Over 74% of the 900 MW Arun-3 Hydro Electric Project has been completed
In a landmark event for Nepal's energy sector, Prime Minister Pushpa Kamal Dahal ‘Prachanda’ triggered the last blast to complete the heading excavation for the 11.8 km long Head Race Tunnel of the 900 MW Arun-3 Hydro Electric Project. This event, held in the Sankhuwasabha District on Wednesday (June 5, 2024), marks a significant milestone in the project’s development and brings Nepal closer to enhancing its energy security and economic development.
 
The Arun-3 Hydro Electric Project, executed by SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC), a fully owned subsidiary of SJVN, symbolizes a robust collaboration between SJVN and the Government of Nepal. The project is expected to generate 3,924 million units of electricity annually, contributing significantly to the region's sustainable energy resources.
 
The event saw the presence of several distinguished guests, including Minister of Energy, Water Resources and Irrigation of Nepal Shakti Bahadur Basnet, Health Minister of Province 1 Rajender Karki, India’s Ambassador to Nepal Naveen Srivastava, Chairperson & Managing Director of SJVN Sushil Sharma, CEO of the Investment Board of Nepal Sushil Bhatta, CEO of SAPDC Arun Dhiman, and Executive Director of SJVN Rakesh Sehgal, among other officials and local authorities.
 
Addressing the gathering, Prime Minister Dahal emphasized the project's role in providing clean and renewable energy and its contribution to the sustainable development of the region. He expressed his appreciation for the ongoing efforts and reaffirmed the government's commitment to facilitating the timely completion of the Arun-3 Hydro Electric Project.
 
Ambassador Srivastava highlighted the significance of the project in the context of the long-term power trade agreement between India and Nepal. He recalled that Prime Minister Narendra Modi and his Nepali counterpart had agreed last year to import electricity from Nepal, marking the completion of the export-oriented 900 MW Arun-3 project as a major milestone.
 
SJVN CMD Sharma briefed the Prime Minister about the progress of the project and the associated 217 km long transmission lines, noting that over 74% of the work has been completed. He assured that the project is on track to start generating electricity by next year.
 
Sharma highlighted the significance of the Head Race Tunnel's completion, describing it as a monumental achievement in harnessing the hydropower potential of the Arun River. He acknowledged the support from the Government of Nepal, local authorities, and the community, which has been crucial in driving the project forward.
 
During his visit, Sharma also met with Chief Secretary Baikuntha Aryal and Home Secretary Eaknarayan Aryal to discuss various issues related to the development of hydroelectric projects in the Arun Valley. Currently, SJVN is executing three hydroelectric projects on the Arun River basin, with a combined capacity of 2,200 MW.
 
The Arun-III hydropower plant, developed on the Arun River in Sankhuwasabha District, is an export-oriented project with a power generation capacity of 900 MW. Estimated to cost more than USD 1.6 billion, the project will produce 4,018.87 million units of electricity annually. The financial closure was secured in February 2020, following an agreement between the governments of India and Nepal, which includes an investment of over USD 156 million for developing the transmission line.
 
The project, developed on a build-own-operate and transfer (BOOT) basis by SAPDC, will be operated by SJVN for a concession period of 30 years, after which ownership will be transferred to the Government of Nepal. During this period, Nepal will receive 21.9% of the generated power for free.
 
The construction of the Arun-III project commenced in May 2018. It includes the construction of a 70m-tall and 466m-long concrete gravity dam, an 11.74 km long circular headrace tunnel, and a powerhouse equipped with four vertical Francis turbine units, each with a rated capacity of 225 MW.
 
The project is expected to generate 3,000 jobs during its construction phase, benefiting both India and Nepal. It also aims to uplift the socio-economic levels of the local population by providing employment, boosting local trade and industries, and fostering entrepreneurship. Additionally, the project will provide 30 units of free electricity per month to 269 affected families and contribute to the development of infrastructure, including roads, bridges, schools, hospitals, and community centres.
 
As Nepal moves forward with the Arun-3 Hydro Electric Project, it stands as a testament to the strong partnership between Nepal and India in the energy sector and their collective efforts to achieve energy security and environmental sustainability.