KATHMANDU: Vidhyut Utpadan Company Limited has canceled the investment process for two major hydropower projects with an estimated cost of Rs 553.80 billion.
The process, initiated following a public notice in a national daily on December 8, 2023, was terminated by a decision made during the company’s board meeting on Thursday.
The canceled projects are the Kimathanka Arun Hydropower Project and the Mugu Karnali Hydropower Project.
The Kimathanka Arun project has a generation capacity of 454 MW, while the Mugu Karnali project is designed to produce 1,902 MW. Combined, the total estimated cost for constructing these projects was Rs 553.80 billion.
The government had planned to develop these projects under the Public-Private Partnership (PPP) model, aiming to attract private investment for the large-scale hydropower initiatives. However, the company has not provided detailed reasons for halting the investment proposal process.
The board’s decision raises uncertainty about the future of these projects, which were expected to play a significant role in Nepal’s energy sector.
Further clarification and strategic plans from the company are awaited.
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