Thursday, December 23, 2010

Rs 180m ADB loan for Upper Seti Hydro

The Asian Development Bank (ADB) agreed to provide a technical grant of Rs 180 million to the government for 127-Mega Watt (MW) Upper Seti Hydro Electricity Project (USHEP).
Finance secretary Rameshore Khanal and officer-in-charge of the ADB Yukihiro Shiroishi signed a Memorandum of Understanding (MoU) today on behalf of their respective institutions for a technical grant to conduct a detailed study of the project.
Dr Jivendra Jha‚ managing director of the Nepal Electricity Authority (NEA)‚ said the Upper Seti Project‚ Damauli‚ in Tanahun district can now move with this agreement. He also sought soft loans for the project. The ADB’s assistance will be used for a detailed engineering study that includes development of design options‚ specifications and drawings for the civil works and the electromechanical‚ hydro- mechanical works and transmission facilities and the bidding process.
Of the total cost of $ 2.95 million for the detailed engineering study‚ the ADB is providing $2.5 million and the NEA will spend the remaining amount. The study is expected to be completed by September 2012. The NEA has already completed the Upgrading Feasibility Study of the project with technical assistance from the Japan government through JICA in 2006-07.

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