Happy Energy Pvt Ltd is constructing 40 MW Upper Sankhuwa Khola Hydropower Project (USKHP).

The run of river type hydropower project will be located in ward numbers 1 and 2 of Silichong Rural Municipality of Sankhuwasabha district. According to the company, it has prepared the detailed project report while the environmental impacts assessment has been submitted already to the Ministry of Forest and Environment for the final approval.

The project to be constructed in Sankhuwa Khola will have a 500 meter net head. It will have the headrace tunnel of size 3,650 meter and a 180 meter audit tunnel. Similarly, the design discharge rate will be 9.61 cubic meters per second.

The USKHP is projected to produce 235.40 GWh of electricity annually, which will include production of 164.77 GWh in peak season and 70.63 GWh in dry season). A tailrace 40 meters in length will be built to return the used water back to the Sankhuwa River. A 220 kV transmission line will be built to supply the electricity produced by the project to the national grid.

Of the required 19.85 hectares of land, 12.63 hectares of the public forest including that of Makalu-Barun National Park and remaining 7.22 hectares of private land will be utilized for the project construction.

The USKHP construction is estimated to cost Rs 7.88 billion. It will include 70 percent loans and 30 percent equity shares.