September 13, 2023 | Investopaper
The formal foundation stone for the ‘Upper Trishuli-1’ hydropower project has been laid. During a special ceremony in Kathmandu, Energy, Water Resources, and Irrigation Minister Shakti Bahadur Basnet officiated the foundation stone-laying event.
The ‘Upper Trishuli-1’ hydropower project is being undertaken by the Nepal Water and Energy Development Company, with a 216-megawatt capacity. Situated approximately 70 kilometers from the Kathmandu Valley, the project is slated for completion by the end of 2026.
The estimated cost of the project is USD 647.3 million, inclusive of interest during the construction period. Apart from 10 percent of local investors, the ownership and debt for this project are primarily foreign-funded. International financial institutions have committed to invest USD 45.32 million, with the remaining USD 19.42 million raised as equity.
KOEN, a subsidiary of the Korean government, first expressed investment interest in Nepal in 2011. After extensive project evaluation and negotiations, the engineering procurement contract was signed in 2020, with construction activities commencing at the project site last year.
The project is promoted by KOEN, owned by the Korean government, and has received investment from the International Finance Corporation under the World Bank Group. The annual energy production is expected to reach 1.53 billion units, with 38.75 percent generated during winter and 61.25 percent during the monsoon.
The generated energy will feed into the national transmission system via the ‘Trishuli-3B’ hub substations, which are currently under construction by the Nepal Electricity Authority. An electricity purchase and sale agreement between the company and the authority was finalized in 2018.