Kathmandu, Jan 27: The 77.5 MW run-of-river Ghunsa Khola Hydropower Project, designed to make Nepalis working abroad shareholders in hydropower projects, has successfully secured the required funding. The project will be constructed by Remit Hydro Limited.
On Sunday, Remit Hydro Limited announced the signing of a multilateral loan agreement for the project. Laxmi Sunrise Bank Ltd will invest Rs 5 billion, Hydroelectricity Investment Company Ltd (HIDCL) will contribute Rs 3 billion, Citizen Investment Trust (CIT) will invest Rs 2 billion, Machhapuchhre Bank Ltd will provide Rs 1.45 billion, and Everest Bank Ltd will add NPR 1.25 billion. In total, banks and financial institutions have committed Rs 12.7 billion for the project, according to the promoter company.
The project will utilize the water of the Ghunsa River, located in wards 5 and 6 of Phaktanglung Rural Municipality in Taplejung District. The estimated cost of the project, including interest during the construction period, is Rs 18.13 billion. The financial management of the project will be based on equity and debt investments.
In terms of equity investment, 21% will come from the Nepal Electricity Authority (NEA), 15% from Hydroelectricity Investment and Development Company Ltd, and another 15% from Electricity Generation Company Ltd, accounting for 51% of the total capital. The remaining 49% of the investment will be allocated to the public. Of this public share, 29% is reserved for Nepali citizens working abroad, 10% for local residents affected by the project, and 10% for the general public.
The project aims to be completed within four years of its commencement. Infrastructure developments, including access roads to the powerhouse and residential facilities as well as the installation of two Bailey bridges over the Tamor River, have already been completed. #hydro #nepal #ghunsa #NEA
