135 MW Manang-Marsyangdi Hydropower Project Begins Construction Work
November 24, 2024 | Investopaper
Construction has officially begun on the Manang-Marsyangdi Hydropower Project, which has a capacity of 135 megawatts. The project is being developed by Manang-Marsyangdi Hydropower Company Pvt. Ltd., and a loan agreement was signed with the EXIM Bank of China on Ashwin 6, 2081 BS, securing necessary funding for the initiative.
With the completion of financial arrangements, construction commenced recently.According to the agreement, the Exim Bank will provide approximately $175.25 million (around Rs. 24 billion) for the project. The total estimated cost of the project is around $323 million (about Rs. 43.73 billion). The financial structure includes 80 percent debt and 20 percent equity. Butwal Power Company will own a 20 percent stake and Chinese investors contributing the remaining 80%. Furthermore, there are plans to offer shares to local residents in accordance with existing regulations.
The construction timeline for the project is set at 42 months. It is located in the Chame and Nasong rural municipalities of Manang district, featuring a peaking reservoir design. Once operational, the project is expected to generate approximately 766 gigawatt-hours (GWh) of electricity annually.
This project is part of a larger cascade development plan that includes two other hydropower projects in the Marsyangdi River basin: the Lower Manang-Marsyangdi Project, which has a capacity of 139.2 megawatts, and the Upper Marsyangdi-2 Project with a capacity of 327 megawatts. Together, these three projects will have a combined capacity of 601.2 megawatts and a total estimated cost of $1.2 billion.
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