The government has given survey permission to India’s state-owned Satluj Jal Vidyut Nigam (SJVN) to construct the Lower Arun Hydropower Project in eastern Nepal.
A Memorandum of Understanding (MoU) was signed between the Investment Board Nepal (IBN) and SJVN on Sunday to prepare the detailed project report of the proposed 679 MW project to be constructed on the river that borders Sankhuwasabha and Bhojpur districts.
Chief Executive Officer of IBN Sushil Bhatta and SJVN Chairman and Managing Director Nand Lal Sharma signed the MoU on behalf of their respective institutions in the presence of Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.
The IBN had presented the semi-reservoir project among the investors at the investment summit held on March 29, 2019.
The project is estimated to cost around US$ 1.3 billion.
As per the terms of reference mentioned in the MoU, the developer should complete the detailed project study and submit the detailed project report to the IBN for approval within two years from the inking of agreement.
The office of the board will facilitate the study of the project. The 35th meeting of the board had given permission to present the project among the investors on the occasion of the Investment Summit held on March, 29, 2019.
Out of the international bidding proposals received for the development of the project, SJVN’s proposal for development in the
form of construction, ownership, operation and transfer was accepted in January 28, 2021.
On the occasion, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel expressed confidence that the construction of the project would move forward at a fast pace and assured that the government of Nepal would extend necessary assistance for this.
“The development of such hydropower projects will help the government of Nepal fulfill the national aspiration of “Prosperous Nepal, Happy Nepali,” he said.
Chief Executive Officer of the Board Bhatta said that the implementation of the Arun-3 project has been facilitated by the effective facilitation done by the Investment Board, adding that similar facilitation will be provided in the lower Arun as well.’’
He said the signing of the MoU for the study of the project to be constructed under Build, Own, Operate, Transfer (BOOT) model was a new milestone in the business relationship between Nepal and India.
Source : TRN,
