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Civil structure work of Phedikhola is 75 percent complete, shares worth 17.5 crore being issued

Kathmandu – The Phedikhola Thumlung Hydropower Project, being developed by Phedikhola Hydro Power Company Pvt. Ltd., has made significant progress with 75 percent of the civil construction work completed. Initially designed with a capacity of 3.52 megawatts (MW), the project has now been upgraded to 4.3 MW.

Grid Connection & Power Purchase Agreement Finalized

Following the capacity upgrade:

  • Grid connection was successfully completed on Poush 17, 2079

  • The Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA) was finalized on Asoj 2, 2080

According to the PPA:

  • For the original 3.52 MW portion:

    • Dry season (Mangsir 16 – Jestha 15): Rs 8.40 per unit

    • Rainy season (Jestha 16 – Mangsir 15): Rs 4.80 per unit

  • For the additional 780 kW:

    • Dry season (Poush – Chait): Rs 8.40 per unit

    • Rainy season (Baisakh – Mangsir): Rs 4.80 per unit

Annual Energy Generation & Project Delays

The upgraded project is projected to generate approximately 24.48 million units of electricity annually. Although the original commercial operation date was set for Chaitra 29, 2081, the timeline has been delayed due to flooding on Shrawan 13, 2080.

As a result, the company is in the process of requesting an extension from NEA to defer the Commercial Operation Date (COD) to Magh 2082.

Project Financing & Capital Structure

The total estimated cost of the project is now Rs 980 million, up from the previous estimate of Rs 940 million due to flood-related damages. The financing structure includes:

  • Equity: Rs 480 million (49%)

  • Debt: Rs 500 million (51%) from Nepal Bank Limited

Public Share Issuance Planned

To support financing and broaden public ownership, the company has:

  • Proposed to increase its authorized capital from Rs 600 million to Rs 700 million

  • Approved a plan to issue 25% of the capital—Rs 175 million—to the general public

  • Authorized the Board of Directors to carry out the necessary steps for implementation

This project marks another step forward in promoting small-to-medium scale private sector hydropower development in Nepal. With substantial progress already made and financing nearly secured, the Phedikhola Thumlung Hydropower Project is expected to contribute meaningfully to the national grid upon completion.

Image Source : Urjasanchar

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