Govt to start construction of two hydel projects next fiscal

The two projects are Tamakoshi-V Hydropower Project (87 MW) and Budhiganga Hydropower Project (20 MW) THE government plans to start construction of two hydropower projects with a collective capacity of 107 MW from the next fiscal year. The projects are Tamakoshi-V Hydropower Project (87 MW) and Budhiganga Hydropower Project (20 MW). Ministry of Energy Spokesperson Shree Ranjan Lakoul said his ministry has proposed the Finance Ministry to incorporate these two projects in the budget for the next fiscal year. “The Finance Ministry is also preparing to announce the development of the projects through the budget as per our request,” said Lakoul, who is also the joint secretary at the Energy Ministry. The Energy Ministry proposed Tamakoshi-V project after the Finance Ministry sought at least one new and innovative project from each ministry to incorporate them in the upcoming budget. According to the Energy Ministry, the government will build Tamakoshi-V project with its own financing, while Budhiganga project will be developed under the loan assistance of Kuwait Fund for Economic Development and Saudi Fund for Development. The Tamakoshi-V project is cascade project of the under-construction 456- MW Upper Tamakoshi Hydropower Project (UTHP). The energy from Tamakoshi-V project will be generated from the water spilled from the UTHP tunnel. As the energy production from Tamakoshi-V only requires the construction of a tunnel and a pond for sedimentation, the project is expected to be cheaper. The Department of Electricity Development had issued survey license to Nepal Electricity Authority (NEA), on October 3, 2008, for the project. Energy Ministry officials said the Tamakoshi-V project is expected to be completed within the next five years. NEA’s preliminary feasibility study has estimated the project’s cost at Rs 14 billion. It will be designed as Peaking Runof- River (PRoR) model like the UTHP. Under the PRoR model, a project collects water for certain hours and generates energy later in full power. Energy Ministry officials said this project would generate 87 MW power round the clock for five months during the rainy season and would generate the same amount of power for 6-8 hours a day during other seasons. “Once announced in the budget, the NEA will prepare a detailed project report and then float a tender to select a contractor,” said the official. As far as Achham-based Budhiganga Project is concerned, it is estimated to cost around Rs 5 billion. The Finance Ministry in March had signed a loan agreement worth $18 million with Kuwait Fund for the poroject. “The process for signing a $20 million loan agreement with the Saudi Fund is underway,” said Madhu Kumar Marasini, joint secretary at the Finance Ministry. “Rest of the cost will be met by the government.” The Budhiganga Project, expected to be completed in the next four years, will generate 106.2 million units energy annually. Ministry officials siad the project’s cost would be relatively higher compared to other projects as construction of a 3-km access road and an 88- long transmission line is required.