Hydropower PPP project signed in Nepal

Dudhkoshi Power Company has closed financing with different banks for the development of the 6.5-MW Rawakhola hydropower project in the Federal Democratic Republic of Nepal.

A goup of financers have jointly agreed to invest Rs1.25 billion (US$12.5 million). The group of banks is composed by:

• Nepal Bank Limited,
• Prabhu,
• Kasthamandap,
• Citizen, and
• Vibor.

The power house of the project would be constructed at Bhaise constructing a dam at Mangalbare of Hauchar VDC. The plan is to divert the waters of Rawa Khola, which flows between Hauchur and Jalpa village development committees (VDCs), through a 2.3 km canal from Bhainse to the powerhouse in Mangalbare.

The company had signed power purchase agreement (PPA) with Nepal Electricity Corporation (NEA) on January 20, 2013. As per the agreement, it will earn Rs205 million per year.

The project will be developed under a public private partnership scheme. It will be handed over to the government after 30 years

The company has already started construction works on the project. The new facilities are expected to be operational in the next 30 months.