Butwal Power to build Marsyhangdi III

Butwal Power to build Marsyhangdi III
ekantipur, 9-Jul-08

Butwal Power Company Ltd (BPC) on Wednesday announced it was going to develop the 42 MW Marsyangdi-III hydroelectric project at Tarkughat VDC in Lamjung district with a target of operationalizing it in four years.
Keton Hydropower Limited, a subsidiary of BPC, will develop the project. Ace Development Bank Limited will take charge of the entire financial management for the project and act as financial advisor, fund manager, trustee and also look into other matters related to project finance, said a joint press statement issued by BPC, Keton and Ace on Wednesday.

Marsyangdi-III is a run-of-river type project with an estimated annual energy generation capacity of 205 Gigawatt/hour (GWh), the statement said. "The estimated cost of the project is 78 million USD (5.4 billion rupees), that is approximately 1,850 USD per kW," it added. The company has already started the feasibility and environment impact assessment (EIA) study, and that is expected to be completed within a year, said Ranjan Lohar, Chief Executive Officer (CEO) of BPC. The project is expected to start commercial operation by 2012 AD.

Ace Development Bank will arrange necessary capital from national or international capital markets through the issuing of appropriate financial instruments (like convertible debentures), according to Siddhant Raj Pandey, CEO at Ace.

The 205 GWh generated by the project will be supplied to the Nepal market through the national grid.

BPC has successfully built and operated small and medium-sized hydroelectric projects including Tinau, Adhikhola, Jhimruk, Khimti and Khudi.