Seven Financial Institutions Agree To Invest 11.13 Billion To Construct 66.30 MW Middle Kali Gandaki Project

Seven Financial Institutions Agree To Invest 11.13 Billion To Construct 66.30 MW Middle Kali Gandaki Project

June 22, 2024, 10:11 a.m.

IME chair Dhakal and Nabil.jpg

Seven financial institutions are going to invest about 11.13 billion rupees in the 66.30 MW Mid-Kali Gandaki hydropower project. The project will be constructed on the Kali Gandaki River located in Annapurna Rural Municipality of Myagdi which is promoted by Hydro Support Pvt. Ltd under the IME Group.

Under the leadership of Nabil Bank Limited, Everest Bank Limited, Nepal Investment Mega Bank Limited, Nepal Bank Limited, Rastriya Banijya Bank Limited, Prabhu Bank Limited and Hydro Electricity and Investment Company Limited (H IDCL) will invest the money.

Company President Chandra Prasad Dhakal and Nabil Bank’s Chief Executive Officer Gyanendra Prasad Dhungana signed the investment agreement.

Nabil Bank will invest 3.12 billion, Everest Bank 2 billion rupees, Nepal Investment Mega 2 billion rupees, Nepal Bank 1 billion rupees, Banijya Bank 1 billion rupees, Prabhu Bank 1 billion rupees and HIDCL 1 billion rupees.

It will be built on the ratio of 75 percent loan and 25 percent equity investment. Based on this, the cost per megawatt of the project comes to about 22 crore 38 lakh rupees.

Nabil Bank's Chief Executive Officer Dhungana said that the bank is enthusiastic to invest due to attractive and profitable projects and agile management group. "The reputation of the bank is also linked to being able to invest in the IME group, which brings the income of foreign workers safely into the country," he said.

Similarly, Dhakal, the chairman of the promoter company, who is also the chairman of IME Group, said that the project is attractive because of the access road, transmission line and other facilities. The way to export the remaining electricity has also been opened.

On the other hand, in an environment where even 30 percent of annual energy can hardly be produced from run-of-river (ROR) in winter, it is said that 32 percent is produced from the proejct. It has been said that the goal is to generate electricity within 4 years of the start of construction.

According to the company, except for the dam and intake, the entire structure will be built on surface. Nepal Electricity Authority has signed a Power Purchase Agreement (PPA) to buy electricity at Rs 8.40 per unit in winter and Rs 4.80 per unit in rainy season.

The company has informed that the project will earn 1.9 billion rupees and 1.33 billion rupees respectively from the energy produced from 130 gigawatt hours (130 million units) in winter and 277 gigawatt hours (277 million units) produced in the rainy season.

The electricity produced by the project will be evacuated through 7 km transmission and connected to 220 kV transmission line’s Dana substation in Myagdi and connected.

Dhakal informed that after the construction of this project, the 86 megawatt another 86 MW cascade project will be constructed.

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