Chautara, Jan 5 : The 36-megawatt capacity Upper Bhotekoshi Hydropower Project implemented by the private sector has started generating power on trial basis since Wednesday, Sandip Shaha, general manager of the Bhotekoshi Power Company has said.

The dam for the project implemented at Jhirpu of Phalpingkatti VDC, Sindhupalchowk district has been constructed at Guyha Odhar of Tatopani VDC.

Two turbines of 18-megawatt capacity each were installed under the project which channels water through a 3,300 metre underground tunnel.

The project linked to the national grid through a 25 km long 132 kv transmission line from the project site to Lamosanghu Sub-station will generate 246,000,000 units of electricity annually.

The construction work on the project was started four years back by Panda Energy International of the US, Harja Engineering International Corporation and Himal International Power Corporation at an outlay of US dollars 95 million.

An agreement to purchase power from the project at the rate of US dollars 0.06 per unit was signed on Shrawan 6, 2053 Bikram year. Completion of the project was delayed by one year

As per the provisions of the agreement, the Nepal Electricity Authority will take over 50 per cent of the shares after 25 years.