The Kabeli-A Hydroelectric Project (KAHEP) is a peaking run of the river project located in Panchthar and Taplejung Districts. Kabeli Energy Limited (KEL) has undertaken KAHEP from the GoN as per the Project Development Agreement (PDA). The World Bank provided debt financing for the project on-lent through HIDCL and IFC. The main construction works of the project began on March 23, 2017. KEL constructed a 24 km access road to connect the project sites with Mechi Highway. All required lands for project construction have been acquired, Contractor’s camp facilities have been built, and an access tunnel and a 1 km headrace tunnel out of a total 4.5 km have been excavated and prepared for dam and penstock construction. The EPC contractor was unable to comply with the defined construction standards, environmental and social standards and could not achieve planned progress. As a result, KEL terminated the EPC contract agreement in April 2019 following the recommendations of Owners and Lender's Engineer. KEL was able to recover the Advance Payment Guarantee (APG) and settled the Performance Guarantee (PG). The deadline for WB loan drawdown expired in December 2019. Since the suspension of the World Bank loan, all physical works are halted. GoN's emphasis on the Tamor Storage Project appears to have diverted attention away from KAHEP. This Storage Project may have an impact on KAHEP, and line ministries must make a firm decision on KAHEP at the earliest.
KEL has begun the revival process to resume construction work. A new JV partner has been identified and an MOU has been signed in order to move forward with the recovery plan. The existing JV partner InfraCo Asia is in the exit process. Cabinet has approved the amendment of the PPA on RoR basis and has instructed NEA accordingly. The project report has been updated and submitted for approval to the relevant government agencies. Despite regular follow-ups at various levels of government, the decision has been delayed, impacting the viability of the project.
Fact Sheet
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Project Location |
Head Work site - Panchthar district, Hilihang Rural Municipality -1, Dhuseni |
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Project Type |
Daily peaking Run-of River |
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Installed Capacity |
37.6 MW |
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Annual energy generation |
205.15 GWh |
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Design discharge |
37.73 Cumec at Q40 |
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Gross Head |
116.8 m |
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Head Race Tunnel |
4327 m |
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Power Evacuation |
Inter-connection at Kabeli Power House to Kabeli Corridor 132 kV transmission line constructed by NEA |
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Access to site |
Power house site is 16 km from Mechi Highway, which is about 45 km from Phidim (District HQ). The headwork site is approximately 7.5 km from Mechi Highway, which is approximately 55 km from Phidim (District HQ). |
Contact Details
Kabeli Energy Limited
BPC Complex
Ganga Devi Marg – 313, Buddhanagar, Kathmandu
Tel: +977-1-4795735,
Fax: +977-1-4790994
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: http://www.kel.com.np