UPPER ARUN HYDRO-ELECTRIC LIMITED

UAHEP, with an installed capacity of 1063.36 MW (including 2.36 MW eco-flow plant) is a peaking run-of-river (PROR) project located in Bhotkhola Rural Municipality, Sankhuawasabha District, Koshi Province. It lies approximately 15 km south from Kimathanka near Nepal-China Boarder, and 200 km east of Kathmandu. UAHEP is one of five cascade HEPs planned on the Arun River, a tributary of the Saptakoshi River, which originates in Tibet, China and enters Nepal from Kimathanka at the Nepal-China border.

The design discharge of the Project is 235 m3/sec with a total annual energy generation of 4,531 GWh (including 18GWh from eco-flow turbine). The Project has a year-round peaking capacity of 697 MW for six hours. The dam site lies in a narrow gorge about 350m upstream of the Chepuwa khola near about to Chepuwa village. The powerhouse lies at Chhongryang, nearby the confluence of Arun River with Leksuwa Khola. The power generated from UAHEP is planned to be evacuated to national grid by the construction of 5.79 km long 400 KV double circuit transmission line to the 400 KV substation located at Haitar, Sankhuwasabha of Arun Hub.

The project is a part of the GoN's flagship program, "Nepal ko Paani, Janta ko Lagaani Program," aimed at maximizing the participation of all citizens of Nepal in hydropower development. The Project has been classified as a Game Changer Project (GCP) under the Fifteenth Five-Year Plan of Government of Nepal.

Access

The Access to the project starts from the Koshi Highway which is now under construction by Government of Nepal. Access Road with total length of 21.19 km need is under construction to reach the Headworks site along the left bank of the river. The Access Road consist of 2.03km long road tunnel.

Background

The first feasibility study of this project was carried out by the JV of Morrison Knudsen Corporation in association with Lahmeyer International, Tokyo Electric Power Services Co. and NEPECON on behalf of NEA on 1991. Revised study of this Project was carried out by NEA in the year 2011.The Updated Feasibility Study (May, 2021) of the Project was prepared by the Joint Venture of Changjiang Survey, Planning, Design and Research Co. Ltd., China with Sinotech Engineering Consultant Ltd., Taiwan in association with Soil Test (P.) Limited, Nepal (CSPDR-Sinotech JV).

Salient features (UFSR May 2021)

• Type: PROR

• Reservoir capacity: 5.1 mm3

• Live storage: 2.41 mm3

• Storage for peaking: 6 hr.

• Dam: max Ht.100 m high concrete gravity

• Full supply level: 1640 m

• Maximum water level at dam: 1649.8 m

• Dam crest elevation: 1653 m

• Head race tunnel: 8.4 m dia. 8.362 km long

• Surge Tank: 20m dia.

• Pressure drop shaft: 484 m high and 7.3 m diameter

• Penstock: 39 m long Penstock before bifurcation leading to 6 individual penstocks to feed 6 units of Pelton turbines

• Power house: Underground (230.05 m * 25.7 m * 59.43m)

• Rated discharge: 235.44 m3/s

• Rated head: 508.26 m

• Installed capacity: 1061 MW

• Year-round minimum peaking: 697 MW (Q95 inflow; 6h daily peaking)

• Avg. Annual Energy: 4518 GWh (excluding 18 GWh from eco-flow turbine)

• Total construction period: 6 years (Access road not included)

Power Evacuation

The power from UAHEP is planned to be evacuated to national grid by the construction of 5.8 km long 400 KV double circuit transmission line to the substation located at Haitar, Sankhuwasabha.

Project Financing

Study phase

Power Sector Reform and Sustainable Development Hydropower Projects (PSRSHDP)

The study of UAHEP & IKHPP (Updated Feasibility Study and Environmental & Social Study) was being carried out with the financial assistance of World Bank (WB) under Power Sector Reform and Sustainable Development Hydropower Projects (PSRSHDP), which concluded in December 2022.

Project Preparation Facility (PPF)

As preparation of the projects for implementation, the World Bank has provided the financial assistance under the Project Preparation Facility (PPF), a credit of US$ 6 Million.

