More than 50 days have passed since the devastating floods in Nepal, which resulted in approximately 7,000 deaths and missing persons, raising concerns about the future of the Upper Trishuli-1 (UT-1) hydropower project involving Korea South-East Power and Doosan Enerbility. The project's direction is expected to become clearer around November as assessments of damage, feasibility studies, and potential deferments of creditor rights are set to unfold sequentially from late this month to next month. Depending on the findings, the possibility of abandoning the project cannot be ruled out.
According to data submitted by the office of Kim Wi-sang, a lawmaker from the People Power Party, the local project company NWEDC plans to establish a damage assessment plan this month and will begin the actual investigation next month. Korea South-East Power is coordinating with Doosan Enerbility, which is responsible for engineering, procurement, and construction (EPC), to schedule initial site assessments to confirm the extent of the damage.
Under the concession agreement between the local company and the Nepalese government, a preliminary recovery feasibility report must be submitted by November 23, within 90 days of the disaster. Korea South-East Power stated, "The time required for recovery and the anticipated delay in completion can also be determined after the initial damage assessment and preliminary feasibility review."
Before the disaster, the project was 84% complete, but significant damage has been reported to key facilities. It is estimated that about 90% of the main dam structures, including the dam body, connections, piers, and gates, have been lost. The entire site camp has been either destroyed or buried in debris, and approximately 40% of the 9.7-kilometer tunnel is believed to be flooded.
The feasibility study to determine whether to resume the project will follow the preliminary investigation next month and will continue with a main investigation in March next year. Decisions on whether to proceed with the project through additional project financing or to withdraw after assessing the damage and settling with investors will depend on the investigation results.
The intentions of the creditor group, which includes global financial institutions and investors, are also crucial. NWEDC has requested a deferment of creditor rights until recovery costs, insurance payments, and additional funding are confirmed. The creditor group plans to notify NWEDC of their decision regarding the deferment by the end of this month or early next month. If they decide not to grant the deferment, the project will likely enter a liquidation process.
Kim Wi-sang emphasized, "We cannot neglect the damage faced by our companies and workers who are encountering an unavoidable crisis in overseas ventures," urging the government to actively engage with Nepalese authorities and implement diverse policy support measures.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.