Monday, October 21, 2019

Austria to invest in two hydropower projects

Austria has expressed interest in assisting Nepal technically and financially to construct two projects – 635-megawatt (MW) Dudh Koshi Storage Hydroelectric Project and 100-MW Tamakoshi V project – with a total installed capacity of 735-MW.
During the first Energy Mechanism meeting between Nepal and Austria today, joint secretary at the Ministry of Energy, Water Resources and Irrigation Prabin Aryal and adviser of the deputy minister for transport, innovation and technology of Austria Sonja Steeler signed the agreement, on behalf of their respective governments.
Austrian officials are also keen on working together to build the Dudh Koshi and Tamakoshi V projects and help enhance the technical capacity of the Nepal Electricity Authority (NEA), according to the Ministry.
The Energy Mechanism meeting is held in Kathmandu today, five months after the energy ministers of the two countries signed an accord on technological assistance in hydroelectric infrastructure in Vienna in May. Earlier, Nepal and Austria had signed a cooperation agreement on infrastructure and technology in Austria on May 22. At that time, both the governments had agreed to invest in Nepal’s transportation and hydropower sectors.
Currently, detailed project report (DPR) preparation of Dudhkoshi reservoir project’s is underway while the DPR of Tamakoshi V has already been completed and its construction work is expected to begin soon, according to the Ministry that expects an exchange of technology and experience through the joint mechanism. Austria is the first European country to sign a deal with Nepal on assisting the energy sector.
The social impact of the Dudh Koshi project is expected to be less as only 162 households will be severely impacted, while 1,150 households – located along the border of Okhaldhunga and Khotang districts – will be partially affected, according to the Environmental Impact Assessment (EIA) report that also added that Nepal Electricity Authority (NEA) is collecting necessary suggestions from local levels, affected municipalities/rural municipalities, forest users groups, various organisations, political parties and locals for the EIA report.
The Dudhkoshi project will be spread over an area of 19.8-sq-km in Khotang and Okhaldhunga districts. Likewise, the reservoir dam will be spread across 17-km in Dudhkoshi, 8-km in Rawa Khola and 5.5-km in Thotne Khola.
A joint venture between Italy and Japan – ELC Electro Consult of Italy and NEWJWC Inc of Japan – has been carrying out the DPR of the reservoir project.
The NEA, which plans to build the plant through a subsidiary company, expects the design and preparatory studies to be concluded by December.
Estimated to cost Rs 220 billion ($1.523 billion excluding taxes and other financial costs), the project plans to use tunnel boring machine to dig the tunnel of the project. The feasibility study for the Dudh Koshi Storage Hydroelectric Project recommends building a main underground powerhouse near the Sunkoshi River with four units generating 150-MW each and a small 35-MW hydro unit, near the toe of the dam. The reservoir type project will produce 3,443 gigawatt hours per year, higher than the expected annual output of 3,383 gigawatt hours of the proposed Budhi Gandaki scheme.
Likewise, the Asian Infrastructure Investment Bank (AIIB) has agreed to provide finance worth Rs 15 billion for Tamakoshi V project that will be developed at an estimated cost of $150 million. The project is being developed as a cascade project of 456-MW Upper Tamakoshi Hydropower Project.

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