Introduction:

1.1

Introduction to Andhikhola Hydropower Project

Hydro power development is the key to economic development in Nepal.

Electricity is needed for commercial activities, industrial development and
improving living standards. The cost and technology agent requires a
partnership between Nepal and international investors.
Andhikhola Hydroelectric and Rural Electrification project (AHEREP) is a
small but multipurpose hydropower project. It was completed at 1989.
AHEREP has basically three major functions. They are; Power Generation,
Rural Electrification and supply of water for Irrigation. So project named as
"Andhikhola Hydroelectric and Rural Electrification Project."
AHEREP is constructed by a Nepalese construction company named Himal
Hydro and General construction (HHGC).
It is the first hydropower project with Nepalese Manpower basic. As it is a
labor intensive project, Nepalese people play such an important role for it.
Financial Aid was financed by Norwegian Government through Butwal Power
Co. which is the owner of Andhiknola Hydropower Project.
This project is situated at Gallyang Bazaar, Syangja. The location is at Sunaulipokhara Highway.
The project have a power generation capacity of 5.1 M.W. Electricity of the
project is used for rural electrification in such village areas near the project and
remaining is sold in bulk to Nepal Electricity Authority at Palpa approximately
@ Rs. 3 per unit.
1

1.2

Introduction to Butwal Power Company:

Energy is life and we live in an age of advancement of science and technology

but the increased demand for energy may soon overtake all advancement that
we have made. Most of our energy resources are finite and exhaustible and
there is on assurance of regular or periodic replacement or renewal. History
indicates that man's development had been closely associated with the
substitution of one energy for another. It also reveals that at virtually any given
time there could have been fear of future energy shortage merely because of the
difficulty of seeing what the next energy form would be. In other words, the
world's stock of energy must be useful energy tomorrow.
Regarding the above concept, to develop the electricity sector, His Majesty's
Government of Nepal (HMGN) with related organization like Nepal Electricity
Authority (NEA), Nepal Industrial Development Corporation (NIDC) and the
United Mission to Nepal (UMN) established Butwal Power Company (BPC) in
1965. It was established in B.S.2023 (1965) as a private limited company. Later
on B.S. 2049 (1992) it was converted into public limited company.
BPC was born out of philosophy of using indigenous resources, appropriate
technology, training and technology transfer to develop Nepalese skills
expertise. BPC has developed projects of increasing capacity (1 MW Tinau, 5.1
MW Andhikhola, 12 MW Jhimruk, 60 MW Khimti and so on). This evolution
to large-scale projects reflects the continuing development of skills and
technology in BPC. BPC has developed a competent team of people and viable
institutions capable of taking up ever bigger responsibility in the field of
hydropower development.

1.3

History of Hydropower in Nepal

Among the primary sources of electricity, hydropower ranks in the list of

priorities in energy exploitation. It accounts for 23% of total power production
in the world2. It is easily obtainable as it comes in mechanical form which does
not need conversion. In hydropower system, electricity is produced through
water which is collected in a reservoir and a steady stream is regulated through
a specially built dam. This water is brought by pipes to a lower level, where it
flows through turbines. The rotation in the turbine provides mechanical energy,
which is turned into electricity energy in the generators.
The kingdom of Nepal is situated in the Himalayan Mountains between India
and China. Nepal is richening with hydropower potential due to steep
topography and abundant precipitation. Nepal consists of three major river
basins i.e. Sapta Koshi in east, Gandaki in the central and Karnali in the west.
Among these Koshi River is the biggest river of Nepal. These three river
system cross Himalayas and originates in the Tibetan Plateau.
The theoretical potential is estimated to be about 83000 MW 3. In the present
context, the technically feasible and economically viable Hydropower potential
is presumed to be around 42000 MW 4. But so far only 600 MW, of
Hydropower has been exploited. (Less than 1% of the total 83000 MW) and
Less than 50% of total population of the Nepal is getting electric services.
In today's keen financial market, Nepal electricity authority is targeting to
orient their corporate strategy by enforcing commercialization principles and
encouraging the private enterprises where Nepal electricity's sources can't meet
demand. In order to support Government policy of attracting private sector
funding in economic development activities, Nepal electricity authority is one
hand already entered onto power purchase agreement (up to 10 MW ) with no.
of independent power producers and on the other hand NEA has also lunched
policy decisions to encourage private sector participation in small Hydro
3

