January 5, 2024 | Investopaper
Citizens Bank International and Siddhikhola Hydropower Company have finalized a loan agreement. The bank disclosed that an agreement has been reached between the promoter company and the bank for the development of the 10-megawatt Siddhikhola hydropower project. This project, led by Siddhi Hydropower Company Ltd., is set to be constructed in Suryodaya Municipality and Rong Rural Municipality of Ilam.
Roshan Malla, representing the bank’s head-consortium-infrastructure banking unit, and Santosh Raj Nepal, the managing director of the company, signed the agreement.
The estimated cost of the project is approximately Rs. 1.73 billion, excluding interest during the construction period. The bank plans to contribute a loan of Rs. 1.29 billion with a 75:25 equity ratio. The remaining expenses, including interest during the construction period, will be covered by the promoters, according to the bank.
The project aims to generate electricity within the next 2.5 years. The company anticipates an annual production of 55.716 gigawatt hours, with 8.805 gigawatt hours during dry season and 46.911 gigawatt hours during the rainy season.