Announcement of Nepal Receives Twenty Six Million Dollars for Electric Power on December 24, 1975

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 75/80 DECEMBER 24, 1975 NEPAL RECEIVES $26 MILLION FOR ELECTRIC POWER 1 .J. ~ The International Development Association (IDA), an affiliate of the World Bank, is extending a credit of $26 million to help finance the Kulekhani hydroelectric project in Nepal. The Overseas Economic Cooperation Fund of Japan, the Kuwait Fund for Arab Economic Development and the United Nations Development Programme are providing a total of $30.5 million towards the cost of the project. • 2. Nepal has a very large undeveloped hydroelectric power potential of over 80,000 Megawatts (MW). Total installed capacity is some 54 MW, out of which only 33 MW is hydroelectric power. Electricity reaches only about 3% of the population. Per capita consumption of electricity .is low around 7 kilowatt hours (kWh). Demand for electrical energy has been growing at the rate of 22% a year. Existing generating capacity is insufficient to meet the demand. 3. The $68 million project is located about 30 kilometers (km) southwest of Kathmandu, the nation's capital. It includes the construction of a 107-meter high rock-fill darn, a powerhouse with two 30 MW generating units and associated transmission and substation facilities. When fully utilized, the project will replace use of energy equivalent to about 65,000 tons of oil per annum saving approximately $8 million in foreign exchange. 4. The IDA credit to Nepal is for a term of 50 years, including 10 years of grace. It is interest-free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses . • Note: Money figures are expressed in US dollar equivalents. Form No. 1121 (9-75) T E CHNI CAL DATA •• PROJECT: Kulekhani Hydroelectric COUNTRY: Nepal TOTAL COST: $68 million IDA FINANCING : $26 million, standard IDA terms OTHER FINANCING: The Government of Nepal, the Overseas Economic Cooperation Fund of Japan, the Kuwait Fund for Arab Economic Development, the United Nations Development Programme (UNDP). IMPLfiliiENTING ORGANIZATION: Electricity Department, Ministry of Water and Power, Government of Nepal, Kathmandu, Nepal. PROJECT DESCRIPTION: The project consists of: a rock-fill dam of 107 meters in height; an intake structure; a headrace tunnel; a surge tank; a penstock; an underground powerhouse containing two. 30 MW turbo-generating units;· a tailrace tunnel; and asso- ciated transmission and substation facilities. PROCUREMENT: Civil works contract will be awarded on the basis of international competitive bidding. CONSULTANTS: Nippon Koei Co., Ltd. of Japan has been retained as the Consultants to provide services for field investigation, detailed design, preparation of specifications and tender documents, procurement and construction supervision of the project, with the Bank as the Executing Agency of UNDP technical assistance. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 11% 1981 • - 0 -