Kathmandu, Mar.31:Khimti I Hydropower Project became the first medium-size private sector hydel project to produce power Thursday as one of its five turbines began to generate 12 MW electricity, a press statement of Himal Hydropower Project, one of the owners of Khimti, said here today.

“All the five units are scheduled to be on line before the end of May thereby adding 60 MW of power capacity in the national grid,” the statement further added.

Each of its five turbines has the capacity to generate 12 MW electricity thus making the project with 60 MW of installed capacity, according to Binod P Khanal of HPL.

Of the total project cost US $ 139 million, the owners – HPL, Stratkraft SF, ABB Kraft AS, and Kvaerner Energy AS – invested US $ 34 million while the balance has been funded by the Asian Development Bank, Ekspportfinans AS, International Finance Corporation, Norwegian Agency for Development Co-operation (NORAD) and the Nordic Development Fund (NDF).

Butwal Power Company, a government property, has promoted the HPL while the three other owners of Khimti are Norwegian companies.

Construction work of this run of the river project in Dolakha and Ramechhap Districts began in 1993. The major structures of the project include the Headworks (Intake, Desanding basin), 7,900 metre long head-race tunnel with four construction adits, 1,000 metre long penstock tunnel, 1,470 metre long tailrace and a 900 metre long access tunnel to the underground power house.

HPL claims that the Khimti Project holds the record for achieving the highest national tunnelling productivity. “It has the longest head-race tunnel and penstock in the country.”

The hydropower project plans to begin its commercial operation before mid July 2000. Hydropower experts say the price of per unit electricity generated by Khimti has reached seven Cents. The private hydropower project had signed the Power Purchase Agreement with Nepal Electricity Authority in 1995 with the agreed per unit electricity price at 5.94 Cents.