Kathmandu, Dec 3: The financial management for the 61-MW Narakhola Hydropower Project, being developed under the leadership of Singati Hydro Limited, has been completed. Five banks, led by Kumari Bank, signed a financing agreement to invest Rs 9.5 billion in loans for the project.
The total project cost is estimated at Rs 12.84 billion, of which Rs 9.63 billion will be financed through bank loans and Rs 3.21 billion will be equity investment. Singati Hydro Energy Limited will serve as the major equity investor, the company said.
Construction of the project’s access road has already begun, and the company aims to start work on the main structures within the next three months. The project is targeted for completion within three years. During a ceremony, Narakhola Hydro Energy Chairman Batu Lamichhane and Kumari Bank’s Credit Officer Arpan Pokharel jointly signed the financing agreement.
The project will integrate the water of Narakhola and Soti Khola located in Narpa Bhumi and Nason Rural Municipalities of Manang district to generate 61.11 MW of electricity. The developer company, Narakhola Hydro Energy, stated that all procedures required for construction have been completed. The project already has a Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA).
Under the financing arrangement, Kumari Bank will lead the consortium, with Nepal SBI Bank, Agricultural Development Bank, NIC Asia Bank and Muktinath Bikas Bank participating as co-lenders.
The project will have a gross head of 588.82 meters and produce an estimated 366.48 GWh of electricity annually. Annual revenue from electricity sales is expected to reach Rs 2.10 billion. Three turbines of 20.37 MW capacity each will be installed for generation.
The headrace tunnel will be approximately 8 kilometers long. The dam structures of the project will be built in Narpa Bhumi Rural Municipality, while the powerhouse will be located in Nason Rural Municipality. The electricity generated will be connected to the substation under construction at Dharapani in Manang by the NEA. #nea #narkhola #invest
