Kathmandu – The 102-megawatt Madhya Bhotekoshi Hydropower Project, located in Sindhupalchowk, is on track to commence commercial electricity generation within the next two weeks, following the successful testing of all three of its power-generating units.

Developed under the leadership of Chilime Hydropower Company Limited, a subsidiary of the Nepal Electricity Authority (NEA), the project features three turbines of 34 megawatts each. According to CEO Ramgopal Shiwakoti of Madhya Bhotekoshi Hydropower Company, all necessary technical tests have been completed.

"All project tests have been successfully conducted," Shiwakoti told Urja Sanchar. "We are currently preparing for a 15-day generation test to be carried out by NEA. Once that’s successfully completed, we will begin commercial production."

During this 15-day testing period, the electricity generated will be supplied to NEA free of cost. If no issues arise, commercial generation is expected to begin from the second week of Asoj.

Power Integration and Construction Timeline

The project is connected to the Bahrabise Substation located at Bahrabise-3, Patali. Electricity from the plant is transmitted via the Khimti–Bahrabise transmission line, integrating it into the national grid.

Construction of the project began in 2070 B.S., with an initial target to complete by 2073 B.S. However, several unforeseen circumstances delayed progress, including the 2015 earthquake (2072 B.S.), the five-month-long Indian blockade, severe floods, landslides, and other disruptions.

Project Cost and Investment Structure

The project's estimated cost at the time of the loan agreement with the Employees Provident Fund (EPF) was Rs 12.28 billion (excluding interest during the construction period). The funding structure includes a 50/50 split between equity and debt.

Due to the delays, the total construction cost has increased significantly from initial projections.

Ownership Structure

The company’s issued capital is 51% promoter-owned. Among the founding shareholders:

• NEA holds 10%

• Chilime Hydropower Company holds 37%

• Sindhupalchowk Hydro Power Co. Ltd. – 1%

• Nepal Araniko Hydro Power Company Ltd. – 1%

• Sindhu Investment Company Pvt. Ltd. – 1%

• Sindhu Bhotekoshi Hydro Power Ltd. – 1%

The remaining 49% is held by public investors, which includes:

• 19.5% by contributing employees of the EPF

• 3.5% by employees of the founding corporate body

• 1% by employees of the lending institution

• 10% by residents of Sindhupalchowk district

• 15% by the general public

Currently, the project has a shareholder base of approximately 1.075 million common investors.

Power Generation and Revenue

The Madhya Bhotekoshi Hydropower Project is expected to generate 542.2 million units of electricity annually. The NEA will purchase electricity from the project at a rate of:

• Rs 8.40 per unit during the dry season

• Rs 4.80 per unit during the wet (monsoon) season

This is projected to bring in annual revenues of around Rs 2.8 billion for the company.

Image Source : Urjasanchar

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