MONEY»
Cash-strapped NEA sees hope in projects
KATHMANDU, AUG 18 -
Nepal Electricity Authority (NEA), the country’s sole power utility, is on a brink of bankruptcy, suffering an average loss to five billion rupees annually.
Delay and interruptions on hydropower development projects has added to the NEA’s misery. The Middle-Marshyangdi Hydro Electricity Project could very well be a case in point.
It cost Rs. 10 billion extra for this 70 MW project to complete four years behind its December 2004 deadline. The four-year delay was the culmination of technical, political and social impediments the project suffered on numerous occasions.
Despite being cash-strapped, the NEA still hopes to regain its financial foothold.
The recent tripartite loan agreement among the NEA, Employees’ Provident Fund and Upper Tamakoshi Hydropower Limited is expected to provide some respite to the NEA.
The deal has paved way for the construction of 456 MW Upper Tamakoshi Hydro Electricity Project (UTHEP), and the NEA, which is the largest equity holder of the undertaking, expects to churn out profit from it.
Along with the UTHEP, other projects like Chameliya and Kulekhani are already under construction. While the projects like Rahughat, Upper Trishuli-3 ‘A’, Upper Trishuli 3 ‘B’ and Upper Seti are also in their initial development phase.
Most of these projects will complete within next five years if everything goes according to the plan and uninterrupted.
By the next five years, the NEA expects to add at least 756 MW in the national grid thus addressing the country’s power woes as well as its financial worries.
Project synopsis
Upper Tamakoshi Hydro Electricity Project
This 456 MW mega project is located in Dolakha district, and is poised to start the major civil construction works from this year. It is expected to complete in five years. The total estimated cost of the project is set at Rs 35.29 billion. The NEA is the largest equity holder of the project.
Chameliya Hydroelectric Project
This 30MW project is located in Darchula
district. In development since 2007, about 52 percent of the project has completed so far. The project of estimated US $ 45 million is expected to complete by 2012.
Kulekhani III Hydroelectric Project
This 14 MW project is in development since last year. It is expected to be complete in next two years.
Rahughat Hydroelectric Project
With an installed capacity of 32 MW, this project is based in Myagdi district and it is entering the construction phase very soon. The total estimated cost of the project is US $ 72 million. It is expected to complete within next four years.
Upper Seti Storage Project
This 127 MW undertaking is located in Tanahun district and is a reservoir type project. Its estimated cost is US $ 341 million. The detailed design of the project has completed. It is expected to come into operation 2015.
Upper Trishuli 3 A Hydroelectric Project
This 60 MW project’s location touches Rasuwa and Nuwakot districts. Expected to be completed by 2011, the project cost is pegged at US $ 89.23 million. A Chinese firm has begun the project development works from July.
Upper Trishuli 3 B Hydroelectric Project:
The cascade project of Trishuli 3 A has an installed capacity of 37 MW. The total estimated cost is US $ 68 million and is expected to complete by 2011.
Posted on: 2010-08-19 08:24
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