KATHMANDU: The 25 MW of electricity produced by the Singati Khola Hydropower Project has been added to the national grid since Friday.

The project, which is based at the confluence of the Tamakoshi River and Singati Khola, had completed its construction about one and a half years ago. However, in the absence of a transmission line, the project was unable to evacuate its production over the period, facing additional financial loss.

The construction cost of the project is Rs 4.90 billion. According to an official of the project, the apathy shown by the Nepal Electricity Authority (NEA) has made the project face an additional cost of Rs 1 billion.

The project received the license in 2010. However, due to procedural delays in government offices following the 2015 earthquake, it started construction only on July 8, 2016, after six years of receiving the license.

It was supposed to produce electricity by November 2019 and connect its production to the 132 KV Singati Substation situated at a distance of 300 meters from the power house. The project suffered after the NEA delayed the construction of the transmission line connecting the project’s power house to the Singati Substation. As per the agreement, the NEA needs to pay 45 percent of the annual income of the project in compensation after the power utility failed to construct the transmission line on time.

NEA has identified Singati Hydropower as one of the ‘super six’ hydroelectric projects, which can be constructed on a fast track. Of the group that consists of hydroelectricity projects in Kharekhola of Dolakha, Maya Khola of Sankhuwasabha, Mewa Khola of Taplegunj and Upper Solu of Solukhumbu, Singati Hydropower is the first to connect its product to the national grid.

According to Batu Lamichhane, chairman of the Singati Hydropower, they have targeted to sell electricity worth around Rs 750 million annually.