106 MW Jagdulla Hydropower Company sets target of 2029 to produce electricity

Kathmandu : Jagdulla Hydropower Company, which is in the final stage of receiving construction license, has aimed to complete the construction of its 106 MW semi-reservoir hydropower plant in the next six years.

The project has proposed to construct its production plant in Jagdulla Rural Municipality and Madkechula Rural Municipality of Dolpa district of Karnali Province. If all the things go as planned, it will complete construction of related infrastructure by 2029, according to the project.

The Department of Electricity Development is now in the final stage of scrutiny to grant a permission to the project for the electricity production. The department in this regard has published a 35-day notice to issue a production permit.

The department has asked for opinions/suggestions regarding the adverse effects that may occur during the construction and operation of this project. The concerned should send feedback within 35 days.

The estimated cost of the project is Rs 24.17 billion. The consortium led by Nepal Infrastructure Bank (NIFRA) that includes Hydro Electricity Investment and Development Company Limited (HIDCL), Employees Provident Fund and Nabil Bank will be investing in the project.

Of the total funding, a loan of Rs 16.92 billion, which accounts 70 percent of the total cost, will be raised from banks and financial institutions. The remaining 30 percent (Rs 7.25 billion) will be raised from equity investment.

After the project is completed and put into operation, it will generate 623.47 gigawatt hours of electricity annually. A total of 430.23 gigawatt hours of electricity will be produced in the rainy season, while 193.24 gigawatt hours will be produced in winter.

The project has signed a Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) to sell its produce. According to the agreement, the authority will purchase the electricity produced during the six months of winter at Rs 8.40 per unit and during peak hours at Rs 10.55 per unit. The company said the rate will be Rs 4.80 per unit during summer.

The main structures of this project will be located on the left bank of the river. The water will be transported to the underground power plant through the 6,139-meter-long headrace tunnel pipe and 1,406-meter-long pressure shaft of the project.

The power plant will have three turbines. The generated electricity will be supplied to the NEA's Bafikot substation, which is 50 km away from the power plant.