
The Ghunsa Khola Hydroelectric Project, with a capacity of 77.5 megawatts, has been initiated to encourage Nepalis working abroad to become shareholders in the country’s hydropower development. This ambitious project is being undertaken by Remit Hydro Limited.
On Sunday, Remit Hydro announced that a multilateral loan agreement for the project had been signed. The project has secured a significant investment of NPR 12.7 billion from various financial institutions. Lakshmi Sunrise Bank Limited is contributing NPR 5 billion, Hydroelectricity Investment Company Limited NPR 3 billion, Citizen Investment Fund NPR 2 billion, Machhapuchhre Bank NPR 1.45 billion, and Everest Bank NPR 1.25 billion.
The Ghunsa Khola Hydroelectric Project will harness the waters of the Ghunsa River, located in Phattanglung Rural Municipality-5 and 6 in Taplejung district. The project is estimated to cost NPR 18.13 billion, including interest accrued during the construction phase. The financial structure consists of both equity and debt investments.
In terms of institutional equity investment, the Nepal Electricity Authority holds a 21% stake, the and Development Company Limited holds 15%, and the Electricity Production Company Limited holds 51%. Additionally, 49% of the company’s capital has been allocated for public investment. Of this, 29% is reserved for Nepalis working abroad, 10% for local communities affected by the project, and the remaining 10% for the general public.
The construction of the project is expected to be completed within four years. Significant preliminary work has already been accomplished, including the construction of roads to the powerhouse and residential areas, as well as the installation of two Bailey bridges over the Tamor River.
Source: Kantipur