The project, which has been delayed due to political interference, attacks on the project by locals under administrative cover, internal chaos, earthquakes, floods, landslides, and COVID-19, is currently generating 102 megawatts per day.
What you should know
The Madhya Bhotekoshi Hydropower Project, the main developer of which is Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority, has started commercial production. The project, which has been going through many ups and downs since the signing of a Power Purchase Agreement (PPA) in 2068, has started generating 102 megawatts of electricity daily.
The project, which was delayed due to political interference, repeated attacks on the project by locals under administrative cover, internal mismanagement of the project, earthquakes, floods, and COVID-19, is now generating electricity at full capacity as per the target. The project has started generating 102 megawatts of electricity by sending water from the dam built at Chaku in Bhotekoshi Rural Municipality-5 to the power plant built in Jambu of Bahrabise Municipality through a 7.5 km tunnel.
The NRA has started purchasing electricity from the project, which is in the form of a trial. According to Ramgopal Siwakoti, Chief Executive Officer (CEO) of Madhya Bhotekoshi Hydropower Company, the trial production was successfully underway since Bhadra 27. The NRA had informed on Thursday that the purchase of the electricity produced had begun.
According to Siwakoti, the NRA has informed that it will receive payment for the electricity produced from Asoj 20. If produced at full capacity, Madhya Bhotekoshi will earn about Rs 12 million daily from electricity sales. The authority will purchase electricity at Rs 4.80 during the rainy season and Rs 8.40 during the dry season. The dry season is considered from Poush to Chait. The project will earn about Rs 120 million for the first time in Asoj by selling electricity. The generated electricity is connected to the national grid through the New Khimti Transmission Line through Dhalkebar Substation. Recently, there was further delay in production after locals made various demands and did not allow the construction of the transmission line for 14 months. The project, which was initially estimated to cost Rs 12.33 billion and could not be completed on time, is expected to increase to about Rs 22.5 billion. CEO Siwakoti said that the cost can only be estimated now. He said that the project cost has increased mainly due to the interest on the loan taken from the Employees Provident Fund and the increase in the US dollar rate. It is estimated that the production cost per megawatt will reach 220 million due to the increase in cost. The project will have to pay about 15 billion including interest to the Employees Provident Fund alone. Out of the 9 billion loan taken from the Provident Fund, only 6 billion interest has reached due to construction delays.
There is an agreement that the principal and interest of the Provident Fund will be paid in 40 installments. The project has stated that the installment payment period can be extended. The project, which aims to generate 542.2 million electricity annually, is expected to generate 2.8 billion annually. Siwakoti informed that the project can produce a minimum of 35 megawatts in the dry season and up to 110 megawatts during the rainy season.
Bhotekoshi Company has shares from Chilime, Employees Provident Fund, local investors, affected residents, Electricity Authority and the general public. The project has stated that a certain percentage bonus may be given to shareholders next year.
The project was started in 2068 by the then CEO of Bhotekoshi Company Kulman Ghising. It was very difficult to move the project forward in the initial stages. During the construction of the project, Radha Gyawali removed Ghising from the position of CEO of the project when she was the Energy Minister. The employees themselves stopped the project work for some time after she was removed. Therefore, due to various obstacles, it has taken almost a decade and a half to complete the project and generate electricity, despite the target of starting it in 2013 and completing it in 2017.
During the construction of the project, local political party activists even attacked the structure and Ghising was abused. The project, which never received local support, also faced problems due to the lack of proper leadership in internal management. The construction of the project's tunnels and other civil works was carried out by China's Guangxing Hydro Electric Construction Bureau.
