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Financial closure has been completed for the 50 MW “Marsyangdi Besi Hydropower Project” being developed by Divyajyoti Hydropower Limited.

A loan agreement was signed between the company and banks on Wednesday at a program held at Hotel Everest in the capital, formalizing debt investment for the project.

Out of the total estimated project cost of NPR 11.30 billion, NPR 7.50 billion will be financed through debt under a consortium led by Citizens Bank International Limited. The remaining NPR 3.80 billion will be managed by the developer company through equity investment.

The project is being constructed on the Marsyangdi River, which flows through Besisahar Municipality and Marsyangdi Rural Municipality in Lamjung District of Gandaki Province.

According to the company, although the construction timeline has been set at four years, it aims to complete the project within 30 months by accelerating construction work.

The electricity generated from the project will be connected to the national transmission grid via the 132 kV Udipur Substation of the Nepal Electricity Authority, located about eight kilometers from the power house.

Earlier, the company had signed a Power Purchase Agreement (PPA) with the Nepal Electricity Authority on 26 August 2018, and had received a generation license from the Department of Electricity Development under the Ministry of Energy on17 October 2017.

With the financial closure completed, the company believes construction work on the project will now gain further momentum.

Jalasarokar