Impact of Access Roads on Hydropower Project Cost per MW and Government Collaboration

Abstract

Access road infrastructure plays an important role in hydropower development since it affects the viability, efficiency, and economic feasibility of hydro projects in mountainous areas. Nevertheless, the contribution of access roads in the economic viability of hydroelectric power plants has been little studied. In the present study, the importance of access roads in hydropower projects has been assessed based on the contribution of access road construction costs to the total project costs, cost per MW installed capacity, and factors affecting the cost of construction. Methods employed in this research include cost analysis, correlation analysis, literature review, and stakeholder consultation. Findings indicate that access road construction cost constituted between 0.91% and 2.65% of total project costs and showed a high negative correlation with the project capacity, whereby, cost per megawatt reduced from 3.91 million NPR/MW in the case of projects less than 10 MW to 1.67 million NPR/MW for projects greater than 50 MW but less than 100 MW. The cost of constructing the access road increased sharply with increasing elevation, such that construction costs ranged between 6.47 million NPR/km below 1000 m and 15.99 million NPR/km above 1500 m. Landslide and slope instability problems constituted the major challenges (38%) faced in the process of access road construction, followed by drainage problems (28%). Most stakeholders in this study also advocated for government cost sharing and public-private partnership schemes (61% each).