Mai Khola Small Hydropower Project (4.5 MW)

1. Short Description and background of the Company

Name                                                             : Himal Dolakha Hydropower Company (Pvt.) Ltd.

Establishment                                                 : 19/3/2065

Name                                                              : Himal Dolakha Hydropower Company Public Ltd.

Establishment                                                 : 26/2/2074

Date of Registration

Registration No:                                             : 54163/064/065

PAN No:                                                         : 302275988

Project Development

  1. Mai Khola Small Hydropower Project (4.5Mw)

Project Status: Under Operation

 

Postal address:                        HEAD OFFICE

Bhawanimandal -4, Lalitpur, Nepal

Site Office                                          Illam, Nepal

Koshi Zone, Nepal

Telephone                                           : Head Office: 977-01-4462844

 

 

Type of Organization             :           LIMITED COMPANY

Board of Directors

Mr. Birendra Bahadur Neupane                   – Chairman

Mr. Rupmani Rajbhandari                            – Managing Director

 

 

2.Background

Hydropower development remained a state monopoly in Nepal for a long time. It is the Hydropower Development Policy of 1992, Electricity Act, 1992 and Water Resources Act, 1992 that opened the door for investment in hydropower development to the private sector. The Nepal Rastra Bank (Central Bank of Nepal) has categorized hydropower projects as one of the priority sectors for investment. Nepali banks and financial institutions have also shown interest to provide loans in this sector. Hence, it is an emerging sector in the country. Rural electrification is one of the pre-requisites for economic development. Electricity will not only increase the quality of life but also support the livelihood of people, thus contributing to poverty alleviation and economic development. There is also scope for exporting surplus energy. As the opening of hydropower development to the private sector, with a view to contribute towards the rural economic development of Nepal, Himal Dolakha Hydropower Company (P.) Ltd. was established in 19/3/2065.

 

3.Introduction

Himal Dolakha Hydropower Company is established to develop hydropower managed by the team of diversified well experienced professionals, local and successful businessmen from various disciplines such as Management, Economics, Engineering, Education, Law, Human Resources and Public Affairs; committed to bring excellence in the corporate and public governance.

The company’s core business is Hydropower development managing comprehensive management of study to carry out feasibility study to determine the technical feasibility and financial viability of the Hydropower Project, which will be interconnected with the Integrated Nepal Power System (INPS). The study report can be used as a basis for concluding Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA), for obtaining the generation license from DOED and for funding arrangement of the project. The main tasks carried out during the field investigations are topographical survey and mapping of project area, surface geological mapping and hydrological survey. The main outcome of the study incorporates the general arrangement of project structures including feasibility level design and drawings and power and energy computation from the project. Moreover, the present study presents project cost estimate, construction schedule and financial analysis to ascertain the financial viability of the project.

 

4.Hydro Electricity Status in Nepal

Nepal is a country rich in hydropower resources with potential power of 83,000 MW. Based on the past experience and evaluation, generation of about 45,000 MW of power is technically feasible.  However, Nepal has so far been able to harness only a small fraction of the potential power.  So far, total installed generation capacity is about 782 MW and the peak demand is around 1400MW. Nepal is still deficit of about 400MW even after feeding part of its load from India in radial manner (250MW). Currently the country is facing acute power and energy scarcity, particularly during the dry time of a year.  The annual energy demand is increasing by about 8%, which is around 50 MW annually.  To meet the increasing demand, Government of Nepal has opened door to private sector including foreign investors in power generation, transmission, distribution and operation.  The government has adopted policy of decentralization of hydropower generation and distribution to encourage community based organizations to strengthen the economy and to minimize leakage and non-technical losses of power. Himal Dolakha Hydropower Company Pvt. Ltd has first identified the Mai Khola Small Hydroelectric Project and has applied for license. Initially survey license was 1.7 MW and then upgraded to 4.5 MW on date 2066/1/30. The project is located at Illam District, Koshi Zone, Eastern Development Region, and Nepal. The developer has identified Mai Khola which is the potential sites for hydropower development in its preliminary investigation

5. Scope of Hydroelectricity

 

The abundant hydropower potential of country can be utilized to boost up the economic growth of the country. To expedite the overall development of the country, Government of Nepal (GON) has also urged to harness the hydropower potential. Realizing the fact that efforts from the government only will not be sufficient, an open and free policy has been adopted for expediting hydropower development with private sector investment. Necessary acts and regulations including Hydropower Development Policy (2001) have been proclaimed to encourage the Independent Power Producers (IPPs) to build, own, operate and transfer hydropower projects. Nepal Electricity Authority (NEA) has also made a commitment to purchase generation from small hydropower projects ranging from 0.1-5 MW with the fixed purchase price. So far interests shown by IPPs seem to be encouraging as many promoters/developers have signed Power Purchase Agreements (PPAs) with NEA following the issuance of survey licenses by the Ministry of Water Resources (MOWR).

 

6. Project Background

The project lies in Ilam district of Mechi zone in Eastern Development Region of Nepal. The entire project components are located along the left bank of Mai Khola within Godak Village Development Committee. The intake site is at the left bank of the Mai Khola, approximately 1.6 km upstream of the Mai Khola Bridge. The location of the powerhouse is at approximately 700m downstream of the Mai bridge. The latitudes and longitudes of the project area vary from 26°52’36”N to 26°53’36”N and 87°55’47”E to 87°56’38”E.

 

7.Present Status of the project: Under Operation

 

– Survey licence issued for 1700 kw on date 2061/4/4.

-Generation licence issued for 2400 kw on date 2064/8/20.

– Generation licence issued for 4500 kw on date 2066/1/30.

– PPA agreement with NEA on 2063/12/29.

– PPA agreement with NEA on 2066/3/25.

– Connection Agreement with NEA on 2063/8/10.

– Date of COD on NEA 2067/10/1.

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