Govt provides Upper Arun Project (1,061 MW) license to NEA
October 24, 2019 | Investopaper
Nepal Electricity Authority (NEA) has received a license for 1,061 MW Upper Arun Hydroelectricity Project. Ministry of Energy, Water Resources, and Irrigation issued the survey license for a period of 2 years.
Upper Arun Hydroelectricity Project is a peaking run of the river power project located at Sankhuwasabha district.
NEA had submitted an application for a license to the Department of Electricity Development in March 2017. The project will be kept in utmost priority and should be taken as a game-changer project, said the managing director of NEA, Mr. Kulman Ghising. He further stated that the funding of the project will take place through 30 percent equity and 70 percent loan.
The estimated cost of the project is Rs. 120 billion. World Bank will provide subsidized loans along with the European Investment Bank. National Institutions like Employees Provident fund and Citizen Investment Trust will also participate in the funding of the project. The general public will be provided with 49 percent shares in the project.
After its completion, the project will generate 4.47 billion units of electricity. Out of the total, 28 percent of electricity production will take place in the dry season.
NEA has plans to complete the project within seven years i.e. by 2026.
