January 26, 2023 | Investopaper
Shailung Power Company Limited is going to build a 40 MW Bhotekoshi 1 Hydropower Project in Sindhupalchok district. For this purpose, the company has already received the construction license from the Department of Electricity Development.
The department granted the construction permit to the company on Poush 21, 2079 BS. The license has a validity until Poush 20, 2114 BS.
The department has provided the construction license to the promoter company on the basis of the environmental impact assessment report and study report of the project approved by the Ministry of Forest and Environment.
Before issuing the license, the Department Of Electricity Development had issued a notice requesting the stakeholders to submit written opinions/suggestions within 35 days if there is any adverse impact due to the construction and operation of this project.
The project is a run-of-the-river (ROR) type project. It will be built on the Bhotekoshi River in Sindhupalchowk district.
Four financial institutions will provide loan financing to the 40 MW Project. Century Commercial Bank, Machhapuchchhre Bank, and Rastriya Banijya Bank under the leadership of Nepal Infrastructure Bank (NIFRA) Limited will invest Rs. 594 crores in the project. The agreement was signed by Ram Krishna Khatiwada, Chief Executive Officer of NIRFRA and Rajendra Prasad Gautam, chairman of Shailung Power Company Limited.
As per the co-financing agreement, NIFRA will invest Rs 200 crores, Century Bank and Machhapuchhre Bank will invest Rs 150-150 crores each and Rastriya Banijya Bank will invest Rs 94 crores in the project.
The project, with an estimated cost of Rs. 7.97 billion, will have 75 percent loan and 25 percent equity investment.
A dam will be constructed on Bhotekoshi river and water will be brought from 2.6 km main tunnel to the power house through penstock pipe. The power house of the project will be constructed near Chaku village on the left bank of Bhotekoshi river .
The project will generate 231.81 gigawatt hours of electricity annually. The electricity generated from the project will be connected to the 220 kV transmission line to be constructed by Nepal Electricity Authority at Barhabise.
The project has already signed a power purchase agreement (PPA) with the Nepal Electricity Authority (NEA) on Ashad 15, 2075 BS. The PPA rate has been fixed at Rs 8.40 per unit in dry season and Rs 4.80 per unit in rainy season.