Fresh Tender Issued for Jagadulla Hydropower Project in Dolpa

A new tender has been announced for the development of the Jagadulla Hydropower Project in Mudkechula Rural Municipality, Dolpa, with an estimated value of Rs 16 billion. Sanjay Sapkota, CEO of the company overseeing the project, confirmed the tender issuance after the previous bidding process failed to yield technically qualified candidates.

The initial tender for civil and hydro-mechanical works, issued on June 2 last year, attracted bids from seven companies, including joint ventures and firms like High Himalayan Hydro and AJI Company, Zhongding International, Patel Engineering, and Lama Construction. However, none of the bids met the technical evaluation criteria, prompting the fresh call for bids.

The run-of-river hydropower project, with a capacity to generate 106 megawatts of electricity, is anticipated to be completed within five years of its commencement. The project secured financial closure in May, with Nabil Bank leading a consortium to finance Rs 4.4 billion. Other financial contributors include the Hydroelectricity Investment and Development Company Ltd (HIDCL), the Employees’ Provident Fund (EPF), Laxmi Sunrise Bank, and Everest Bank.

HIDCL and EPF will each contribute Rs 4 billion, while Laxmi Sunrise Bank will invest Rs 2 billion, and Everest Bank will provide Rs 1.5 billion. The total project cost is projected at Rs 23 billion, with Rs 16 billion sourced through loans and Rs 7 billion raised as equity.

The project’s power purchase agreement (PPA) with the Nepal Electricity Authority was signed on May 10, securing a commitment for electricity sales. An access road to the project site is currently under construction, complemented by the development of nine Bailey bridges. Most of the preparatory works, including the road infrastructure, are nearing completion.

With these developments, the Jagadulla Hydropower Project is set to become a significant milestone in harnessing Nepal’s renewable energy potential, contributing to the country’s energy security and rural development in Dolpa.