There is no doubt that selecting hydro versus thermal power in Nepal provided a least-cost intervention given the country’s topography and relatively high costs of alternative energy such as diesel and oil. At feasibility study time, alternatives to the adopted design were investigated but ultimately rejected and it now appears when factoring in energy production (actual versus planned), down time due to mechanical problems in the turbines, that including considerations of operational costs into decision making process may have changed the design of the plant. Reference is made to $20 million to be invested into the plant to rectify problems including intake and desander configurations, cavitation on turbine parts, and vibrations in the powerhouse. In addition, procurement requirements, including international bidding will ensure that the executing agency receives competitive bids. For the lowest evaluated tender to represent approximately the least cost, value engineering should be used to formally determine the least cost if it is such a concern.
Kali Gandaki “A” Hydroelectric Project