months or so,” he said, adding that six banks led by the Everest Bank are investing some Rs 4.40 billion in the project.

“As for now, we’re in the last phase of selecting a contractor. Once the selection process gets over in a month, we will begin construction,” said CEO Shrestha, adding that the company has spent around Rs 250 million in infrastructure development in the project affected area.

The project so far has built a bailey bridge over the Marshyangdi river, acquired necessary land for the project, and constructed 8 km access road to the project site.

“We’ve so far purchased 300 ropanis of land for the project and are in the process of acquiring an additional 60 ropanis,” said Project Administration Officer Basudev Gadtaula.

As per the plan, the project will have a dam built in the Ngadi River and a 4 km tunnel constructed to channel water from the dam site in Bahunedanda-2, Naiche to the power house to be built in Bahunedanda-7. The company aims to complete the project by the end of 2019.

Butwal Power Company, a major investor of the project, has the largest 97.6 per cent stake in the project to be built under the BOOT model.