A 400-metre long tunnel of the Kabeli-A hydroelectricity project at the Kabeli River has been completed by the project’s contractor Zhejiyang Hydropower Construction and Installation Company Limited. The run-of-the-river hydroelectricity project located at the Kabeli River in the border of Taplejung and Panchthar has an installed capacity of 37.3 megawatt.

The contractor completed the 400-metre long tunnel within two months. The project will generate electricity when water from Dhusenikhola Kharka in Amarpur flows through a 4,327 metre long head race tunnel—a structure that carries water from intake to the power house for power generation. About 60 Chinese personnel are deployed in the project as engineers, technicians, drivers, and labourers. 

Zhejiyang Construction also brought equipments like vehicles, tippers and excavators from China. Project Manager Birendra Shrestha said that preparations are underway to construct the main tunnel path (head race tunnel) from the water reservoir to the powerhouse.

The hydroelectricity project at the Kabeli River encompasses Yangwarak Village Municipanity – 2 Thechambu of Taplejung and Hilihang Village Municipality-1 Amarpur of Panchthar. Shrestha said that Butwal Power Company and Intra Asia Company of Singapore will form a partnership and jointly own the project.  Butwal Power will own 55 percent of the project while Intra Asia owns the remaining 45 percent.

Butwal Power Company has received an assistance of $40 million from the World Bank and $38.6 million from the International Finance Corporation (IFC). Varying amounts of assistance from the Canadian Climate Change Programme, Nepal Hydroelectricity Investment and Development Company, NIC Asia Bank, Department of Foreign Affairs and Trade (DFAT) of Australia, State Secretariat for Economic Affairs (SECO) of Switzerland, Department for International Development (DFID) of the UK are also funding the Kabeli-A hydroelectricity project.

A 15-metre tall dam will also be constructed at the Kabeli River to collect water at a reservoir. The reservoir will be 1-km wide. Water from the reservoir will be drawn via tunnel to Pinaseghat and then discharged from 118-metre height into turbines located in the powerhouse. 

After completion, the project will generate 205 million units of electricity annually. The powerhouse  will be connected to the Amarpur Sub-station via Kabeli Corridor 132 kv electrical transmission line.