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The investment has been secured for the 50-megawatt Marsyangdi Besi Hydropower Project currently under construction in Lamjung.

A loan agreement worth Rs. 7.5 billion has been signed for the project promoted by Divya Jyoti Hydropower Limited under the leadership of Citizens Bank International Limited.

Along with Citizens Bank, Prabhu Bank, Nepal SBI Bank, and NIC Asia Bank will jointly make the loan investment.The loan agreement was signed at a function in Kathmandu between the project developer, Divya Jyoti Hydropower Limited, and the participating banks. The project will be constructed in Wards 8 and 9 of Marsyangdi Rural Municipality and Wards 6 and 10 of Besishasar Municipality. The total estimated cost of the project is around Rs. 11.3 billion.

The financial structure of the project has been arranged with 67 per cent debt financing and 33 per cent equity investment. The promoters will invest around Rs. 3.8 billion in equity.

According to project manager Umesh Nepal, around 1,500 local residents from the affected areas have invested Rs. 600 million in shares. The construction of staff housing and the desander is currently under way.

The project aims to generate 312.602 gigawatt-hours of electricity annually, including 112.099 GWh during the winter season and 200.503 GWh during the monsoon season.

The electricity generated by the project will be connected to the national grid through the Udipur Substation of the Nepal Electricity Authority, located about 8 kilometres from the powerhouse.The project signed its Power Purchase Agreement (PPA) on August 26, 2018, while the generation license had been obtained earlier on September 17, 2017.

According to Sanjiv Neupane, director of Divya Jyoti Hydropower, the project aims to complete construction within 30 months and connect to the national transmission line.

By Nabin Raj Kuinkel