Kathmandu. The financial management of the 216 MW Upper Seti Hydropower Project to be constructed in Bajhang of Sudurpaschim State has been completed.
Saipal Rural Municipality, Bajhang Machhapuchchhre Bank, Hydroelectricity Investment and Development Company, Laxmi Sunrise Bank, Nepal Investment Mega Bank, Prabhu Bank, Nepal SBI Bank, NIC Asia Bank, Krishi Bikas Bank, Lumbini Bikas Bank, Shangri-La Development Bank, Kamna Sewa Bikas Bank and ICFC Finance formally managed the project. Yes.
Kumari Bank and Samriddhi Energy, the promoter company of the project, signed a financial management agreement amidst a program held in Kathmandu. Chief Executive Officer of Kumari Bank Ram Chandra Khanal and Chairman of Samriddhi Energy Shailendra Guragain signed the agreement on behalf of their respective organisations.
Kumari Bank, one of the major commercial banks in Nepal, is currently investing in more than 65 hydropower and solar energy projects focusing on the development of the energy sector. The bank has so far contributed to the financial management (including co-financing) of projects of more than 2,000 MW capacity by investing more than Rs 70 billion (including under commitment). Some of them are in operation and others are under construction. These projects are contributing significantly to increasing the power supply to the national transmission line.
The project, which is being constructed at a cost of around Rs 41.6 billion, will be carried out in the ratio of 70 percent loan and 30 percent self-capital.
The project is based on a semi-reservoir river flow system with a peaking capacity of 4.5 hours. The design discharge of the project is 34.1 cubic meters per second, the gross head is 758.9 meters and the net head is 735.6 meters. A provision has been made to release 1.41 cubic meters per second of water into the Seti river continuously throughout the year to maintain the biological flow below the dam of the project.
The Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) was concluded on July 1, 2080 and the power generation permit was obtained on May 15, 2081. The project is expected to be completed within five years and will start commercial production by July 15, 2031.
The project is expected to generate 1229.6 gigawatt hours of electricity annually. The production will be 834.49 in the rainy season and 395.11 in the dry season. It will have a peak energy of 163.63 GWh. The peak energy power tariff during the dry season is Rs. 10.55 and the rate of non-peak energy is Rs. It will be 8.40.
The electricity generated will be connected to the national grid through the 30 km long 220 KV double circuit transmission line from the 220 KV switchyard to be constructed at the project site through the proposed 400 KV Bajhang substation of the National Transmission Grid Company.
The total length of the access road required for the project will be 25 kilometers. The cost per megawatt of the project will be around Rs 19.25 crore and is expected to earn rs 7.67 billion in the first year itself.
Samriddhi Energy, the promoter company of the project, is collecting 30 percent of the project through various institutional and individual investors. Its big investors include Suri Nyadi Power, Ngadi Group Power, Sagarmatha Hydropower Company, Mai Khola Hydropower, Yash Holding and other big companies and Shailendra Guragain, Dr. Dipu Moni. There are experienced investors like Bhogendra Kumar Guragain and Dinesh Gurung.
The Upper Seti Hydropower Project is seen as another significant achievement in the history of hydropower development in Nepal with the expectation of expanding local infrastructure, employment generation, energy self-sufficiency and positively impacting the overall economic prosperity of the Far-Western Province. It is believed that the completion of the project will contribute decisively to realizing the dream of the bright far-west.