generation. NEA would purchase all electricity generated by such promoter of

small Hydropower projects of capacity below 1MW5. Immediately and after the
year 2003, NEA would purchase electricity to a level of 50MW. Generating by
private promoters.
Due to sharp imbalance in supply and demand of electricity His Majesty's
Government of Nepal has created a new Hydropower development policy in
1992 i.e. no license is required to the Hydropower project having capacity up to
1000KW6, and for producers for getting license are simplified.
1.4

Objectives of the AHEREP

Andhikhola Hydroelectric and Rural Electrification Project have the following

objectives:
Power generation.
Rural Electrification.
Community Development and Training of Local Manpower and
Institutions.
Andhikhola is a high scheme comprising a dam, headrace tunnel, Vertical
penstock shaft, underground power house and a trail race tunnel.
AHEREP is a labor intensive (manpower intensive) project.
Its construction period is nearly 8 years. This is a longer period due to
the learning period of hydropower generation works.
AHEREP is built by the maximum no. of Nepal technician.
Although it's various drawbacks, it is the Nepal's ever cheapest
hydropower project.

1.5 Objective of the study

The study is basically to analyze the Production of Power from AHEREP
throughout the existing hydropower station. The purpose of this study is
Mentioned below:1.

To study about the Power Production works.

2.

To study the past trend of production of Electricity and determine the

quantity and quality of electricity production by AHEREP.

3.

To forecast the future income from the project.

4.

To identify the future trend of the project.

5.

To estimate the power regulation from similar hydropower projects.

6.

To identify the weakness of the AHEREP regarding the power

production process.

7.

To recommend measures for the decision making procedure.

8.

To identify whether hydropower sector is a viable industry in Nepal to

attract private sector investment.

9.
1.6

To study the effectiveness of the management system of the company.

Research Methodology

In this chapter I had incorporated about the Methodology, Research design,

Period covered Types and sources of data, and Data collection procedure.
Methodology:
The main objective of the study is to analyze the power production of
Andhikhola Hydropower Project. To achieve this objective a suitable
methodology as well as to make it easier invisualisation the total study work
clearly. The methodology used in the present study is briefly mentioned below:

I. Research Design:
Research design is the plan structure and strategy of investigation. The research
study followed is basically a case study of Butwal Power Company to evaluate
its works regarding to the production of power. The study will explore the
hydroelectric power production of AHEREP.

II. Types and Source of Data:

The main source of data for the purpose of this study is Annual Reports of
BPC. The study is thus mainly based on the secondary data, however in some
cases primary data were also obtained from the discussion with the officials of
HHGC & BPC. Data were also taken from other sources like Government
Reports, Bulletins, and other published statement as well as from the specific
Hydropower Project too. The data were also incurred from Magazines,
reference books, documentaries, unpublished official records and study results.

III. Data collection procedure:

The data collections were both primary and secondary. The secondary data are
mostly collected from annual reports of BPC and official records of AHEREP
itself. The study involves various methods of collection of data. But as most of
the information required for the study were readily available in the published
annual reports. In case of the collection of data, few informal interviews were
also accomplished. Various type of data were also obtained from the owner
company. i.e., BPC and from the constructor Company. i.e. HHGC Company
too.

1.7

Limitations of the study:

1. The study is mainly based on the secondary data of BPC and HHGC.
2. The study covers mainly the period of BS 2052-2061.
3. The study as a whole is a case study of Butwal Power Company.
4. The purposed AHEREP is situated in Sayanja district, so, data
obtained is from the owner and constructor company.
5. Lack of better co-ordination also affected to the data collection
process of this study.
6. Due to the secrecy reason all plans regarding to the power
productions were not clearly mentioned by the owner company.

