Tripartite Loan Agreement Signed by NEA, EPF, and Tamakoshi Hydropower Company To Fund Tamakoshi V Project

Tripartite Loan Agreement Signed by NEA, EPF, and Tamakoshi Hydropower Company To Fund Tamakoshi V Project

May 22, 2023, 8:15 p.m.

The financing for the 99.8 MW Tamakosi V hydropower project in Dolakha's Bigu Rural Municipality has been decided upon. Employees' Provident Fund (EPF) agreed to loan 13.74 billion rupees in the project, which is expected to cost 21.14 billion rupees overall, including interest paid while it is being built.

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As part of the People's Hydropower Program, shares were issued to the general people, raising the remaining funds for the project through equity. The project's financial management has been finished, and 65% of the debt and 35% of the equity have been raised.

A tripartite credit agreement was signed by the Tamakosi Hydropower Company, the project's promoter, and the Employees Provident Fund in the presence of Energy, Water Resources, and Irrigation Minister Shakti Bahadur Basnet. The contract was signed on behalf of each institution by Kulman Ghising, Managing Director of the NEA, Jitendra Dhital, Administrator of the EPF, and Binod Bhandari, CEO of the business.

Minister Basnet stated in the program that green energy is Nepal's potential and necessity for everyone, for prosperity, and for a clean environment. He added that work is being done to improve hydropower output and to build the infrastructure of transmission and systems.

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Basnet stated that initiatives are being taken to boost demand and provide a market for the export of extra electricity used domestically. According to him, the project must be completed within the allotted time and budget, and any concerns voiced when a development is delayed must be addressed.

The market is being secured to export the extra power produced in Nepal, according to Ghising, managing director of NEA. Ghising noted that the sale of power to those nations is receiving a decent rate of electricity during the rainy season and that Bangladesh and India are keen to purchase the electricity produced in Nepal.

According to Administrator Dhital, the fund has invested more than 40 billion rupees in projects that will produce roughly 800 megawatts of hydropower. He promised that the project will be completed within the allotted budget and time.

The company's CEO, Bhandari, stated that the work is being done with the intention of finishing the project's construction in four.

The 456 megawatt Upper Tamakoshi cascade project is called Tamakosi Fifth. The water that is discharged after the Upper Tamakosi hydropower project generates energy will be used to build the project. As a result, the project is seen favorably because no dams, sand settling ponds, or other buildings are required.

A 2 km long 220 kV transmission line, an 8 km long tunnel, and other structures are required for the project.

To choose a contractor for the project's construction, a tendering procedure is now being held. The Environmental Impact Assessment (EIA) and detailed design have been approved. The 133 acres of private property needed for the project's construction have already been purchased.

An annual output of 495.1 million units of energy is expected from the facility. electricity generated by the project after mixing Upper Tamakosi and the Rollwalling River.

An annual output of 495.1 million units of energy is expected from the facility. The project will produce 543.5 million additional units of energy after it joins the Rollwalling River in Upper Tamakosi. The authority and the business have come to an arrangement about the buying and selling of the project's electricity.

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