Financial Management for 66.3 MW Middle Kaligandaki Project Completed
June 23, 2024 | Investopaper
Investment has been secured for the 66.3 MW Middle Kaligandaki Hydropower Project, promoted by the IME Group. Various banks and financial institutions, led by Nabil Bank, have agreed to provide Rs. 11.12 billion in co-financing for the project.
On Friday, during a ceremony in Kathmandu, IME Group’s Hydro Support Pvt. Ltd. and Nabil Bank signed the loan agreement. IME Group Chairman Chandra Prasad Dhakal and Nabil Bank CEO Gyanendra Dhungana signed on behalf of their respective organizations.
The project, to be built on the Kaligandaki River in Annapurna Rural Municipality of Myagdi District, has a total estimated cost of Rs. 14.84 billion, including interest. The funding will be 75 percent from from loans and 25 percent from equity.
Of the total loan amount, Nabil Bank will contribute Rs. 3.12 billion, Everest Bank and Nepal Investment Mega Bank will each provide Rs. 2 billion, and Nepal Bank, Rastriya Banijya Bank, and Prabhu Bank will each contribute Rs. 1 billion. Additionally, HIDCL will invest another Rs. 1 billion, as per their intent letter. The remaining Rs. 3.71 billion will come from equity, with investments from IME Group and the general public.
An agreement has been reached with the Nepal Electricity Authority for the sale of electricity. Winter electricity will be sold at Rs. 8.40 per unit, and summer electricity at Rs. 4.80 per unit. The project is expected to produce 130 GWh in winter, generating Rs. 1.09 billion in revenue, and 277 GWh in summer, generating Rs. 1.33 billion. Annually, the project will produce a total of 407 GWh, bringing in Rs. 2.42 billion in revenue.
Construction is set to begin in October and aims to be completed within four years. Pre-construction activities are currently underway. The project includes constructing a 4.3 km tunnel and an underground powerhouse. The generated electricity will be connected to the Dana substation.
Suggested Readings:
List Of Hydropower Projects In Nepal (Developed By Private Sector)
