Nepal Hydro-Power Khimti 1 – the first private sector hydal-project

December 1, 2010

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A decade of exemplary success!
Himalayan News Service
KATHMANDU: Himal Power Ltd (HPL) celebrated its tenth year of successful operation of the Khimti I Hydropower Project.

Khimti 1 is the first private sector project under a Build, Own, Operate and Transfer (BOOT) scheme after Nepal adopted a free-market economy in 1990 and opened the electricity sector for private investments. “Khimti 1 plant started commercial operation in July 11, 2000, and has so far generated around four billion units of electricity,” HPL said.

In accordance with the Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA), half of the Khimti I project will be handed over to NEA for a symbolic Rupee 1 by July 2020. Although production of electricity is the core business, HPL has also focused on addressing community development needs through its corporate social responsibility (CSR) programmes, it added.

Electricity has been provided to over 4,600 rural households through a 635 KW mini-hydropower plant. Currently, 3,800 more households are being added and another 400 KW power plant has been planned. Infrastructure created during the implementation of Rural Electrification programmes has been handed over to the Khimti Rural Electric Cooperative (KREC), a member-owned and democratically managed cooperative. The cooperative, the first of its kind and a model cooperative in Nepal, was based on highly successful cooperative models from USA and Bangladesh.

HPL has supported several schools in the districts of Dolakha and Ramechhap, with Khimti Project School showing excellent results in the SLC exams. The hydropower company has aided numerous people-oriented projects pertaining to drinking water, toilets, bio-gas, agriculture and forestry, income generation training, women’s empowerment and irrigation.

A good example is the Halua Khola Irrigation System which has been in operation for eight years. The system supplies the village of Gogantar, consisting of approximately 100 households, with water for agriculture and has enabled the annual crops to increase manifold.

HPL supports local industry and the strengthening of competence within the hydropower sector.

One Response to “Nepal Hydro-Power Khimti 1 – the first private sector hydal-project”

  1. BIBHUSAN Says:
    August 9th, 2011 at 1:00 pm

    It is nice to see such a drammatic change done by a khimti hydropower project.Wishing for further sucess in a near future.


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