KATHMANDU: A tripartite memorandum of understanding (MoU) has been signed for loan investment in the 99.8 MW Tamakoshi-V Hydropower Project to be constructed in Dolakha.

The MoU was signed among Nepal Electricity Authority, Tamakoshi Hydropower Company, the promoter of the project, and Employees Provident Fund (EPF) in the presence of Minister for Energy, Water Resources and Irrigation Pampha Bhusal on Sunday.

The project is expected to materialize an investment of Rs 16.19 billion (USD 137.2 million), in which EPF will invest 70 percent (about Rs 11.33 billion) as loan. The remaining amount of the project being constructed under the People's Hydropower Program will be raised from equity by issuing shares to the general public.

Tamakoshi-V is the fifth 456 MW Upper Tamakoshi Cascade Project. Therefore, the project is considered attractive as there is no need to build structures like dams and sand thawing ponds (descender). The gate required to send the water from the Upper Tamakoshi power house to the project tunnel has been installed. The project will have to construct an 8 km tunnel, power house, about 2 km 220 kV transmission line and other main structures.

The project, which has received detailed design and environmental impact assessment (EIA) approval, has already received permission to generate electricity in 2017. Further environmental studies of the project have been carried out with the grant of the Asian Infrastructure Investment Bank (AIIB) established under the leadership of China. Pre-construction works of the project are underway now. The construction work has been expedited with the aim of completing the construction of the project by 2028.