Nepal Electricity Authority (NEA) has signed the power purchase agreement (PPA) with Upper Trishuli 3B, which is going to be jointly financed by NEA and Nepal Telecom. NEA Managing Director Kulman Ghising and Managing Director of Trishuli Jal Vidhyut Company Ltd Mohan Prasad Gautam signed the agreement on behalf of their respective organisations.

As per agreement, NEA will purchase 134.88 gigawatt hours of electricity in dry season from December to May and 157.71 gigawatt hours of electricity during the wet season from June to November. The per unit rate of electricity has been fixed at Rs 4.80 and Rs 8.40 for the wet season and dry season, respectively.

Construction of the project will begin by mid-December this year, according to Gautam of Trishuli Jal Vidhyut Company. “We are in the process of selecting a qualified bidder,” he said, adding, “Construction of the project is expected to be concluded within three years from the date the construction starts.”

Nabil Bank will lead the consortium of financiers — Hydroelectricity Investment and Development Company Ltd, Citizen Investment Trust and Nepal Bank.

NEA and Nepal Telecom each own 30 per cent share in the project. Five per cent of the project will be owned by the rural municipalities and municipalities of Rasuwa and Nuwakot districts and a further five per cent by local financial institutions of the aforementioned districts. Ten per cent of the shares will be allocated to the locals and 15 per cent shares will be separated for the public. Likewise, the remaining five per cent shares have been allocated for staffers of NEA and Nepal Telecom.

The 37-megawatt Upper Trishuli 3B is a cascade project of the Upper Trishuli 3A project.