Kathmandu - The 25-megawatt Seti River Hydropower Project, constructed in Machhapuchhre Rural Municipality of Kaski district, has officially been inaugurated. Developed by Vision Lumbini Energy Company, the project harnesses the flow of the Seti River, which runs through both Machhapuchhre Rural Municipality and Pokhara Metropolitan City.

👥 Widest Founding Shareholder Base in Hydropower Sector

The project has made a mark by involving over 1,500 founding shareholders, making it one of Nepal’s most broadly held hydropower ventures. It was initially registered as a public limited company under the name Pantik Limited at the Office of the Company Registrar on 26th of B.S. 2075.

⚡ Efficient Completion Despite Pandemic

Despite the challenges posed by the global COVID-19 pandemic, the project was completed in a timely manner. Key factors contributing to this success include:

• Efficient investment mobilization

• Prompt decision-making

• Active engagement of project leadership

• Removal of operational roadblocks

• Effective deployment of responsible personnel

Construction began in B.S. 2077, and the Nepal Electricity Authority (NEA) started purchasing power from the project on 27 Kartik 2081. Since operations began, energy production has consistently exceeded projections stated in the Power Purchase Agreement (PPA).

💡 Model of Cost-Effective and Transparent Development

The Seti River project has gained recognition for being a frugal and transparent example within Nepal’s hydropower sector. Industry experts and regulatory officials alike have praised its operational efficiency.

Project leadership made informed decisions by thoroughly analyzing technical, financial, and legal dimensions in consultation with field experts and management professionals, ensuring that all purchases and expenses were well-justified.

🔌 Power Evacuation and Income Generation

Electricity generated from the project is transmitted to the national grid via a 4-kilometer, 132 kVA transmission line connecting to the Lahachowk substation.

With a total investment of approximately Rs 6 billion, the project is projected to generate annual revenue of Rs 870 million in its first year of operation.

💰 Project Financing and Ownership Structure

The financial structure of the project includes:

• 70% debt financing, led by NMB Bank, with participation from the Employees Provident Fund and Agricultural Development Bank

• 30% equity investment, contributed by founding investors, including local residents and the general public

Of the equity portion, Rs 1.9125 billion has been raised through public and local investment.

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📰 Source: UrjaSanchar.com