China-invested power plant goes into service in Nepal

Upper Marsyangdi-A Hydroelectric Project, developed by a China-Nepal joint venture company, started generating power from Monday.

Sinohydro-Sagarmatha Power Company Private Limited, the joint venture company which developed the 50MW project, said the plant started distributing 25MW of power released from its one turbine, and additional 25MW will be released from another turbine in a few months.

The 150 million-U.S. dollar project is located at Bhulbhule area of Lamjung district in central Nepal, which is 180 km away from Kathmandu, the capital city.

Nepal's Energy Minister Janardan Sharma ordered the release of the power from the project at a "Power Generation Ceremony" held in Kathmandu and the power was connected with the national grid instantly.

The plant is expected to help address the Himalayan country's prolonged power shortage.

Nepal is facing a few hours of power cut every day in recent months.

Sharma said the completion of the project has paved the way for other Chinese investors and investors from other countries to make investment in Nepal's hydropower sector.

"This also conveyed the message that Nepal is safe destination for foreign investment," he said, adding the Nepalese government has been taking many measures to facilitate domestic and foreign investment in the sector including signing of power purchase agreement in U.S. dollar term and removing landholding limitation as provisioned in the law.

Sheng Yuming, chairman of Power China Resource described the generation of power by the project as a major success.

Cheng Ji, deputy chief of mission at the Chinese Embassy in Kathmandu, said the Chinese government has been encouraging capable Chinese enterprises to invest in Nepal's hydropower sector. Endit