Theoretical Concept:
2.1

Concept.

The process of modernization, increase in productivity in industry and

agriculture and improvement in the quality of life of the people are basically
dependent upon adequate and reliable supply of cheap electrical energy.
Electricity is the most preferred form of energy on account of the versatility
and cleanliness associated with its handling and utilization. It is significant to
observe that bulk of electricity that is produced is put to productive use in
industry and agriculture. The programmers relating to the generation,
transmission and distribution of electricity have therefore been rightly assigned
a high priority in the national planning process. The low consumption of power
is generally considered as a major indicator of economic backwardness and
mainly responsible for halting the economic progress of the country.
The present energy scenario has drawn the attention of the scientists, the
planners and the public alike realizing that the process of overall development
could be geared up by adequate energy supply. In a developing country like
Nepal, whose national output is mainly agriculture and population lives mostly
in rural communities, having a low per capita growth of energy consumption.
An important factor upon which the growth of energy consumption depends is
the extent to which industrial activity forms a part of gross domestic product.
As a country develops the pattern of its energy usage undergoes a distinct
change. Through in must rural parts it is almost consumer goods, its effective
use in small and contribution to the development of economy negligible. Need
has come to assess and reevaluate critically the status of energy to
systematically plan our energy development programmed to make Nepal
industrially strong. No doubt that the natural resources, not only in hilly region
but also in the while country are large, but they can only be turned into wealth
if they are to be developed, used and exchanged for other goods, which cannot
8

be achieved without energy and its proper used can result in its people rising
from subsistence level to the higher standard of living.
Presently, hydro- electricity is the most versatile form of energy and provides a
crucial infrastructure for socio-economic development, due to its inherent
advantages over the other sources of energy. Detailed comparative studies
revealed that in spite of some drawbacks like high capital cost, long gestation
period and complicated civil engineering course, hydel generation is the most
economically of all other methods of generation when such factors are taken
into consideration like quick starting, easier operational conditions, cheaper
maintenance, longer life, cheaper cost of production of energy, supply water for
irrigation purposes, control of erosion, water sports, year round navigation, etc.
Furthermore, water resources are replenishes able every year and as such there
is no fear of its being exhausted. Hydro power has the lowest cost of energy
generation compared to any other recognized mode of generation. This factor is
vital importance from the point of view of rapid industrial development of
country. Water power is a self-replenishing perpetual source of energy and
many decisions to postpone the implementation of hydro-schemes and go ahead
with thermal schemes instead means avoidable depletion of valuable
coal/oil/nuclear resources. However, the main problem of the gestation period
for a hydropower project can be reduced by proper planning and execution.

2.2

Comparative Advantages of Hydro electricity over other Alternatives.

Hydro electric power generation with its inherent advantages of quick starting
pick up of power capability, ability of serving a base load stations and absence
of recurring fuel cost and atmospheric pollution has a significant role to play in
future power system planning of the country. Furthermore, water resources are
replenishes able every year and as such there is no fear of their being
exhausted. Also stream water is one of the cheapest, bountiful replanishable,
environmental resources of this country as a whole. In case of flood-prone
streams, hydel projects help in flood modernization and rover training. Of
course, for hydel projects, the water flow discharged into power house turbines
has to be adequate in quantity and head of fall of drop. This is because of the
fact that the electricity generated is directly proportional to the amounts of the
quantity and head of the flow7. Through hydro electric power generation
schemes have some initially some drawbacks like high capital cost,
complicated civil engineering works and large gestation period. But detailed
comparative studies reveled that hydel-generation is the most economical of all
other methods of generation when such conditions are easier operational
conditions, cheaper maintenance, longer life, cheaper cost of production of
energy are considered. At a low plant factor, hydel generation has a great
advantage over other methods of generation and is very well suited for carrying
peak loads, and as such, exploitation of hydro-power resources. Wherever
suitable sites are available should be given priority basically for peaking
purpose. The future hydro power stations are being planed more and more as
peaking stations with low load factors. Northern region as a whole is located far
away form coal belt, the scarcity of power in this region can however be
conveniently overcome by exploiting its hydro resources to the maximum. This
would also involve much less expenditure on power generation as compared to
thermal or nuclear power generation. In addition, hydro power projects
commonly serve other purposes too which include irrigation, water supply,
control of fertile erosion and year round navigation.
10

