Construction of 40 MW Upper Chameliya Hydropower project starts

 The construction of the 40 megawatt (MW) Upper Chameliya Hydropower project in Darchula district has started. 

The project that will be carried out by Api Power Company will be built with an estimated cost of Rs 7.40 billion, according to the company. “The project is planning to issue rights shares to its stakeholders to secure 30 per cent of the total investment which accounts for Rs 2.22 billion in two phases,” the preee note reads, adding that the company has signed a financing agreement with Himalayan Bank for the financial management for the remaining 70 per cent investment. “A consortium of Employees Provident Fund (EPF), Rastriya Banijya Bank (RBB), Nepal Bank, Nepal Bangladesh Bank and Century Commercial Bank has been prepared to flow loan for an investment of approximately Rs 5.18 billion.”

The company has received approval from the Securities Board of Nepal (Sebon) for the issuance of rights share of Rs 567 million in order to raise the capital from the shareholders for the construction of the project, the press note reads.

The hydel project in Chameliya river that flows through Sudur Pashchim Province, Darchula district, Api Mountain and Marma Rural Municipality will generate 264.1 million units of electricity annually. Of the electricity generated, 30 per cent will be generated in the six months period of winter and the remaining 70 per cent will be generated in the six months period of monsoon, the Api Power Company said, adding that the dam of the project will be constructed at Okhal of Api Himal Rural Municipality and the water from the Chameliya river will be rerouted with the help of a 6-kilometer-long 3.2-meter diameter penstock pipe.

According to the project, a powerhouse will be constructed at Ghattegadh and the generated 40-MW electricity will be brought to Walanch Substation through a 16-kilometer long 132 kV transmission line to connect to the national grid. “The project aims at earning Rs 1.62 billion in the first year by selling electricity and the income will continue to grow at an annual rate of three per cent for eight years.”