Sunday, September 25, 2016

After Upper Marshyangdi 'A', Sinohydro eyes Upper Kaligandagi

After successfully completing 50-MW Upper Marshyangdi 'A' Hydropower Project, SinoHydro Resources Ltd has set its sights on 65-MW Upper Kali Gandaki Hydropower Project.
Talks for power purchase agreement (PPA) of the Upper Kali Gandaki project, which will be based in Myagdi district, is underway. Environment Impact Assessment (EIA) study of the project has already been completed, according to higher official of the SinoHydro.
The generating license of the project is held by Global Trade Link. It is learnt that SinoHydro will form a joint venture with Global Trade Link to develop the project.
“We are planning to build more hydropower projects in Nepal as the country is rich in water resources,” chairman of the Sino Hydro Resources Ltd – a Chinese government undertaking – Sheng Yuming said.
Sharing his experience in hydropower development, Yuming sad four factors – time, safety, quality and cost – are very important for hydropower projects.
However, the Upper Marshyangdi 'A', which was delayed by 10 months due to last years' earthquake and the economic blockade – has witnessed cost escalation of 8 per cent from the initial estimation of Rs 16 billion. The project went on floor on 2012.
Criticised for delaying the projects like Kulekhani I, the Chinese government undertaking has completed the project with the private sector almost on time.
Comparing the investment scenario in the countries like Pakistan and Lao PDR where SinoHydro has invested in power generation, Yuming said that Nepal is comparatively a safer destination for investment.
Power generated by Upper Marshyangdi 'A' is being connected to national grid on Monday.
SinoHydro Resources owns 90 per cent stakes in SinoHydro-Sagarmatha Power Company, the developer of Upper Marshyangdi 'A'.
Energy minister Janardan Sharma and ambassador of the People's Republic of China to Nepal, Wu Chuntai, are jointly inaugurating the power plant on Monday. The 25-MW will be added to the national grid on Monday and remaining 25-MW will be added in a couple of days, according to the SinoHydro-Sagarmatha Power Company.
Upper Marshyangdi 'A' will be the largest project, in terms of installed capacity, to start generation after the Madhya Marsyangdi (70 MW) which started generation in 2008.
A 20- km transmission line built as per the contingency plan by the developer itself connects the power generated by Upper Marshyangdi 'A' to the substation of Madhya Marsyangdi in Beshisahar of Lamjung.
Upper Marshyangdi 'A' is the first hydropower project built with Chinese foreign direct investment (FDI) and financed by China Exim Bank.

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