Due Diligence Audit for Project Cost Verification of Middle Hongu Khola B Hydropower Project (22.9 MW)

  • Project: Due Diligence Study of Middle Hongu Khola B Hydroelectric Project (22.9 MW)
  • Client: Gaurishankar Power Development Ltd.
  • Location: Mahakulung and Sotang Rural Municipality, Solukhumbhu District Koshi Province, Nepal
  • Date: September 2025

The project consist of preparation of Due Diligence Audit for Project Cost Verification for the consortium of banks lead by Citizens Bank International Ltd.

The proposed Middle Hongu Khola B Hydropower Project will utilize the flow available in Hongu Khola which is the tributary of the Dudh Koshi, which is itself a major part of the Koshi River Basin in Nepal. The project is designed for a design discharge of 19.30 m3 /s with a gross head of 155.50 m as per the Detail Project Report. The diversion weir with weir crest level at 1365.50 m amsl, lies approximately 150 m upstream from the confluence of Hongu River and Phulpati Khola. The headworks arrangement consists of intake, under-sluice, gravel trap, and settling basin. The design flow is diverted from intake-gravel trap to settling basin and the flow is collected at headpond at the end of settling basin. The flow then passes through the inverted D- shape tunnel of final dimension 4.0 m wide and 4.2 m high. The headrace tunnel, which is the main water conveyance system of project, is approximately 3850 m long. A surge shaft with finished diameter of 9 m and height of 32 m is proposed at the end of headrace tunnel. The surface powerhouse is proposed at left bank at the confluence between Hongu Khola and Pikhuwa Khola near Saddi village. It will be connected by a 972-m-long penstock pipe with varying diameters of 2.6 m, 2.5 m, and 2.4 m. The powerhouse consists of two units of horizontal axis Francis turbines to generate 22.90 MW power. The water diverted and utilized for power generation is then discharged to the Hongu Khola through 30 m long tailrace canal. The generated energy is proposed to evacuate at Tingla Substation, Solukhumbu district via 20 km long 132 kV single circuit Transmission Line.

Overall services provided by firm

The scope of services includes, but not limited to, carrying out the following activities:


  • Review of Feasibility Study Report along with Due Diligence Study Report.

  • Review of Detail Project Report

  • Review of Contract agreement and Approved Bill of Quantities (BoQ) of the project.

  • Review of Supporting documents included with IPCs.

  • Review of Progress reports with photographs from Developer.

  • Review of Cost Overrun Assessment Report (COAR).

  • Review of other relevant documents made available by the Developer.

  • Carry out a site visit in order to assess and verify the construction works progress.

  • Independent quantity cost estimation of the project based on updated design/drawings and verify the cost overrun.

  • Conclusion based on the findings

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