Kabeli B1 hydropower project is scheduled to start test production within three months as 95 percent of construction works has been completed, the project said. 

The 25-MW project is located in between Panchthar and Taplejung districts. The project is being built at an estimated cost of Rs4.3 billion. 

Arun Kabeli Power Limited, the promoter of the project, said that most of the civil works, hydro mechanical and electro mechanical engineering works like powerhouse, dam, penstock pipeline, surge tank and sedimentation reservoir have been completed. 

Hastaman Rai, manager of the project, said they have set a target of mid-February to complete construction. According to him, they have constructed powerhouse and a surge tank in Tharpu and a 4-km-long pipeline that runs through Dahal Gaun to Piple. 

Similarly, the project has installed six transmission towers out of 16 towers to connect the 132 kVA transmission line based in Amarpur. 

At present, structures such as four intake gate, spill way gate-6, stop lock gate-6, descending basin gate-4, two sand exhaust gates, score valve, main hole, two draft tube gates and three tailrace gates are under construction. Similarly, installation of two generators with the capacity of 12.5MW, two turbines, two governors and two transformers are in progress. 

The government-owned Hydroelectricity Investment and Development Company Limited along with a consortium of seven banks, including Nepal Investment Bank, Nabil Bank, Machhapuchchre Bank, Prabhu Bank, Laxmi Bank and Global IME Bank have a 70 percent stake in the project. 10 percent shares have been allocated for the local people of Panchthar and Taplejung while the rest of the shares is held by the promoter.

Dilli Ram Subedi, an information officer of Kabeli B1, said that the company has distributed 15 million units of shares to the local people. The project construction was initiated two years ago.

Rai, however, said that the construction of 132 kVA transmission line from where the electricity would be evacuated to the national grid has been delayed. 

After the project is completed, the power generated from this project will be evacuated from Mechi Koridor 132 kVA transmission line from Damak to Amarpur in Panchthar district. “If the transmission line is not completed in time, the electricity may be wasted.” The company signed a connection agreement with Nepal Electricity Authority (NEA), Grid Department on 29th May 29, 2012 for the power evacuation from this project and signed power purchase agreement (PPA) with NEA on July 13, 2012. 

According to Rai, NEA has planned to construct Kabeli B1 cascade project after the completion of the 25MW Kabeli B1. According to him, they have completed the detailed survey and are in process to conduct power purchase agreement with NEA for the proposed cascade project. The Kabeli B1 cascade  project will be constructed at an estimated investment of Rs2.80 billion.