KATHMANDU, July 21:
Hydroelectricity Investment and Development Company Limited (HIDCL), a public enterprise formed to address energy crisis in the country by injecting investment in the hydropower sector, has formally moved ahead to invest in Dordi Khola (27 MW) hydropower project.
“We have already signed term sheet of the project. We will be investing through a consortium of banks led by Prime Commercial Bank,” Deepak Rauniyar, chief executive officer of the HIDCL, told Republica.
The consortium has agreed to invest Rs 3.17 billion in the project, according to Moti Kaji Tuladhar, deputy general manager of Prime Commercial Bank. “Altogether there are seven banks in the consortium, including Global IME Bank, Nepal Investment Bank and Nabil Bank.”
According to Tuladhar, developer of the project is investing Rs 1 billion in the project. “Non-Resident Nepalis are also interested to invest in the project,” Tuladhar said.
The project, which is estimated to cost around Rs 4 billion, is being developed by Himalayan Power Partner Private Limited (HPPPL).
The HIDCL, which has already decided to invest in Mistri Khola (42 MW) hydropower project, took a decision to invest in Dordi Khola project after conducting a risk assessment study.
The project site of the run-of-the-river type project based in Chiti VDC in Lamjung can be reached via a feeder road from Udipur along the Dumre-Besisahar road.
According to HPPPL, power generated from Dordi Khola will be linked to Integrated Nepal Power System at Middle Marsyangdi sub-station by 4.3 km long 132 kV transmission line.
The project has already signed power purchase agreement (PPA) with the Nepal Electricity Authority (NEA). As per the agreement, it will sell energy at Rs 4.8 per unit in the wet season and Rs 8.4 per unit in the dry season.
Meanwhile, the HIDCL is preparing to organize a power summit to bring together financial institutions and hydropower developers from all over the world. The main objective behind organizing the summit is to lure investment in the country´s energy sector.
Source : Republica