Budhi Ganga hydro delayed by four more years
The Budhi Ganga Hydropower Project, originally scheduled for completion by 2025, is now expected to take an additional four years. The project was initially planned to be completed within 42 months of the contract signing, but the contracting process is yet to be finalized.
The procurement process for civil and hydro-mechanical works is currently in its final stage. Project Chief Surendra Ghimire said a letter of intent has been issued after evaluating the bids, and the draft contract has been sent to the donor agency for approval. This is the fourth round of bidding, as the previous bids were canceled during the pre-qualification stage. The 20 MW semi-reservoir project will be constructed in Achham.
The project was designed in 1997 by Canadian International Water and Energy Consultants, with support from Metcon Consultants. A loan agreement was signed between the Government of Nepal, the Saudi Development Fund, and the Kuwaiti Fund for Arab Economic Development, valid through 2025. Saudi Arabia agreed to provide a loan at two percent interest, and the Kuwaiti Fund at 0.5 percent.
The donor agencies are involved in every procurement stage. Recently, the draft agreement was sent for approval on 28 April 2025, after responding to two rounds of queries from the donors.
Ghimire said that the project has been focused on studies and land acquisition. Much of the documentation was lost during the Maoist attack on Mangalsen during the conflict, leading to delays in land surveying and verification. “Main construction hasn’t begun, and no contract has been awarded yet. A significant amount of time has been consumed in the preparatory phase. We had to remeasure lands as government agencies had lost original records,” said Ghimire. The Ministry of Finance must also approve funding sources, as the government is a project partner.
Due to time overruns, project costs have risen. Originally, the total estimated cost for civil and hydro-mechanical works (Lot-1), electro-mechanical works (Lot-2), and transmission line (Lot-3) was Rs 9bn. The revised estimate has increased the total cost to Rs 14bn. However, after transferring responsibility for the transmission line to the National Transmission Grid Company, the cost of civil and electro-mechanical works alone is now estimated at Rs 9bn. The Ministry of Finance must again provide source approval for these revised costs.
The loan agreement, initially valid until 2025, has been extended to 2027 due to delays. Ghimire said the project is prepared to request a further extension if necessary.
The project will now be implemented under a multi-year EPC (Engineering, Procurement, and Construction) contract, divided into three packages. Revisions to the detailed engineering design and environmental impact assessment have already been completed.
In the current fiscal year, only 15.39 percent of the allocated Rs 96.55m budget has been spent. According to the Ministry of Finance, the capital expenditure rate so far is 30.73 percent, with only 0.05 percent specifically utilized for the project.
To date, the project has completed several preparatory tasks. These include the environmental study of the transmission line and dam site, construction of office and residential buildings, establishment of the campsite and the Chapartola Substation in Doti, acquisition of 327 ropanis of land, and the construction of an access road and bridge.
A breakthrough in regional power trade
Nepal Electricity Authority (NEA) has resumed the export of 40 MW of electricity to Bangladesh via India. Power from Nepal to Bangladesh was exported for the first time for 12 hours on July 15 last year. It resumed from June 15 this year.
A power sale agreement had been signed between NEA, Bangladesh Power Development Board and NTPC Vidyut Vyapar Nigam Limited of India last year, which led to export of electricity for only 12 hours last year. Nepal has been exporting excess electricity during the rainy season to neighboring India for five months every year. This year, starting today, NEA will export electricity to Bangladesh for the next five months, until Nov 15.
Subarna Sapkota, deputy manager of the NEA Electricity System Control Department, shared that 146.88m units of electricity will be exported in five months. The government will earn Rs 1.29bn in five months through the sale of electricity. The selling rate of electricity exported under the agreement is 6.4 US cents per unit.
The electricity will be supplied to the Bhermara substation in Bangladesh via Muzaffarpur, Behrampur, India from Nepal’s 400 kV Dhalkebar substation. Meanwhile, the NEA has continued its electricity exports to neighboring India and started exporting the green electricity to the Indian state of Haryana from this year. It had been exporting 185 MW of electricity since June 1, which increased to 200 MW from Saturday. As per the agreement between Nepal and India, the selling rate of this electricity export is InRs 5.25 per unit.
NEA has also started exporting 80 MW to the Indian state of Bihar since 12 last night. In addition, additional electricity is being purchased and sold in the Indian market through the Dhalkebar-Muzaffarpur 400 kV and 132 kV transmission lines. As electricity generation in Nepal has increased with the onset of the rainy season, the surplus electricity is being exported to India and Bangladesh.
Gold being traded at Rs 197, 500 per tola on Monday
The gold is being traded at Rs 197, 500 per tola in the domestic market on Monday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of silver, however, has increased by Rs 75 and is being traded at Rs 2, 165 per tola today.
Nepse surges by 2. 13 points on Sunday
The Nepal Stock Exchange (NEPSE) gained 2. 13 points to close at 2,657. 52 points on Sunday.
The sensitive index, however, dropped by 0. 41 points to close at 453. 69 points.
A total of 25,393,762-unit shares of 308 companies were traded for Rs 11. 44 billion.
Meanwhile, Green Development Bank Ltd. (GRDBL) was the top gainer today, with its price surging by 10. 00 percent. Likewise, Nepal Hydro Developers Ltd. (NHDL)was the top loser as its price fell by 4. 43 percent.
At the end of the day, total market capitalization stood at Rs 1. 49 trillion.
