Projects not using HIDCL loan

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    The promoters, who have signed loan agreement with the Hydropower Investment and Development Company Limited (HIDCL) to construct hydropower projects, have not used the loan.

    The HIDCL has signed loan agreements worth Rs 4.16 billion for projects with combined installed capacity of 350 MW in almost four years but just Rs 50 million (by 23.5 MW Solu Hydropower Project) out of that has been used until now. Studies by the promoters have put estimated cost of constructing these 10 projects at Rs 59.68 billion.

    The HIDCL has not even borrowed Rs 5 billion from the Asian development bank (ADB) in soft loan as the promoters have not used the loan amount with construction of the projects yet to start owing to the earthquake on April 25 and Indian blockade. The HIDCL, in co-financing with banks and financial institutions, has signed loan agreements from Rs 150 million to Rs 1 billion with each project depending on installed capacity.

    Chief Executive Officer (CEO) of HIDCL Deepak Rauniyar says promoters will take the loan amount once construction of the project starts as fuel supply is easing. He claimed that trust of investors and bankers toward the HIDCL is rising thereby increasing the amount of loan agreements. He revealed that the HIDCL is preparing to sign loan agreements with another seven projects.

    Promoters, who have been complaining about lack of capital to invest in the sector, have not been able to use loan as per agreement. Dozens of financially attractive projects also have not been constructed with the promoters failing to make financial arrangements. The government had formed the HIDCL with an aim of investing only in the hydropower sector. The HIDCL signed loan agreement in co-financing with different banks and financial institutions after starting operation in 2010.

    The HIDCL has signed loan agreement worth Rs 900 million for 30 MW Nyadi and 49.6 MW Super Dordi. It has also formed Remit Hydro Limited and made share investment of Rs 50 million to manage investment for Ghunshakhola (71 MW) in Taplejung and Simbuwakhola (53 MW) from youths who have gone for foreign employment.

    The HIDCL has also signed investment agreement for 40-kilometer 400 kVA transmission line from Dhalkebar to Bhittamode under the Nepal-India Trans-national Transmission Line, and agreement for 14 percent of equity investment in the Power Transmission Company Nepal (PTCN).

    Work of Mistrikhola and Lower Solu projects has yet to start due to the delay in construction of transmission line. The HIDCL had signed the first loan agreement for Mistrikhola. There are also problems in transmission line for other projects.

    Capital of the HIDCL has increased to Rs 11 billion after issuing shares worth Rs 2 billion to the public. It is currently earning interest by depositing money in banks. It can now issue bonds and take soft loans from banks and financial institutions, and invest on hydropower projects after issuing shares for commoners.

    Projects with loan agreement

    Projects                                 Installed Capacity             Loan Amount

    Mistrikhola                         42 MW                                  Rs 1 billion

    Dordikhola                          27 MW                                  Rs 500 million

    Solukhola                            23.5 MW                              Rs 200 million

    Khanikhola                         30 MW                                  Rs 400 million

    Bagmatikhola                      20 MW                                  Rs 200 million

    Kaveli B                               25 MW                                  Rs 200 million

    Lower Solu                          82 MW                                  Rs 600 million

    Lower Hewa                        21.6 MW                              Rs 150 million

    Nyadi                                    30 MW                                  Rs 500 million

    Super Dordi                         49.6 MW                              Rs 400 million

    Projects with Share Investment

    Remit Hydro Limited                                                       Rs 50 million

    Power Transmission Company                                      Rs 36.40 million

     

    Source : Karobar Daily