Financing for construction

Debt

International Development Partners: Currently, at the request of the Ministry of Finance (MoF), coordination is underway with the World Bank Group (WBG) leading the debt financing with support from other International Development Partners to secure the necessary funds for the construction of the project.

Domestic Lenders: Hydroelectricity Investment and Development Company Limited (HIDCL) is leading the debt financing from domestic financiers. UAHEL has signed the MoU on 15th September, 2022 with consortium of domestic financiers led by HIDCL for NPR. 53.341 Billion.

Equity

The ratio of promotor to public share will be 51-49 as mandated by the working procedure of People's Hydro Program, 2075.

The Construction of Access Road is being carried with the funding of Government of Nepal.

Construction Schedule

The project aims to complete the preparatory works, encompassing camp construction and bidding documents preparation by 2025. The access road is expected to be completed by 2026. The project plans to enter the construction phase in 2026, with a target completion date of December 2032.

Ongoing Project Activities

Technical

• The tender design, preparation of bidding documents, construction supervision, and post-construction services of the Project is being carrying out by the JV of TRACTEBEL ENGINEERING GmbH, Germany (Lead firm), TRACTEBEL ENGINEERING S.A., France and WAPCOS LIMITED, India.

• The Contractor for construction of the access road, Gayatri Projects Limited (GPL), India in joint venture with Kankai International Builders Pvt. Ltd, Nepal (KIBPL) (GPL-KIBPL JV) has started the construction of 21.19 km access road including 2.03km tunnel and two bridges.

• The Consultant JV of Kyong Dong Engineering Co. Ltd., Korea & Nepal consult (P) Ltd. has been carrying out the construction supervision and contract management of the access road.

• The construction of camp facilities at Gola, Shankhuwasabha (Phase-I) is underway.

• The hydraulic model study for the project has seen the completion of the river model, calibration and validation.

• Extensive investigation works for the Detailed Engineering Design (DED) of the project are near completion, with 4738 meters of core drilling completed and further in-situ tests being conducted by NEA Engineering Company Ltd. The construction of 1118-meter Test Adit tunnel has been completed at headworks and powerhouse.

• The feasibility study for the transmission line for power evacuation has been completed.

• The Grid Connection Agreement with the Power Trade Department, NEA, has been concluded, and the Power Purchase Agreement (PPA) is in progress.

Environmental and Social

• The Environmental and Social Impact Assessment (ESIA), is being updated, including two supplemental studies focused on mammals and e-flow study.

• Environmental Impact Assessment (EIA) is at the MOFE at the final stage of approval.

• Red Panda Network Nepal (RPN Nepal) carried out the Impact Assessment of Protected Areas and Terrestrial Biodiversity.

• Contract has been signed with the Environment and Social Studies Department (ESSD), NEA for the Environmental and Social Management of the Access Road and the Implementation of the Resettlement Action Plan (RAP) for the Project.

• Free, Prior and Informed Consent (FPIC) was achieved for the project from the local indigenous communities on December 11, 2022. The project is the first in Nepal and the World Bank's portfolio to conduct FPIC consultations related to the rights of indigenous people and other traditional communities.

• A five-year Indigenous People's Plan (IPP) has been finalized and the project has moved forward with the implementation of the Indigenous People’s Plan (IPP). Agreement has been signed with the Upper Arun Hydroelectric Project Adivasi Janajati Advisory Council (AJAC), for the coordination, selection, facilitation, and monitoring of IPP programs.

• Regarding land acquisition, all the private land out of the required total land (including government and private land) have been acquired for the project. Compensation for 98% of the acquired private land has been distributed, and the resettlement of the affected people is at the final stage.

• Leasing of government land (21Ha) has been completed for Access Road. Permission for tree cutting and land use was obtained on February 18, 2024 (Falgun 06, 2080) as per the decision of the Cabinet. Agreement has been signed between UAHEL and Department of Forest and Soil Conservation (DoFSC) and the subsequent procedural works are being carried out.