November 1: The construction of the Middle Bhotekoshi Hydropower Project, which had been affected by various natural calamities, blockade, poor performance of the contractor company, and the Covid-19 pandemic, has finally started progressing at a fast pace.

According to the project officials, the construction of the project is 75 percent complete. The target is to complete the construction by 2079 BS (mid-January 2023). The Chilime Hydropower Company with majority shares of Nepal Electricity Authority is undertaking the construction of the project in Sindhupalchowk. The capacity of the project is 102 MW. 

The target is to complete the construction of the main structure of the project including the dam, sand dredging pond before the onset of the rainy season. The NEA has stated that the construction of the powerhouse building will be completed within the next five months, and the remaining 415 meters of the 7.2 km tunnel will be completed within three months.

The Jure landslide in July 2015, catastrophic earthquake in April 2015, obstruction of Nepal-India border for about five and a half months from September 2015, floods in Bhotekoshi river in June 2016, floods in Bhotekoshi river and surrounding areas in June last year, and Covid-19 pandemic had affected the construction work of the project.

The completion of the project was affected due to natural calamities and poor performance of the Chinese company Kwangsi Hydro and Electrical Construction, which had bagged the contract for civil and hydro mechanical works.

The Chinese company was awarded the contract in the engineering, procurement, and construction (EPC) model of civil and hydromechanical work to prevent the cost of the project from increasing. Andritz  Group is undertaking the electro-mechanical work. Andritz Group has already brought the equipment to the project site.

Last year's flooding of the Bhotekoshi River inundated the store house of the project and damaged the equipment. The estimated cost of the project was Rs 12.28 billion excluding interest during the construction period when the loan agreement was signed with the Employees Provident Fund. The revised estimated cost of the project is Rs 15.32 billion excluding interest for the construction period. Out of the total initial cost of the project under construction, 50 percent has been raised from capital investment and 50 percent from loans.

Of the 51 percent founding shareholders of the company's issued capital, NEA owns 10 percent. Similarly, Chilime Hydropower Company Limited owns 37 percent, Sindhupalchok Hydropower 1 percent, Nepal Araniko Hydropower 1 percent, Sindhu Investment Company 1 percent, and Sindhu Bhotekoshi Hydropower 1 percent.

The general public owns 49 percent of the shares. The employees of the Employees' Provident Fund have 19.5 percent shares, the employees of the founding organization 3.5 percent, the employees of the lending organization 1 percent, the locals of Sindhupalchowk district 10 percent, and the general public 15 percent. The company has recently sold shares to the public through the issuance of IPO.

The project will generate 542.2 million units of electricity annually. NEA will purchase the project's electricity at Rs 8.40 per unit and Rs 4.80 per unit in the winter and rainy seasons, respectively. The company is expected to earn Rs 2.90 billion annually by selling electricity to NEA.