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Chinese company to develop 164MW Kaligandaki Gorge hydel

The Chinese firm, Yunnan Xinhua Water Conservancy and Hydropower Investment Company (YXWCHIC), under Chinese state-owned China Nuclear Power Group, has said it will develop the 164-megawatt Kaligandaki Gorge hydropower project that falls in Mustang and Myagdi districts.

Gyanendra Lal Pradhan, executive chairman of Hydro Solutions and developer of project, said that the company will sign investment and project development agreement with the Chinese company during upcoming Nepal Investment Summit, to be held in Kathmandu on March 29-30.

Hydro Solutions and YXWCHIC had signed the joint development agreement in China during Prime Minister KP Sharma Oli’s state visit to the northern neighbour in June last year.

As per Pradhan, the Chinese firm will develop the project as per the build, own, operate and transfer model. The project cost is estimated to be around Rs 40 billion. “YXWCHIC has made a commitment to invest 80 per cent of the project cost,” informed Pradhan.

He further said that the project’s detailed project report (DPR) has also been completed. The DPR was carried out jointly by Hydro Solutions and Shanghai Investigation, Design and Research Institute. “The project has been designed as a run-of-river type and could be changed to peaking-run-of-river type to increase the power generated by the project to 254 megawatts.”

The project has said it will soon sign a power purchase agreement with Nepal Electricity Authority and complete financial closure after that. It said that the company will start the project from the end of this year and expects to finish it by 2024.

Pradhan further said that the project has already acquired 200 ropanis of private land. He also informed that the access road has already been constructed and an agreement has been signed with the government to build a 155-kilometre long transmission line.

[March 22, 2019 / thehimalayantimes.com]   
 
 
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