Milestone Achieved: Consultants Finalized for Upper Arun Hydroelectric Project

KATHMANDU: The selection of consultants for the Superintendence Consultancy of the 1063-megawatt Upper Arun Hydroelectric Project, to be constructed in the Bhotkhola Rural Municipality of Sankhuwasabha, has been finalized. The consortium chosen for the project’s construction supervision includes Tractebel Engineering from Germany, Tractebel Engineering from Spain, and WAPCOS Limited from India, in association with Total Management Services (TMS) and Zed Consult from Nepal.

A significant development was marked on Wednesday when a contractual agreement was reached between the project promoter, Upper Arun Hydropower Limited, and the consultancy consortium. The construction supervision consultancy contract, valued at approximately EUR 2.34 million, USD 445,000, and NPR 64.3 million (including tax and regional expenses), was formalized during the agreement.

The consultancy services will span 117 months, divided into three phases. The first phase involves design review and preparation of tender documents, with a duration of 21 months. The second phase, spanning 72 months, focuses on the construction supervision of the project. The third phase, lasting 24 months, will provide consultancy services for the operation and maintenance of the project.

The Chairman of the Board of Directors and the Executive Director of Upper Arun Hydropower Limited, Kul Man Ghising, emphasized the importance of completing the selection process efficiently, expressing gratitude for the thorough consideration given to the timely completion of the project. Ghising highlighted that the project aims to enhance Nepal’s electricity capacity, meeting the energy demands and contributing to socio-economic development.

The Managing Director of Hydroelectricity Investment and Development Company Limited (HIDCL), Prabin Aryal, shared details about the consortium’s composition, with Apar Arun Hydro–Electric Limited holding 51% of the project’s equity, and the general public, project-affected districts, and the Nepal Electricity Authority sharing the remaining 49%.

The Upper Arun Hydroelectric Project, with an estimated cost of NPR 214 billion, is scheduled to begin construction in May 2026, targeting completion by 2031. The project involves the construction of a 21-kilometer access road, offices, and residential buildings at the project site. The project has acquired approximately 232.14 hectares of private land, with 98% compensation and rehabilitation distribution completed.

The project aims to generate 4.53 billion units of energy annually, of which approximately 30% will be produced during the six dry months, showcasing its importance in addressing the seasonal energy demand. The generated electricity will be transmitted through a 6-kilometer, 400 kV transmission line to the proposed substation at Sankhuwasabha’s Heightar, contributing to the national grid.

As the project moves forward, it signifies a significant milestone in Nepal’s hydroelectric development, with the international consortium contributing expertise and resources for the successful implementation of the Upper Arun Hydroelectric Project.

Fiscal Nepal |
Friday February 16, 2024, 09:27:45 AM |

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