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Construction of the access tunnel for the 126 MW Lower Seti Hydropower Project has begun. The project, fully owned by the Nepal Electricity Authority, is being developed at Devghat Rural Municipality-4 in Tanahun district.

Project promoter Tanahun Hydropower Limited has signed a contract with Kathmandu-based R.K. Hydro Engineering and Associates Pvt. Ltd. for tunnel construction. Although the agreement was signed on February 19, 2024, construction could not proceed earlier due to delays in obtaining approval for the use of explosives. Project Chief Hari Kumar Shrestha said the tunnel work has now started after receiving the necessary permits.

According to him, the access tunnel is an important initial structure of the project and will support the construction of major structures, geological studies, and access management.

The Lower Seti Project is a semi-reservoir type peaking run-of-river hydropower project. It aims to generate 520.78 million units of electricity annually.

Under the project, a 32-meter-high dam will be constructed on the Seti River near Saranghat in Bandipur Rural Municipality of Tanahun. The dam will create a reservoir stretching around 12.7 kilometers. Stored water will be diverted through a 6.75-kilometer tunnel to a semi-underground powerhouse to be built at Gaighat in Devghat Rural Municipality-4.

The project’s detailed project report was prepared with grant assistance from the Asian Development Bank. The estimated cost of the project is USD 227 million. According to the project, a conceptual decision has already been made to manage financing through 30 percent equity and 70 percent loans.

The process of acquiring around 146 ropani of land required for the construction of the powerhouse and staff quarters has also been initiated.

Once operational, the project is expected to generate electricity at full capacity for at least six hours daily during the dry season. Since it will utilize water released from the under-construction Tanahun Hydropower Project upstream, the Lower Seti Project is considered an important cascade project.

The project is also expected to use the same transmission line as the Tanahun Hydropower Project, eliminating the need for additional transmission infrastructure. Furthermore, being located near major electricity consumption centers such as Kathmandu and Bharatpur, the project is expected to be cost-effective and commercially viable.

The project stated that the grid connection agreement has already been completed, while the power purchase agreement process is moving forward. A concrete bridge over the Trishuli River is required for access to the powerhouse area, with an estimated cost of around NPR 370 million.

The project’s Environmental Impact Assessment report has already been submitted to the Ministry of Forests with the required fee for final approval. The project also stated that initiatives are underway for financial support from the Japan International Cooperation Agency, while the Asian Development Bank has included the project in its 2027 implementation pipeline.

Jalasarokar