Singati signs funding pact

KATHMANDU, AUG 07 – Singati Hydro Energy on Friday signed an agreement with financial institutions for the construction of the 16MW Singati hydropower project based at Waware of Dolakha district.

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A consortium of seven banks have pledged co-financing of Rs1.95 billion. Civil bank has lead the consortium supported by Century Commercial Bank, Prabhu Bank, Business Universal Development Bank, Tourism Development Bank, Vibor Development Bank, Yeti Development Bank, Kastamandap Development Bank and Triveni Development Bank.

One of the Super-Six projects, Singati has already completed Environmental Impact Assessment and has concluded Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA).

The company has said it will sell the energy to NEA at Rs8.40 per unit during dry season and at Rs4.80 during the wet season.

The PPA rate will increase by three percent per year for a period of five years.

The project has applied for energy generation license with the Department of Electricity Development.

Source : ekantipur