Three companies have been selected on the basis of provisional proposals for the construction of the 42 MW Upper Modi 'A' Hydropower Project.

The technical proposals from GICGCL/RCC JV, SSCE/Himalaya JV and Sino Hydro/Sai JV received in response to the tender called by Modi Hydropower Company have been passed. Each of the three Chinese companies selected on the basis of the technical proposal for civil structure and hydro-mechanical works has formed a JV with a Nepali company.

Modi Hydropower Company is going to open the financing proposal on February 2. The contract will be awarded to the lowest bidder among the three companies.

Surya Prasad Paudel, the manager of the company, said that the construction is planned to start from next year after completing all the pre-preparations and processes. According to him, the plan is to complete the construction in four years.

The land acquisition required for the project has been completed. The company has already received permission for cutting trees. The project falls within the Annapurna Conservation Area.

It is a run-of-river (ROR) hydroelectric project. The main tunnel route will be 5.95 km.

The financial closure of this project has been completed. Financial closure took place on January 8. The loan investment will be led by NMB Bank. An agreement has been reached that the bank will invest Rs 4.40 billion and Hydroelectricity Investment and Development Company Limited will invest Rs 3 billion.

Of the estimated cost of Rs 10.57 billion, 70 percent of the project will be financed by debt and 30 percent by equity. General public and Nepal Electricity Authority will invest their own capital. It is a subsidiary of the Authority.