Chapter 1: introduction

Chapter I: INTRODUCTION

1. Background

The Kabeli A Hydroelectric Project (KAHEP) located in between the geographical coordinates, latitudes 27^o17'32"N to 27^o13’41"N and longitudes 87^o45'50"E to 87^o40'55"E in Pachthar and Taplejung district, Mechi zone of Eastern Development Region of Nepal, is based on the water resources of the Kabeli Khola, a natural border between the Panchthar and Taplejiung districts in the Middle Mountains of Eastern Nepal about 800 km east of Kathmandu. This project utilizes a more than 15 km long loop of Kabeli River formed with Tamor River. The Kabeli River is diverted through a 4.327 km long tunnel and discharges into Tamor River for power generation.

Initial identification of the project was made during the Koshi River Basin Master Plan Study (1983-85). Successive studies (MHSP/NEA, 1998) formulated the 30 MW Kabeli-A Hydroelectric Project with an average annual estimated energy of 164 GWh. The project was later offered for a competitive bidding to private developers on build, own, operate and transfer (BOOT) model. Butwal Power Company Limited in Joint Venture (JV) with two Nepalese companies - Shangrila Energy Ltd and Khudi Hydropower Ltd - and two foreign companies SCP Hydro International Inc. (Canada) and Asia Pacific Power Tech. Ltd., China won the bid and established a Project company under the name- Kabeli Energy Ltd (KEL) and signed the Project Development Agreement (PDA) with the Department of Electricity Development (DoED), Government of Nepal (GoN) in 2010. Subsequently, DoED has assigned the survey license of the project to KEL (Annex 1.1).

The Project configuration was decided after concluding the project optimization studies during updated feasibility study Report (USFR) and supplementary studies to UFSR by KEL in 2010 and in 2011. Major project features of KAHEP are diversion weir, side intake, settling basin, headrace tunnel, surge shaft, surface penstock, powerhouse and tailrace. KEL is undertaking a detailed design and environmental and social assessments and is set for the development of the Project as early as possible.

The updated feasibility study (UFSR, 2011) proposed a 37.6 MW installed capacity to the project. The gross head of the project is 116.8 m and the design discharge based on the 40 percentile flow in the river is 37.73 m³/s. The proposed project is a Peaking Run-Of-River (PROR) type project with a peaking reservoir constructed by damming the Kabeli River at the headworks. The live storage capacity of the reservoir is 0.335 million m³. The plant has been designed as a 6 hour peaking plant but at a reduced capacity of 26.5 MW during the month of the lowest mean monthly flow. The peaking will be done in two slots in a day: two hours in the morning and four hours in the evening peak. The annual average energy generation is estimated at 201.0 GWh (excluding 6% outage). The firm and secondary energy of the project excluding outage has been estimated as 149.4 GWh and 51.6 GWh respectively.

2. Project Proponent

The KEL is the project proponent and has signed a PDA with the Department of Electricity Development (DoED) for the development of KAHEP on 31 January, 2010 (Annex 1.2). The detailed address of the project proponent is given below:

Kabeli Energy Limited

Ganga Devi Marga - 313, Buddha Nagar, P.O Box: 11728, Kathmandu, Nepal;

Tel: +977 – 1- 4781776 / 4784026; Fax: + 977 1-4780994

E- mail: [e-mail]

Website: www.kel.com.np

The KEL is a subsidiary company of the Butwal Power Company Ltd (BPC), established to develop, own and operate the Kabeli ‘A’ Hydroelectric Project. BPC, a leading hydropower developer of Nepal, holds 54% stake, while other JV partners SCP Hydro International Inc. (Canada), Shangri-La Energy Ltd. (Nepal), Khudi Hydropower Ltd. (Nepal), and Asia Pacific Power Tech. Ltd. (China) hold 30, 5, 6, and 5% respectively. The company's assets and key features of the major shareholder, BPC, are as follows:

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  Around 300 employees
  
• 
  Owns and operates the 12MW  Jhimruk Hydropower Plant and the 5.1MW Andhi Khola Hydropower Plant. Besides supplying power to the national electricity grid, the company has electrified more than 35,000 households through these power plants under its rural electrification program
  
• 
  Owns 16.88% of the shares in Khimti I Hydropower Plant (60 MW), 51.3% in Nepal Hydro and Electric Ltd, 20% in Hydro Lab Pvt. Ltd and 24% in JIDCO. It also owns 60% of the shares in the 4 MW Khudi Hydropower plants which has been in commercial operation since 30 December, 2006.
  
• 
  In 1986 BPC established Hydroconsult as the company's consulting wing for engineering and consulting services in hydropower, water and irrigation sector. BPC Hydroconsult was restructured as a separate entity, Hydro-Consult Private Limited (HCPL) in 2009 that was again renamed Hydro-Consult Engineering Limited (HCE) in 2012. HCE is a subsidiary of BPC and is recognized as a leading consulting organization undertaking multi-disciplinary projects.
  

3. Institution Responsible for Preparing the Document

Nepal Environmental and Scientific Services [NESS] Private Limited, an environmental consulting firm assigned as a consultant by KEL to carry out the EIA study as per the requirement of the World Bank. The address of the consulting firm is:

GPO Box 7301, Jitjung Marga-26,

Thapathali, Kathmandu, Nepal

Tel.:[phone]; Fax: [phone]

E-mail: [e-mail];

Website: www.ness.com.np

NESS is a company incorporated under the Ministry of Industry, Government of Nepal. Established in 1992, the company has its head office at Thapathali, Kathmandu Nepal.

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