Photo obtained from website of Jagadulla Hydropower Project

A fresh tender has been issued for the Jagadulla Hydropower Project, which is set to be developed in Mudkechula Rural Municipality, Dolpa. According to Sanjay Sapkota, the CEO of the company, the tender is valued at Rs 16 billion.

The original tender for civil and hydro-mechanical works was called on June 2 last year, attracting bids from seven companies, including a joint venture between High Himalayan Hydro and AJI Company, Zhongding International, Patel Engineering, and Lama Construction. However, no companies passed the technical evaluation during this bidding process.

The run-of-river project has the capacity of producing 106 megawatts of electricity. It is expected to complete within the five years of the commencement.

The project reached financial closure in the third week of May, with Nabil Bank leading the consortium with an investment of Rs 4.4 billion. Other consortium members include the Hydroelectricity Investment and Development Company Ltd (HIDCL), the Employees' Provident Fund (EPF), Laxmi Sunrise, and Everest Bank.

HIDCL and EPF will each invest Rs 4 billion, while Laxmi Sunrise will contribute Rs 2 billion, and Everest Bank will invest Rs 1.5 billion. The total project cost is estimated at Rs 23 billion, with Rs 16 billion to be financed through loans and Rs 7 billion raised as equity.

The power purchase agreement (PPA) for the project has already been signed with the Nepal Electricity Authority on May 10. An access road to the project site is under construction, and nine Bailey bridges are being built as part of the roadwork. Most of the preparatory works are now in the final stages.