NEA gets Rs 2-bn for Upper Tamakoshi project

Kathmandu: Citizens Investment Trust (CIT) agreed to lend Nepal Electricity Authority (NEA) Rs 2 billion for the 309-megawatt (MW) Upper Tamakoshi Hydroelectric Project in Dolakha district.

The run-of-the-river project has already mobilised Rs 20 billion from within the country and is going to start work on the project in July, 2009, said Uttar Kumar Shrestha, managing director of NEA.

The Employee's Provident Fund (EPF) has invested Rs 12 billion and the Himalayan Bank Limited, which represents the consortium of banks, has invested Rs 6 billion for the project.

'We had a dream of commissioning the project through our own efforts. And now, we are happy to say that the project will materialise through the investments solely from Nepali stakeholders,' he said.

According to Shrestha, the Rastriya Beema Sansthan has also agreed to invest Rs 2 billion in the project. The total project cost is estimated at Rs 27-30 billion, he said, adding that the project will be commissioned by the year 2013.

Nandan Hari Sharma, director of the CIT, said, 'Hydropower is the most important sector to invest for the sustainable development of Nepal.' He also urged NEA to commission other hydropower projects in the country.

'The CIT has the mechanism and capacity to invest in other hydel projects too,' said Sharma. According to him, now the CIT has Rs 14 billion and about Rs 4 billion is added to this amount annually.

Nepal has generated only 600 MW of electricity from its water resources in the past century.

According to Mrigendra Bahadur Shrestha, project director, work on the construction of various infrastructure, including the access roads and bridges joining the project site, is at final stage.

The NEA will also call for the proposals from the tenders and is working to hire both national and international experts for the project next month, he said.

The 28-kilometre access road from Singati village to the project site in Lambagar village in Dolakha district has been built, Shrestha said.

The Upper Tamakoshi project is the second project undertaken by the NEA through private-public partnership after the construction of 20 MW Chilime Hydroelectric Project in northern Rasuwa district.

The project, which is the biggest hydropower project being commissioned with funds from Nepali stakeholders, is also the first one to provide shares to local residents of the project area.

NEA has 51 percent share in the project, EPF 20 percent, residents of Dolakha district 10 percent, other funding partners three percent, NEA and EPF staff six percent and 10 percent is open for public.

'Now I am confident that the Upper Tamakoshi project will be commissioned in the given time without financial hurdles,' said Sashi Bikram Rana, department head of the EPF.