The positive attitude of the government and optimistic scenario of power market encouraged private sector in hydropower development. In this regard, Beni Hydropower Project Ltd. was established on Kartik 24, 2063 and registered with Company Registrar Office with registration number 42320/063/064 and obtained survey license from the Department of Electricity Development (DoED) to conduct feasibility study in the Upper Solu Khola of Solukhumbu district.

Based on the feasibility study report of the project with 19.8 MW installed capacity, a connection agreement with Nepal Electricity Authority (NEA) was signed on BS 2069/6/18. The amount of bulk energy, its evacuation point, tentative commercial operation date, etc., were defined in the connection agreement. Based on these data, a bulk Power Purchase Agreement (PPA) was signed on BS 16 Poush 2069 (31 December 2012) with a Commercial Operation Date of BS 01 Asadh 2080. Final approval of initial Environmental Examination (IEE) was given on BS 12 Marg 2069 (27 November 2012). Acquisition of generation licence and finalization of financial closure with the lending agencies have already been completed.

An agreement between the Government of Nepal (GoN) and the developer was signed on 30 June 2016 (BS 16 Ashadh 2073) to extend the generation license of the project according to the decision made by Finance and Infrastructure Committee of GoN dated BS 2072/10/13 and Deputy Prime and Ministry of Energy level decision dated BS 2073/2/6.

Upper Solu Khola Hydropower Project is a run‐of‐the‐river type scheme located at Beni VDC of Solukhumbu district in the Eastern Region of Nepal. The headworks area of proposed project is located downstream of the suspension bridge at Beni and the powerhouse area is located at Boldok, the confluence of Tamakhani Khola and Solu River. The approximate distances of powerhouse and headworks of proposed project from Phaplu Bazaar, the nearest Bazaar from the project area, 1.25 and 3.7 km respectively.

The main access from Kathmandu to the project area is via Khurkot-Ghurmi road with a total distance from Kathmandu of approximately 493 km. The project site is also accessible via 200km Jiri Phaplu road. The project powerhouse site is 1.25 km away from Phaplu airport, which is 30 minute flight from Kathmandu and there are scheduled flights 4 days a week. Phaplu‐Phera access road has been constructed for seasonal operation. The headworks site can be accessed by upgrading this road and constructing 3km new road. The headworks site can also be accessed by constructing a 3.78km long Phaplu‐Beni road. Powerhouse will be accessible after this road is completed. A new 3.5km road is required for accessing the surge shaft area.

Basin Physiography and Drainage

Solu Khola is a perennial stream fed mostly by snowmelts and partly by monsoon. Originatingfrom Mount Numbur at an altitude of 6858 and ending at Dudha Koshi confluence at an elevation of 725m and within the latitudes of 27o 30’ 31” N and 27o 45’ 29” N and the longitudes of 86o 29’ 45” E and 86o 37’ 55” E, the stream flows through glacier, dense and undisturbed forest and joins Dudha Koshi River. The proposed intake is located immediately downstream of two major tributaries, namely, Junbeshi Khola and Dudhkunda Khola (also known as Beni Khola) to form Solu Khola (Figure 3). Most of the catchment area lies above 3000m elevation, a favourable condition for higher degree of base flow throughout the year and less flood hazards. About one third of the catchment is covered by thin mixed forest. Except some permanent snow lines and glaciers and lakes, the rest of the catchment area is covered with barren hard rock, grass land with scattered vegetation and dense forest. There are several settlements in the project area upstream of the project headworks such as Khamje, Junbesi and Chholin.