Khare khola Hydro achieves financial closure

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    hydro-bank_kherakholaKATHMANDU, Oct 22: A consortium of 10 commercial banks, led by Machhapuchchhre Bank Ltd, is financing Khare Khola Hydropower Project (KKHP).

    The project with installed capacity of 24.1 MW is promoted by Consortium Power Developers (CPD).

    CPD Chairman Lal Krishna KC and Machhapuchchhre Bank CEO Tulasi Ram Gautam signed an agreement for loan financing of Rs 2.94 billion amid a function held in the capital on Tuesday.

    Nabil Bank and Everest Bank Ltd are co-leading the consortium of lenders which also includes Global IME Bank, Nepal SBI Bank, NCC Bank, Kumari Bank, Bank of Kathmandu, Siddhartha Bank and Nepal Bangladesh Bank Ltd.

    The banks are funding 75 percent of the project cost which stands at Rs 3.92 billion. The remaining amount will be invested by the promoter company.

    The hydropower project is located at Chankhu VDC of Dolakha. According to a study, the project is estimated to generate 139.22 million units electricity annually.

    “Energy generated by the project will be connected to the national grid through a proposed Singati-based substation as per the Power Purchase Agreement (PPA) signed with NEA,” CPD Chairman Lal Krishna KC said. According to KC, constructions works on the project would begin soon.

    The project aims to start generation within 2017.

    All the required studies for the project like feasibility study, detailed project report, preliminary Environmental Impact Assessment (EIA) and detailed project design, among others, have already been completed.

    CPD had signed PPA with NEA on November 2 last year. The Ministry of Energy had granted generation license to the project for 35 years, including the construction period, on May 18.

    Main Project Features

    Annual energy generation 139.218 GWh
    Dry Energy 23.271 GWh
    Wet Energy 115.974 GWhr
    Gross Head 343.85 m
    Rated net head 332.02 m
    Design discharge 8.43 m3/s
    Earliest Construction start date Jan. 2013
    Estimated time of Commissioning Dec.  2015
    Time for preparatory works 18 months
    Time required for construction 36 months
    Concession Period 30 years
    (after comm.)