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 construct the 762-megawatt (MW) Tamor reservoir project.
The construction cost of the project has been estimated at $1.21 billion, including interest during construction, finance cost and the 75-km-long 400 kVA double-circuit transmission line to Inaruwa, according to initial study.
Prime Minister KP Sharma Oli-led meeting of the board had shortlisted three companies – Power China, Nebras Power Holding, Qatar and Fuji Electric Company Ltd, Japan – and sought proposals from them on August 1. However, till the deadline of September 15 – yesterday – to submit the power development proposal, only HIDCL-Power China has jointly submitted a proposal. As only one company has submitted its proposal, it is highly likely to be awarded the development licence, IBN chief executive Maha Prasad Adhikari said, adding that that the board had given the three shortlisted companies until September 15 to submit their proposals but only one has submitted the project development proposal.
“The government has, however, 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,” Adhikari said, adding that the committee will study the HIDCL-Power China proposal and forward it to the board to finalise the further process.
According to the board, the government will acquire necessary land and provide it to the developer. “The government will also provide project security,” he said, adding that it will also facilitate in legal approvals, permits, review and monitoring of the project.
Likewise, the developer will plan, design, build, finance and operate the facilities during the concession period. “The project developer will also be responsible for collecting revenue from the project during the concession period,” Adhikari added.
After the concession period is over, the developer will have to hand over the project to the government as others will also do.
The government had showcased the project at the second Investment Summit held on March 29 and 30 in Kathmandu. However, the IBN meeting has yet to formally award the project licence to HIDCL-Power China. During the summit, five companies from China, India, Japan and Qatar had expressed their interest to build the project under PPP model. The project – that lies in Panchthar, Taplejung, Terhathum and Sankhuwasabha districts – will be developed under Public-Private-Partnership (PPP) model.
The construction cost of the project has been estimated at $1.21 billion, including interest during construction, finance cost and the 75-km-long 400 kVA double-circuit transmission line to Inaruwa, according to initial study.
Prime Minister KP Sharma Oli-led meeting of the board had shortlisted three companies – Power China, Nebras Power Holding, Qatar and Fuji Electric Company Ltd, Japan – and sought proposals from them on August 1. However, till the deadline of September 15 – yesterday – to submit the power development proposal, only HIDCL-Power China has jointly submitted a proposal. As only one company has submitted its proposal, it is highly likely to be awarded the development licence, IBN chief executive Maha Prasad Adhikari said, adding that that the board had given the three shortlisted companies until September 15 to submit their proposals but only one has submitted the project development proposal.
“The government has, however, 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,” Adhikari said, adding that the committee will study the HIDCL-Power China proposal and forward it to the board to finalise the further process.
According to the board, the government will acquire necessary land and provide it to the developer. “The government will also provide project security,” he said, adding that it will also facilitate in legal approvals, permits, review and monitoring of the project.
Likewise, the developer will plan, design, build, finance and operate the facilities during the concession period. “The project developer will also be responsible for collecting revenue from the project during the concession period,” Adhikari added.
After the concession period is over, the developer will have to hand over the project to the government as others will also do.
The government had showcased the project at the second Investment Summit held on March 29 and 30 in Kathmandu. However, the IBN meeting has yet to formally award the project licence to HIDCL-Power China. During the summit, five companies from China, India, Japan and Qatar had expressed their interest to build the project under PPP model. The project – that lies in Panchthar, Taplejung, Terhathum and Sankhuwasabha districts – will be developed under Public-Private-Partnership (PPP) model.
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