BPC JV and GoN inks Project Development Agreement for development of Kabeli-A project

Kabeli Energy Limited, a SPV established by BPC JV signed Project Development Agreement with Government of Nepal on January 31, 2010 for development of Kabeli-A project under BOOT basis.

The partners in the SPV are Sangri-la Energy Limited (Nepal), SCP Hydro International (Canada), Asia Pacific Power Tech Limited (China) and Khudi Hydropower Limited.

The PDA was signed at a function held at the Ministry of Energy in presence of Honorable Minister of Energy, Secretary Ministry of Energy, BPC Chairman and Kabeli Energy Chairman.

About the Project

The project is located in Panchthar and Taplejung districts in the Eastern Region. Kabeli - A with capacity of 30 MW is a run off river project with daily pondage. The estimated total annual energy production is 164 GWh. The project is estimated to cost 56 Million USD (about 4 Billion NRs.). The project is expected to take four years for construction and is will start commercial production in 2014/15. Prior to start of construction the EIA shall be updated as per World Bank standards.

Project Financing

Kabeli - A is the first project of its kind in Nepal that has access to Power Development Fund (soft loan arrangement by the World Bank). The World Bank through Power Development Fund (PDF) will provide 40% loan, local banks will fund 40% and 20% will be equity investment by promoters.

What benefits Kabeli – A brings to Nepal?

Kabeli - A project brings multifaceted benefits to Nepal. It will help create new jobs as the project will require different kinds of skilled and semiskilled workforce. New infrastructure developed for the project will help spring new economic activities in the project area. After the completion of project it will further help fulfill the increasing demand of energy in country. It will help minimize the load shedding in eastern Nepal and will contribute to development of the region. The transmission line target to evacuate power from this project will help power evacuation from many projects in eastern region. The project will pay royalty and taxes to the Government of Nepal which will contribute in the development of country again.