The government has awarded the 762-megawatt (MW) Tamor hydropower project to a joint venture between a Nepali and Chinese firm.
Hydroelectricity Investment and Development Company Ltd (HIDCL) of Nepal and state-owned Power China Corporation (PCC) will construct the reservoir project on government-to-government (G2G) basis, according to a press note issued by the Ministry of Energy, Water Resources and Irrigation (MoEWRI).
Construction of the Tamor project – that will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts – is expected to start from next fiscal and be completed by 2025, it reads, adding that the Investment Board Nepal (IBN) and Ministry of Energy, Water Resources and Irrigation (MoEWRI) – during Chinese President Xi Jinping’s two-day state visit to Nepal – awarded the contract to HIDCL-Power China to build the project under the public-private-partnership (PPP) model.
After receiving the letter from the board, Power China signed a memorandum of understanding (MoU) on project implementation agreement with HIDCL. The chief executive officer of HIDCL Chhabi Raj Pokharel and vice chairman of Power China Pan Deng Yu today signed the MoU on behalf of their respective organisations.
According to minister for Energy, Water Resources and Irrigation Barsha Man Pun, the government has also signed an agreement with Power China to build the 156-MW Madi multipurpose hydropower project – located in Rolpa district – that is estimated to cost around $39 million, according to an initial study.
The HIDCL and Power China had jointly submitted a project development proposal at the investment board to build both the projects with a share structure of 46:54 per cent, with the Nepali firm investing 46 per cent and Power China investing 54 per cent of the project cost, for the Tamor hydel project. “Likewise, in Madi multipurpose hydropower project, HIDCL will manage 26 per cent and Power China will manage 74 per cent of the total investment.”
On August 1, the board meeting chaired by Prime Minister KP Sharma Oli had shortlisted three companies including Power China, Nebras Power Holding of Qatar and Fuji Electric Company Ltd of Japan and sought proposals from them. However, only HIDCL-Power China submitted a proposal – jointly with Nepali firm – to develop the Tamor reservoir project till the final date on September 15.
Earlier, the board had formed a committee – led by minister Pun – to conduct necessary assessment of the proposal. After studying details of the project, the HIDCL-Power China’s proposal was forwarded to the board, which is finalised today.
The government will acquire necessary land and provide it to the developer, according to the board. “The government will also provide project security,” it informed, adding that the board will also facilitate in legal approvals, permits, review and monitoring of the project. “But, the developer will plan, design, build, finance and operate the facilities during the concession period of 30 years.”
Likewise, the project developer will also be responsible for collecting revenue from the project during the concession period. After the concession period is over, the developer will have to hand over the project to the government.
According to an earlier study, the construction cost of the Tamor hydel 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 from the project site to Inaruwa in Sunsari district.
According to the Nepal Electricity Authority (NEA) study, if the project builds a dam that is 205 metres high then it will generate 762-MW of electricity. But, if the height of the dam is increased to 300 metres the project can generate 2,565-MW of electricity.
The government had also showcased Tamor at the second Investment Summit held on March 29 and 30.
Hydroelectricity Investment and Development Company Ltd (HIDCL) of Nepal and state-owned Power China Corporation (PCC) will construct the reservoir project on government-to-government (G2G) basis, according to a press note issued by the Ministry of Energy, Water Resources and Irrigation (MoEWRI).
Construction of the Tamor project – that will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts – is expected to start from next fiscal and be completed by 2025, it reads, adding that the Investment Board Nepal (IBN) and Ministry of Energy, Water Resources and Irrigation (MoEWRI) – during Chinese President Xi Jinping’s two-day state visit to Nepal – awarded the contract to HIDCL-Power China to build the project under the public-private-partnership (PPP) model.
After receiving the letter from the board, Power China signed a memorandum of understanding (MoU) on project implementation agreement with HIDCL. The chief executive officer of HIDCL Chhabi Raj Pokharel and vice chairman of Power China Pan Deng Yu today signed the MoU on behalf of their respective organisations.
According to minister for Energy, Water Resources and Irrigation Barsha Man Pun, the government has also signed an agreement with Power China to build the 156-MW Madi multipurpose hydropower project – located in Rolpa district – that is estimated to cost around $39 million, according to an initial study.
The HIDCL and Power China had jointly submitted a project development proposal at the investment board to build both the projects with a share structure of 46:54 per cent, with the Nepali firm investing 46 per cent and Power China investing 54 per cent of the project cost, for the Tamor hydel project. “Likewise, in Madi multipurpose hydropower project, HIDCL will manage 26 per cent and Power China will manage 74 per cent of the total investment.”
On August 1, the board meeting chaired by Prime Minister KP Sharma Oli had shortlisted three companies including Power China, Nebras Power Holding of Qatar and Fuji Electric Company Ltd of Japan and sought proposals from them. However, only HIDCL-Power China submitted a proposal – jointly with Nepali firm – to develop the Tamor reservoir project till the final date on September 15.
Earlier, the board had formed a committee – led by minister Pun – to conduct necessary assessment of the proposal. After studying details of the project, the HIDCL-Power China’s proposal was forwarded to the board, which is finalised today.
The government will acquire necessary land and provide it to the developer, according to the board. “The government will also provide project security,” it informed, adding that the board will also facilitate in legal approvals, permits, review and monitoring of the project. “But, the developer will plan, design, build, finance and operate the facilities during the concession period of 30 years.”
Likewise, the project developer will also be responsible for collecting revenue from the project during the concession period. After the concession period is over, the developer will have to hand over the project to the government.
According to an earlier study, the construction cost of the Tamor hydel 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 from the project site to Inaruwa in Sunsari district.
According to the Nepal Electricity Authority (NEA) study, if the project builds a dam that is 205 metres high then it will generate 762-MW of electricity. But, if the height of the dam is increased to 300 metres the project can generate 2,565-MW of electricity.
The government had also showcased Tamor at the second Investment Summit held on March 29 and 30.
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