Kathmandu – The 102-megawatt Madhya Bhotekoshi Hydropower Project, constructed under the leadership of Chilime Hydropower Company Limited—a subsidiary of the Nepal Electricity Authority (NEA)—is in its final phase of commissioning and is expected to begin electricity generation within a few days.

Located in Sindhupalchowk, the project has been developed by Madhya Bhotekoshi Hydropower Company Limited, and recent financial disclosures by Chilime confirm that generation is imminent.

Local Concerns Over Tunnel Leakage Resurface

Despite nearing operation, the project faces mounting pressure from local residents who claim that water leakage from the project’s tunnel poses a serious threat to nearby settlements. Community members, including local clubs and forest user groups, have submitted formal complaints to project authorities demanding urgent action.

According to affected locals, repeated leaks have been observed from the same borderland area of the main tunnel—initially in Poush 2080, which required 9 months of repair, and again in 2081 BS, when retrofitting technology was employed to fix the damage. Now, a third instance of leakage has been reported, prompting fresh concerns about settlement erosion and public safety.

The community is demanding:

• Independent expert inspection and repair of the tunnel

• Class A insurance coverage for human life, land, and property

• Allocation of a community responsibility budget to the local ward

Project Responds: No Risk to Settlements

In response, Sudip Joshi, Acting Chief of the project, stated that there is no structural issue within the tunnel, nor any imminent risk to surrounding settlements. He attributed minor disturbances to seasonal rainfall-induced landslides, not the project infrastructure itself.

Financial Structure and Ownership

The project's estimated cost—excluding interest during construction—was Rs 12.2833 billion at the time of the loan agreement with the Employees Provident Fund. The financing is split equally between equity (50%) and debt (50%).

Ownership Structure:

• 51% Promoter Shareholders:

  • NEA: 10%

  • Chilime Hydropower Company Ltd.: 37%

  • Sindhupalchowk Hydro Power Co. Ltd.: 1%

  • Nepal Araniko Hydro Power Co. Ltd.: 1%

  • Sindhu Investment Company Pvt. Ltd.: 1%

  • Sindhu Bhotekoshi Hydro Power Ltd.: 1%

• 49% Public Shareholders:

  • Employees Provident Fund depositors: 19.5%

  • Employees of promoter organizations: 3.5%

  • Lending institution employees: 1%

  • Sindhupalchowk residents: 10%

  • General public: 15%

To date, the company has raised equity by issuing shares to over 1.075 million common investors.

Annual Output and Revenue

Once operational, the Madhya Bhotekoshi Hydropower Project will:

• Generate 542.2 million units of electricity annually

• Sell electricity to NEA at:

  • Rs 8.40 per unit (dry season)

  • Rs 4.80 per unit (rainy season)

• Generate an estimated annual income of Rs 2.8 billion

Outlook

While the project’s energy output is set to make a significant contribution to the national grid, the ongoing community tensions and safety concerns must be addressed transparently to ensure long-term operational security and public trust. Local cooperation, environmental safety, and responsible corporate behavior will be critical as the project enters its operational phase.

Image Source : Urjasanchar

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