Sahas Urja Limited, the developer of 86MW Solu Khola Dudhkoshi Hydroelectric Project has awarded the construction contract of the project to CMC Ravenna of Italy. Him Prasad Pathak, executive chairman of Sahas Urja and Salvatore Casciaro, director of CMC Asia signed the contract for their respective organisations amid a ceremony on Friday. 

“The entire pre-construction work of the project has been completed and the construction of the project will begin very soon,” said Pathak during the signing ceremony. “The construction of the project will be completed on time.” 

The developer is planning to complete the construction of the project by September 2020.  The energy generated from the project will be evacuated to Tinla sub-station Nepal Electricity Authority’s (NEA) at Lammane. 

Pathak informed that the construction of the project will begin as soon as the joint team of Sahas Urja and CMC inspects the construction site of the project. 

Casciaro speaking at the signing ceremony said his company has expertise in infrastructure development will begin the construction in time. 

“This is our second project in Nepal and we are happy to be able to contribute towards hydropower development in Nepal,” said Casciaro. “This will be a model project reflecting our expertise.” 

The development cost of the project is estimated to be Rs 11.86 billion and it will be financed by Nepali banks and financial institutions. A consortium of 11 banks led by Nepal Investment Bank will arrange 73 percent debt financing required to build the project.