A fresh tender has been announced for the 106 MW Jagdulla Hydropower Project, two weeks after the previous tender was canceled amidst controversy.
The new tender, valued at Rs 16 billion, invites interested and eligible companies to submit applications by March 5, 2025, according to Sanjay Sapkota, Chief Executive Officer of Jagdulla Hydropower Company.
The original tender for civil and hydro-mechanical works, issued last June , was embroiled in allegations of favoritism against Energy, Water Resources, and Irrigation Minister Deepak Khadka, who is accused of facilitating financial transactions to favor his preferred contractor.
Seven companies, including a joint venture between High Himalayan Hydro and AJI Company, Zhongding International, Patel Engineering, and Lama Construction, had submitted proposals previously, according to the state-owned RSS news agency.
However, allegations surfaced that Minister Khadka attempted to manipulate the bidding process to ensure the contract was awarded to High Himalayan Hydro Construction and AJI Company.
CEO Sapkota, however, claimed that none of the companies had passed the technical evaluation during the initial bidding process, RSS reported.
The run-of-river project achieved financial closure in May 2024, with Nabil Bank leading a consortium to provide Rs 4.4 billion in funding. Other consortium members include: Hydroelectricity Investment and Development Company Ltd (HIDCL), Rs 4 billion; Employees' Provident Fund (EPF), Rs 4 billion; Laxmi Sunrise Bank, Rs 2 billion; and Everest Bank, Rs 1.5 billion.
The estimated project cost is Rs 23 billion, with Rs 16 billion to be financed through loans and the remaining Rs 7 billion raised as equity. The project is expected to be completed within five years of commencement.
An access road to the project site, located in Mudkechula Rural Municipality, Dolpa, is currently under construction, with nine bailey bridges being built as part of the road infrastructure. Most preparatory works are nearing completion.
The Nepal Electricity Authority signed a Power Purchase Agreement (PPA) for the project in May 2024.
Once operational, the Jagdulla Hydropower Project is expected to become a transformative initiative for Karnali Province, bringing significant economic and energy benefits to the region.
(With inputs from RSS)
