Located in three districts - Surkhet, Achham and Dailekh - Upper Karnali is a 900MW hydropower project. The project was awarded to GMR through a competitive bid process in 2008 as an export-oriented project aimed at the Indian market. GMR is a responsible Indian developer with an excellent track record in delivering projects on time. GMR’s most recent success story is the Indira Gandhi International Airport in New Delhi, which has received the world’s second best airport award.
|Investment Size (Approx.)||NA|
|Developer||Generation: GMR Upper Karnali Hydropower Limited
Transmission: Upper Karnali Transmission P. Ltd
|PPP Model||Build, Operate, Own and Transfer|
|GoN Partner||Ministry of Energy (MOE)|
|Location||Dam Site: Lat 28° 55’ 23” N Long 81°28’ 20” E
Power House: Lat 28° 54’ 02” N Long 81°26’ 40” E
|Design Energy||3466 MU|
|Gross Head||159.26 m|
|Reservoir (Gross Storage)||17.86 MCM|
|Dam Height (Max)||64m from deepest foundation level and
30m from river bed level
|Dam Type||Concrete Gravity Dam|
|Design Discharge||664.32 cumec|
|Head Race Tunnel||RTs of 10m diameter of length 2332m and 2220m|
Free Equity and Energy: Nepal will receive 27% free equity and 12% free energy from the Upper Karnali project. This amounts to 108 MW of electricity, approximately equal to 15% of the current installed capacity in Nepal.
Royalties and Taxes: Expected financial benefits to Nepal in terms of revenue from taxes, royalties, free energy and free equity will be around Rs. 300 billion. Fifty percent of the royalties will go to the Treasury, 38% to the affected region and 12% to the affected districts – Surkkhet, Achham and Dailekh.
Employment: The project will generate employment opportunities for local people. Projects of this scale generally create 2000 direct jobs during the peak construction period.
Development of the Karnali region: Project will generate employment for the locals, boost local industries, and foster entrepreneurship. Other Projects of this scale have generated over 2000 direct jobs during peak construction period.
Industrial Benefits: Nepali suppliers will be given a fair opportunity to compete. Growth of local shops, traders, catering & hotel services, etc.
Rural Electrification & Local Shares: Electrification of affected areas and option to purchase shares.
Robust Community Infrastructure and Financial Support: Construction of roads, bridges, schools, healthcare and community centers, etc. to provide a robust community infrastructure. Skills training and other programs will provide great financial support to the affected communities.
18.01.2006 - 18.01.2006Invitation for EoI
24.01.2008 - 24.01.2008MoU between GoN and GMR
01.02.2013 - 01.02.2013Project handover to IBN
18.04.2013 - 18.04.2013EIA approved
07.05.2013 - 07.05.2013Approval for liaison office
20.05.2013 - 20.05.2013Agreement signed between GMR Upper Karnali and Department of Forests (DoF)
10.06.2013 - 11.06.2013First round of PDA negotiations
29.07.2014 - 03.08.2014Final round of PDA negotiations
02.08.2014 - 02.08.2014High level committee formed to review PDA
17.09.2014 - 17.09.2014Final PDA taken to IBN Board for Approval
18.09.2014 - 18.09.2014Final PDA taken to cabinet for approval
19.09.2014 - 19.09.2014IBN signs final PDA with GMRUK and KTCPL
Land acquisition, resettlement and sustainable environment management are major challenges all large-scale infrastructure projects face. IBN is working closely with GMR, concerned line agencies and local communities to ensure a smooth, transparent process that results in a win-win for all: the local people, the project company and the Government of Nepal.
Implementation of the Project Development Agreement (PDA) signed between GoN and GMR on 19th Sept 2014