Kathmandu University

Dhulikhel, Kavrepalanchowk

A case study of
SJVN Arun-3 Power Development Company (SAPDC) Pvt Ltd.

Submitted By:
Roshan Nepal
Roll no.: 46
Electrical Department
School of Engineering

Submitted To:
Sagar pandit
Mechanical Department
School of Engineering

Date of Submission:
Abbreviations and Acronyms
HEP- Hydro Electric Project
PDA- Project Development Agreement
MOU- Memorandum of Understanding
References:
For photos:
1) http://3.bp.blogspot.com/__4PCel3bT0s/Ss1rDfo69KI/AAAAAAAAABA/mBBV
HtDwfN4/w1200-h630-p-k-no-nu/Roadtods.jpg
2)
Introduction:
Arun River is a tributary of Sapta Koshi River. It originates as Phungchu River from
high mountain near Kimathanka in Tibet. Arun River merges into River Sapta Koshi
at Tribeni. Nepal, where three rivers, namely, Sun Koshi, Arun and Tamor meet
Sapta koshi, draining altogether an area of about 61,000 sq. km with about 43% of
its area in Tibet, China. After entering into Nepal, the river course abruptly changes
southwardly and receives many streams on both banks. Principal tributaries of the
river up to dam site which is located near Num village in Sankhuwasabha district,
are Bakan Khola, Chhujan Khola, Leksuwa Khola, Ikhuwa Khola and Indu Khola at
the left bank and Sursin Khola, Barun Nadi at the right bank.

SJVN Arun-3 Power Development Company (SAPDC) Private Limited has signed a
Project Development Agreement (PDA) for the implementation of 900 MW Arun-3
Hydro Electric Project with the government of Nepal on 25 th November 2014. As
per the agreement, 21.9% of the power generated shall be given as free power to
Nepal. Also, 7.5% of power will be provided to GoN as energy royalty for the
fifteen years and thereafter, this will be increased to 12% for remaining 10 years of
the term. Capacity royalty will also be provided to GoN at the rate of NPR 400 KW
for the first fifteen years and thereafter at the rate of NPR 1800 for the remaining
10 years of the term.

The project will help in the development of the region by generating employment
opportunities for the locals, boosting local industries, and fostering
entrepreneurship. SAPDC will construct Transmission line for rural electrification in
project area. The project will help in development of infrastructure such as
construction of roads, bridges and provide financial support for healthcare
facilities and community centers etch. Which will provide a robust community
infrastructure. Further, skills training and other programs will provide great
financial support to the affected communities. Total lifetime financial benefits of
GoN shall be the order of 33,866 Cr. NPR.
History:
SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC) was incorporated
and registered on 25th April 2013 as a single shareholder Pvt. Ltd. Company under
the Nepalese Companies Act 2063 with SJVN Ltd. is its sole shareholder. The
Project Development Agreement (PDA) was signed on 25 th November 2014
between Investment Board of Nepal (IBN), and SAPDC.

Previously the World Bank, Asian Development Bank and other donor countries
such as Germany, Japan, France, Switzerland and Finland had agreed to invest in
Arun-3 HEP. Mode of development of the Arun-3 project was however, modified in
1987 with intimate capacity of 402 MW in two stages, each of 201 MW capacity.
However, the World Bank withdraw financial support to the project in 1995 and as
a result, the development of the project was stalled. In 2008, the Government of
Nepal through International Competitive Biding awarded the project to SJVN
Limited, a joint Venture of Govt. of India and Govt. of Himachal Pradesh. The
project was awarded on a build, own and transfer model for a period of 30 years.
A MOU and PDA in this regard were signed on 2 nd March2008 and 25th November
2014 respectively.

Fig:
Salient Features

Location:
The location of this Arun hydropower is in sankhuwasabha district. The river
through which the water is collect in dam is Arun River, a tributary of Kosi River in
Eastern Nepal. The nearest airport from the dam is Tumlingtar which is 70km far
from the dam site.

Hydrology:

Reservoir: