The Investment Commission of Nepal stated that it has signed a Memorandum of Understanding (MoU) with Satluj Jal Vidyut Nigam (SJVN) to develop the US$1.3 billion Lower Alun Hydropower Project in Nepal. The 679MW hydropower project will be built on the tributaries of the Jhelum and Jenab rivers, covering the Sangkuwa Sabha and Bhojpur areas. After the completion of the Xia'alun Hydropower Project, the annual power generation capacity will reach 3.561 billion units.

The Nepal Investment Council is the Nepalese government agency responsible for fast-tracking the country's economic development. It is chaired by the Prime Minister of Nepal. In June 2021, the Nepal Investment Committee meeting approved a memorandum of understanding related to the Lower Arun project, which will be signed with the project developer SJVN. SJVN is a hydroelectric power company jointly owned by the Indian government and the Indian Himachal Pradesh government.

As announced in January 2021, the Indian company won the Lower Alun Hydropower Project through a competitive bidding process. Sushil Bhatta, Chief Executive Officer of the Investment Commission of Nepal, said: “The signing of the Memorandum of Understanding will prove to be a milestone in the business cooperation between Nepal and India.” According to the regulations of the Nepalese institution, SJVN must complete the hydropower project details within two years from the date of signing the agreement. Study the project and submit a detailed project report to it for approval. Indian Ambassador to Nepal Binay Mohan Kwatra said: "The signing of the Memorandum of Understanding will pave the way for Nepal's energy infrastructure development and overall economic prosperity."

Keywords: Nepal Hydropower Project, International Engineering News

The Xia'alun Hydropower Project will be constructed in accordance with the build, own, operate and transfer (BOOT) model. It will not have any reservoirs or dams, but the tail water development project of the 900MW Arun-III hydropower station. The draft tube development means that the water from the Lower Alun Hydropower Project will re-enter the river. Like Lower Alun, the Alun No. 3 hydropower project is an India-Nepal cooperation project. Arun-III broke ground in May 2018 and is expected to be put into use in 2023.Editor/Baohongying