February 23, 2021 | Investopaper
Two commercial banks, including Machhapuchhre Bank, led by Laxmi Bank, have agreed to invest in the Upper Piluwa Khola-3 Hydropower Project under co-financing. Laxmi Bank and Machhapuchhre Bank will invest Rs 39.99 crores and Rs 25.60 crores respectively for the project.
The estimated cost for the construction of the project is Rs. 93.70 crores. Out of the total cost, banks will invest 70 percent or 65.59 crores. Likewise, the remaining 30 percent will be the company through equity investment.
Upper Piluwa Khola-3 Hydropower Project is a run of the river project to be constructed in Piluwa and Sikhuwa rivers located in Siddhakali and Mawadin VDCs of Savik of Sankhuwasabha district. The project has an installed capacity of 4.95 MW.
The project aims to generate about 28.417 gigawatt-hours of electricity annually. The project expects to generate electricity within one year.
Mabilung Energy is developing the project. The company has signed a Power Purchase Agreement (PPA) with Nepal Electricity Authority on Chaitra 12, 2075.