NEA To Start Construction of Upper Arun From 2021

NEA To Start Construction of Upper Arun From 2021

Nov. 15, 2018, 9:05 p.m.

To meet growing demands of electricity in the country, NEA has announced to start the construction of Upper Arun Hydroelectric Project from 2021 targeting to complete in 2026.

After assumption of Managing Director pot by Kul Man Ghising two years ago, he choose two projects Upper Arun and Dhudkosi two projects as a storage project to meet the demand of picking.

Nepal Electricity Authority is talking with World Bank for the funding of Upper Tamakosi. Similarly, NEA is negotiating with Asian Development Bank for the funding of Dhudhkosi Storage project.

Nepal Electricity Authority has advanced a process of construction of Upper Arun Hydroelectricity Project placing it under a high priority.

NEA has called pre-qualification notice to select a Contractor Company for the construction of 24 kilometer access road. According to a notice published 15 November, interested contractor companies have to submit application by January, 2019 for bidding.

The road section include 2 kilometers tunnel and two bridges to reach Chepuwa dam site from Chyangran market point of Biratnagar-Kimathanka (Kosi Highway).

According to working schedule, after evaluation of proposal of interested companies, NEA is planning to seek technical and financial proposal from successful company for pre-qualification.

”We are working with under a work schedule to start the construction of road,” said Kul Man Ghising, Managing Director of NEA. “A Consulting company is preparing a detail design of access road now. Our aim is not make any delay in the construction work of main structure of the project.”

According to MD Ghising, NEA has a plan to complete the construction of road within 24 months. NEA will complete the detailed engineering design, selection of contractors and prospective investors in parallel with road construction period.

Comparing with energy generation, the cost of the project is much cheaper. “The project will generate more energy during winter. NEA is planning to start construction of access road by June 2019 and complete by 2021 June. NEA has also a plan to select the contractor by 2021 April and complete the project by 2026 September,” said MD Ghising.

The government has already decided to construct the project in company model issuing share to public. The project will be constructed by a company under NEA. As per the decision, NEA has already established Upper Arun Hydroelectric Company Ltd.

It has delayed due to a cabinet decision of 2012. Under that decision, the government decided to build the project with its ownership through NEA. Due to this decision, the present company is unable to secure the survey license. The company has applied for license of the project in 216 March in Department of Electricity development.

As the cabinet has already decided the modality of the project, the company will secure the license. Under the concessional loan of World Bank, detailed study of the project is going on with a target to complete it by 2020.

World Bank has shown its interest to invest in the project. World Bank has already said that it is ready to invest the project constructed through the company issuing share to public. Even if World Bank declines to invest in the project, the money will be no problems. We can manage resources through the financial institutions like Employment Provident Fund.

After pulling out from Arun III, World Bank has not invested any hydropower project. Energy, Water Resource and Irrigation Minister Barsha Man Pun, Minister of Finance Yubaraj Khatiwada and vice president of World Bank Hartwig Schafer is paying site visit of the project.

Minister Pun has already announced that new attractive projects will be constructed with investment from people. NEA has pushed the Upper Arun project to execute minister Pun’s spirit.

Upper Arun project was identified under Kosi Basin Master plan as semi-storage project with capacity of 335 MW and 2.65 billion Unit annual energy. NEA had conducted pre-feasibility study in 1991 and it reviews the pre-feasibility study 2011.

The review showed that the project has capacity of 700 MW with estimated cost US$ 900 million. Since the project lies in high Himalayan zone, it will have very less effect on human being and less environmental implication. NEA has already pushed 30 MW Ikhuwa Hydro power project which is going to be a part of Upper Arun.

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