The company has acquired a survey license from the Department of Electricity Development to study the project.
The company has converted the idea of developing two hydro projects in the area into a larger single reservoir-type project. Earlier, the company had planned to develop the 207-MW Tamakoshi-II on a run-of-river model and the 275-MW reservoir-type Tamakoshi-III.
"But we decided to convert them into a larger single reservoir project after studies showed that a combined one will be a better option," said Sandip Shah, vice president and country director of SN Power Holding Singapore Pte. Ltd.
The decision was taken following the findings of a detailed feasibility study and environment impact assessment (EIA) conducted by the company.
In its new design, SN Power has decided to lower the total dam height to 95 meters from its earlier design of 125 meters in view of possible danger from the reservoir to Singati Bazar, which comprises over 200 households.
The project can peak at 600 MW for four hours a day during the driest period of the year, according to Shah. In other times, it can generate 600 MW round the clock. The project will generate 2,450 GWH a year, he said.
The project is mainly meant for meeting domestic supply but surplus energy will be exported.
The detailed feasibility study is still underway and is expected to be complete by October 2009. The company plans to start construction by the end of 2012 and complete it by the end of 2016.
The total investment for the project will be US $1.3 billion (Rs 105 billion). According to country director Shah, talks are underway with international banks and financial institutions. The International Finance Corporation, a member of World Bank group, and the Asian Development Bank will lead the consortium.
The company is also prepared to construct a transmission line from the project site if needed. The government says that it is constructing the Khmiti-Dhalkewar transmission line. If the government readies the transmission line by the time the project sees completion, the same grid will be used to transmit the power generated. "Otherwise we will construct a 225-km transmission line on our own," he added. Construction of a 225-km transmission line will cost about US $100 million.
SN Power is one of the main promoters of the 60 MW Khimti Hydropower Project in Dolakha district, which is already in operation. The international company has completed several other projects in India, Sri Lanka, Peru and Philippines with a total capacity of 960 MW while several other projects with a total capacity of 1,800 MW are in the construction phase in different countries. "Likewise, other projects with a total 2,000 MW capacity are in the development phase," he added.
A 600 MW project by the company is in the under-construction phase in Chile.
Shah said that while the deepening global financial crisis is a major challenge for project financing, several other problems have to do with Nepal´s political situation, legal provisions and the security situation.
About 10,000 skilled and semi-skilled employees will be needed once construction work on the project starts in full swing. "With a view to fulfilling the demand from local areas, we have planned to provide skill training to the locals from October-November," Shah said.
Nepal is in dire need of storage-type hydro projects as it has been facing an acute power shortage for a couple of years mainly due to the dry seasons. All the projects in the country -- except Kulekhani -- are built on the run-of-river model.
thira@myrepublica.com
Related story
Only 12.2 km remain for laying fuel pipeline of Motihari-Amlekh...
-1782782519.webp)
