The West Seti Hydroelectric project will provide significant direct and indirect national and regional benefits.

NATIONAL BENEFITS

The direct financial benefits of the project to the Government of Nepal during the 30 year Generating License period will be:

• 10% free energy from the same project;
• energy royalty of 2% of the total project revenue over the first 15 years and 10% thereafter;
• capacity royalty of NRs100/kW per year for the first 15 years and NRs1,000/kW thereafter;
• export duty of 0.05%;
• forest leasehold and land taxes;
• corporate tax on profits in accordance with Electricity Act 1992; and
• project dividends as a 15% shareholder.

The direct financial benefits to the Government of Nepal during the Generating Licence period are estimated to total US$1.12 billion.

LOCAL AND REGIONAL BENEFITS

• A peak of 3,400 jobs  will be created during the 5.5 year construction period and 200 jobs during the 25 year operating period in the Far Western Development Region.
• Education and development programs will enhance the social development in the Far Western Development Region.
• Direct injection of funds into the six project districts.
• US$10 million infrastructure development programme for water supply, roads and rural electrification in project districts.
• An 8 MW riparian power station at the dam site will supply energy to the Nepal Electricity Authority for local communities.

Westseti Constructions Pvt. Ltd. (WSC), a construction company, will be incorporated to undertake major contracts totaling up to US$150 million during project construction. 

WSC will:

• provide employment
• benefit from technology transfer
• will undertake other construction contracts

Direct Employment

• Establishment of Project Human Resources Unit (PRU) – database of job- seekers and transparency of recruitment procedures.
• Contractors will be required to demonstrate compliance with preferential strategy.
• Job seekers information sheets in Nepali in affected regions.
• On-job training for unskilled and semi-skilled workers

Indirect Employment

• Provision of transportation services (road and air) to and from the region and within the region.
• Provision of accommodation, cafes, restaurants for contractors and their personnel.
• Provision of maintenance services for plant, equipment, machinery and vehicles.
• Escorting and guiding services to and from and within the region.
• Survey and monitoring services.
• Tourism.

Technology Transfer Program

• The project will be the largest hydroelectric project in Nepal.
  
  It will incorporate:
  • the latest international design features
  • state of the art control systems
  • advanced operational systems.
• The Technology and Skills Transfer program will be undertaken in accordance with the Hydropower Development Policy, 2049, to build technical and managerial competence and establish a system of quality management in the design, construction, operation and maintenance of hydropower equipment.

BENEFITS TO NEPAL

The direct economic benefit to the Government of Nepal from royalties and revenue share during the 30-year generation licence period is estimated at US$1,12 billion.

During construction, the local economy will benefit from the creation of a peak workforce of around 3,400, while project operation will involve the employment of around 200 people locally.

Nepal will also receive important secondary economic benefits from linked industries established to support project construction and operation.

The West Seti project will provide long-term infrastructure benefits consisting of a power transmission line, local roads, water supply facilities and community services.

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