Located in Sankhuwasabha district, Arun III project is a 900 MW, export-oriented Peaking Run-of-River (PRoR) project with 3.65 hours minimum peaking capacity. The project is a high head, run of the river scheme with storage capacity envisaged for installation of four generating units of 225 MW each giving a total installed capacity of 900 MW. The design energy per year is 3685  GWh. Construction is expected to take 5 years after financial close.


Salient Features

Investment Size (Approx.)  1.4 Billion USD
Developer SJVN Arun-3 Power Development Company  (Promoted by SJVN Limited India)
PPP Model  Build, Operate, Own and Transfer ; 25 Years
GoN Partner Ministry of Energy (MOE)
Nepal Electricity Authority (NEA)
Location Dam Site: N/A
Power House: N/A
Design Energy/Year 3685 Ghw
Gross Head 287 m
Reservoir (Gross Storage) 13.94 MCM
Hydrology N/A
Dam Height (Max) 68 m
Dam Type Concrete Gravity Dam
Turbine 4x225 MW
Design Discharge 343.42 cumec
Head Race Tunnel 11.74 KM. ,9.5 M

Note: Estimates as per SJVN

Expected Benefits

Financial Benefits: 

Lifetime Royalties to GoN Rs 106. 85 Billion
Lifetime Energy to GoN (Approx Value) Rs 154. 69 Billion
Lifetime Income taxes to GoN Rs 77.10 Billion
Total lifetime financial benefits to GoN Rs 338.66 Billion

Local Benefits:

Development of the region: Project will generate employment for the locals, boost local industries, and foster entrepreneurship. Other Projects of this scale have generated over 3000 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. 30 units of free electricity for directly affected.

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. 


IBN Project Cycle

Phases of Project


Implementation of the Project Development Agreement (PDA) signed between GoN and SJVN on 25th Nov 2014


Way Forward

Implementation of the Project Development Agreement (PDA) signed between GoN and SJVN on 25th Nov 2014




No Project Photos as of now.

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