KATHMANDU: The financing for the construction of the 42-MW Upper Modi ‘A’ hydropower project, located in Annapurna rural municipality of Kaski district, has been secured.
The estimated cost of Rs 10.57 billion, inclusive of interest during the construction phase, will be funded with 70% from loans and 30% from equity.
NMB Bank and Hydroelectricity Investment and Development Company Ltd (HIDCL) will jointly invest Rs 7.40 billion, covering the interest for the construction period. NMB Bank’s investment will be Rs 4.40 billion, while HIDCL will invest Rs 3 billion.
A tripartite loan agreement was signed today among the project promoter, Modi Hydropower Company Ltd, NMB Bank, and HIDCL, in the presence of Minister for Energy, Water Resources, and Irrigation, Shakti Bahadur Basnet.
Minister Basnet highlighted the government’s efforts to boost domestic power consumption and export surplus power to neighboring countries like India and Bangladesh.
Gopal Sigdel, Energy Ministry Secretary, shared ongoing discussions on enhancing Nepal-India infrastructures for power exports.
Kulman Ghising, NEA executive-director and Chair of Modi Hydropower Company, expressed optimism about Nepal’s hydropower development, foreseeing substantial progress.
He highlighted ongoing initiatives toward managing the 1061-megawatts Upper Arun and the 635-megawatts Dudhkoshi Reservoir Hydropower Project’s financial aspects, along with several other projects aiming for a total electricity generation of around 16,000 megawatts.
HIDCL’s CEO, Arjun Gautam, stressed the need for timely construction of power projects, emphasizing the company’s commitment to mobilizing funds to support the government’s goal of generating 28,000 megawatts by 2035.
NMB Bank’s CEO, Sunil KC, regarded their investment in the Upper Modi ‘A’ Project as a significant opportunity for the bank.
The objective is to complete the project within four years from its commencement, with preparatory works already underway. Additionally, the company will undertake the construction of the 18.2 megawatts Upper Modi Hydropower Project.
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