An under-construction building of the Mewa Khola Hydro Electricity Power plant at Lafyang in Diktel Municipality of Khotang district, on Tuesday, September 13, 2016. Photo: RSS

The 50-megawatt Mewa Khola Hydropower Project, completed on the Mewa Khola in Taplejung, has finished its internal testing and is now preparing for trial power generation.

United Mewa Khola Hydropower Company had applied for the trial about two months ago. It has been reported that forming the committee will take at least another week. Once the technical team begins trial generation, the Nepal Electricity Authority will take the electricity free of charge for 15 days during testing. If no issues are observed during this phase, the project is expected to enter commercial operation within four weeks.

The project, which began construction in December 2021/2022, was completed on schedule. The five-kilometer-long tunnel, dam, powerhouse, and transmission line have all been constructed. The company has also built a seven-kilometer transmission line from the powerhouse to the Dhungesanghu substation with its own investment. However, despite all the physical structures being ready, the project has reached a “ready but non-operational” state because the Nepal Electricity Authority’s COD (Commercial Operation Date) process has not progressed.

Once operational, the project is expected to generate more than 303 gigawatt-hours of electricity annually. Connected to the national transmission system through the Kosi Corridor, this project is considered important for balancing supply in eastern Nepal during the winter season.

The estimated cost of the project is around NRs 900 crore, with 75% financed through loans. Since the loan investment comes from a consortium of eight banks, the delay in production has increased pressure on interest payments.

The Mewa Khola project is one of the “Super Six” projects that the government allowed the private sector to construct through a competitive process.

Company to issue shares worth NRs 1.3 billion

The company has initiated the process of issuing shares worth NRs 1.3 billion for the local communities affected by the project and the general public. For this, the company has already received approval from the Electricity Regulatory Commission. The company has called the second and third annual general meetings (AGMs) with the main proposal for the IPO issuance.

The meetings are scheduled for 11 AM on February 23 at the company’s registered office in Kathmandu. During the meetings, special proposals will be passed, including: issuing the company’s IPO to the general public, authorizing the board of directors to make related decisions, amending the company’s articles of association and bylaws, and empowering the board to implement any amendments as directed by the regulatory authority.

Urjasanchar