Presentation and Analysis of Data

3.1

TREND OF PRODUCTION

The 5.1 MW capacity Andhikhola run-river scheme had several objectives:

Power generation and rural electrification, community development and
training of local manpower and institutions are the aim of AHERE. Andhikhola
is a high scheme comprising a dam, headrace tunnel, Vertical penstock shaft
underground powerhouse and a tailrace tunnel. The project was jointly financed
by HMGN/ NORAD, and is owned and operated by BPC under a license for 50
years.
AHEREP initiated a rural electrification programmed in which local people are
directly involved in laying lines, transporting materials and other works.
Demand for electricity was promoted through non-formal education,
community development, identification of uses of electricity and the promotion
of economic activities.

3.2

Power production Activities

The power production through AHEREP was started form the Jestha of FY
2048/049. At this year only two month power can be obtained.
After this FY, Power obtained is presented as below:

11

Table No. 1
Energy Generation of AHEREP
Fiscal Year

2053/054
2054/055
2055/056
2056/057
2057/058
2058/059
2059/060
2060/061
2061/062
2062/063
2063/064
2064/065
2065/66

Energy

Bulk sale to

Produced

NEA

(in KWH)
25884300
31383500
32031400
34065700
33234300
31195100
27946100
23386100
36549900
37831300
34842300
39375100
39033900

Local sale

Self

Net Change (in

consumption

total, %)

& Loss

***
***
***
***

***
***
***
***

***
***
***
***

***

30451701
28089226
23342946
17408602
28301477
28555514
25063264
28256326
26950428

1557321
1925218
3047895
4431538
5773608
7089820
7739628
9191423
10190218

1225298
1180656
1546259
1545960
2474815
2185966
2039406
1927351
1893254

21.24
2.06
6.35
(2.44)
(6.13)
(10.41)
(16.3)
56.28
3.5
(7.90)
13.01
(0.87)

Table showing the power production of AHEREP.

