Investment of Rs 9 billion raised for Mid Kaligandaki hydro project

Myagdi, June 24: Financial management has been assured for the Mid Kaligandaki Hydropower Project that is going to be constructed in the Kaligandaki River.

Six commercial banks led by Nabil Bank Ltd are investing Rs 9.12 billion for the 66.3 MW hydropower project being constructed by IME Group's Hydro Support Pvt Ltd at Annapurna Rural Municipality in Myagdi.

The dam of the project, which is being promoted by Hydro Support Pvt Ltd, has been proposed at Annapurna-3, Sukebagar and power house at Annapurna-2. The 4,000-metre tunnel will have a height of 115 metres from the powerhouse to the four way.

Project chief Chandra Dhakal shared preparations have been made to build the infrastructure of Central Kaligandaki under the leadership of Nabil Bank a few days ago.

The physical construction of the project will begin in 2024 and complete within four years. Dhakal, also the Chairperson of IME Group on behalf of Hydro Support Pvt. Ltd. and Gyanendra Dhungana, Chief Executive Officer of Nabil Bank, who led the co-financing of the banks, signed an agreement on behalf of their respective sides.

Nabil and Everest Bank have invested 75 per cent in the project estimated to cost Rs 12.93 billion.

As informed, Nabil Bank along with Everest Bank Limited, Nepal Investment Mega Bank, Nepal Bank Limited, Rastriya Banijya Bank and Prabhu Bank will invest 75 percent in the project. Twenty-five percent will be raised through promoters and shareholders. Nabil Bank will invest Rs 3.12 billion, Everest Bank and Nepal Investment Mega Bank Rs 2 billion each, while Nepal Bank, Rastriya Banijya Bank and Prabhu Bank will invest Rs 1 billion each.

According to the agreement signed with Nepal Electricity Authority (NEA), the power purchase rate for winter was fixed at Rs 8.40 and Rs 4.80 for rainy season.

The project is expected to earn Rs 1.33 billion from 130 GW in winter and Rs 1.33 billion from 277 GW in rainy season. Preparations have been made to construct five hydropower projects being based on the Kaligandaki River in Myagdi section from Mustang to the border of Parbat.