Bandipur Cable Car Project To Receive Financing From Two Banks
November 26, 2020 | Investopaper
Two banks have agreed to invest in the Bandipur Cable Car Project under construction in Bandipur, a tourist destination in Tanahu. Nepal SBI Bank and NMB Bank have agreed to invest in the cable car project.
A loan agreement has been signed between Bandipur Cable Car and Tourism Limited and the bank. As a banking partner, SBI and NMB have co-financed with each other. The agreement has been signed by Binod Dhungel, Chief Manager, Nepal SBI Bank and Vishal Thapa, Project Finance Head, NMB Bank.
The cost of Bandipur Cable Car and Tourism is Rs. 1.66 billion. The equity to loan ratio for the construction of the project is 39:61. A total of Rs. 700 million has been managed for the first phase of commercial operation by Ashwin end, said Ram Chandra Sharma, chairman of the company. Under this, cable car, restaurant zone and entertainment venue will be open commercially. As per the loan split, 72.85 percent will be disbursed by SBI and 27.14 percent by NMB Bank.
Similarly, an additional loan of Rs. 350 million has been ensured in the co-financing of SBI and NMB Bank for the construction of the second phase of infrastructure including hotel operation in which NMB will have 31.43 percent investment. RKD Real Estate and Construction Limited and Tourism Investment Fund Limited will have 61 percent share, Panchase Cable Car and Tours Limited will have 25 percent share and local investors including Bandipur village municipality will have 14 percent share.
Sharma said that the company has moved forward with clear and planned financial management. It will establish the Bandipur tourism concept nationwide within the next ten years and ensure employment for over ten thousand people. In order to achieve this goal, Nepal SBI Bank has announced to provide concessional loan facility of Rs. 200 million at 3 percent interest rate. Bandipur Cable Car had earlier agreed to offer the guarantee for the loan.
The Bandipur Cable Car Project is being constructed in such a way that the cable car will enter the four-star hotel directly. From there you can see the sunrise, Sis Mahal, Wax Museum, Observatory, Bhoot Bangla etc. There will be a 1,000-capacity conference center, restaurant zone, swimming pool and 66 rooms.
The company plans to build the world’s tallest bungee jump, tallest mechanical swing and musical water show to make the project more attractive. The project has a strategic plan to attract tens of thousands of tourists to Bandipur. The company has also announced to conduct a warm operation as a tourist court by conducting a commercial operation of a well-equipped retro zone at the bottom station in the near future where there will be a facility to park 500 vehicles at a time.
A lower station is being constructed at Thuldhunga of Bandipur Gaonpalika-4 and an upper station at Baralthok of the same ward. A four-star hotel will also be constructed at the upper station at a cost of Rs. 800 million. Kathmandu-based Chandra Nirman Seva has been entrusted with the construction of the four-star hotel.
The cable car connecting Thuldhungashwara to Baralthok will be able to carry 200 people per hour. It is believed that the cable car will be the focal point of attraction for the tourists visiting Bandipur, which is famous for its natural caves and scenic beauty. Starting from Thuldhungashwara, the cable car will reach the height of Bandipur by passing by Siddhagufa. The cable car will travel 1.6 kilometer.
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