Kathmandu: Financial closure has been completed for the 166 MW Super Tamor Hydropower Project, one of the largest investments in Nepal’s energy sector, with financing worth Rs 25.40 billion secured.
The project, which is being developed on the Tamor River in Phaktanglung Rural Municipality of Taplejung, will receive around Rs 19 billion in loans led by Global IME Bank along with a consortium of banks and financial institutions.
According to a press statement issued on Wednesday by the project promoter Crystal Power Development, the loan agreement has been finalized with participation from Global IME Bank, Siddhartha Bank, Laxmi Sunrise Bank, Prabhu Bank, Agricultural Development Bank Nepal, and Nepal SBI Bank.
Under the agreement, Global IME Bank, Siddhartha Bank, and Laxmi Sunrise Bank will each invest Rs 4 billion. Prabhu Bank will invest Rs 3.5 billion, Agricultural Development Bank will contribute Rs 1.5 billion, and Nepal SBI Bank will invest Rs 1 billion.
About 75 percent of the total project cost will be financed through debt, while the remaining Rs 6.4 billion will be arranged as equity from the promoter and other investors, the company said.
The financial closure was completed after the loan agreement was signed between Crystal Power Development’s Executive Chairman Krishna Prasad Acharya and representatives of the participating banks.
Designed to utilize a flow of 25.5 cubic meters per second, the project will have a head of 762 meters. It is expected to generate 983.13 GWh of electricity annually, with 30.85 percent produced in the dry season and 69.15 percent during the wet season.
According to the power purchase agreement (PPA), the project has a provision for an annual tariff escalation of 3 percent for the first eight years of operation. The company estimates that the project will generate around Rs 581 million in revenue in its first year of operation.
The project includes the construction of a 50-meter-long dam, and water will be diverted to the powerhouse through a 6-kilometer tunnel. The generated electricity will be fed into the national grid via an 8-kilometer-long 220 kV double-circuit transmission line.
The company said that construction of access roads, site offices, worker housing, storage facilities, workshops, and other infrastructure is currently underway at the project site.
According to the developer, the project will include investment not only from experienced hydropower investors but also from local residents. The company has also stated that shares will be offered to the general public in the future.
At a time when large-scale investments in the energy sector have slowed in recent years, the financial closure of the Super Tamor project is being viewed as a significant milestone for private sector energy investment.
Jalasarokar