Mid-Bhotekoshi Hydel Project set to begin production soon

Kathmandu, September 22 — Final stage work is underway for the 102 MW Middle Bhotekoshi Hydropower Project in Sindhupalchok, led by Chilime Hydropower Company Limited, a subsidiary of Nepal Electricity Authority (NEA), with plans to commence electricity production within a month.

A 4-kilometer transmission line connecting the power station's switchyard in Barhabise Municipality-5 to the NEA's substation in Barhabise Municipality-3 is now two kilometers complete, following local agreement. The construction of the 220 kV single circuit transmission line is expected to be finished before Dashain.

Energy, Water Resources, and Irrigation Minister Deepak Khadka, along with State Minister Purna Bahadur Tamang and other officials, reached an agreement to resolve a 14-month delay in the transmission line construction during a discussion on August 30.

The dam area construction is complete, and water has been tested. The main tunnel, measuring 7.124 meters, was filled with water for testing last Falgun (March) after its completion. Repairs were made to a section of the tunnel where leakage was detected, and cleaning has begun, with plans to refill the tunnel in 15 days.

Civil works at the power station are complete, and electro-mechanical equipment installation and dry testing are ongoing. Weight tests will commence once water flows through the tunnel. The goal is to complete all remaining work within a month to start electricity production.

A team including State Minister Tamang and Executive Director Kulman Ghising inspected the project site on Saturday, instructing management, consultants, and contractors to ensure electricity production begins within a month.

Once electricity generation starts, it will charge the Barhabise substation, which has been completed at a voltage of 220/132 kV.

A temporary alternative arrangement is in place for electricity flow from the Middle Bhotekoshi project. Power will be delivered to the Barhabise substation via a 200 kV transmission line, then stepped down to 132 kV for distribution.

Shivashree Hydropower, the promoter company of the 22 MW Upper Chaku A Hydropower Project, is currently working on the 132 kV transmission line to connect to the Barhabise substation, aiming to complete this before Dashain.

Electricity from the Middle Bhotekoshi will be integrated into the national grid through the Lamjung substation. The temporary arrangement will remain until the Khimti-Barhabise or Barhabise-Kathmandu transmission lines are completed, after which power will flow through these lines.

The project's construction faced delays due to landslides, the major earthquake, border obstructions, floods in the Bhotekoshi River, the COVID-19 pandemic, and poor performance by construction contractors.

The estimated project cost, including interest during the construction period, is NPR 12.833 billion. The updated estimated cost, excluding interest, is NPR 16 million. Initially, 50% of the total cost was financed through equity and 50% through loans.

Of the company’s issued capital, 51% is held by founding shareholders, including 10% by the authority, 37% by Chilime Hydropower Company Limited, and 1% each by Sindhupalchok Hydropower Co. Ltd., Nepal Araniko Hydropower Co. Ltd., Sindhu Investment Company Pvt. Ltd., and Sindhu Bhotekoshi Hydropower Ltd.

49% of the ordinary shares are distributed among various groups, including 19.5% to employee contributors of the Employees' Provident Fund, 3.5% to employees of founding organizations, 1% to lender institution employees, 10% to residents of Sindhupalchok, and 15% to the general public. The company has already raised funds through ordinary share issuance, with 1,075,000 ordinary investors.

The project is expected to generate 542.2 million units of electricity annually. The authority plans to purchase this electricity at NPR 8.40 per unit in winter and NPR 4.80 per unit in the monsoon season, generating an annual revenue of NPR 2.8 billion for the company.