News Article

Funds being secured to develop Upper Arun Hydel

By Republica

Published: September 16, 2022 10:24 AM

KATHMANDU, Sept 16: Banks and financial institutions of Nepal have agreed to invest Rs 53.34 billion in the Upper Arun Hydropower Project.

The total estimated cost of the project is around Rs 214.86 billion.

A financing agreement was signed between Managing Director of Nepal Electricity Authority, Kulman Ghising, and the CEO of Hydroelectricity Investment and Development Company Ltd (HIDCL) Arjun Kumar Gautam and representatives of Nepal Bank, Nepal Banijya Bank and Citizen Investment Trust on Thursday.

The project with a total capacity of 1061 MW will have 70 percent of the total cost met through loan investment and 30 percent will be equity capital. Preparations are being made to acquire loans from the World Bank, European Investment Bank and other international financial institutions.

It is a semi-reservoir project based on Bhotkhola Rural Municipality of Sankhuwasabha district. The project will generate 4,512 gigawatt hours of electricity per year of which 30 percent will be produced during the dry season.

The goal is to start construction at the end of 2024 and complete it by 2030. At present, the feasibility study of the project has been completed and the work of selecting a consultant for the bid design and construction supervision work is underway, said NEA Managing Director Ghising.

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