Steps for a project development in NepalThe flowchart below gives a brief overview on the hydropower development process.

Step 1: Survey license (5 years) conduct feasibility study and sign power purchasing agreement (PPA). To conduct feasibility study (Geological, hydrological, drilling, environmental, and social) Company pays annual fee/tax. The amount depends on the size of the project. After the completion of feasibility study, the company starts the detailed project report (DPR). Towards the end of survey license period, company plans to have power purchasing agreement with NEAThere are set of procedures to be completed before PPA agreement is signed. Grid connection agreement to decide which load center to connect Energy lock: finalize the amount of energy that NEA will buy during each month The price of electricity depends on the size of the project. Projects below 25 MW get the posted rate. However, the price of electricity for plants with nameplate capacity of more than 25 MW, the price is negotiated and is based on the cost structure and will not be lower than the posted rate.Step 2: Financial closure (duration: 2 years after PPA) In order to get the loan for the project, the company has to convince lending agency with the feasibility of the project. At the same time, the company also collects equity. Usually the Debt:Equity ratio is 70:30; that is the source of 70% of the total costs is loan and other 30% comes from equity. The company can also collect equity through issuance of stocks.Step 3: Obtain generation license (valid for 35 years)Step 4: Construction starts (3 5 years) After the completion of DPR, management decides how to proceed with the construction. Various types of construction civil, hydro-mechanical, electro-mechanical. Company calls tender for constructionStep 5: Commercial Operation Date (COD)The above steps give a very brief overview of the hydropower development processes. Potential investors should get all theinformationabout project by considering abovequestions and steps.