November 8, 2022 | Investopaper
The financial closure of Myagdi Khola Hydropower Project has been completed. An agreement has been reached between the promoter company Hydro Village Pvt. Limited and Nepal Bank Limited regarding the financial management of the project.
In the leadership of Nepal Bank, four other institutions-NMB Bank, Agricultural Development Bank, Employees Provident Fund, and Nepal SBI Bank will provide loan financing for the project.
The estimated total cost of the project is Rs. 11.15 billion. Of which, 75 percent or Rs. 8.36 billion will be financed by bank loans. Likewise, the remaining amount will be injected through equity.
Hydro Village Pvt. is going construct and operate the project in joint venture with Malaysia-based Serba Dinamik International Limited (SDIL). Hydro Village will own 40 percent share in the project while the Malaysian investor will have 40 percent ownership. Similarly, Hydroelectricity Investment and Development Company (HIDCL) will have 20 percent strategic share partnership in the project.
About Myagdi Khola Hydropower Project
Myagdi Khola Hydropower Project is a Run-of-River type project with an installed capacity of 57.30 MW. It will generate electricity by utilizing the water flow in Myagdi Khola. The project is located at is located at Dhaulagiri Rural Municipality ward number 4 of Myagdi District.
Hydro Village received the construction license of the project from Department of Electricity Development (DOED) on Karthik 25, 2077 BS. The construction license has a validity until Karthik 24, 2112 BS.
The headworks of the project is located at the Kunaban/Myagdi confluence and the powerhouse is located at Jeltun Village. Likewise, it has a design discharge of 12.50m3/sec and net head of 537.23m.
The project will generate 335.993 GWh electricity annually. The produced electricity will be connected through 17 km long 132 KV transmission line to the substation of NEA located at the Dadakhet Substation.
The company expects to complete the construction of the project by Falgun 2082 BS.