July 25, 2021 | Investopaper
Seven commercial banks have agreed to invest Rs. 7 billion in the 50 MW Mewakhola Hydropower Project located in Meringden Rural Municipality of Taplejung district. Kumari Bank, Mega Bank, Siddhartha Bank, Nepal SBI Bank, Civil Bank, and Nepal Infrastructure Bank will invest in the project under the leadership of Citizens Bank. Out of the total Rs. 7 billion, an agreement has been reached to invest Rs. 6.75 billion term loan and Rs. 250 million working capital loan.
An agreement was signed between promoter United Mewa Khola Hydropower Company and the banks on Thursday. The total estimated cost of the project is Rs. 9 billion. Of that, 75 percent will be financed by a loan and the remaining 25 percent will be injected in the form of equity.
As per the agreement, Citizens Bank has agreed to invest Rs 1.45 billion, Kumari Bank, Mega Bank, Siddhartha Bank, and Nepal Infrastructure Bank have agreed to invest Rs 1 billion each while SBI Bank will invest Rs 800 million and Civil Bank Rs 500 million.
The promoter company forecasts to complete the construction within three years. The generated electricity will be connected to the substation at Dhungesanghu under the Koshi Corridor of the Nepal Electricity Authority.