Urja Khabar
Kathmandu: North Summit Hydro Limited, the developer of the 21.4 MW Nyadi-Phidi Hydropower Project in Lamjung district, has officially signed an agreement with India’s Flovel Energy Private Limited for the project's electro-mechanical works.
The contract, which includes the manufacture, supply, installation, and commissioning of the necessary equipment, aims to accelerate the construction of the project. The agreement was formally signed by Balendra Chhetri, Managing Director of North Summit Hydro, and Gautam Kar, Managing Director of Flovel Energy.
During the signing ceremony, Managing Director Chhetri noted that the civil construction is progressing satisfactorily and emphasized that the partnership with Flovel ensures the technical integrity of the electro-mechanical component. He reiterated the company’s commitment to completing the project on schedule, stating that Flovel’s expertise and advanced technology will be instrumental in maintaining high quality and ensuring the timely integration of power into the national grid.
Similarly, Gautam Kar, Managing Director of Flovel Energy expressed pride in contributing to Nepal’s energy sector, highlighting its strong market presence and pledging to supply high-efficiency modern equipment within the stipulated timeframe.
The project, located in the Marsyangdi Rural Municipality of Lamjung, has an estimated cost of NPR 4.11 billion, funded through a 75:25 debt-to-equity ratio. A consortium led by Machhapuchchhre Bank, including Bank of Kathmandu, Sanima, and Civil Bank, previously committed NPR 3.08 billion in debt financing in September 2020, while the remaining NPR 1.03 billion is being raised through equity from the promoters.
Technically, the project features a 2,300-meter main tunnel and a 1,433-meter pipeline. Nepal Electricity Authority (NEA) has already secured a Power Purchase Agreement (PPA) with rates set at NPR 8.40 per unit for dry and NPR 4.80 per unit for wet season. Once operational, the electricity will be evacuated via a 19-kilometer transmission line, built by the developer, connecting the powerhouse to the 220 kV Tarikuna substation.
