100-MW Kali Gandaki hydro scheme planned

Kathmandu: At a time when the country is reeling under an acute energy shortage, a group of Nepali developers under the initiation of Hydro Solutions on Thursday announced the launch of Kali Gandaki Gorge Hydropower Project (KGGHP) for domestic consumption.

The 100 MW power project to be built at the border of Mustang and Myagdi districts, is a domestic project led by Nepali developers and financers, said Gyanendra Lal Pradhan, chief strategist at the Hydro Solutions.

'This is a national initiative to take care of current power shortage. The initiatives of such a nature can solve the load shedding and help alleviate some of basic needs of cooking and lighting in the next few years,' he said.

'If everything goes as planned, we will start generation by 2012,' Pradhan claimed adding that the construction would start from the beginning of next year. According to him, the installed capacity of the project is 100 MW that can generate about 650 million units of energy annually. Pradhan further said that the technical and environmental study is at an advanced stage and is scheduled to complete by the end of this year.

The project site lies on the way to Beni-Jomsom Road, which is being built by Nepal Army and be completed within this fiscal year. The water from Kali Gandaki River at Ghasa will be delivered to the powerhouse at Dharap of Mustang through a six-km tunnel. The project has a net head of more than 500 metre.

'The high head gained through a relatively short tunnel along with the high discharge available in Kali Gandaki river makes the KGGHP an attractive project,' Pradhan said, adding that easy access to the site has made it more lucrative for the investors.

The project will be the first hydropower project being promoted by Nepali and for Nepali that can significantly reduce the burden of load shedding and energy crisis, he claimed.

Pradhan further claimed that financing for the project is not a problem', as the developers have already received commitment from the local banks, business houses and developers such as Butwal Power Company. 'Some foreign investors from Canada, Norway and India have also shown keen interest to participate in the project. However, our priority is to use as much national capital as possible and if there is a shortfall of resources, we will get from abroad,' he added.

According to him, Hydro Solutions has already received commitment of over two billion rupees from various Nepali individuals and business houses. He also revealed that the developers plan to distribute shares to locals in the area and public as well as labourers who wish to work in lieu of equity.

Although the total estimated cost for the project is yet to be finalised, Pradhan said current estimation stands at $1500 per KW. He further added that the detailed project cost and promoters would be finalised within next six months.