Kathmandu, February 11:

The Employment Provident Fund’s recent offer to invest Rs 12 billion in the 309 MW Upper Tamakoshi Hydro Electricity Project means half a battle won.

The over-excited officials of Nepal Electricity Authority and other bankers should realise that they indeed have miles to go before the 27.44 billion rupees project actually begins to generate hydro-power by the year 2012 or 2013, as targeted now. The two agencies are funding 70 per cent of the project costs and the remaining 30 per cent is to be raised through public shares.

Technical aspects

The Upper Tamakoshi is a run-of-river type power project with daily peaking pondage, based on a feasibility study report submitted by the Norwegian consultants, Norconsult AS, in May 2005. That study has projected the total project cost to the tune of US $340 million, meaning each unit of electricity production would cost 2.6 US Cent.

The headwork site of this project is located at Lamabagar VDC of Dolakha district and powerhouse is proposed at Gongar-5. A 22.5 meter high and 60 meter long dam will be constructed for electricity production in Lamabagar on Tamakoshi River. The length of the

main tunnel will be 7170 meters and “U” shaped diameter will be 5.82m;

likewise the length of Penstock will be 2055m. The project will make use of 820 m gross head with the aim to generate maximum output of 309 MW and average annual energy of 1,737.7 Giga watts per hour.

Apart from this, the project has to construct 28.5 km road from Singati to Lamabagar and upgrade the existing 38 km road from Charikot to Singati. A 33 km long gravel road to reach Singati is under operation now. A total 61.5 km access road and six bridges, are needed to reach the project spot from the district Headquarters. According to the project officials, compensation has been offered to around 90 per cent locals/claimants and there will be no problem during the construction.

Project documents indicate per unit electricity generation cost will be the cheapest, as compared to the per unit production cost of any other project. It is planned that the electricity generated from this project will be linked to the Khimti sub-station through a 47 km long, 220 kV double circuit supply line, linked to 75 km long Khimti-Dhalkebar electricity supply line and to the national grid.

Investment

After making a “historic” agreement with EPF for Rs 12 billion, the project is eyeing other potential financers. As the EPF has decided to invest, Citizen Investment Trust (CIT), different banks as well as Rastriya Beema Sansthan (RBS) also are joining in for the hydel project.

According to the NEA’s Generation Expansion Plan, this project should be completed by 2012 AD to meet Nepal’s future electricity demand. This project has very low specific energy cost and is planned to be implemented under the public-private partnership.

Environment

The Environment Impact Assignment shows very negligible negative impact on the physical environment and a “moderate” impact on biological, social, economic and cultural heritage of the area. A separate EIA for generation and transmission has omdocated many positive impacts on environment, such as, fishery resources at intake pond, land reclamation, flood control at Lamabagar, community development works and increased employment opportunities.

The outstanding features of this project are high head, natural dam, and underground powerhouse, less effects on human settlement. Definitely, construction of hydro electricity project means destruction of what nature has given to us. Still, a balance should be made between construction and conservation.

Project director Mrigendra Bahadur Shrestha said the project is now concentrating on making detail designs ready as soon as possible. “By June, we will have a draft of the detailed engineering design and by August, the final copy of the design should be available. This will make the picture of the project clear and help us decide on which sector we need to concentrate,” he said. Meanwhile, the construction of the remaining part of the road is going on and project officials anticipate minimum hurdles along the way because there is a mechanism in place comprising representatives from the seven political parties.

Locals’ share

Adopting a unique model of development, the project has decided to float 10 per cent of share to the locals of Dolakha districts. A sense of excitement has captured the locals — even those people who do not have money to buy the share will be allowed “invest” by doing manual contribution works.

The project is much hyped because of its plan to let all the residents of Dolakha district take part in this project as shareholders, at least symbolically. Shyam Basnet, the secretary of Upper Tamakoshi Concern Committee, said the project has launched a new model by including the locals in the project. “It has provided us a platform to invest our small amount of savings in this big project. After having invested in the project, the locals will be proud to be a part of it,” he said.

Further plans

The first phase of the project will generate 309 megawatt and, in the next ten years, it will be upgraded to 556 Megawatts. Again, other 100 MW could be added by constructing a 6 km tunnel. “Let the project run in full-fledge and we will start another project out of the same money we will make from this project,” Shrestha said. The Upper Tamakoshi is one of Nepal’s best hydro-electricity project, attractive and unparalleled in terms of costs, the result and environment.

Looking at the gloomy history of Nepal’s hydro electricity development, it will not be wise to count the chickens before they are hatched. Shrestha admits that since the estimation was done half-a-decade ago, a new estimate will be different, but he also adds that the project is not going to cost too much as the preliminary reports have said that the geology of the region is more friendly than projected earlier.