January 16: The Ministry of Forests and Environment has approved the Environmental Impact Assessment (EIA) report of Betan Karnali Hydropower Project which is estimated to cost Rs 88 billion. This project is the pride of Karnali Province.

According to the Project Chief Upendra Neupane, the ministry approved the EIA report on January 2 in line with Sub-section (5) of Section 7 of the Environment Protection Act, 2076 and Sub-rule (8) of Rule 9 of the Environment Protection Regulations, 2077.

The ministry’s decision to approve the EIA report has paved the way for the construction of the project, informed Neupane.

Project Chief Neupane added that the promoters of the company will start construction of the project after finalizing financial management and Power Purchase Agreement once they get approval from the Department of Electricity Development.

The 439 megawatt project is a semi-reservoir project extending from Chokune Rural Municipality of Surkhet to Dhakari Rural Municipality of Achham. The project is being promoted by Betan Karnali Sanchayakarta Hydropower Company Limited.

The project will affect the residents of Chokune Rural Municipality-6 of Surkhet, Ward No 7 of Panchapuri Municipality and Ward No 6 of Dhakari Rural Municipality of Achham and Ward No 3, 4 and 5 of Turmakhand Rural Municipality.

Neupane said that the plan is to start the construction of the infrastructure within one and a half years after completing all the pre-construction works. Currently, the access road is being constructed. The project has already opened track of 18 km road from Achham to the project site and 14 km from Gutu in Surkhet to reach the dam site.

The study of this project was initiated in October 2017 by the Engineering Company Limited owned by the Nepal Electricity Authority.

The estimated cost of the project including interest is said to be around Rs 88 billion. The source of investment is yet to be finalized. Neupane said that they will announce tender bids for awarding the contract and start construction within one and a half years once the source of investment is ensured.

The project has set the goal to complete the construction works within five years. Altogether 70 percent of the total cost will be managed with loans and 30 percent through equity.

To raise the capital through equity, the company has decided to issue 40 percent share ownership to the depositors of the Employee Provident Fund, 15 percent to the EPF, and 10 percent each to the Nepal Electricity Authority and the power generation company. The company has decided to issue 13 percent shares to the general public, 10 percent to the project affected families and 2 percent to the extremely poor families.