December 23, 2020 | Investopaper
Lapche Khola Hydropower Project, one of the largest hydropower project of Nepal to be developed by private sector, will receive financial support from 9 BFIs led by Nepal Bank Limited. Nine banks and financial institutions, led by Nepal Bank, will invest Rs 19.65 billion in the 160-megawatt Lapche Khola Hydropower Project. NASA Hydropower Pvt. Ltd., a major investment of business house MV Dugad Group, is the major promoter the project.
An agreement has been signed to invest Rs 19.65 billion in the project costing Rs 26.20 billion through co-financing led by Nepal Bank Limited. The agreement was signed by NASA Hydropower’s Chairman Motilal Dugad and Chief Executive Officer of Nepal Bank Krishna Bahadur Adhikari. The signing ceremony was attended by the chairpersons-chief executive officers of all the banks and financial institutions and other officials, the bank said.
Nepal Bank will invest Rs 5 billion followed by Nepal Investment Bank Rs 3.5 billion, Employees Provident Fund Rs 2 billion, Rastriya Banijya Bank Rs 2 billion, Himalayan Bank Rs 2 billion, Laxmi Bank Rs 1.88 billion, Nepal SBI Bank Rs 1 billion and Bank of Kathmandu Rs. 1 billion and Agriculture Development Bank Rs. 1 billion.
Speaking on the occasion, Chairman of Nepal Bank Adhikari said that Nepali banks, including state-owned banks, have come to a proper conclusion after analyzing various aspects of the project including financial, technical and risk and the decision to invest in the project would be a good use of depositors’ money. Dugad, chairman of NASA Hydropower, said that the rapid work has been done by Nepal Bank Limited and other banks in the project in a short period of time, which is Nepal’s largest financial investment so far.