Banking News — Compensation rates have been determined for land acquisition required for the construction of the 126-megawatt Lower Seti Hydropower Project in Tanahun, a project estimated to cost USD 227 million.

The compensation was approved during a recent meeting of the Compensation Determination Committee chaired by Chief District Officer Shivalal Tiwari, covering structures located on land to be acquired for the project.

According to Hari Kumar Shrestha, Chief of the Lower Seti Hydropower Project, compensation has been fixed for houses, cowsheds, temporary shelters, and other structures situated on land designated for the construction of the powerhouse, office buildings, staff quarters, and other project facilities.

Tanahun Hydropower Limited, a wholly owned subsidiary of the Nepal Electricity Authority (NEA), has awarded the contract for the project works to R.K. Hydro Engineering & Associates Pvt. Ltd., Kathmandu. Although the contract agreement was signed on February 19, 2024 (Falgun 7, 2080), construction was delayed due to the approval process for the use of explosives.

Project Chief Shrestha said the project is targeted to generate 520.78 million units (kWh) of electricity annually.

The project’s dam will be constructed on the Seti River near Saranghat in Bandipur Rural Municipality of Tanahun District. The project’s Detailed Project Report (DPR) was prepared with grant assistance from the Asian Development Bank (ADB).

The project will affect parts of Bandipur Rural Municipality-6, Byas Municipality Wards 13 and 14, Devghat Rural Municipality Wards 2, 3 and 4, Rishing Rural Municipality Wards 1 and 3, Anbukhaireni Rural Municipality Wards 5 and 6, and Ward 29 of Bharatpur Metropolitan City.

A semi-underground powerhouse will be constructed at Gaighat in Devghat Rural Municipality-4. The electricity generated by the project will be connected to the 220 kV Damauli–New Bharatpur transmission line, constructed under the Tanahun Hydropower Project, and integrated into Nepal’s national power grid.

The project is expected to generate approximately 520 million units of electricity annually.