International Economic Cooperation Coordination Division and Nepal Electricity Authority have started discussions with Nepal’s multilateral development partners for the financial support to construct 635 MW Dudhkosi Storage Project.

They held a preliminary discussion with the representatives of interested parties like Asian Development Bank, European Investment Bank, Asian Infrastructure Development Bank and Korean Exim Bank today.

In the meeting, the head of division Shree Krishna Nepal and Managing Director of Nepal Electricity Authority Kul Man Ghising spoke various aspects of the project with the development partners.

Division chief Nepal said that the construction of storage project is the priority of Neal and Dudhkosi Storage Project is comparatively attractive and cheaper. He urged development partners to invest in the project.

During the discussion MD Ghising presented the current status of the project, importance of the storage project, cost and structure of investment. MD Ghising said that the Banks representatives expressed their preliminary consent and requested to submit concrete proposal through Ministry of Finance.

During the meeting ADB offered up to $555 million dollar and EIB $550, AIIB $300 million and ADB’s Private Sector Investment Mechanism up to $200-300 million. MD Ghising said that it can completely invest one of the sectors out of Hydromechanical, Electromechanical or Transmission.

The government in its policies and programs announces start the construction of the project giving the priority. Minister of Energy, Water Resources and Irrigation Barshaman Pun announced to implement Dudhkosi project as a national priority project during his visit to project site in December.

According to a stud of JICA, this is one of the 10 best projects of Kosi basin. According to an initial estimate, the cost of the project is 1.53 billion dollar (160 billion rupees). However, the total cost of the project will reach 2 billion dollar including the interest and taxes.

Asian Development Bank will take the lead the project. Under the grant assistance of ADB, the detailed project design is currently undergoing. MD Ghising said that the construction of the project needs to start soon to maintain balance in power supply in the country and remaining to export to neighboring country. He said that the DPR is now in the final stage. Out of the storage projects in Nepal, Dudhkosi is comparatively cheap and attractive due to energy generation. He said that we have conveyed these facts to the representatives.

The project will generate 3,44,3000000 Units energy. Out of this,135800000 units during the winter and remaining in summer. The electricity generated by the project will be evacuated to national grid through Sunkosi-Dhalkebar 400 kV transmission line.

The project will submerge 3876 hectors of land of Khotang, Okhaldhunga and Solukhumbu districts. Although this is a storage project only 162 household families will be evicted from the areas. Similarly, 988 families will be partially affected. The land of 1050 families will be submerged in the project.

A 220 Meter dam will be built to create storage which will expand 17 kilometre in Dudhkosi, 8 Kilometer in Rawa River, 5, 5 kilometre in Thoten Khola. The water will be discharge through 13.30 kilometre tunnel to powerhouse. The road to the project site is almost ready now