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  All-party meeting reaches 7-point agreement on Upper Tamor Project operations

An all-party meeting has reached a 7-point agreement on the operation of the 285-megawatt Upper Tamor Project, Nepal’s largest hydroelectric project, being developed by the indigenous private sector. The meeting, coordinated by Faktanglung Rural Municipality, brought together local political parties, stakeholders, and representatives from Phaktanglung Rural Municipality-10 and Phungling Municipality.

The agreement includes forming a project concern committee in Phungling Municipality-3, Lingkhim, on April 2 to oversee project-related matters. The discussions focused on addressing the project’s impacts on the local community and ensuring the proper involvement of all relevant parties.

According to a statement issued by Ward Chairman Rajan Limbu, the responsibility of protecting the drinking water sources in the project-affected areas has been given to the hydropower project. In the event that the source of drinking water needs to be protected, the hydropower project will take responsibility, excluding the social responsibility amount.

As per the agreement, in the months of Chaitra and Baisakh (mid-March to mid-May), the source of drinking water will be measured and a report will be submitted to the concerned ward office and rural municipality. Parties have agreed that if the water level decreases and causes issues with drinking water and irrigation, the project will take responsibility for managing these resources.

Pointing out that the project will use TBM machines during the construction of the 8,370-meter-long tunnel route to be built for the project and most of the houses and lands in the area where blasting will be required have been purchased by the project, it will be possible to reduce the damage to the settlements. It has been agreed that the project will bear the compensation if houses are cracked or damaged due to the effects of blasting, except for those that have already dealt cracks on the plaster by earthquakes.

According to the agreement, in order to improve the living standards of the local people, employment will be provided based on the project's policies, rules and standards and the recommendations of the local government and the concerned ward. Similarly, it has been agreed to give special priority to agricultural products produced by locals and to use local products for the project to the extent that local products can be used.

It has also been agreed that the project work will be carried out only by protecting the religious and cultural structures in the project's area of ??influence. The project will remain committed to implementing the decisions of the stakeholder committee to be formed on April 2 and accordingly, it has been agreed that everyone will cooperate in completing all the structures and works of the project by June 1, 2028, as per the date received by the project from the government, said municipality chair Limbu.

The 285 MW Upper Tamor Hydropower Project will cost Rs 320 million for the community responsibility program. The project, of which Tamor Energy Pvt Ltd is the main promoter, will be built using the water of the Tamor River flowing through Taplejung. Pushpa Jyoti Dhungana, chairperson of the promoter Tamor Energy Pvt Ltd. told Republica that the project will be 'semi-reservoir-based'. He has also proposed to spend half of the community responsibility program on the education sector.

According to Dhungana, the total cost of the project is estimated at Rs 55.15 billion. The project will be financed by 70 percent of bank and financial institution loans and 30 percent of equity. Preparations are underway to raise Rs 38.6 billion through banks and financial institutions and Rs 16.55 billion through equity. Everest Bank will lead the management of the loan facility under the financial management of the project. Agricultural Development Bank and Hydroelectricity Investment and Development Company Limited (HIDCL) will play a supporting role.

Rastriya Banijya Bank, Prabhu Bank, Nepal SBI Bank and Garima Bank will also be investment partner financial institutions for the project. Similarly, 20 percent shares will be issued to the general public during the construction of the project. The powerhouse of the project will be underground. Project Coordinator Samjhana Chhetri said that for the first time in Nepal, TBM machines are being used in the construction of structures including tunnels in an environmentally friendly manner.

By Khagendra Adhikari

[ 10 March, 2025 / nagariknetwork.com ]   
 
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