Laxmi, 10 other banks extend credit line for hydro project

    177

    An existing consortium of 11 financial institutions led by Laxmi Bank signed a supplementary agreement with Sanima Mai Hydropower on Monday to finance the capacity upgradation of 22 MW Mai run-of-the-river hydropower project being constructed at Mai Khola of Ilam.

    “The project is being upgraded from 15.6 MW to 22 MW at an additional cost of around Rs 400 million,” a Laxmi Bank statement says.

    Sanima Mai Hydropower signed a power purchase agreement for upgraded capacity with Nepal Electricity Authority on March 21. The 3.1 billion-rupee project also received generation license from the Ministry of Energy on July 6. The company is promoted by 49 institutional and individual promoters including Sanima Group, non-resident Nepalis, and experts and professionals from the domestic hydropower sector.

    The lenders, including Nabil and Bank of Kathmandu among others, have committed to finance about 75 percent of the project cost.

    Sanima Mai Hydropower (with the upgraded capacity of 22 MW) expects to contribute around 128.29 GWh of power annually to the national grid and will be one of the largest independent power producers when it comes into operation in July 2014.