Four companies have submitted bids for the contract re-invited by Jagdulla Hydropower Limited, a subsidiary of the government-owned Electricity Generation Company Limited (EGCL). The contract for the 106 MW Jagdulla Hydropower Project, which the government plans to build in Dolpa, was re-invited on Magh 6.

Sino Hydro, SIL/HHH JV, JCE/NK JV, and 2MG/Fewa JV have submitted bids for the civil and hydromechanical works of the Jagdulla project, which has an estimated cost of NPR 16 billion. Jagdulla’s Chief Executive Officer, Sanjay Sapkota, stated that the financial proposals will be opened after the technical evaluation of the submitted bids.

The technical evaluation committee is separate, and the evaluation process will take around 15 days,” he said. “After that, the financial proposals will be opened.” He further stated that the selection of the company will be made only after both technical and financial evaluations.

The company had invited bids for the civil and hydromechanical works on June 2nd. For this contract, seven companies, including High Himalayan Hydro and AGE Company JV, Zhongding International, Patel Engineering, and Lama Construction, had submitted applications. However, Jagdulla Company claimed that the contract was canceled on Poush 22 after none of the companies passed the technical evaluation.

The notice issued by the company states that bidders must have had a minimum transaction of $34 million over at least three years within the past ten years. It also requires experience in executing an Engineering, Procurement, and Construction (EPC)/Plant contract with a single project worth more than $40 million.

In the previous bid invitation, the requirement was a minimum transaction of $35 million over three years within the last ten years, along with experience in executing an EPC/Plant contract with a single project worth more than $41 million.

The total estimated cost of the Jagdulla project is NPR 23 billion. Nabil Bank is set to invest NPR 4.4 billion, the Employees Provident Fund NPR 4 billion, Hydroelectricity Investment and Development Company Limited (HIDCL) NPR 4 billion, Laxmi Sunrise Bank NPR 2 billion, and Everest Bank NPR 1.5 billion in loans for the project.

Project Location and Specifications

The Jagdulla Hydropower Project is proposed on the Jagdulla River, which flows through Jagdulla and Mudkechula in Dolpa district, Karnali Province. The dam will be constructed at Jagdulla-2 Hurikot, and a 6.2-kilometer tunnel will be built as part of the project. It is a peaking run-of-the-river (PROR) type project.

Pre-construction activities are ongoing, including building an access road to the project site. The main structures are located on the river’s left bank, with a 6,139-meter-long headrace tunnel and a 146-meter-long pressure shaft delivering water to an underground powerhouse. The powerhouse will be equipped with three turbines, and the generated electricity will be connected to the Nepal Electricity Authority’s Bafikot substation, 50 kilometers away.

Project Timeline and Capacity

The project is targeted to be completed by 2086 BS (2029 AD). Upon completion, it is expected to generate 623.47 GWh of electricity annually, with 430.23 GWh produced during the monsoon and 192.24 GWh during the dry season.

Investment and Financial Arrangements

Financial management for the project was completed on June 2. The project will be funded through a combination of debt and equity, with an estimated total cost of NPR 23 billion. Of this, NPR 16 billion will come from loans, while the remaining NPR 7 billion will be equity investment.

Leading the financing arrangement, Nabil Bank will provide NPR 4.4 billion, Hydroelectricity Investment and Development Company Limited (HIDCL) NPR 4 billion, Employees Provident Fund NPR 4 billion, Laxmi Sunrise Bank NPR 2 billion, and Everest Bank NPR 1.5 billion.

Power Purchase Agreement (PPA)

The Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) was signed on May 11, 2023. As per the agreement, NEA will purchase electricity at NPR 8.40 per unit during the dry season and NPR 10.55 per unit during peak hours. During the monsoon, the rate will be NPR 4.80 per unit.

Production License

The project received its production license from the Department of Electricity Development on January 7. The license will remain valid until January 7, 2074 BS (2117 BS as per the decision).

Future Plans

Jaldulla Hydropower Company is also planning to develop the 120 MW Jagdulla ‘A’ Hydropower Project as a cascade project to maximize the river’s hydropower potential. The study for this project is currently underway.

This project is expected to play a significant role in the socio-economic development of the Karnali region.