NEA signs PPA with Sangrila Hydropower Pvt Ltd for Jaldigad hydropower project

Published On: September 16, 2023 02:00 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Sept 16: A Power Purchase Agreement (PPA) has been signed for the 20.73 MW Jaldigad hydropower project to be built in Rukum East. The project promoter Sangrila Hydropower Pvt Ltd and Nepal Electricity Authority (NEA) signed a PPA on take and pay model for 6 months of winter and 6 months of rainy season.

The agreement stipulates that the NEA will purchase electricity generated by the project at the rates of Rs 8.40 during the winter and Rs 4.80 during the rainy season. On behalf of the project, Chairman of Sangrila Hydropower Pvt Ltd Khagendra Neupane and Deputy Executive Director Pradeep Kumar Thike on behalf of the Electricity Authority have signed the agreement.

Shangrila Hydropower Pvt Ltd has gathered a group of accomplished entrepreneurs who have thrived in various sectors, including Khagendra Neupane, Secretary of the Non-Resident Nepali Association (NRNA) ICC. This dynamic team also includes RK Sharma, Vice President of NRNA ICC and a successful businessman, Raj Regmi, Youth Vice President of NRNA and a young entrepreneur based in Qatar, Naveen Kandel, businessmen Rabin Gurung, and Saroj Dhital. Neupane said that the project will move forward with team's agility and strong teamwork.

Chairman Neupane also said that NRNAs and successful Nepali businessmen from various sectors will heavily invest in the hydropower project. The project to be built in Ward No 3 and 4 of Rukum East Aathbiskot Municipality will be situated along the Jaldigad river.

From the power station to the Nepal Electricity Authority's Bafikot substation, it will be connected to a 132 kV substation or a 400 kV substation at Jajarkot Daanepipal, which is 8 km away from the project site. According to the project, the access road leading to the project has been opened and needs to be upgraded. The estimated cost of construction of the project is Rs 4 billion. The estimated construction cost for the project is Rs 4 billion, with an expected annual electricity production of 127.29 gigawatt hours.