Major Investment Secured for Upper Tamor Hydroelectric Project

80

Kathmandu – Investment has been gathered for the construction of the Upper Tamor hydroelectric project with a capacity of 285 megawatts. This is currently the largest hydroelectric project to be constructed from domestic private sector investment. Everest Bank Limited is leading the consortium of Krishi Bikash Bank, HIDCL, Rastriya Banijya Bank, Prabhu Bank, Laxmi Sunrise Bank, Nepal SBI Bank, and Garima Bikash Bank for lending in this project.

In an event organized on Thursday in Kathmandu, Everest Bank’s Chief Executive Officer Sudesh Khaling and Upper Tamor’s Chairman Pushpa Jyoti Dhungana signed the financial management agreement for the Upper Tamor hydroelectric project.

The estimated cost of the project, including construction period interest, is projected to be NPR 55.15 billion. Of this, NPR 16.55 billion will be raised through equity. The remaining NPR 38.60 billion will be invested under the leadership of Everest Bank Limited. Shailaja Acharya, who is expected to pass the Electricity Act of 1992 stated that with the construction of a 1-megawatt project 21 years ago, the Upper Tamor Hydroelectric Company’s chairman Pushpa Jyoti Dhungana has expressed that the company is now in a position to build a 285-megawatt project within two decades.

Nepal Electricity Authority’s chairman Ganesh Karki stated that confirmation has been received that projects up to 500 megawatts can be constructed by domestic private sectors. Therefore, amendments to the Electricity Act are necessary to only allow independent energy producers to pass through Parliament, as today’s event confirmed the ability of domestic private sectors to construct a project of 285 megawatts in capacity. “The Electricity Act is being amended to limit domestic private sectors to projects up to 100 megawatts. Projects ranging from 100 to 500 megawatts can only be constructed by the private sector. Therefore, amendments to the Electricity Act are necessary for passage through Parliament,” Karki said.

Karki thanked all domestic banks and financial institutions for investing in the 285-megawatt project, stating that the project has also revealed what has been achieved. “The project will also build roads from thousands of kilometers away, invest in infrastructure such as schools, hospitals, and drinking water facilities,” he said. “But the work that can cause us grief has not stopped. There has been a delay of four months due to the blockade. Millions of losses have been incurred due to the actions of a single employee.

The chairman expressed sorrow over the government’s failure to allocate in the budget the long-standing issue of domestic consumption of 13,000 megawatts, despite the government’s commitment to produce 28,000 megawatts and export 15,000 megawatts of electricity to India and Bangladesh. Mentioning that an agreement for the export of 10,000 megawatts of electricity has already been made, Karki stated that for the necessary investment of NPR 460 billion for the production of 28,000 megawatts, domestic banks and financial institutions need to be prepared, and only the remaining amount should be sourced from foreign investments.

Source: Kantipur