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Govt in search of investors for Chameliya hydel project
KATHMANDU, NOV 21 - The government has appealed to South Korea and Organisation of Petroleum Exporting Countries (OPEC) to fund the development of 30-megawatt Chameliya Hydroelectric Project in far-western Nepal.
The Ministry of Water Resources (MoWR) recently corresponded with the Finance Ministry, asking to make arrangement of funds amounting to US$ 50 million in this regard.
The peaking run-of-river type project is estimated to cost about US$ 75 million. The project site lies at Gokuleshwor, a section between Baitadi and Darchula of the Mahakali highway.
In its letter sent to the Finance Ministry, according to a source, MoWR has asked to take necessary action for the arrangement of US$ 35 million from South Korea and US$ 15 million from OPEC. While it has requested the Finance Ministry to raise the rest, amounting to about US$ 25 million through the government’s internal resources and the Nepal Electricity Authority (NEA).
South Korea and OPEC had shown keen interest in the project considered to be one of the efficient ones in the country’s central electricity grid. The decision to request South Korea for funding – was made by NEA in the wake of the recent change in government there.
According to the project in charge Keshav Raj Bhatta, NEA has already installed all the required infrastructures for the project.
"Only thing that remains now is the investment," said Bhattarai, recalling assurance to extend financial help from the South Korean government and OPEC towards the development of the project.
Earlier, South Korea had informally assured to provide Nepal with US$35 million in financial aid. Bhatta informed that OPEC would invest US$ 15 million while NEA bearing the rest of the cost.
It was identified as an economically viable project during the joint feasibility study of Upper Karnali and Mahakali basin by NEA and Japan International Cooperation Agency (JICA).
A pre-feasibility study was carried out through Nepal Industrial Development Corporation (NIDC) under SAARC Fund followed by a detailed feasibility study by the government and NEA in 1997.
The project’s detailed design of the dam, main structures and a bid document ~ ~ were prepared under the grant assistance of the Korean government in 2001. The study suggests the project’s production cost at US$ 2,000 per kilowatt of electricity. It has the capacity to generate 183 gigawatts of electricity per annum.Posted on: 2003-11-20 10:10
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