Kathmandu

Construction Contract Finalized for 106 MW Jagadulla Hydropower Project in Dolpa

The long-awaited construction contract for the 106 MW Jagadulla Partial Reservoir Hydropower Project, located in Dolpa district, has finally been completed. The agreement was signed on Monday, August 26, between the project developer Jagadulla Hydropower Company and the selected contractor, JCE/NKJE JV—a joint venture between Jiangxi Construction Engineering Corporation Limited (China) and NK Construction Company Pvt. Ltd. (Nepal).

This marks a major breakthrough for the strategically important project, which had faced prolonged delays due to technical, financial, and procedural hurdles.

🔧 Contract Award and Selection Process

As per the contract, construction must begin within the next 60 days. The contract, valued at Rs. 13.73 billion (including VAT), was awarded to JCE/NKJE JV after a competitive selection process.

Initially, the company had invited bids on 20 Jestha 2081 BS for the civil and hydro-mechanical works. However, the first tender was cancelled after no applicant met the technical criteria. A second round of bidding followed, during which four companies applied. Only JCE/ANK JV and Sino Hydro Corporation Ltd. were shortlisted after technical evaluation.

During the financial proposal phase, Sino Hydro quoted Rs. 13.33 billion, while JCE/ANK JV quoted Rs. 12.15 billion. However, a complaint was filed at the Accounts Committee alleging the submission of fake documents by JCE/ANK JV. The complaint stalled the process for nearly two months.

Ultimately, the Accounts Committee ruled that the process could move forward as per existing legal procedures, citing an ongoing court case. As a result, the contract was finalized with JCE/NKJE JV, which had submitted the lowest qualified bid.

🌊 Project Overview

The project will be constructed on the Jagdulla River, flowing through Jagdulla and Mudkechula rural municipalities in Dolpa. The dam site is located in Hurikot, Jagdulla-2, and the plant will operate as a peaking run-of-river (partial reservoir) system.

Key technical features include:

• Headrace tunnel: 6,139 meters

• Spreader shaft: 14.6 meters

• Underground powerhouse: Will house three turbines

• Transmission: Electricity will be evacuated to the NEA's Bafikot Substation, located approximately 50 km from the project site

The main civil structures will be built along the left bank of the river. Pre-construction works, including access road construction, are currently in progress.

⚡ Generation Capacity and Timeline

Once operational, the Jagadulla Hydropower Project is expected to generate 623.47 GWh of electricity annually, with seasonal distribution as follows:

• Rainy season: 430.23 GWh

• Dry season: 192.24 GWh

The project is scheduled for completion by the year 2086 BS. The generation license, issued by the Department of Electricity Development (DoED) on December 23, remains valid until December 24, 2117 BS.

📄 PPA and Tariff Structure

A Power Purchase Agreement (PPA) was signed between Jagadulla Hydropower Company and the Nepal Electricity Authority (NEA) on Baisakh 28, 2080 BS. As per the PPA:

• Winter season tariff: Rs. 8.40 per unit

• Peak hours tariff: Rs. 10.55 per unit

• Rainy season tariff: Rs. 4.80 per unit

💰 Project Financing

Financial closure for the project was achieved on 20 Jestha 2080 BS. The total project cost is estimated at Rs. 23 billion, with financing structured as:

• Loan component: Rs. 16 billion

• Equity investment: Rs. 7 billion

The project is backed by a consortium of lenders, led by Nabil Bank, with co-financing from:

• Hydro Electricity Investment and Development Company Ltd. (HIDCL) – Rs. 4 billion

• Employees

Image Source : Urjasanchar

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