BPC to develop 42 MW Marsyangdi-III

Butwal Power Company (BPC) announces its new project - development of 42 MW Marsyangdi-III Hydroelectric Project located in Tarkughat VDC of Lamjung district.

Marsyangdi-III is a run-of-river type hydroelectric project with an estimated annual energy generation capacity of 205 GWh. With the design discharge of the project being 80 cubic meters per second, the gross head is estimated to be 55 m. The project is expected to start its commercial operation by 2012. The feasibility study of the project has already been started.

BPC has decided to develop the project with its 90% equity stake through special purpose vehicle named Keton Hydropower Private Limited. The estimated cost of the project is over 5.4 billion NPR (78 million USD). With this, capital outlay of the project is estimated to be over 130,000 NPR per kW. Ace Development Bank will arrange for necessary finance for project development. An agreement has been reached between Butwal Power Company Limited and Ace Development Bank Limited on this regard.