October 18, 2020 | Investopaper
Four commercial banks, led by Machhapuchche Bank, will invest in the Nyadi-Phidi Hydropower Project being constructed in Lamjung. Machhapuchhre, Bank of Kathmandu, Sanima Bank and Civil Bank will provide the loan of Rs. 3.08 Arba for the construction of the project.
For this, a financial management agreement was signed between the promoter North Summit Hydro and the banks last Thursday. The agreement was signed on behalf of Machhapuchhre Bank by Deputy Chief Executive Officer Sarju Thapa and Managing Director of the North Summit Hydro Balendra Chhetri. Representatives of other banks participated through virtual media.
North Summit Hydro is constructing a 21.4 MW capacity hydropower project in Lamjung. The total cost of the project is estimated at Rs. 4.11 Arba. The banks will invest 75 percent of the total amount. The company plans to raise the remaining 25 percent of the investment as equity through shareholders which amounts to Rs 1.03 Arba,
Power purchase agreement has also been signed with Nepal Electricity Authority. The company has signed a PPA with NEA at the rate of Rs 8.40 paisa in winter and Rs 4.80 paisa in rainy season. In addition, all the legal procedures required by the Department of Power Development, Department of Industry, Ministry of Forest and Environment have been completed.
The construction will start in the current fiscal year. The project is estimated to be completed within three years. As per the project, it will construct 2,300 meters of tunnel and 1,433 meters of pipeline.
About Nyadi-Phidi Hydropower Project
Nyadi-Phidi hydropower project is a Run-of-River (RoR) project in Lamjung district of Gandaki Province. The headworks at Nyadi River lies in Jaluchhe and Bhaundanda Marshyangdi Rural municipality at an elevation of 2948.90 masl. Likewise, the secondary headworks is proposed at Phidi River at Chepebagar of Bhulbhule Marshyangdi rural municipality at an elevation of 3014 masl. The powerhouse of the project lies at upstream of confluence between Nyadi and Phidi River.