KATHMANDU: With the increasing investment in various hydropower projects, banks and financial institutions have recently signed loan agreements worth Rs 26 billion for two major projects.
Earlier this week, financial arrangements for the 49.95 MW Dhanakhola Hydroelectric Project, promoted by Lalupate Hydro Power Company, were completed.
As per Mohan Kumar Dangi, the promoter of the project and also the Vice President of the Independent Power Producers’ Association Nepal (IPPAN), several banks and financial institutions have agreed to invest Rs 9.96 billion in the project.
In this project, local residents impacted by the project will be issued shares worth Rs 740 million, while the operators and promoters will invest Rs 1.74 billion.
Additionally, investment has also been secured for the 102 MW Upper Marsyangdi I Hydroelectric Project located in Lamjung. The Upper Marsyangdi Hydropower Company, the promoter of the project, has signed agreements with various banks to invest Rs 16 billion in the project.
According to the promoter company, Laxmi Sunrise Bank will invest Rs 7 billion, Global IME Bank will invest Rs 6 billion, and Prabhu Bank will contribute Rs 3 billion. The total cost of the project is estimated at Rs 21.4 billion, with banks investing 74.77 percent of the cost and promoters contributing 25.23 percent.
The project has already secured a power purchase agreement and a production license. The construction is expected to be completed within four years, with an annual energy production target of 583.03 GWh.
Ganesh Karki, the President of IPPAN, mentioned that financial arrangements are progressing for other hydroelectric projects as well. He confirmed that 20 projects have already secured financial arrangements, with several others in process.
Comment