IME Group’s Hydro Support Pvt. Ltd. Secures Financing for 66.3 MW Kaligandaki Hydro Project

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Hydro Support Pvt. Ltd., a part of the IME Group, has signed loan agreements with joint financing banks to handle the financial arrangements (financial closure) for the construction of the 66.3 megawatt Middle Kaligandaki Hydroelectric Project in Annapurna Rural Municipality of Myagdi District, on the Kaligandaki River.

The agreement was signed by IME Group Chairman Chandra Prasad Dhakal on behalf of Hydro Support Pvt. Ltd. and Gyanendra Dhungana, Chief Executive Officer of Nabil Bank, the lead bank for co-financing, on behalf of the bank.

The co-financing banks are led by Nabil Bank Limited, while the other participating banks are Everest Bank Limited, Nepal Investment Megha Bank Limited, Nepal Bank Limited, Rastriya Banijya Bank and Prabhu Bank Limited.

Apart from the interest during the construction period, the estimated cost of the project is 12.93 billion rupees, 75 percent of which has been raised from loans and 25 percent from equity. Equity will be invested by IME Group and the general public.

Co-financing banks will invest 11 billion 12 billion rupees in the project with interest during the construction period. Of the total loans, Nabil Bank will have 3.12 billion rupees, Everest Bank and Nepal Investment Megha Bank will have 2 billion rupees each, and Nepal Bank, Rastriya Banijya Bank and Prabhu Bank will have 1 billion rupees each.

The construction of Madhya Kaligandaki hydropower project is planned to start from 2024 and be completed within 4 years.

Based on the electricity purchase and sale agreement with the Nepal Electricity Authority, the winter electricity purchase rate is Rs 8.40 and the rainy season rate is Rs 4.80. An annual income of 2 billion 42 crore rupees will be generated from the total production of 407 gigawatts of electricity. So far, the preparatory work for the project is being done.

 

 

 

 

 

 

 

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