India stepped into the picture after Power China exited the project
A memorandum of understanding was signed between the Investment Board of Nepal and SJVN Limited of India on Sunday. Together, they will present a detailed study on the feasibility of the Lower Arun Hydroelectric Project.
IBN CEO Sushil Bhatta and the Managing Director of SJVN Limited Nanda Lal Sharma signed the MoU. The Indian company will have to submit the project report to the IBN within two years. The peaking-run-off-river type project will require an estimated investment of US $ 1.30 billion.
This contract was awarded to SJVN Limited under the Build, Own, Operate, and Transfer (BOOT) initiative at the 46th meeting of IBN. The model is a public-private partnership.
“It is a milestone achievement to construct a mega project that facilitates a green development project in BOOT model at the time the climate change is being a major concern globally,” said IBN CEO Bhatta.
The project is proposed to be built in Sankhuwasabha and Bhojpur districts of Province 1. The power plant will be constructed downstream of the Arun-3 SHEP, which is being constructed now. It is located upstream of the proposed Sapta Koshi dam site. The powerhouse of the Lower Arun Hydropower plant will be built 7 kilometers upstream from Tumlingtar Airport.
Lower Arun Hydropower dam is one of the biggest projects that was showcased at Investment Summit 2019. Initially, Power China expressed its interest in the project. However, after it exited the project, India stepped in.
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