The Investment Board Nepal (IBN) has approved the estimated cost of the 439 MW Betan Karnali Hydroelectric Project.

In its 67th meeting held on Wednesday, the board led by Prime Minister Sushila Karki endorsed the projected investment of Rs 93.4076 billion for the semi-reservoir hydropower project, according to the IBN.

The board also decided to form a committee to negotiate and finalize the project development agreement. The detailed project report has already been completed, while the environmental impact assessment is in its final stage.

Betan Karnali Sanchaya Karta Hydropower Company Limited holds the license for feasibility study and project development. Contributors to the Employees’ Provident Fund (EPF) are the major shareholders, holding 40 percent of the paid-up capital. The EPF has allocated 40 percent of the project’s shares to its 600,000 depositors.

Of the total project equity, the EPF holds 15 percent, the Nepal Electricity Authority 10 percent, and Electricity Production Company Limited 10 percent. A further 13 percent will be raised through the issuance of primary shares to the general public.

Located on the Karnali River near Chaur Amari in Surkhet district, the project was initially expected to begin civil construction by the end of 2023. However, it faced prolonged delays due to a boundary dispute with the Indian-backed GMR Upper Karnali Hydropower Project.

Despite the setbacks, more than Rs 150 million has already been spent on preparatory works, including engineering studies, the EIA process, expansion of access roads, construction of a test hall, and staff compensation.

Meanwhile, the IBN has approved the draft of the project license for the 669 MW Lower Arun Hydropower Project and authorized its chief executive officer to issue the license. Earlier, the board had awarded the project to India’s Satluj Jal Vidyut Nigam and approved an investment of Rs 92.68 billion for its development.

The meeting also decided to forward the draft of the direct agreement for the 900 MW Arun-3 Hydropower Project to the Council of Ministers for final approval. Likewise, the board extended the survey license deadline for the 800 MW West Seti Reservoir Hydropower Project, the IBN statement said.