KATHMANDU, May 16 :
The World Bank Group on Friday approved a US$ 84.6 million in financing for the Kabeli-A Hydroelectric Project, paving the way for Kabeli Energy Limited (KEL) to start construction of the 37.6-megawatt capacity project.
Officials of Butwal Power Company, the main promoter of KEL, said construction works would begin soon. The project is said to be of strategic importance for eastern regional industrial hub and load center.
The financing includes $40 million credit and $6 million grant from the International Development Association (IDA) and a $19.3 million loan from the International Finance Corporation (IFC).
Additionally, the package includes a $19.3 million loan from the Canada Climate Change Program (CCCP) for which the IFC acts as the implementing agency.
The project located in Panchthar district is the run-of-river type project. The company plans to connect the energy generated from the project to the national grid via Kabeli Corridor Transmission Line — a separate project financed by the World Bank.
The government had offered the project on Build, Own, Operate and Transfer (BOOT) model to Kabeli Energy Ltd, following international bidding in 2007. Kabeli Energy Ltd will invest $23 million in the project which is estimated to cost $108.6 million.
According to the revised decision, KEL will receive 60 percent of the energy payment from Nepal Electricity Authority (NEA) in US dollar and remaining in Nepali currency.
Source : Republica