In fiscal year 2059/060,
Total electricity generation

27,937,100 KWH

Total sale 26,390,842 KWH

Out of which approx. 84% sold to NEA @ 1.77/KHW

23,342,946 KWH

11% sold to local consumers at avg. @ 2.67/KWH

3,047,895 KWH

And 5% Own consumption and T/L loss

1,546,259 KWH

Increment in Production of energy than previous FY

10.41%, -Ve

Sale revenue totals form AHEREP at his FY

RS. 49,303,995

In fiscal year 2060/061

Total electricity generation

23,386,100 KWH

Total sale 21,840,140 KWH

Approx. 74% sold to NEA @ 1.91/KWH

17,408,140 KWH
12

19% sold to local consumers at avg. @ 2.49/KWH

4,431,538 KWH

And 7% Own consumption and T/L loss

1,545,960 KWH

Increment in Production of energy than previous FY

16.33%, -Ve

Sales revenue totals from AHEREP at this FY

RS. 44,281,843

In fiscal year 2061/062,

Total electricity generation

36,549,900 KWH

Total sale 34,075,085 KWH

77% sold to NEA @ 2.06/KWH

28,301,477 KWH

16% sold to local consumers at avg. @ 2.48/KWH

5,773,608 KWH

And 7% Own consumption and T/L loss

2,474,815 KWH

Increment in Production of energy than previous FY

56.28%, +Ve

Sales revenue totals from AHEREP at this FY

RS. 72,639,327

In fiscal year 2062/063,

Total electricity generation

37,831,300 KWH

Total sale 35,645,334 KWH

75.48% sold to NEA @ 2.23/KHW

28,555,514 KWH

18.74% sold to local consumers at avg. @ 2.6/KWH

7,089,820 KWH

And 2.95% Own consumption and T/L loss

2,185,966 KWH

Increment in Production of energy than previous FY

3.5%, +Ve

Sale revenue totals form AHEREP at his FY

RS. 82,147,173

In fiscal year 2063/064

Total electricity generation

34,842,300 KWH

Total sale 32,802,892 KWH

72% sold to NEA @ 1.309/KWH

25,063,264 KWH

22% sold to local consumers at avg. @ 4.24/KWH

7,739,628 KWH

And 6% Own consumption and T/L loss

2039406 KWH

Increment in Production of energy than previous FY

7.90%, -Ve

In fiscal year 2064/065

Sale revenue totals form AHEREP at his FY

RS. 78,908,000

Total electricity generation

39,375,100 KWH

Total sale 37,447,749 KWH

13

71.76% sold to NEA @ 1.325/KWH

28,256,326 KWH

23.34% sold to local consumers at avg. @ 4.07/KWH

9,191,423 KWH

And 4.9% Own consumption and T/L loss

1,927,351 KWH

Increment in Production of energy than previous FY

13.01%, +Ve

Sales revenue totals from AHEREP at this FY

RS. 92,233,000

In fiscal year 2065/066

Total electricity generation

39,033,900 KWH

Total sale 37,140,646 KWH

69% sold to NEA @ 1.448/KWH

26,950,428 KWH

26.11% sold to local consumers at avg. @ 3.381/KWH

10,190,218 KWH

And 4.89% Own consumption and T/L loss

1,893,254 KWH

Increment in Production of energy than previous FY

0.87%, -Ve

Sales revenue totals from AHEREP at this FY

RS. 100,092,000

Graph No. 1

Energy Generations and Sales

14

Graph showing Energy Generation and Sales of AHEREP.

The above graph represents that the energy generation activities of AHEREP
was quite satisfactory at FY 2058/059. But after this fiscal year, the trend of
energy generation goes downwards in FY 2059/060. in economic sense fiscal
year 2056/057 was the recession stage for AHEREP. After then, energy
generation again takes full speed due to the maintenance of the plant except
o59/060.
Beside the other conditions, local sales are quite satisfactorily increasing in
every fiscal year.
There is an unexpected loss of energy occurred in the fiscal year 056/057. It
may be due to the maintenance works of plants or shortage of the water
resources due to the irrigation works. At these fiscal years, loss percentages are
6.61 of the total energy production.
Table No. 2
Revenue from Sale of Electricity of AHEREP.
NRs. In Thousand.
Category

2056/057

2057/058

2058/059

2059/060

2060/061

2061/062

2062/063

Bulk Sale

41317

33250

58301

63679

59148

67954

71416

Local Sale

7987

11031

14338

18485

19760

24279

28676

Total Sale

49304

44281

72639

82164

78908

92233

100092

Table showing the sale of electricity from AHEREP.

15

In the above table it is represent that NEA is the main buyer of electricity
produced in AHEREP. At the time of FY 2057/058 and FY 2058/059 revenue
from the sales of electricity to NEA was in increasing trend. But after FY
2058/059, sales revenue is quite unsatisfactory. Again from the FY 2060/061,
sales revenue in FY 2055/056 is decreasing.
Remaining, all other consumer and electricity users (local) are increasing the
sales of metered consumers, unmet red consumer, user's organization and
industrial consumers. The local consumers are increasing quite rapidly due to
the grant provided by USAID.
The total revenue in the above table shows that in FY 2056/057 was decreasing,
after that FY that table shows that up to FY 2058/059, the total revenue was
increasing, at FY 2059/060 it decreasing and then after it rises quite rapidly
providing satisfactory revenue income.
Graph No. 2

Revenue Generation form AHEREP

16

Graph showing the revenue generation of AHEREP.

