Khudi Hydropower Project
Project summary

1. Background
The Khudi Hydropower Project (KHP) was first identified as a possible project for hydropower development in a study conducted by Nepal Electricity Authority(NEA) and GTZ (of Germany) in 1993. The Lamjung Electricity Development Company (LEDCO) carried out the pre-feasibility study in 1999. The project was deemed feasible from that study. Gestion Conseil SCPH of Canada showed interest in developing the project together with LEDCO. Therefore additional studies and investigations have been carried out following the pre-feasibility study.

Khudi Hydro Power Site
SCP-LEDCO, MOU Signing

2. Project developers
Following the pre-feasibility study LEDCO and SCPH have been jointly promoting the project. LEDCO is a broad-based hydropower development company with many of its shareholders having their roots in Lamjung. LEDCO has special interest in developing small and mini-hydropower projects.

SCP is a small hydropower developer in Canada owning and operating various hydropower plants. It has special expertise in designing and developing small hydropower projects.
The combination of SCP and LEDCO for the development of the Khudi Project is very appropriate. SCP brings in the foreign experience and expertise whereas LEDCO can provide the local input which it has gained through the studies and development of other similar projects in Nepal. A Joint venture company consisting of BPC a major players in hydro power development of Nepal (60%), SCPHI (25%) and LEDCO (15%) has been formed to construct the Project which was commenced in Feb 2005

MOU Signing between LEDCO and SCP
Khudi Hydropower Intake site

3. Technical summary
The KHP is a run of the river project to be built on the Khudi River. The Project falls within Ghanpokhara, Khudi and Simpani VDCs in Lamjung District. The Khudi is a perennial river having its leanest flow in April/May. which is expected to be approximately 2800 liters per second. Khudi Bazaar is approximately 6 km north of Besisahar, the district headquarters of lamjung. The powerhouse of the KHP is approximately 1 km north of Khudi Bazaar. A dirt road exists as far as the proposed powerhouse of the project.

The project is designed to have an intake, intake canal, a settling basin, and a pressurized pipe of 2,800 m hang to convey the water from the river to the powerhouse. That will house two units of generating equipment. The chosen electromechanical equipment is Turgo turbines connected to synchronous generators. The power generated at the Khudi power plant will be evacuated through the 33 kV lines to the national grid system.

Project construction will take approximately two years to complete.

The designed discharge for the project is 4 liters per second and the net head is 111 meters. The installed capacity of the power plant will be 3.8 MW and the annual energy generated will be approximately 25,000,000 units. The plant load factor will be close to 72 %.

Salient features and preliminary drawings of the project are provided as Appendix 1.
4. Environmental summary

Since the KHP lies within the Annapurna Conservation Area Project (ACAP), the existing laws of Nepal warrant a full-fledged EIA. LEDCO has engaged a very competent team of experts to carry out the EIA. It was carried out according to the Canadian standards in order to facilitate the Canadian partners to be involved in the project. The EIA has been approved by Canadian authorities as well as the  Ministry of Population and Environment of Nepal. The study has recommended several mitigation and enhancement measures that must be incorporated into project planning and implementation. Basically the project will not have a great deal of negative impact on the project area. on the other hand it will have numerous benefits to the local people and the local economy.
 
Site Investigation

5. Financial summary
The project is expected to cost approximately Rs. 500,000,000|- including the interest during construction. The cost is based on budgetary quotations provided by contractors, manufacturers, and suppliers of various project components. The energy from the project will be supplied to NEA, at rates mentioned in the Power Purchase Agreement (PPA) signed in June 2001.

LEDCO and SCP are investing 40% of equity and the majority (60%) is with BPC.The equity loan ratio is 30-70. Based on this the equity portion will be Rs. 150,000,000 and the loan component will be Rs. 350,000,000. Major portion of the equity will be in the form of redeemable preference shares, which will be redeemed as soon as the cash flow allows.

The present forecast is that the project will derive an Internal Rate of Return of 20 % (IRR on equity will be approximately 24 %).

6. Present status of the project (May 2005)
LEDCO and SCP have completed a significant amount of work for the development of the project, which is listed below.

May 2005
LEDCO
SALIENT FEATURES OF KHUDI HEP
Hydrology at intake

Catchment area
 127.3 km2
Average flow
 9.8 m3
Minimum monthly flow 2.8 m3
Design flood (100 year return period) 330 m3

Headworks

Weir length 24 m
Crest elevation 941m above msl
Diversion capacity 6 m3

Settling basin

Effective length 96 m
Overall width 11 m
Number of chambers 2

Waterways

pressurized pipe length 2800m
Diameter/Material/Thickness 1.7m,mild steel, 8-12mm

Tailrace channel

Length 55m
Cross-Section 3.18m2

Powerhouse

Type Surface
Powerhouse floor elevation 829.5above msl
plinth area 195 m2

Turbine

Rated capacity 2 x1,900 kW
Running Speed 500rpm
Net head 111m
Design discharge 4m3/s

Generator

Type synchronous 3 Phase
Output 2 x 2,500 kVA
Power factor 0.85
Voltage 6.6KV
Excitation Brushless, rotating diodes

Transmission line

Voltage 11KV
Length 1 KM to khudi Bazar
Access Existing fair weather motorable road from beshishar

For more information, please contact our ledco office in Kathmandu.
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