Kabeli-A Hydropower Project

Kabeli-A Hydroelectric Project (KAHEP) is located in Panchthar and Taplejung districts of Province 1. The project is Peaking Run-Of-River (PROR) type project with a peaking reservoir constructed by damming Kabeli River at headworks. The water from the reservoir will be diverted through a 4.5 km long tunnel into a Powerhouse located on the left bank of Tamor River generating 37.6 MW. The generated power will be evacuated through 132kV Kabeli Corridor Transmission line from the switchyard located at Powerhouse site of the project. In the equity part of total capitalized cost of the project, majority of equity is held by Butwal Power Company Ltd. BPC owns 55.6% equity shares in Kabeli Energy Limited (KEL) with 26% direct holding and the remaining through Gurans Energy Limited, a JV investment company. In the debt part US$ 78.6 million will be available from WB and IFC. Loan Agreement between GoN and WB was signed and US$ 40 million loan available from WB is being channelized to Kabeli-A project through Hydropower Investment and Development Company Ltd (HIDCL). US$ 38.6 million of loan will be provided by International Finance Corporation (IFC). 24 km of access road to the project sites have been constructed and upgraded by the project. Access tunnel excavation work has been completed and main tunnel excavation has been started from headworks site and completed for around 1000 m. Temporary Contractor camps and facilities at headworks and power house sites have been also been completed. Due to the lack of progress and non-compliances issues of the Contractor, the contract has been terminated and project construction activities at site are on hold now. Recovery plan has been formulated and is being implemented.