The Diagram of revenue generation presented above is about the income by the
AHEREP. Income is represented here is Nepali Rupees. As energy production
on FY 2057/058 and 2058/059 was in efficient way, earnings from sales of FY
2056/057 and 2059/060, power plant maintenance works disturbed the
production works and as the result revenue income get declined. Further the
period, FY 2060/061 and 2062/063 shows that the increment in these years is
near about 16.89% and 8.52%.

3.3 Rural Electrification Activities

In Andhikhola, rural electrification is major part of BPC activity. Rural from
Andhikhola started as Sayanja and Palpa district since B.S. 2048 and now
AHEREP is able to electrify 12027 households up to end of FY 2057/058,
including additional 2367 households in that FY. AHEREP had electrified
13353 household up to end of FY 2058/059 including additional 1326
household in that fiscal year. USAID has played major role to increase the
number of consumers by providing grant for rural electrification work during
the period November 1996 to March 2000. Electrification covers 16 VDCs and
one municipality of Sayanja district and 6 VDCs of Palpa district.
In FY 2058/059, remaining Electrification in 6 VDCs is going to be completed.
In addition to this, AHEREP have planned to electrify 4 VDCs which will
increase electrification by additional 2489 households. Likewise at the end of
FY 2062/063 the total consumer of AHEREP is 17871 households. The
construction of 28KM, 33KV transmission line from Andhikhola Power Plant
to Rampur town area has been completed. About

17

The incremental status of consumers of AHERP is presented below:

Table No. 3

Consumer status of AHEREP

Fiscal Year

Total No. of

Newly added

Growth Rate

2056/057

Consumers
3498

Consumers
1097

***

2057/058

5798

2300

56.75%

2058/059

9660

3862

66.61%

2059/060

12029

2369

24.52%

2060/061

13355

1326

11.02%

2061/062

17191

1688

10.89%

2062/063

17871

680

3.96%

Table showing the individual consumer status of AHEREP.

Graph No. 3
Consumer Status of AHEREP

Graph showing the consumer status of AHEREP.

18

3.4

Operation Expenditure of AHEREP

AHEREP is a Multi purpose hydroposakina_061wer project. Although is an

income generating project, it has its own operational expenditures. This is
described as below table no. 4.
Power production work itself is a challenging work. It applies various
type of manpower for its efficient regulation. It applies hydropower consult
services, Material and Equipment handling efforts, Plant and Machinery
operation expenses, Royalty for operation of power production works, Plant
and Machinery maintenance costs, and Office and other overheads.
The main expenditure it involves is plant operation and maintenance cost.
Table No. 4

Operation expenditure of AHEREP.

Particulars

FY 2057/058

FY

FY

FY

FY 2061/062

FY

Persomal

4705906

2058/059
9945568

2059/060
-

2060/061
-

4762293

2062/063
4897052

Cost
Power plant

4181236

2050366

2537219

3478139

1734196

1671626

operation
Office

1682492

2379158

721670

1255783

overhead
Vehicle

431917

544544

operation
Provision of

1395637

1962787

2354654

2111850

2581689

4736569

4322946

5840468

19051268

26187842

33528133

41206354

49078306

57298174

Royalty on
sales
T'L and D/L
operation
and
Maintenance
Total

Table showing the expenditure related to power production of AHEREP.

Graph No. 4
19

Operation Expenses of AHEREP

Graph showing operation expenses of AHEREP.

