Kathmandu – Former Minister for Energy, Water Resources and Irrigation Kulman Ghising has said that decisive progress has been made on the investment framework for the 1,200-megawatt Budhigandaki reservoir-based hydropower project, a national pride project. Through a post on social media platform Facebook today, he informed that an agreement has already been reached between the Ministry of Finance and the National Planning Commission regarding the project’s investment modality.
According to Ghising, this agreement is not merely an administrative formality; rather, it is a concrete step toward moving the Budhigandaki project—long confined to years of uncertainty, debate, and waiting—into the construction phase. He noted that the agreed investment modality has now reached the stage of being decided by the Cabinet.
70 percent debt, 30 percent equity modality
Former minister Ghising has clarified that when he was serving as energy minister, an investment modality to mobilize funding for the project through 70 percent debt and 30 percent equity was prepared in the first week of last mid-November to mid-December. According to him, the project’s base cost has been set at USD 2.77 billion (approximately NPR 374 billion).
Under this framework, the government’s investment will amount to a total of NPR 248 billion, comprising NPR 97.47 billion as equity and NPR 150 billion as concessional loans. It has also been arranged that the approximately NPR 45 billion already spent by the government on the project will be converted into share investment in the project company.
Confidence in building the project through domestic investment
Ghising stated that this modality was prepared with the confidence that such a large reservoir-based project can be constructed using domestic investment alone. According to him, the Budhigandaki project has now reached a stage where it will no longer remain limited to discussions and announcements, but is poised to enter the construction phase.
“Now there is no room for delay; the work must begin,” he said, adding that the Budhigandaki project is not only about electricity generation but also a solid foundation for the belief that the country can become self-reliant.
Achievement of a 115-day tenure
Ghising has claimed this achievement as one of the major successes accomplished during his 115-day tenure in charge of the energy sector. As the Budhigandaki project—long mired in political, financial, and institutional uncertainty—has now reached a stage to move forward with a clear investment framework, it is expected to make a significant contribution to the country’s energy security as well as economic self-reliance.
Jalasarokar