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The long-delayed Ghunsa Khola Hydropower Project, which had remained stalled for years in studies, promoter changes, and procurement procedures, has finally shown signs of moving toward construction. Remit Hydro Limited has issued a Notice of Intent to Award the Contract (NOI) for the project’s main EPC package, selecting an Indo-Nepalese joint venture for the contract.

The company has initiated the process of awarding the civil and hydromechanical construction works of the Ghunsa Khola Hydropower Project to the selected joint venture.

In a Notice of Intent to Award the Contract issued on Monday, Remit Hydro stated that the joint venture was selected after submitting the lowest evaluated bid and meeting the required technical qualifications.

According to the notice, the joint venture comprising Sharma & Company Pvt. Ltd. (Nepal), Nirmanvridhi Constructions (India) LLP, and Pratima Infrastructure Limited (India) has been selected for the civil and hydromechanical works under Lot-1 of the Engineering, Procurement and Construction (EPC) package.

The joint venture submitted a bid valued at approximately USD 14.4 million and around NPR 5.23 billion, according to the notice.

The company said the procurement process was conducted in accordance with the provisions of Nepal’s Public Procurement Act, 2007, and related bidding regulations. The evaluation process was completed following the tender announcement published on January 6, 2026.

The Notice of Intent to Award is not the final contract award. Under public procurement rules, once the name of the preliminarily selected bidder is published, competing bidders are given a legal window to file complaints or claims. If no objections are lodged within the stipulated period, the final contract agreement will be signed.

The Ghunsa Khola Hydropower Project is being developed under the EPC model, whereby a single company or joint venture assumes full responsibility for design, procurement of materials, and construction.

The project has long been delayed by studies, financial arrangements, and preparatory works. Initially proposed at a capacity of 71.5 MW after receiving a survey license around 2016, its capacity was later upgraded to 77.5 MW following detailed studies.

Located in Phaktanglung Rural Municipality of Taplejung District, the project lies in a remote Himalayan region, making access roads, bridges, transportation of equipment, and infrastructure development particularly challenging. Due to poor road connectivity to the project site, the developer had to construct two Bailey bridges over the Tamor River.

The project also took considerable time to secure environmental clearance, power generation licenses, and complete the Power Purchase Agreement (PPA) process. Remit Hydro has since completed these regulatory requirements.

Only last year, a consortium of banks and financial institutions signed financing agreements worth approximately NPR 12.7 billion for the project. The total estimated project cost, including interest during construction, stands at around NPR 18 billion.

Despite financial closure, the construction process had not progressed as expected, mainly because the developer was unable to finalize major civil and hydromechanical contract packages. The latest Notice of Intent marks a significant step toward awarding the project’s principal construction contract under the EPC model.

From the outset, Hydroelectricity Investment and Development Company Limited (HIDCL) has been involved in the project. HIDCL’s role as a strategic investor and promoter was expected to strengthen the project’s financial viability.

The Ghunsa Khola project has also drawn attention for being promoted under the “Remit Hydro” model, which aims to encourage Nepalis working abroad to participate as investors in hydropower development. This innovative investment concept has made the project noteworthy since its inception.

Jalasarokar