The above table, table No. 4 represents the expenditure related to the power
production works of AHEREP. In the scenario presented as the table, personal
cost increases in every fiscal year. IN the period of FY 2056/057, it suddenly
raised by 660% from the FY 2055/056, which is too much. Likewise the FY
2062/063 it raised by 2.83% which is too much low trend of increasing.
The office costs are in controlled figure. It is seen that office expenses is
maintained in lower figures at FY 2060/061. Similarly other overheads are in
balance way.
Provision of royalty on sales of electricity is not an affecting factor, due to its
relationship of proportionate towards the revenue earned.
Although the energy production is fluctuating every year, total cost for the
production of power is continuously increasing. Total cost of production is in
20

an average increasing 37.5%, 28%, 22.9%, 19.10%, and 16.75%, of Y FY

2057/058, FY 2058/059, FY 2059/060, FY 2061/062, 2062/063 respectively.
The causes of raised is to be to high rate of inflation occurred in the country.
Studying the graph represented as above, power plant operation and
maintenance work involves only a normal amount of cost as compared to the
total cost of AHEREP. Although the power production increase with greater
percentages, power plant operation and maintenance cost remains near about 24 million in average. It denotes that no additional cost is used for power
production works but only for power production works but only for inefficient
management works.

Summary and Conclusion

4.1

Summary:

BPC is the leading hydropower development company in the context of Nepal.

It has established various power capacity of hydropower plants of increased
capacity and has been operating them successfully employment in house
manpower. BPC at present is contributing more then 12% of energy
consumption of the nation. BPC's innovative technology in rural electrification
has made electricity within a reach of even poor and marginalized people in
rural areas.
BPC is not limited only to generation and distribution of electricity but also
providing different consultancies related to both technical and manageable
matters in the field of hydropower. BPC apart from his own development also
played a key role to established companies like NHE and HHGC to provide
electromechanical and civil construction services and has been promoting other
Nepali companies in this field. Therefore, BPC directly or indirectly has been
21

providing very strong supporting hands in the development of hydropower

sector and of the whole country.
Andhikhola Hydro Electric and Rural Electrification Project (AHEREP), is a
power production unit of BPC among its other projects. It is an underground
hydropower plant and ever cheapest hydropower plant in Nepal. In Andhikhola,
rural electrification is a major part of BPC activity. AHEREP initiated a rural
electrification programme in which local People are directly involved in laying
lines, transporting materials and other works.
It was started from Syangja and Palpa district since B.S. 2048 and now
AHEREP is able to electrify 17871 households up to end of FY 2062/063
including additional 680 households. Electrification covers 16 VDCs and one
municipality of Syangja district and 6 VDCs of Palpa district.
The power production through AHEREP was started form the Jestha of FY
2048/049. At this year only two month power can be obtained.
This project is situated at Gallyang Bazaar, Syangja. The location is at SunaliPokhara Highway. It is the first hydropower project with Nepalese Manpower
basic. As it is a labor intensive project, Nepalese people play such and
important role for it.
AHEREP is constructed by a Nepalese construction company named Himal
Hydro and General construction Ltd (HHGC).
Andhikhola Hydroelectric and Rural Electrification project (AHEREP) is a
small but multipurpose hydropower project. It was completed at 1989. the
project have a power generation capacity of 5.1 M.W. Electricity of the project
is used for rural electrification in such village areas near the project and
22

remaining is sold in bulk to Nepal Electricity Authority at Palpa approximately

@ Rs. 3 per unit.

4.2

Conclusion:

From the above study result that AHEREP is a normal power generating
project. Above results indicates that power production in the FY 2055/056 is
quite low than previous years. But later on it takes full speed generating more
than 65% of energy than year 2056/057.
Similarly, revenue generation from AHEREP in the beginning years was
satisfactory. But later on the FY 2055/56 and FY 2056/057 were of pessimistic.
It again made its speed on power production after the maintenance of plant at
FY 2057/058.
The consumer status of AHEREP in the field of rural electrification is in
increasing trend. AHEREP had electrified 17871 households up to end of FY
2062/063 including additional 680 households in FY 2062/063. Electrification
covers 16 VDCs and one municipality of Syangja district and 6 VDCs of Plapa
district. In addition to this, AHEREP have planned to electrify 4 VDCs which
have increased electrification by additional 2489 households.
In the operational expenditure view of the power plant, personal const increases
in every fiscal year. In the period of FY 2055/056, it suddenly raised by 129%
making the cost amount Rs. 619242. Then after at FY 2056/057, it again raised
by 660%, which is too much. It is increasing trend of more than 100% then
after.

