BPCL to Increase Power Production Capacity

Butwal Power Company Limited (BPCL) is gearing up to increase its power production capacity to 94 MW. According to Ratna Shakya, BPCL’s Head of Corporate Division, the company is preparing to produce an additional 67.6 MW power from Kabeli ‘A’ and Nyadi Hydropower projects. “We have planned to start commercial production from these two projects within three years,” he said. 

 

The company has already produced electricity from Jhimruk, Aandhikhola and Khudi hydropower projects. Kabeli Energy Limited is the developer of Kabeli ‘A’ hydropower project. BPCL holds the majority shares of the company. The Run-of the- river (ROR) 37.6 MW project is being constructed at the Kabeli River located at Taplejung and Panchthar.

 

The total cost of the project is estimated at USD 970 million. The project which is aimed to be completed by 2016 will be producing 201 Giga Watt (GW) of electricity. The project will be constructed in BOOT (Build, Operation, Own and Transfer) model. The government and the developers have already signed the Project Development Agreement (PDA). According to Shakya, national and international finance organizations including the International Finance Corporation (IFC) of The World Bank Group are investing in the project.

 

“The World Bank and IFC are investing in the project as loan”, he informed adding, “We have already managed necessary financial close for the project’s construction.” BPCL has majority of shares investment in Nyadi Hydropower project too. The 30 MW project is also designed under the BOOT model.

 

According to the company, Power Purchase Agreement (PPA) with the government for the construction of the project is underway. BPCL already has 12 MW Jhimruk, 9.4 MW Andhikhola and 4 MW Khudi project. The company has been producing 5.5 million units annually from Jhimruk Hydro Project.

 

Similarly, Aandhikhola will be producing more power as it is being upgraded to 9.4 MW which previously was three million units. “The project has been stopped for the power upgradation process”, Shakya said, “It will be resumed with the upgraded power (9.4 MW) within five months.”

 

BPCL has been distributing power directly through transmission lines to districts in western region such as Pyuthan, Argakhanchi, Rolpa, Syangja and Palpa. The company is selling the remaining power to Nepal Electricity Authority.