The 1,061 MW Upper Arun Hydroelectric Project has distributed compensation of Rs 1.45 billion to the local people affected by the project.

Grisma Bhandari, an official of the project, said the project has settled about 64 percent of the compensation in the related area. According to him, the project has acquired 2,500 ropanies of land around Bhotkhola of Sankhuwasabha district.

For the project construction, local residents from ward numbers 2, 4 and 5 of Bhotkhola Rural Municipality are considered for providing the property compensation. The project has fixed the rate of Rs 1-1.5 million per ropani to provide compensation.

Nepal Electricity Authority (NEA) is constructing the Upper Arun Hydroelectric Project through a ‘blended financing’ model. The estimated cost of the project construction is Rs 2.26 billion.

The semi-reservoir hydropower project will have 30 percent equity investment from the power utility, the federal government, the provincial government, local government of the affected area, local people from the district concerned and ordinary public. Similarly, the project will be constructed in 70 percent loans investment from donor agencies and Nepali banks and financial institutions (BFIs).

The project has also expedited construction of the 22 km stretch of the access road to the power plant site. For the purpose, agreements have been signed with Gayatri JV, India and Kankai Surunga JV of Jhapa to construct the access road that will involve a 2.03 km long tunnel road.

The construction of Upper Arun will be started from 2024 and the project is expected to start power generation from 2030.