23

The office costs are in controlled figure. Although the energy production is
fluctuating every year, total cost for the production of production of power is
continuously increasing. Total Cost of production is in an average until the year
2055, but suddenly it rose to maximum.
Studying as above the power plant operation and maintenance work involves
only a nominal amount of cost as compared to the total cost of AHEREP.
No additional cost is used for power production work but only for inefficient
management works.

24

Recommendations and Suggestions

In addition to this AHEREP should think seriously to previous weakness of
lower power production and to provide regular production of energy in a high
scale, must be conscious to the production works. It will help to minimum
present condition of high costs of operation. So here are some suggestions to
regulation better production.
1.

The quality of regulation of energy can be improved without improving

the quality of production. So, the first attempt for the sale of better
quantity of electricity, AHEREP must be conscious to the production of
good quantity of energy.

2.

Project should control its expenses in non productive works. Overall

costs on other sector than power production must be minimized.

3.

Highly Polluted water having high level of sand is the main cause of
plant damage. These factors can be removed with settlements process.
So, use of good quality water, proper settlement of sands provides high
scale of energy generation and long life of the plant.

4.

The working style of the present power production team is quite

satisfactory but present management team should be improved.

5.

Maintenance of plants must be in cyclic order so that no any disturb to

power production works can held.

6.

Management team should be serious to energy generation non other than

political movement.

7.

AHEREP should continue Rural Electrification process.

25

Bibliography
1.

AHEREP Feasibility and Preliminary Design Report, 1983.

2.

P. P. Adhikari, Hydropower '97.

3.

BPC Annual Report, 1996-2005.

4.

The Khimti Mirror, 1999.

5.

An introduction of Butwal Power Company, 1993.

6.

A company profile of Butwal Power Company, 1996

7.

Literatures on Hydropower Development, 1999

8.

V.K. Mehta, Principles of Power System, 1994

9.

Colin R. Elliott, Small Hydropower for Asian Rural Development, 1982

10. Sat Prakesh Bansal, Management of Hydroelectric Power, 1995

11. E. Broch & D.K. Lysne, Hydropower '98

26

Abbreviations
AHEREP

Andhikhola Hydro Electric & Rural Electrification Project

JHEREP

Jhimruk Hydro Electric & Rural Electrification Project

BPC

Butwal Power Company

HHGC

Himal Hydro & General Construction Ltd.

NHE

Nepal Hydro & Electric Pvt. Ltd.

HMGN

His Majesty's Government of Nepal

NEA

Nepal Electricity Authority

VDC

Village Development Committee

NIDC

Nepal Industrial Development Corporation

UMN

United Mission to Nepal

NORAD

Norwegian Agency for Development and Corporation

USAID

United States Agency for International Development

KW

Kilo Watt

MW

Mega Watt

GW

Giga Watt

FY

Fiscal Year

27

APPENDIX
Other income from AHEREP & JHEREP.
Particulars

FY

FY

FY

FY

FY

FY

FY

Sale of scrap

2056/57
5799

2057/58
1579

2058/59
1272

2059/60
-

2060/61
-

2061/62
-

2062/63
-

materials
Vehicle use
Housing services
Guest house

49694
86657
45394

41862
74659
57145

97500
83368
29800

47272
10850

income
Personnel services
Store services
Equipment in hire
Other general

45188
22583
5882
113785

9888
7990
5852
130982

23546
1553
12547
133693

4500
-

services
Fees and charges
Meter rent/sale
Service line charge
Tayari wiring
Other consumer

468892
266331
1674350
278331
19905

831628
1027896
1966609
137920
192994

1211840
2907385
2092413
74114
239586

services
Income from

954

2230

440

2922

4851

infrastructure
Income from other

1207410

196656

2456885

186412

23195

sources
Reimbursement or

1449104

royalty
Total

4291155

6134994

10426149

189334

90668

28