Consortium to invest Rs 6 billion in Mistri Khola project

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    misKATHMANDU, May 22: A consortium of seven banking institutions and a group of 80 businessmen have teamed up to invest Rs 6 billion in Mistri Khola (42 MW) hydropower project.

    Robust Energy is developing the project located in Myagdi district. “Finally, we have arranged financial resources for the development of the project,” Subrat Dhital, chairman of Robust Energy, said.

    According to a company source, Nabil Bank, Nepal Investment Bank Limited (NIBL), Nepal Bank Limited (NBL), Laxmi Bank, Siddhartha Bank, Ace Development Bank and Hydroelectricity Investment and Development Company Limited (HIDCL) are investing in the project.

    “The consortium of banking institutions is investing Rs 4.24 billion in the project,” the source said, adding, Nabil, NIBL and HIDCL are investing Rs 1 billion each in the project. “NBL is investing Rs 500 million, Laxmi and Siddhartha are spending Rs 400 million each, and Ace is investing Rs 240 million.”
    Businessmen investing in the project include Min Bahadur Gurung, Chandra Dhakal, Pradeep Jung Pandey, Subrat Dhital and Suriddha Raj Ghimire.
    Confirming the development, Gokarna Raj Pantha, senior divisional engineer at the Department of Electricity Development (DoED) said that the project has become successful in demonstrating financial sources.

    Nepal Electricity Authority (NEA), the state-owned hydropower regulator, and the company had signed power purchase agreement (PPA) in February, 2011.

    “The government granted power generation license to the company one year after the signing of PPA,” Pantha said.
    As per the PPA, NEA will purchase electricity generated by Robust Energy at Rs 5.4 per unit.

    The project, which is expected to start power generation by May, 2016, is the first hydropower project in the country entirely funded by local banks and business persons.

    Officials of Robust Energy said a 48-km transmission line needs to be built to connect power generated by the project to the national grid.
    Mistri Khola is the first venture of HIDCL, a newly established public enterprise. The company has paid-up capital of Rs 8 billion.

    Source : Republica