Construction of the access tunnel for the 126 megawatt Lower Seti Hydropower Project has commenced in Devghat Municipality-4, Tanahun. Tanahun Hydropower Limited, fully owned by the Nepal Electricity Authority, has signed a contract with R.K. Hydro Engineering and Associates Pvt. Ltd. of Kathmandu for the tunnel construction.
Following the contract agreement completed on 7th Falgun 2080 (February 19, 2024), the project chief, Harikumar Shrestha, stated that construction was temporarily affected due to delays in the approval process for the use of explosive materials. He mentioned that construction has now begun after receiving the necessary approvals.
According to Project Chief Shrestha, the access tunnel will be crucial for the main structure of the project, requiring essential geological studies, exploration, and access routes. The Lower Seti Hydropower Project is a semi-reservoir type hydropower project characterized by a pick-and-run-off-the-river nature. He stated that the project aims to produce an annual electricity output of 520.78 million units.
He noted that the dam for the project will be constructed on the Seti River near Sarangghat, under Bandipur Municipality in Tanahun district. The dam will have a height of 32 meters and will create a reservoir approximately 12.7 kilometers long. The stored water will be channeled through a 6.75-kilometer long tunnel to the semi-underground power house located in Devghat Municipality-4, Gai Ghat.
Shrestha mentioned that the detailed project report has been prepared with the grant assistance of the Asian Development Bank. He highlighted that the estimated total cost of the project is 227 million US dollars, and the Nepal Electricity Authority has already made a conceptual decision to fund the project with 30 percent equity and 70 percent loans.
He informed that the process of acquiring approximately 146 ropanis of land for the construction of the power house and staff housing has begun. This process was initiated after the necessary budget allocation from the Nepal Electricity Authority, he said.
Once the project is operational, it is expected to generate a minimum of 126 megawatts of electricity for at least six hours daily during the winter season, Shrestha noted. He emphasized that the Lower Seti Project is an important 'cascade' project for the full utilization of water flowing from the reservoir of the under-construction Tanahun Hydropower Project in the upper region. He pointed out the need for the government to prioritize adequate budget management for such projects.
According to Shrestha, since the transmission line of the Tanahun Hydropower Project can be utilized, there is no need to construct additional transmission infrastructure. He also mentioned that the project is located close to major load centers like Kathmandu and Bharatpur, making it cost-effective and commercially viable.
Shrestha provided information that the grid connection agreement has been completed and the electricity purchase agreement is in process, stating that the construction of a permanent bridge over the Trishuli River is essential to ensure access to the power house and staff housing area in Devghat Municipality-4. The estimated cost for this bridge construction is around 370 million Nepali Rupees, and a multi-year budget arrangement will be necessary for this.
He also mentioned that the environmental impact assessment for the project has been submitted to the Ministry of Forests for final approval, and efforts are underway for financial assistance from the Japan International Cooperation Agency. Additionally, he noted that the project has been placed in the pipeline for implementation by the ADB in 2027.