Funds generated for Upper Parajuli hydro project

BY OUR CORRESPONDENT 

Dailekh, Apr 19 : Private sector funded "Upper Parajuli Small Hydropower Project'' of Dailekh which had been halted for nine years due to lack of funds is all set to resume work. Eighty percent of the work of the 2.15-megawatt hydropower project being built in Dungeshwor Rural Municipality–4, Biurakhet of Dailekh was completed but had to be halted due to lack of additional funds.

The project was started in 2072. Firstly, the project's headworks and pipeline installment were half completed and the powerhouse was also half-built. The project which could not be completed even though the Rural Municipality invested 2.5 million rupees in shares due to a financial crunch will resume works after the Province Government invested 50 million rupees through People's Hydropower (Operation and Management Directive 2075).

The project's 900-meter canal has been built. The project aims to bring water from four kilometers away through 440-meter pipeline, 2,700-meter canal and finally into the turbine to produce electricity but the works had been halted due to a lack of funds. It will resume work after the Province Government provided 50 million rupees and an additional fund of 70 million was collected totaling the investment of Rs. 120 million.

Nara Singh Malla, Chairman of Rara Hydropower, said, "The project was delayed because the Nepal Electricity Authority did not build infrastructure for a long time to supply the produced electricity into the national transmission line." He added that due to the lack of a 33 KVA transmission line the project got delayed and due to the market price, the interest rate of financial institutions the project's total cost increased. 

He also said the company called for the application of shares in 2075 Falgun at 115 rupees per share and in Chaitra at 150 rupees per share but they still could not generate enough investment. He said, '' Now we are close to power generation.'' 

Compensation has also been already distributed. Millions of rupees invested by the banks were in jeopardy. 

The 2.15-megawatt project was started with a total capital of Rs. 550 million where Everest Bank, Siddhartha Bank and Mega Bank had 70 percent investment and shareholders had 30 percent.