Upper Arun Hydroelectric Limited (UAHL) has chosen a consultancy team for the Upper Arun Hydroelectric Project. A consortium consisting of Tractebel Engineering (Germany), Tractebel Engineering (Spain), and WAPCOS Limited (India), in collaboration with Total Management Services and Zed Consult of Nepal, has been appointed as the supervisory consultants for the 1,063 MW hydropower project.

According to the agreement, the consultancy services will be remunerated with a sum of Rs 4.2 billion, to be paid in three currencies: Euro, Dollar, and Nepali Rupee. As per UAHL, the consultants will receive payments amounting to 23.4 million euros, 445,000 US dollars, and 643 million Nepali rupees, inclusive of taxes. The consultancy period spans 117 months, with 21 months allocated for reviewing designs and preparing bidding documents, 72 months for supervising the construction process, and 24 months for providing consultancy services during the operation and maintenance phase of the project.

The project will be financed through 'blended financing', incorporating concessional investment from international multilateral development partners and loan investment from domestic banks and financial institutions. A consortium led by the World Bank will extend a loan investment for the project, with plans underway for the signing of the loan agreement at the upcoming Investment Summit.

The estimated cost of the project is Rs 214 billion. An MoU has already been signed to secure Rs 53 billion from Nepali banks under the leadership of the Hydroelectricity Investment and Development Company (HIDCL). Projected to commence implementation in 2026, the project is slated to commence power generation in 2031.