The Nepal Electricity Authority (NEA), the state-owned power utility has signed the power purchase agreement (PPA) with 37 MW Upper Trishuli 3B Hydropower Project to purchase the hydroelectricity generated by the project. The NEA and Trishuli Hydropower Company, the promoter of the project signed the PPA on Wednesday amid a ceremony.
Kul Man Ghising, the managing director of the NEA and Mohan Prasad Gautam, the managing director of the company signed the pact on behalf of their respective organization.
As per the agreement, the state-owned power utility will purchase 134.88 gigawatt hours of power during the dry season from December to May and 157.71 gigawatt hours of power during wet season which starts from June and lasts till November. The power utility will pay Rs4.80 per unit of electricity during the wet period whereas Rs8.40 during the dry period.
Speaking at the signing ceremony, Gautam said the company will start the construction of the project from December. “We are in the process of selecting contractors for the construction of the project,” said Gautam. “We will start the work in December and complete it within 36 months.”
The consortium led by Nabil Bank is financing the project. Hydroelectricity Development Company, Citizens Investment Trust and Nepal Bank are the other members of the consortium.
The NEA and Nepal Telecom each own 30 percent stake Trishuli Hydropower Company, the promoter of the project. Likewise, 5 percent stake is allotted to municipalities and rural municipalities of the Rasuwa and Nuwakot, 10 percent to locals of two districts, 15 percent to general public and 5 to employees of the NEA and Nepal Telecom.
The project is the cascade of the currently under-construction 60 MW Upper Trishuli 3A Hydropower Project.