January 31, 2021 | Investopaper
Satluj Jal Vidyut Nigam Limited (SJVN Limited) of India has been selected to develop the Lower Arun Hydropower Project under the concept of Public-Private Partnership. The 46th meeting of the Investment board chaired by Prime Minister and Chairman KP Sharma Oli at the PM’s residence in Baluwatar on Friday made the decision after evaluating the companies listed on the basis of international competition.
The project with a total capacity of 679 MW will be located in Sankhuwasabha and Bhojpur districts of Province No. 1. The project was presented to the investors by the Government of Nepal on the occasion of the Investment Conference held in Kathmandu in Chaitra, 2075 BS.
During the meeting, Prime Minister Oli stressed on the need to plan the consumption along with the generation of electricity. He instructed the officials of the concerned bodies of the Government of Nepal to work in a coordinated manner for the timely implementation of the infrastructure project.
The meeting has decided to nominate Rajesh Kaji Shrestha, Haribhakta Sharma and Bhavani Rana as experts and Bal Krishna Shivakoti as invited members in the Investment Board. Chief Executive Officer Sushil Bhatta briefed about the strategic plan of the Investment Board, project bank, web-based single point service and other progress as directed by the previous board meeting.
The board estimates that it will cost more than Rs 100 billion to build the lower Arun. The capacity of electricity can be expanded up to 1000 MW from this project. The Department of Power Development is conducting a feasibility and detailed study of the project.
Lower Arun’s survey license was held by Brazilian company Brass Power. The government had revoked the license of Brass Power under the direction of the Commission for Investigation of Abuse of Authority for not fulfilling the conditions.