Led by Nepal Investment Bank Ltd, a consortium of banks has agreed to finance Kabeli B-1 Hydropower Project on Kabeli River which is situated at border between Panchthar and Taplejung districts.
Arun Kabeli Power Limited, the developer of the 25-megawatt (MW) project, and the consortium have signed loan deal worth Rs 2.8 billion.
The project is estimated to cost Rs 4 billion. The promoters will invest Rs 1.2 billion.
Nabil Bank Limited, Everest Bank Limited, Global IME Bank Limited, Laxmi Bank Limited, Hydropower Investment and Development Company Limited, Prabhu Bank Limited are the member banks in the consortium.
The developer had signed Power Purchase Agreement (PPA) with Nepal Electricity Authority in 2010.
Arun Kabeli Power Limited is a subsidiary of Arun Valley Hydropower Development Company. The power generated from the project will be connected to the national grid via the under-construction 132 kV Mechi Corridor transmission line.
The transmission line project is being constructed by NEA with loan assistance from the World Bank.