Hydro-electric power plants

Proposed Upper Dordi `A` Hydroelectric Project, located in Lamjung district of Gandaki Zone, is a run-of-river type project. The project has been designed to generate 25.0 MW power using water from Dordi Khola The annual energy generation capacity of the project is 138.40 GWh (Dry energy - 22.85 GWh & Wet Energy - 115.55 GWh) . The power generated from this project will be connected to proposed Udipur Hub near Middle Marsyangdi Hydropower Project. The length of proposed transmission line is about 12.0 km. The design discharge for the proposed project is taken as 9.8m3/s. The gross head and rated net head of the project are 299.31m and 325.56m. The energy generated from this project will be sold to Nepal Electricity Authority (NEA). The price of energy as agreed in Power Purchase Agreement (PPA) is at NRs. 4.80 for the dry months (Poush-Chaitra) and NRs. 8.40 for remaining months which are considered as wet months. Total cost of the proposed Project is NRs. 3,490 million (excluding IDC). The financial cost of the project is NRs. 3,962 millions. Out of this financial cost, 30% will be financed from promoter`s equity and remaining 70% will be financed from bank loan. The average annual revenue from the sale of energy generated will be NRs. 746.568 million in the first year. Payback periods for the proposed project have been found to be 5 years and 7 months. The internal rate of return (IRR) of the project is found to be 17.20%. Similarly, the benefit cost ratio (B/C Ratio) of the project has been computed to be 1.54. Company has proposed to distribute dividend from second year of operation. These ratios show that the project is highly profitable and worth investing. The construction period of the project will be 3.0 years.

NEPAL