Nov 23, 2017-The construction of 900-megawatt Arun-3 hydroelectric project is expected to begin soon as the developer has hired a contractor to begin first phase of civil works.
SJVN Arun-3 Power Development Company (SAPDC), the developer of the hydro project, last week, signed an agreement with Jaiprakash Associates of India to kick start civil works in the dam area, a senior official of the Investment Board Nepal (IBN), which is overseeing implementation of the project, said on condition of anonymity.
This is the first civil works package for which a contractor has been hired by the project developer. Under this package, dam, diversion tunnel, intake, intake tunnels and head race tunnel will be built. “The contractor has already mobilised a team to the proposed dam site,” the IBN official said. “We hope construction works will begin soon.” The project developer will hire contractors to build powerhouse and transmission lines, and execute electro- and hydro-mechanical works in the coming days.
The IBN and SJVN signed an agreement for development of Arun-3 hydropower project in November 2014. The project was supposed to start energy generation by 2020 as per the agreement. But that deadline is unlikely to be met as financial closure deadline has been pushed back twice by one year and six months.
Yet the Sankhuwasabha -based project funded by an Indian state-owned agency has achieved important milestones like acquisition of private land. It is also in the
process of acquiring public forest land.
“To expedite the construction of the project, we have initiated the process of establishing the liaison office on behalf of SAPDC,” the IBN official said. “Also, process of acquiring explosives required for the project has been initiated.” According to the IBN, Nepal will receive Rs348 billion over 25 years from the project. The project developer will also provide 21.9 percent of the energy generated free of cost, which is worth Rs155 billion, plus another Rs107 billion in royalties.