After almost five years, finally Prabin Shrestha, Managing director of Upper Solu Hydro Electric Company (USHEC) and ICTC Group, signed the loan conclude agreement to conclude the financial closure for the development of Solu Hydroelectric project with the consortium of banks and financial institutions led by CEO of Laxmi Bank Sudesh Khaling and representatives of other banks and a financial institution.
A consortium of eight banks and a financial institution led by Laxmi Bank will finance 23.5 MW run of the river Solu Hydro-Electric Project which will be constructed at Solu Khola in Solukhumbu district.
The banks and financial institution which expressed commitment to the project include Laxmi Bank Rs. 500 million, Nepal Investment Bank Rs.500 million, NMB Rs. 500 million, Everest Bank Rs.400 million,NIC-Asia Bank Rs.341.25 million, Global IME Bank Rs 195 million, Lumbini Bank Rs.195 million, Century Commercial Bank Rs.243.75 million and Hydroelectricity Investment and Development Co. Ltd (HIDCL) Rs. 200 million
Led by CEO Shashi Sagar Rajbhandari, USHEC is an undertaking of ICTC group’s energy establishment ICTC Energy Pvt. Ltd. Developed at a cost of 4.1 billion rupees, USHEC had signed the Power Purchase Agreement (PPA) with Nepal Electricity Authority (NEA) on November 10, 2013 and it received generation license from Ministry of Energy on March 27, 2014.
According a press release, the lenders have committed to finance 75 percent of the project cost with the remaining 25 percent invested by the promoters among which the ICTC group holds 80 percent and Blue Energy Pvt. Ltd 20 percent.
Solu HEP is the first Super Six project to conclude the financial closure and is in advanced state of development even among these six projects, which basic infrastructure of the project are already under construction of main structures is scheduled to start from the beginning of the year 2015.
“It is matter of pleasure for all the persons involved in the hydro-power development. It will definite to send a good message to the developer that something can be done,” said Prabin Shrestha, who spent a lot of energy and time to rescue the project.
Through Department of Electricity Development, Nepal government had initiated awarding the eight projects (varying in capacity from 5 MW to 40 MW) including Solu Hydroelectric Project. The project was awarded through the competitive bidding. After the thorough evaluation, the six projects were awarded to six private companies.
“Our installed capacity is 23.5 MW and expected to contribute around 132.52 GWH when it comes into operation in July 2018,” said Shrestha.
At a time when the country has been passing through a political transition, USHEC has shown got to implement the project. According to agreement, the company has to pay fine for any delay.