HIDCL & NMB Bank to Provide Loan Financing to 42 MW Upper Modi ‘A’ Hydropower Project

January 9, 2024 | Investopaper

NMB Bank Limited and Hydroelectricity Investment and Development Company (HIDCL) will invest in the 42 MW Upper Modi ‘A’ Hydropower Project. An agreement has been reached between the bank, HIDCL and the promoter company to invest in the project.

As per the agreement, HIDCL under the leadership of NMB bank will invest 70 percent of the total cost of the project. NMB Bank is set to provide the loan financing of Rs. 4.40 billion, while HIDCL will provide loan of Rs. 3 billion in the venture.

The Modi Hydropower Company is constructing the project in Annapurna rural municipality of Kaski. The estimated cost of the project is Rs. 10.57 billion. Of which, Rs. 7.40 billion (70 percent) will be financed through loan investment. Likewise, the remaining amount (30 percent) will be injected through the equity. This includes investment from project-affected residents and the general public.

The formal agreement was signed in the presence of  Shakti Basnet, Minister for Water Resources and Irrigation. Surya Prasad Paudel, the Managing Director of the company, Sreejesh Ghimire, Chief Executive Officer of NMB Bank, and Arun Razoria, Deputy General Manager of HIDCL, inked the agreement.

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